HHS awards $5M for CMS IT modernization, aiming to replace legacy systems with CALM effort

Contract Overview

Contract Amount: $5,038,211 ($5.0M)

Contractor: Iadeptive Technologies LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-02-14

End Date: 2026-06-19

Contract Duration: 856 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE OFFICE OF ACQUISITION AND GRANTS MANAGEMENT (OAGM) IS CURRENTLY REPLACING ITS LEGACY CONTRACT REPORTING SYSTEM VIA THE CMS ACQUISITION LIFECYCLE MODERNIZATION (CALM) EFFORT. OAGM REQUIRES ASSISTANCE WITH DATA MANAGEMENT, REPORTING AND ANALYTICS

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.0 million to IADEPTIVE TECHNOLOGIES LLC for work described as: THE OFFICE OF ACQUISITION AND GRANTS MANAGEMENT (OAGM) IS CURRENTLY REPLACING ITS LEGACY CONTRACT REPORTING SYSTEM VIA THE CMS ACQUISITION LIFECYCLE MODERNIZATION (CALM) EFFORT. OAGM REQUIRES ASSISTANCE WITH DATA MANAGEMENT, REPORTING AND ANALYTICS Key points: 1. Contract focuses on critical IT modernization for CMS acquisition and grants management. 2. The effort aims to improve data management, reporting, and analytics capabilities. 3. This contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 4. The fixed-price contract type suggests a defined scope and predictable costs. 5. The duration of 856 days indicates a substantial, multi-year project. 6. The contractor, IADEPTIVE TECHNOLOGIES LLC, will provide custom computer programming services.

Value Assessment

Rating: good

The award amount of approximately $5 million for custom computer programming services appears reasonable for a multi-year IT modernization project. Benchmarking against similar contracts for system replacement and modernization efforts within federal agencies suggests this is within a typical range. The firm fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor. Further analysis would require comparing the specific deliverables and scope against other custom programming contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all eligible responsible sources were permitted to submit offers. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and innovative solutions. The government's decision to use this procurement method suggests confidence in the availability of multiple qualified vendors for these specialized IT services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids and achieving the best value for the government's investment.

Public Impact

Beneficiaries include the Department of Health and Human Services (HHS) and its Centers for Medicare and Medicaid Services (CMS). Services delivered include data management, reporting, and analytics for acquisition and grants. The geographic impact is primarily within the federal government's IT infrastructure. Workforce implications may involve IT specialists and programmers working on system modernization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single contractor for a critical modernization effort could pose a risk if performance issues arise.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a robust selection process.
The project addresses a clear need for IT system modernization.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on custom computer programming services. The federal IT market is substantial, with significant spending allocated to modernizing legacy systems and improving data management capabilities across various agencies. Comparable spending benchmarks for IT modernization projects of this nature can vary widely based on scope and complexity, but projects aimed at replacing core operational systems often represent significant investments. This contract fits within the broader trend of federal agencies seeking to upgrade their technological infrastructure to enhance efficiency and security.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As such, there are no direct subcontracting implications for small businesses mandated by this specific award. The primary contractor, IADEPTIVE TECHNOLOGIES LLC, is not identified as a small business in the provided data. This means the opportunity for small business participation would likely depend on the prime contractor's own subcontracting plans, if any, beyond any government-wide small business goals.

Oversight & Accountability

Oversight for this contract will likely be managed by the Centers for Medicare and Medicaid Services (CMS) within the Department of Health and Human Services (HHS). The contract is a delivery order, suggesting it falls under a larger IDIQ contract which typically has established oversight mechanisms. Accountability measures will be tied to the performance against the Statement of Work and the firm fixed-price terms. Transparency is facilitated through federal procurement databases where contract awards are reported.

