HHS awards $16.4M for Virtual Contact Center Strategy support to Metters Industries, Inc

Contract Overview

Contract Amount: $16,392,759 ($16.4M)

Contractor: Metters Industries, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-09-01

End Date: 2013-06-30

Contract Duration: 1,763 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: VIRTUAL CONTACT CENTER STRATEGY (VCS) SUPPORT

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.4 million to METTERS INDUSTRIES, INC. for work described as: VIRTUAL CONTACT CENTER STRATEGY (VCS) SUPPORT Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. The contract duration of 1763 days suggests a long-term need for these services. 3. Services fall under Computer Systems Design, a critical area for federal IT infrastructure. 4. The award to Metters Industries, Inc. represents a significant investment in IT strategy. 5. Virginia is the primary location for contract performance, impacting the local economy. 6. The contract type is Time and Materials, which requires careful monitoring of labor costs.

Value Assessment

Rating: good

The contract value of $16.4 million over approximately 4.8 years for Virtual Contact Center Strategy (VCS) support appears reasonable given the scope of computer systems design services. Benchmarking against similar large-scale IT strategy contracts within HHS or other agencies would provide a more precise value-for-money assessment. The Time and Materials pricing structure necessitates diligent oversight to ensure costs remain aligned with project milestones and deliverables, as this structure can sometimes lead to cost overruns if not managed effectively. However, the competitive award process suggests that initial pricing was deemed acceptable by the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which is a less common but permissible method. It implies that while the competition was intended to be broad, specific exclusions were made, potentially due to prior performance, specific technical requirements, or other documented reasons. The presence of 3 bidders indicates some level of competition, but the 'exclusion of sources' aspect warrants further investigation to understand its impact on the breadth and intensity of the competition. A truly full and open competition typically involves more bidders and a wider range of potential offerors.

Taxpayer Impact: The limited competition, despite being 'full and open' with exclusions, may have resulted in a less competitive price than if all potential sources were allowed to bid. Taxpayers benefit from any competition, but the potential for higher costs due to source exclusions cannot be ruled out without further analysis.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and potentially the broader healthcare system through improved contact center operations. Services delivered focus on strategic planning and design for virtual contact centers, aiming to enhance efficiency and effectiveness. Geographic impact is primarily centered in Virginia, where contract performance is located. Workforce implications may involve the need for specialized IT and strategy consultants, potentially creating or sustaining high-skilled jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition After Exclusion of Sources' method, while legal, can limit the pool of potential bidders and may not always yield the most competitive pricing.
Time and Materials contract type requires robust government oversight to prevent cost creep and ensure efficient resource utilization.
The long contract duration could pose risks if technology or strategic needs evolve rapidly, potentially leading to outdated solutions if not managed proactively.

Positive Signals

Awarded through a competitive process, indicating that multiple firms were considered.
The contract supports a critical function within CMS, aiming to improve service delivery.
Metters Industries, Inc. has a track record with government contracts, suggesting familiarity with federal procurement processes.

Sector Analysis

The federal IT services sector is a vast and dynamic market, with significant spending allocated to computer systems design and related services. This contract falls within the broader category of IT consulting and support, which is essential for agencies like HHS to modernize their operations and improve citizen services. The market for virtual contact center solutions has grown substantially, driven by the need for scalable, efficient, and accessible customer support. Comparable spending benchmarks for similar strategic IT support contracts within large federal agencies often range from millions to tens of millions of dollars annually, depending on the complexity and duration.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to Metters Industries, Inc., a presumably larger entity given the contract value, suggests that the primary focus was on securing specialized expertise. The impact on the small business ecosystem is likely minimal unless Metters Industries, Inc. voluntarily engages small businesses for subcontracting opportunities, which is not explicitly detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract specialist at the Centers for Medicare and Medicaid Services (CMS). Performance monitoring, invoicing review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through federal procurement databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or identified.

Related Government Programs

HHS IT Modernization Initiatives
CMS Customer Service Enhancement Programs
Federal Contact Center Modernization Efforts
Government IT Consulting Services

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited competition due to 'Exclusion of Sources' designation.
Risk of technology obsolescence if strategy is not adaptable.
Need for strong government oversight to ensure performance and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.4 million to METTERS INDUSTRIES, INC.. VIRTUAL CONTACT CENTER STRATEGY (VCS) SUPPORT

Who is the contractor on this award?

The obligated recipient is METTERS INDUSTRIES, 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 $16.4 million.

