HHS Awards $2.67M Contract to People LLC for Automated Enrollee Verification System

Contract Overview

Contract Amount: $2,666,933 ($2.7M)

Contractor: FOR People LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-16

End Date: 2026-09-15

Contract Duration: 364 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CMCS'S OVERALL OBJECTIVE IS TO DESIGN, DEVELOP, AND IMPLEMENT AN AUTOMATED SOLUTION TO REPLACE THE CURRENT MANUAL ENROLLEE VERIFICATION PROCESS. THE FINAL DELIVERABLE SHALL BE A SECURE, RELIABLE, AND WELL- DOCUMENTED SYSTEM THAT CAN BE OPERATED AND

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.7 million to FOR PEOPLE LLC for work described as: CMCS'S OVERALL OBJECTIVE IS TO DESIGN, DEVELOP, AND IMPLEMENT AN AUTOMATED SOLUTION TO REPLACE THE CURRENT MANUAL ENROLLEE VERIFICATION PROCESS. THE FINAL DELIVERABLE SHALL BE A SECURE, RELIABLE, AND WELL- DOCUMENTED SYSTEM THAT CAN BE OPERATED AND Key points: 1. The contract aims to replace a manual process with an automated, secure, and reliable system. 2. This initiative by CMS focuses on improving efficiency and accuracy in enrollee verification. 3. The project is a delivery order under a larger contract, indicating potential for future work. 4. The sector is IT services, specifically 'Other Computer Related Services'.

Value Assessment

Rating: fair

The contract value of $2.67 million for a 364-day duration appears reasonable for developing and implementing a new automated system. Benchmarking against similar IT development contracts would provide a clearer picture of value.

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 that should lead to fair pricing. The specific pricing discovery mechanism within this delivery order is not detailed.

Taxpayer Impact: The investment aims to improve government efficiency, potentially leading to long-term cost savings by automating a manual process and reducing errors.

Public Impact

Improved accuracy and efficiency in processing enrollee information for Medicare and Medicaid. Potential for reduced administrative burden and faster service delivery to beneficiaries. Modernization of a critical government function, enhancing data security and system reliability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics in the provided data.
Potential for scope creep in complex system development projects.
Dependence on a single vendor for a critical system.

Positive Signals

Clear objective to modernize and automate a key government process.
Awarded through full and open competition, suggesting market validation.
Focus on security, reliability, and documentation for the final system.

Sector Analysis

The IT services sector, particularly custom software development and IT consulting, is characterized by rapid innovation and varying contract values. This contract falls within the range for developing specialized government IT solutions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not the primary focus of this specific award, though they may participate as subcontractors.

Oversight & Accountability

As a delivery order, oversight may be managed under the parent contract. The Centers for Medicare and Medicaid Services (CMS) is responsible for ensuring the successful development and implementation of this system.

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 integration challenges with legacy systems.
Risk of project delays impacting the transition from manual processes.
Need for robust cybersecurity measures to protect sensitive enrollee data.
Ensuring adequate user training and adoption for the new system.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.7 million to FOR PEOPLE LLC. CMCS'S OVERALL OBJECTIVE IS TO DESIGN, DEVELOP, AND IMPLEMENT AN AUTOMATED SOLUTION TO REPLACE THE CURRENT MANUAL ENROLLEE VERIFICATION PROCESS. THE FINAL DELIVERABLE SHALL BE A SECURE, RELIABLE, AND WELL- DOCUMENTED SYSTEM THAT CAN BE OPERATED AND

Who is the contractor on this award?

The obligated recipient is FOR PEOPLE 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 $2.7 million.

What is the period of performance?

Start: 2025-09-16. End: 2026-09-15.

What is the expected return on investment for automating the enrollee verification process?

The return on investment is expected through reduced manual labor costs, fewer errors leading to potential rework or compliance issues, and improved data accuracy for program management. Quantifying this requires detailed analysis of current process costs versus projected operational savings and benefits from enhanced data integrity.

What are the primary risks associated with developing and implementing a new automated verification system?

Key risks include technical challenges in integrating with existing systems, potential delays in development and deployment, user adoption issues, and cybersecurity threats. Ensuring robust testing, clear communication, and strong project management are crucial to mitigate these risks effectively.

How will the effectiveness of the new system be measured post-implementation?

Effectiveness will likely be measured by metrics such as reduction in manual processing time, decrease in verification error rates, system uptime and reliability, user satisfaction surveys, and successful integration with other CMS systems. Performance against these KPIs will determine the project's success.

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

Solicitation ID: 75FCMC25QJ076

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1101 WILSON BLVD, ARLINGTON, VA, 22209

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,666,933

Exercised Options: $2,666,933

Current Obligation: $2,666,933

Actual Outlays: $793,354

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA23D007S

IDV Type: FSS

Timeline