HHS awards $27.5M contract for custom programming services to American Management Systems Inc
Contract Overview
Contract Amount: $27,528,103 ($27.5M)
Contractor: American Management Systems Incorporated
Awarding Agency: Department of Health and Human Services
Start Date: 2007-07-01
End Date: 2009-06-30
Contract Duration: 730 days
Daily Burn Rate: $37.7K/day
Competition Type: FOLLOW ON TO COMPETED ACTION
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 $27.5 million to AMERICAN MANAGEMENT SYSTEMS INCORPORATED for work described as: OTHER ADP & TELECOMMUNICATIONS SVCS Key points: 1. Contract awarded to a single large business, potentially missing small business opportunities. 2. The contract is a follow-on to a competed action, suggesting prior competition. 3. Cost Plus Fixed Fee contract type can incentivize cost overruns if not managed carefully. 4. The sector is IT services, specifically custom computer programming.
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which can lead to higher costs if not closely monitored. The award amount of $27.5M for a 2-year duration needs to be benchmarked against similar custom programming services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This was a follow-on to a competed action, indicating some level of prior competition. However, the current award method is not specified as fully competed, suggesting potential limitations in the current competition process.
Taxpayer Impact: The cost-plus-fixed-fee structure requires diligent oversight to ensure taxpayer funds are used efficiently and effectively for the services rendered.
Public Impact
Impacts the Centers for Medicare and Medicaid Services (CMS) by providing essential IT support. Ensures continued operation and development of critical healthcare IT systems. Potential for cost overruns could impact the overall budget allocated for healthcare IT.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Lack of clarity on current competition method
- No small business participation noted
Positive Signals
- Follow-on to a competed action
- Awarded to a known entity (American Management Systems Inc.)
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. Spending in this area is critical for government operations, but benchmarks for similar services are needed to assess value.
Small Business Impact
The data indicates that neither small business (SB) nor small disadvantaged business (SDB) participation was noted for this contract. This suggests a missed opportunity to support small businesses in the IT services sector.
Oversight & Accountability
The effectiveness of oversight for this Cost Plus Fixed Fee contract is crucial. Diligent monitoring of costs and performance is necessary to ensure value for money and prevent potential overruns.
Related Government Programs
- Custom Computer Programming Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Limited competition for the follow-on action
- No noted small business participation
- Need for benchmarking against similar contracts
Tags
custom-computer-programming-services, department-of-health-and-human-services, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $27.5 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 $27.5 million.
What is the period of performance?
Start: 2007-07-01. End: 2009-06-30.
What was the pricing structure and competitive landscape of the original competed action that this contract is a follow-on to?
Understanding the original competition is vital. If the initial competition yielded a strong price and performance, a follow-on could be justified. However, without details on the original pricing and the number of bidders, it's difficult to assess if the current limited competition is optimal or if better pricing could have been achieved through a new full and open competition.
How effectively has the agency managed the Cost Plus Fixed Fee structure to control costs and ensure performance?
Cost Plus Fixed Fee contracts require robust oversight to prevent scope creep and ensure costs remain within reasonable bounds. The agency's ability to manage this contract effectively hinges on detailed performance metrics, regular cost reviews, and proactive risk mitigation. Without this information, it's difficult to ascertain if the $27.5M represents good value or if costs have escalated due to poor management.
What is the specific impact of these custom programming services on the Centers for Medicare and Medicaid Services' operational efficiency and effectiveness?
The custom programming services are intended to support critical IT systems within CMS. The effectiveness of this contract is directly tied to how well these services improve system functionality, reliability, and user experience. Assessing the impact requires understanding the specific projects undertaken, their successful implementation, and the resulting benefits to CMS's mission delivery.
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: FOLLOW ON TO COMPETED ACTION
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: $48,874,765
Exercised Options: $27,528,103
Current Obligation: $27,528,103
Parent Contract
Parent Award PIID: 500020039
IDV Type: IDC
Timeline
Start Date: 2007-07-01
Current End Date: 2009-06-30
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2010-12-10
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