What is the period of performance?

Start: 2008-09-01. End: 2013-06-30.

What is the specific nature of the 'Virtual Contact Center Strategy (VCS)' support being provided?

The 'Virtual Contact Center Strategy (VCS) Support' contract awarded to Metters Industries, Inc. by the Department of Health and Human Services (HHS) for the Centers for Medicare and Medicaid Services (CMS) likely involves strategic planning, design, and potentially implementation guidance for enhancing or establishing virtual contact center capabilities. This could encompass areas such as technology assessment, process optimization, workforce management strategies, customer experience enhancement, and the integration of various communication channels (e.g., phone, email, chat, social media) into a unified virtual environment. The goal is typically to improve service delivery, increase efficiency, reduce operational costs, and provide a better experience for beneficiaries interacting with CMS programs.

How does the $16.4 million contract value compare to similar VCS support contracts within HHS or other federal agencies?

Benchmarking the $16.4 million contract value requires comparing it against similar 'Virtual Contact Center Strategy' or broader 'Computer Systems Design Services' contracts awarded by HHS or other large federal agencies over comparable periods. Contracts for strategic IT planning and system design can vary significantly based on scope, duration, and the specific technologies involved. For instance, a multi-year, comprehensive strategy development for a large agency's citizen-facing services could easily reach this value. However, without access to a detailed database of comparable contracts with specific service descriptions and pricing, a precise comparison is difficult. Generally, for a contract spanning nearly five years and involving strategic IT design for a major agency like CMS, $16.4 million represents a substantial but not necessarily excessive investment, assuming the scope of work is comprehensive.

What are the potential risks associated with the Time and Materials (T&M) contract type for this service?

The primary risk with a Time and Materials (T&M) contract type, such as the one awarded to Metters Industries, Inc., is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize longer project durations or less efficient work if the government's oversight and monitoring are insufficient. For 'Virtual Contact Center Strategy' support, risks include scope creep where tasks expand beyond the original intent, leading to increased labor hours, and difficulties in accurately estimating the total project cost upfront. Effective government oversight, including detailed tracking of labor hours, validation of work performed, and strict adherence to ceilings, is crucial to mitigate these risks and ensure value for taxpayer money.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply about the competition level and its impact?

The designation 'Full and Open Competition After Exclusion of Sources' indicates that while the solicitation was intended to be open to all responsible sources, certain potential offerors were excluded from participating. The reasons for exclusion must be documented and justified, often relating to specific technical capabilities, past performance issues, or unique requirements. The presence of 3 bidders suggests that some competition occurred, but the exclusion of other sources inherently limits the breadth of competition compared to a scenario where all interested and capable firms could bid. This limitation could potentially impact price discovery, possibly leading to higher prices than might have been achieved in a completely unrestricted competition. However, if the exclusions were narrowly defined and based on essential criteria, the resulting competition might still yield fair and reasonable pricing.

What is Metters Industries, Inc.'s track record with federal contracts, particularly in IT strategy and system design?

Metters Industries, Inc. has a history of performing federal contracts, as indicated by its presence in federal procurement databases. While the provided data doesn't detail their specific project history, their ability to win a significant contract like this one from HHS suggests they possess the necessary qualifications, experience, and past performance record deemed acceptable by the government. To fully assess their track record, one would need to examine their contract history for similar IT strategy, system design, or contact center-related projects, looking at contract values, performance reviews, and any documented issues. Their success in securing this contract implies they met the government's criteria for technical capability and reliability in the relevant service areas.

How does this contract align with broader federal IT modernization goals or specific agency objectives within HHS/CMS?

This contract directly aligns with broader federal IT modernization goals by focusing on the strategy and design of virtual contact centers. Modernizing citizen-facing services, improving accessibility, and enhancing operational efficiency are key objectives across federal agencies. For HHS and CMS, which handle vast amounts of public interaction related to healthcare and insurance programs, optimizing contact center operations is crucial. A well-designed virtual contact center can lead to better beneficiary support, streamlined processes, and more effective communication. This contract supports the agency's objective to leverage technology for improved service delivery and potentially reduce long-term operational costs through strategic planning and system design.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 8200 GREENSBORO DR STE 500, MC LEAN, VA, 22102

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $16,392,759

Exercised Options: $16,392,759

Current Obligation: $16,392,759

Parent Contract

Parent Award PIID: GS06F0543Z

IDV Type: GWAC

Timeline