CMS Awards $26.8M Contract to Cormac Corp for Agile Healthcare Data Analytics Support

Contract Overview

Contract Amount: $26,848,217 ($26.8M)

Contractor: Cormac Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2024-11-25

End Date: 2026-10-27

Contract Duration: 701 days

Daily Burn Rate: $38.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE DATA ANALYTICS SUPPORTING HEALTHCARE (DASH) WILL PROVIDE A COMMERCIAL, STREAMLINED PROCESS TO SUPPORT CMS QUALITY RELATED INITIATIVES WITH THE NEED FOR AGILE DELIVERY SERVICES, INCLUDING IT MANAGEMENT AND GOVERNANCE, BUSINESS PROCESS ANALYSIS, HU

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $26.8 million to CORMAC CORPORATION for work described as: THE DATA ANALYTICS SUPPORTING HEALTHCARE (DASH) WILL PROVIDE A COMMERCIAL, STREAMLINED PROCESS TO SUPPORT CMS QUALITY RELATED INITIATIVES WITH THE NEED FOR AGILE DELIVERY SERVICES, INCLUDING IT MANAGEMENT AND GOVERNANCE, BUSINESS PROCESS ANALYSIS, HU Key points: 1. Contract focuses on agile delivery for quality initiatives, including IT management and business process analysis. 2. Cormac Corporation, the awardee, will provide services to CMS. 3. The contract has a duration of 701 days. 4. The primary sector is IT services, specifically 'Other Computer Related Services'.

Value Assessment

Rating: good

The contract value of $26.8M for a 701-day period appears reasonable for specialized IT and business process support. Benchmarking against similar agile delivery contracts for government agencies would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. The award type is a BPA Call, suggesting it was made against an existing Blanket Purchase Agreement, which can streamline procurement.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple bidders to offer competitive proposals.

Public Impact

Improved data analytics capabilities for CMS quality initiatives. Potential for more efficient and agile IT management and business processes within CMS. Streamlined support for healthcare quality programs through commercial services. Ensures access to specialized IT and business analysis expertise for critical healthcare functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data.
Potential for scope creep in agile development projects.
Reliance on a single awardee for critical support functions.

Positive Signals

Awarded through full and open competition.
Focus on agile delivery for improved responsiveness.
Clear objective to support quality initiatives.

Sector Analysis

The IT services sector, particularly 'Other Computer Related Services' (NAICS 541519), is crucial for government operations. This contract aligns with the trend of agencies seeking agile and specialized IT support to manage complex data and processes, like those within CMS.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this contract.

Oversight & Accountability

The contract's oversight will likely fall under CMS's program management and contracting offices. Agile delivery requires robust oversight to ensure alignment with objectives and manage evolving requirements effectively.

Related Government Programs

Other Computer Related Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Potential for scope creep with FFP and agile.
Lack of detailed performance metrics.
No explicit small business participation noted.
Reliance on a single vendor for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.8 million to CORMAC CORPORATION. THE DATA ANALYTICS SUPPORTING HEALTHCARE (DASH) WILL PROVIDE A COMMERCIAL, STREAMLINED PROCESS TO SUPPORT CMS QUALITY RELATED INITIATIVES WITH THE NEED FOR AGILE DELIVERY SERVICES, INCLUDING IT MANAGEMENT AND GOVERNANCE, BUSINESS PROCESS ANALYSIS, HU

Who is the contractor on this award?

The obligated recipient is CORMAC CORPORATION.

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 $26.8 million.

What is the period of performance?

Start: 2024-11-25. End: 2026-10-27.

What specific quality initiatives will this contract support, and how will success be measured?

The contract aims to support CMS quality-related initiatives through agile delivery services. Specific initiatives are not detailed in the provided data. Success measurement will depend on the performance metrics established within the contract's statement of work, which should outline key performance indicators (KPIs) related to IT management, governance, and business process analysis effectiveness.

What is the risk associated with the firm-fixed-price contract type for agile services?

A firm-fixed-price (FFP) contract type can present a risk when used with agile development, as agile methodologies often involve evolving requirements. This could lead to scope creep if not managed carefully, potentially increasing costs or impacting delivery timelines if the initial price doesn't adequately account for flexibility. However, FFP also provides cost certainty for the government.

How does this contract contribute to the overall effectiveness of CMS's healthcare quality programs?

By providing agile IT management, governance, and business process analysis, this contract aims to enhance the efficiency and responsiveness of CMS's support for quality initiatives. Improved data analytics and streamlined processes can lead to better decision-making, faster implementation of quality improvements, and ultimately, a more effective healthcare system.

Industry Classification

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 161 FORT EVANS RD NE, LEESBURG, VA, 20176

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $76,665,433

Exercised Options: $26,848,217

Current Obligation: $26,848,217

Actual Outlays: $14,896,123

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $3,308,615

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75FCMC22A0011

IDV Type: BPA

Timeline