HHS Awards CGI Federal $34.3M for HPMS Maintenance and Enhancement Services

Contract Overview

Contract Amount: $34,335,429 ($34.3M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-09-26

End Date: 2013-09-25

Contract Duration: 1,825 days

Daily Burn Rate: $18.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: AWARD OF HEALTH PLAN MANAGEMENT SYSTEM (HPMS) MAINTENANCE AND ENHANCEMENT SERVICES

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $34.3 million to CGI FEDERAL INC. for work described as: AWARD OF HEALTH PLAN MANAGEMENT SYSTEM (HPMS) MAINTENANCE AND ENHANCEMENT SERVICES Key points: 1. Contract awarded for critical health plan management system. 2. CGI Federal Inc. is the sole awardee. 3. Spending spans five years, indicating long-term support needs. 4. The contract falls under Computer Systems Design Services.

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed effectively. The total award amount of $34.3M over five years needs to be benchmarked against similar IT maintenance and enhancement contracts.

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 pricing strategies and how they were evaluated to ensure fair market value are not detailed.

Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure supporting healthcare programs. The value for money depends on the effectiveness of the competition and the contractor's performance.

Public Impact

Ensures continued operation of the Health Plan Management System (HPMS). Supports Centers for Medicare and Medicaid Services (CMS) operations. Potential impact on beneficiaries through system reliability and enhancements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT sector, specifically computer systems design services. Benchmarks for similar maintenance and enhancement contracts for large-scale government IT systems are crucial for assessing value.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or if opportunities were missed.

Oversight & Accountability

Oversight will be critical to ensure CGI Federal meets performance requirements and that the Cost Plus Award Fee structure incentivizes efficiency and cost control.

Related Government Programs

Risk Flags

Tags

computer-systems-design-services, department-of-health-and-human-services, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $34.3 million to CGI FEDERAL INC.. AWARD OF HEALTH PLAN MANAGEMENT SYSTEM (HPMS) MAINTENANCE AND ENHANCEMENT SERVICES

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL 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 $34.3 million.

What is the period of performance?

Start: 2008-09-26. End: 2013-09-25.

What specific performance metrics are in place to evaluate CGI Federal's maintenance and enhancement services, and how do they ensure value for money?

The contract likely includes specific performance work statements (PWS) and metrics tied to system uptime, response times, and successful implementation of enhancements. The Cost Plus Award Fee structure suggests that contractor performance against these metrics directly influences the fee earned, providing an incentive for value delivery. However, the exact metrics and their weighting are not detailed in the provided data.

Given the five-year duration and the nature of IT systems, what is the risk of vendor lock-in or technological obsolescence?

A five-year contract for IT services inherently carries a risk of vendor lock-in, especially if proprietary technologies are used. Technological obsolescence is also a concern; continuous monitoring and planned upgrades are essential. The contract's flexibility for incorporating new technologies and the agency's strategy for managing potential lock-in will mitigate these risks.

How does the Cost Plus Award Fee structure balance contractor incentives with taxpayer protection against cost overruns?

The Cost Plus Award Fee (CPAF) structure aims to balance incentives by allowing the contractor to recover allowable costs plus a fixed fee, which is then adjusted based on performance. This means the contractor is motivated to perform well to earn a higher award fee, but the base fee is fixed. Effective oversight is crucial to ensure costs are reasonable and allocable, and that the award fee is justified by exceptional performance.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design 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: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: CGI Inc

Address: 12601 FAIR LAKES CIR, FAIRFAX, VA, 22033

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $34,335,429

Exercised Options: $34,335,429

Current Obligation: $34,335,429

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSM500200700015I

IDV Type: IDC

Timeline

Start Date: 2008-09-26

Current End Date: 2013-09-25

Potential End Date: 2013-09-25 00:00:00

Last Modified: 2023-01-25

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