Related Government Programs

CMS Acquisition Lifecycle Modernization (CALM)
Federal IT Modernization Programs
Custom Computer Programming Services Contracts
Department of Health and Human Services IT Spending

Risk Flags

Potential for vendor lock-in if not managed carefully.
Dependency on contractor expertise for critical system modernization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.0 million to IADEPTIVE TECHNOLOGIES LLC. THE OFFICE OF ACQUISITION AND GRANTS MANAGEMENT (OAGM) IS CURRENTLY REPLACING ITS LEGACY CONTRACT REPORTING SYSTEM VIA THE CMS ACQUISITION LIFECYCLE MODERNIZATION (CALM) EFFORT. OAGM REQUIRES ASSISTANCE WITH DATA MANAGEMENT, REPORTING AND ANALYTICS

Who is the contractor on this award?

The obligated recipient is IADEPTIVE TECHNOLOGIES LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $5.0 million.

What is the period of performance?

Start: 2024-02-14. End: 2026-06-19.

What is the track record of IADEPTIVE TECHNOLOGIES LLC with federal contracts, particularly within HHS or CMS?

Information regarding the specific track record of IADEPTIVE TECHNOLOGIES LLC with federal contracts, especially within the Department of Health and Human Services (HHS) or the Centers for Medicare and Medicaid Services (CMS), is not detailed in the provided data snippet. To assess their track record, one would typically review past performance evaluations, contract history databases (like SAM.gov or FPDS), and any reported issues or successes on previous government engagements. A thorough review would involve looking at the types of services they have provided, the value of those contracts, and client feedback to gauge their reliability and capability in delivering similar IT modernization and programming services.

How does the $5.04 million award compare to similar IT modernization contracts for federal agencies?

The $5.04 million award for custom computer programming services to modernize legacy systems is a moderate-sized contract within the federal IT landscape. Comparing it to similar contracts requires analyzing the scope, complexity, and duration. For instance, larger enterprise-wide system replacements can cost tens or hundreds of millions of dollars. However, for a specific modernization effort like replacing a legacy reporting system, $5.04 million over approximately two years (856 days) appears to be within a reasonable range, especially considering the specialized nature of custom programming. Benchmarking would involve looking at contracts for similar services (e.g., data management, reporting system upgrades) awarded by agencies like HHS, GSA, or DOD to gauge if the price per unit of work or overall value is competitive.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential scope creep, where project requirements expand beyond the initial agreement, leading to cost overruns or delays. Another risk is the contractor's performance; if IADEPTIVE TECHNOLOGIES LLC fails to deliver according to the specifications, it could jeopardize the CMS Acquisition Lifecycle Modernization (CALM) effort. Technical risks, such as integration challenges with existing systems or unforeseen complexities in the legacy code, also exist. Mitigation strategies likely include robust project management by CMS, clear definition and control of scope, regular performance reviews, and adherence to the firm fixed-price contract terms which place financial risk on the contractor for cost overruns. Strong contract oversight and communication channels are crucial.

How effective is the 'CALM' effort expected to be in improving CMS's data management and reporting?

The expected effectiveness of the 'CALM' effort hinges on the successful execution of the contract awarded to IADEPTIVE TECHNOLOGIES LLC. The goal is to replace a legacy contract reporting system with modern capabilities for data management, reporting, and analytics. If the project delivers on its objectives, it should significantly enhance the efficiency, accuracy, and accessibility of acquisition and grants data for CMS. This improved data infrastructure can lead to better decision-making, increased transparency, and more streamlined grant management processes. The success will be measured by the system's ability to meet defined performance metrics and user requirements post-implementation.

What is the historical spending trend for custom computer programming services at HHS or CMS?

Historical spending trends for custom computer programming services at HHS and CMS are generally substantial, reflecting the ongoing need for IT modernization and specialized software development within these large healthcare-focused agencies. Both HHS and CMS rely heavily on complex IT systems to manage vast amounts of data related to healthcare programs, research, and administration. Spending in this category often fluctuates based on specific modernization initiatives, system upgrades, and the lifecycle of existing technologies. While the exact historical figures for this specific type of service require detailed analysis of procurement data over several years, it is understood that agencies like CMS consistently invest significant resources in custom programming to maintain and enhance their critical operational systems.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5027 CRAPE MYRTLE CT, ELLICOTT CITY, MD, 21042

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,038,211

Exercised Options: $5,038,211

Current Obligation: $5,038,211

Actual Outlays: $4,038,064

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA23D004R

IDV Type: FSS

Timeline