CIBER, INC. awarded $11.3M for IT support to Military Health Systems, spanning 5 years

Contract Overview

Contract Amount: $11,290,737 ($11.3M)

Contractor: Ciber, Inc.

Awarding Agency: General Services Administration

Start Date: 2006-04-01

End Date: 2011-09-30

Contract Duration: 2,008 days

Daily Burn Rate: $5.6K/day

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: MILITARY HEALTH SYSTEMS SUPPORT

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $11.3 million to CIBER, INC. for work described as: MILITARY HEALTH SYSTEMS SUPPORT Key points: 1. Contract value appears reasonable for the duration and scope of IT support services. 2. Limited competition may have impacted price discovery, potentially leading to higher costs. 3. Contract type (Time and Materials) can pose cost control risks if not managed diligently. 4. Performance period of 5 years suggests a need for stable, long-term IT infrastructure support. 5. This contract falls within the broader IT services sector, supporting critical government functions.

Value Assessment

Rating: fair

The contract value of approximately $11.3 million over five years averages to about $2.26 million annually. Benchmarking against similar IT support contracts for large federal health systems is challenging without more specific service details. However, the Time and Materials (T&M) contract type, while flexible, can lead to cost overruns if not closely monitored for labor hours and rates. The absence of a fixed price or ceiling could indicate a risk of paying more than necessary if efficiencies are not achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under a limited competition, with 5 bidders participating. While not a sole-source award, limited competition suggests that the full benefits of open market price discovery may not have been realized. The number of bidders indicates some level of interest, but it's fewer than what would be expected in a full and open competition, potentially allowing bidders to price with less pressure.

Taxpayer Impact: Limited competition can mean taxpayers may not have secured the absolute lowest price achievable through broader market engagement.

Public Impact

Beneficiaries include military personnel and their families who rely on the Military Health System. Services delivered are crucial for the operational efficiency and data management of health systems. Geographic impact is likely nationwide, supporting various military medical facilities. Workforce implications include the need for skilled IT professionals to maintain complex health IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to uncontrolled cost escalation if not managed rigorously.
Limited competition may have resulted in a higher price than achievable in a more open bidding process.
Lack of specific performance metrics in the provided data makes it difficult to assess value for money.
The duration of the contract (5 years) requires sustained oversight to ensure continued relevance and efficiency.

Positive Signals

Award to CIBER, INC. suggests a contractor with existing capabilities in IT services.
The contract supports a critical government function (Military Health Systems), indicating a recognized need.
Multiple bidders (5) indicate some level of market interest and potential for qualified vendors.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on computer-related services. The market for IT support to federal agencies, particularly in sensitive areas like healthcare, is substantial. Comparable spending benchmarks would typically involve analyzing IT support contracts for other large federal health organizations or defense agencies, looking at metrics like cost per user, cost per system, or cost as a percentage of overall IT budget.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this contract. This means that opportunities for small businesses to directly participate as prime contractors were limited. Subcontracting opportunities may exist, but without specific clauses or goals outlined, their extent is unknown. The impact on the small business ecosystem is neutral to potentially negative if prime contracts of this size are consistently awarded without small business set-aside provisions.

Oversight & Accountability

Oversight for this contract would typically fall under the General Services Administration (GSA) and the specific agency utilizing the services (Military Health Systems). Accountability measures would be defined in the contract's Performance Work Statement (PWS), including service level agreements and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, though detailed operational oversight specifics are often internal to the agency. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Military Health System IT Modernization
Defense Health Agency IT Services
Federal Civilian Health IT Contracts
GSA IT Schedule Contracts
Department of Defense IT Support Services

Risk Flags

Cost Overrun Risk (T&M Contract)
Limited Competition Impact on Price
Potential Lack of Performance Transparency

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $11.3 million to CIBER, INC.. MILITARY HEALTH SYSTEMS SUPPORT

Who is the contractor on this award?

The obligated recipient is CIBER, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2006-04-01. End: 2011-09-30.

What is the specific nature of the 'Other Computer Related Services' provided under this contract?

The provided data classifies the service under NAICS code 541519, 'Other Computer Related Services.' This broad category typically encompasses services like IT consulting, systems integration, custom software development, and IT support that don't fit into more specific categories like network management or data processing. For the Military Health Systems, these services likely involve maintaining and upgrading the IT infrastructure that supports electronic health records (EHRs), medical imaging systems, patient administration, and other critical healthcare IT functions. Without the full contract details or Performance Work Statement (PWS), the exact scope remains generalized, but it implies a comprehensive IT support role.

How does the $11.3 million contract value compare to similar IT support contracts for federal health systems?

Direct comparison of the $11.3 million contract value is difficult without knowing the precise scope of services, duration, and specific IT systems supported. However, for a 5-year contract supporting a critical function like Military Health Systems, this value appears moderate. Large-scale IT support contracts for federal health systems can range from tens of millions to hundreds of millions of dollars, depending on the complexity and scale of the systems. The average annual value of approximately $2.26 million suggests a focused scope, potentially supporting a specific set of systems or a particular region within the Military Health System, rather than an enterprise-wide overhaul.

What are the primary risks associated with the Time and Materials (T&M) contract type used here?

The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or labor rate. Unlike fixed-price contracts, there is less incentive for the contractor to control costs or improve efficiency. If not managed diligently with strict oversight of hours, rates, and material costs, T&M contracts can become significantly more expensive than anticipated. For the Military Health Systems, this could mean higher-than-budgeted expenditures for IT support, potentially diverting funds from other critical healthcare initiatives if cost controls are not robustly enforced by the contracting officers.

What does the limited competition (5 bidders) imply for the contractor's track record and pricing?

Limited competition, with 5 bidders, suggests that while there was some market interest, the pool of qualified vendors may have been restricted or the solicitation was not widely publicized. This can imply that contractors who bid may have had a stronger understanding of the specific requirements or existing relationships with the agency. For CIBER, INC., winning under these conditions might indicate a competitive proposal, but it also means they faced less pressure on pricing compared to a scenario with numerous bidders. Taxpayers might not have benefited from the most aggressive pricing that could have emerged from a broader, more competitive field. It doesn't inherently speak to the contractor's track record, but it influences the pricing dynamics.

How has spending on 'Other Computer Related Services' for the Military Health System evolved over time?

Historical spending data for 'Other Computer Related Services' specifically for the Military Health System, and attributed to GSA's Federal Acquisition Service, is not directly available from the provided snippet. The contract duration (2006-2011) falls within a period of significant IT investment across the federal government, including defense and health sectors, driven by needs for modernization, cybersecurity, and data management. To assess historical spending patterns, one would need to analyze broader contract databases (like FPDS) for similar NAICS codes and agencies over extended periods. This would reveal trends in demand, average contract values, and the prevalence of different contract types for IT support within the military health domain.

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 › ADP AND TELECOMMUNICATIONS

Contractor Details

Address: 6363 S FIDDLERS GREEN CIR STE 1400, GREENWOOD VILLAGE, CO, 06

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,585,448

Exercised Options: $11,290,737

Current Obligation: $11,290,737

Parent Contract

Parent Award PIID: GS35F0499K

IDV Type: FSS

Timeline