HHS awards $17.2M contract for ADP/Telecom services to American Management Systems Inc

Contract Overview

Contract Amount: $17,245,530 ($17.2M)

Contractor: American Management Systems Incorporated

Awarding Agency: Department of Health and Human Services

Start Date: 2005-05-23

End Date: 2009-09-30

Contract Duration: 1,591 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: OTHER ADP & TELECOMMUNICATIONS SVCS

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $17.2 million to AMERICAN MANAGEMENT SYSTEMS INCORPORATED for work described as: OTHER ADP & TELECOMMUNICATIONS SVCS Key points: 1. Contract awarded to American Management Systems Inc. for $17.2 million. 2. Service category is Custom Computer Programming Services. 3. Contract type is Cost Plus Fixed Fee. 4. Competition was Full and Open. 5. Contract duration is 1591 days.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed carefully. Benchmarking against similar custom programming services is difficult without detailed scope information.

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 Cost Plus Fixed Fee pricing structure may not always yield the most cost-effective outcome.

Taxpayer Impact: Taxpayer funds are utilized for custom programming services, with potential for cost inefficiencies inherent in the contract type.

Public Impact

Ensures continued operation of critical health IT systems for Medicare and Medicaid. Supports the Centers for Medicare and Medicaid Services' mission. Potential for cost overruns due to the contract type could impact budget.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee pricing can incentivize higher costs.
Contract awarded in 2005, may not reflect current market rates.
No specific small business set-aside noted.

Positive Signals

Full and open competition utilized.
Contract supports essential healthcare services.

Sector Analysis

This contract falls under IT services, specifically custom computer programming. Spending in this sector is substantial across government agencies, with benchmarks varying widely based on complexity and service type.

Small Business Impact

The data indicates this contract was not set aside for small businesses. There is no specific information provided regarding small business participation or subcontracting goals.

Oversight & Accountability

Oversight would be crucial to manage the Cost Plus Fixed Fee structure and ensure services are delivered efficiently and within budget. Agency-level oversight by CMS is expected.

Related Government Programs

Custom Computer Programming Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Cost Plus Fixed Fee pricing risk.
Potential for cost overruns.
Lack of detailed performance metrics in provided data.
Contract awarded over 15 years ago.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.2 million to AMERICAN MANAGEMENT SYSTEMS INCORPORATED. OTHER ADP & TELECOMMUNICATIONS SVCS

Who is the contractor on this award?

The obligated recipient is AMERICAN MANAGEMENT SYSTEMS INCORPORATED.

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 $17.2 million.

What is the period of performance?

Start: 2005-05-23. End: 2009-09-30.

What was the final cost of the contract compared to the initial award amount, and were there any significant cost variances?

The provided data shows an award amount of $17.2 million. To assess the final cost and variances, access to contract modification history and final expenditure reports would be necessary. This information is crucial for understanding the actual taxpayer impact and the effectiveness of cost controls.

How did the performance of American Management Systems Inc. on this contract compare to industry benchmarks for custom computer programming services?

Performance comparison requires access to contractor performance evaluations and specific metrics related to project delivery, quality, and adherence to timelines. Benchmarking against similar government contracts for custom programming services would also be beneficial to gauge value for money.

What specific IT systems or services did this contract support, and what was the impact of these services on Medicare and Medicaid operations?

This contract supported 'OTHER ADP & TELECOMMUNICATIONS SVCS' for the Centers for Medicare and Medicaid Services. The specific systems are not detailed, but such services are vital for the operational integrity and efficiency of healthcare programs serving millions of Americans.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12601 FAIR LAKES CIR, FAIRFAX, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $26,612,472

Exercised Options: $17,245,530

Current Obligation: $17,245,530

Parent Contract

Parent Award PIID: 500020039

IDV Type: IDC

Timeline