HHS Awards $127.6M Contract to General Dynamics for BCRC Services
Contract Overview
Contract Amount: $127,614,572 ($127.6M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2024-04-25
End Date: 2026-05-08
Contract Duration: 743 days
Daily Burn Rate: $171.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: BENEFITS COORDINATION & RECOVERY CENTER (BCRC)
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10017
State: New York Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $127.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: BENEFITS COORDINATION & RECOVERY CENTER (BCRC) Key points: 1. The contract value is substantial at $127.6 million. 2. General Dynamics Information Technology, Inc. is the sole awardee. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is primarily IT services supporting healthcare administration.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type offers flexibility but lacks strong price controls, potentially leading to higher costs than fixed-price contracts. Benchmarking is difficult without specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific award mechanism (Delivery Order) implies it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which could limit the scope of competition for this specific order.
Taxpayer Impact: Taxpayer funds are being used for essential healthcare benefits coordination. The cost-plus structure warrants careful monitoring to ensure value for money.
Public Impact
Ensures continued operation of the Benefits Coordination & Recovery Center (BCRC). Supports Medicare and Medicaid beneficiaries by managing coordination of benefits. Maintains critical IT infrastructure for healthcare program administration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-Plus Fixed Fee contract type
- Potential for cost overruns
- Lack of specific cost data for benchmarking
Positive Signals
- Awarded under full and open competition
- Supports critical healthcare functions
- Long-term contract duration provides stability
Sector Analysis
This contract falls within the IT services sector, specifically supporting government healthcare administration. Spending benchmarks for similar IT support contracts for federal health agencies can vary widely based on scope and complexity.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The Centers for Medicare and Medicaid Services (CMS) is responsible for oversight. The Cost Plus Fixed Fee structure necessitates robust oversight to manage costs and ensure performance objectives are met.
Related Government Programs
- Engineering Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Cost-Plus Fixed Fee structure
- Potential for cost overruns
- Limited transparency on specific cost components
- Reliance on a single contractor for critical function
Tags
engineering-services, department-of-health-and-human-services, ny, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $127.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. BENEFITS COORDINATION & RECOVERY CENTER (BCRC)
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..
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 $127.6 million.
What is the period of performance?
Start: 2024-04-25. End: 2026-05-08.
What is the projected total cost for the BCRC program over the contract's duration, and how does it compare to historical spending?
The current award is for $127.6 million through May 2026. To assess value, a comparison with historical spending on the BCRC program and similar IT support contracts for healthcare administration is necessary. Understanding the cost drivers within the Cost Plus Fixed Fee structure is crucial for evaluating efficiency.
What are the specific performance metrics and key performance indicators (KPIs) for this contract, and how will they be monitored to mitigate risk?
Detailed performance metrics and KPIs are not provided in the summary data. Robust oversight by CMS is essential to track General Dynamics' performance against defined objectives. Risks associated with service delivery and cost control can be mitigated through regular performance reviews and adherence to contractual obligations.
How effectively does the BCRC program, supported by this contract, contribute to reducing Medicare/Medicaid program waste and improving beneficiary services?
The BCRC program's effectiveness in reducing waste and improving services is a key measure of this contract's value. While the contract ensures operational continuity, its ultimate success hinges on the BCRC's ability to accurately coordinate benefits, identify potential fraud, and streamline processes for beneficiaries.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $305,013,218
Exercised Options: $127,614,572
Current Obligation: $127,614,572
Actual Outlays: $103,443,386
Subaward Activity
Number of Subawards: 65
Total Subaward Amount: $124,375,231
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU116
IDV Type: IDC
Timeline
Start Date: 2024-04-25
Current End Date: 2026-05-08
Potential End Date: 2029-05-08 00:00:00
Last Modified: 2025-09-04
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