HHS awarded $28.4M for telecom services to HMS Technologies, Inc. over 5 years

Contract Overview

Contract Amount: $28,419,419 ($28.4M)

Contractor: HMS Technologies, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2009-12-31

End Date: 2014-12-30

Contract Duration: 1,825 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TAS::75 0511::TAS TELECOMMUNICATIONS

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.4 million to HMS TECHNOLOGIES, INC. for work described as: TAS::75 0511::TAS TELECOMMUNICATIONS Key points: 1. The contract's value appears reasonable given the 5-year duration and the nature of telecommunications services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract was awarded as a Delivery Order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The firm fixed-price contract type helps mitigate cost overrun risks for the government. 5. The services provided fall under Custom Computer Programming, a common IT support category. 6. The contract's duration of 1825 days (5 years) is standard for IT service contracts of this scope.

Value Assessment

Rating: good

The total award of $28.4 million over five years averages to approximately $5.68 million per year. This figure seems within a reasonable range for comprehensive telecommunications services supporting a large agency like CMS. Without specific details on the scope of services (e.g., number of users supported, specific technologies deployed), a precise benchmark is difficult. However, compared to other large-scale IT service contracts, the annual spend does not appear excessively high.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment where multiple companies likely vied for the contract. The specific number of bidders is not provided, but the 'full and open' designation generally implies a healthy level of competition, which is beneficial for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment that drives down costs. It ensures that the government isn't limited to a single provider, increasing the likelihood of securing services at market-competitive rates.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) staff who rely on robust telecommunications infrastructure for daily operations. Services delivered likely encompass network management, voice and data communication systems, and potentially related IT support for these systems. The geographic impact is primarily within the operational areas of CMS, likely concentrated around their main facilities. Workforce implications include the need for skilled IT professionals to manage and maintain the telecommunications systems, potentially supporting jobs within HMS Technologies, Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the services are highly specialized and difficult to transition.
Reliance on a single contractor for critical telecommunications infrastructure could pose a risk if performance degrades or the contractor faces financial instability.

Positive Signals

Firm fixed-price contract type helps control costs and provides budget certainty.
Full and open competition suggests a competitive market was leveraged, likely resulting in a fair price.
The contract duration of 5 years allows for stability and consistent service delivery.

Sector Analysis

The telecommunications services sector is a critical component of the broader IT services industry, supporting essential communication and data transfer for government agencies. This contract falls within the Custom Computer Programming Services NAICS code (541511), indicating a focus on the development, implementation, and maintenance of software and systems related to telecommunications. Spending in this area is substantial across federal agencies, with significant investments in network infrastructure, cloud integration, and secure communication channels. Benchmarks for similar contracts would typically consider factors like the number of users supported, bandwidth requirements, and the complexity of the network architecture.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. The contractor, HMS Technologies, Inc., is not explicitly identified as a small business in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal based on this award alone, unless HMS Technologies, Inc. has a robust small business subcontracting plan not detailed here.

Oversight & Accountability

As a delivery order under a larger IDIQ contract, oversight would likely be managed by the contracting officer and the program office within CMS responsible for telecommunications. Accountability measures are typically embedded within the contract's performance work statement (PWS), with defined deliverables and service level agreements (SLAs). Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Telecommunications Services
Custom Computer Programming Services
IT Infrastructure Support
Network Management Services
Federal IT Contracts

Risk Flags

Contract Duration
Delivery Order Type
Firm Fixed Price
Full and Open Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.4 million to HMS TECHNOLOGIES, INC.. TAS::75 0511::TAS TELECOMMUNICATIONS

Who is the contractor on this award?

The obligated recipient is HMS TECHNOLOGIES, 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 $28.4 million.

What is the period of performance?

Start: 2009-12-31. End: 2014-12-30.

What specific telecommunications services were provided under this contract?

The provided data indicates the contract falls under NAICS code 541511 (Custom Computer Programming Services) and is related to telecommunications. While the specific services are not detailed, typical offerings under such contracts for an agency like CMS could include network design, implementation, and maintenance; voice over IP (VoIP) services; data network management; secure communication solutions; potentially cloud-based telecommunications integration; and ongoing technical support and troubleshooting for these systems. The firm fixed-price nature suggests a defined scope of work with predictable costs for the government.

How does the $28.4 million award compare to similar telecommunications contracts within HHS or other large federal agencies?

Comparing the $28.4 million award over five years (averaging $5.68 million annually) requires context on the scale of operations supported. For a large agency like CMS, this annual figure might be considered moderate, especially if it covers a significant portion of their telecommunications needs, including data, voice, and potentially video services across multiple locations. Larger agencies often have telecommunications budgets in the tens or hundreds of millions annually. Without knowing the exact number of users, locations, or specific technologies deployed, a precise benchmark is challenging. However, the award does not immediately suggest overspending compared to the general scale of federal IT procurements.

What is the track record of HMS Technologies, Inc. in performing similar federal contracts?

Information on HMS Technologies, Inc.'s specific track record for this contract is limited in the provided data. However, the fact that they were awarded a $28.4 million, five-year contract by the Department of Health and Human Services (specifically CMS) suggests they have demonstrated capabilities and experience relevant to the scope of work. Federal procurement systems often track contractor performance, and agencies typically conduct pre-award responsibility determinations. Further investigation into past performance reviews and other contracts held by HMS Technologies, Inc. would be necessary for a comprehensive assessment of their track record.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks include service disruptions, cybersecurity threats to the telecommunications infrastructure, cost overruns (though mitigated by FFP), and contractor performance issues. Mitigation strategies likely involve the firm fixed-price structure, which shifts cost risk to the contractor. The government would also have performance standards and service level agreements (SLAs) within the contract, allowing for remedies if performance falls short. Cybersecurity requirements and regular audits would address security risks. The use of full and open competition also mitigates the risk of relying on a single, potentially underperforming vendor.

How has federal spending on telecommunications services evolved over the past decade, and where does this contract fit?

Federal spending on telecommunications services has generally trended towards modernization, increased bandwidth, and secure network solutions, often driven by cloud adoption and the need for more robust data handling. While specific figures fluctuate, agencies consistently invest heavily in maintaining and upgrading their communication networks. This $28.4 million contract, awarded between 2009 and 2014, represents a significant but not extraordinary investment for a large agency like CMS during that period. It aligns with the ongoing need for reliable and secure telecommunications to support critical health and human services programs.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 DISCOVERY PL, MARTINSBURG, WV, 25403

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $28,419,419

Exercised Options: $28,419,419

Current Obligation: $28,419,419

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F0834R

IDV Type: FSS

Timeline