HHS awards $23.5M for TAS WEB PORTAL services, with a significant portion allocated to IT support

Contract Overview

Contract Amount: $23,534,364 ($23.5M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2010-04-15

End Date: 2013-04-14

Contract Duration: 1,095 days

Daily Burn Rate: $21.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TAS::75 0511::TAS WEB PORTAL

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.5 million to CGI FEDERAL INC. for work described as: TAS::75 0511::TAS WEB PORTAL Key points: 1. The contract value of $23.5 million over three years suggests a substantial investment in IT infrastructure and services. 2. Competition dynamics indicate a full and open process, potentially leading to competitive pricing and a wider range of solutions. 3. The contract's duration of 1095 days (3 years) provides a stable period for service delivery but also necessitates ongoing performance monitoring. 4. The primary service category, 'Other Computer Related Services,' is broad and requires detailed understanding of the specific tasks performed. 5. The award was made as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. 6. The contractor, CGI Federal Inc., has a significant presence in the federal IT services market.

Value Assessment

Rating: good

The total award of $23.5 million over three years averages to approximately $7.8 million annually. Benchmarking this against similar IT service contracts for federal agencies of this size and scope is challenging without more specific service details. However, the contract type (Time and Materials) can sometimes lead to higher costs if not managed closely. The provided benchmark of $2,149,300 (br) appears to be a specific component or a prior period's cost, which is too low to be a direct comparison for the entire $23.5M award. Further analysis would require breaking down the costs by labor categories and specific services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that all responsible sources were permitted to submit offers. The fact that it was a delivery order implies it was likely competed within an existing IDIQ contract. Without knowing the specific IDIQ vehicle, it's difficult to ascertain the exact number of bidders. However, full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a wider pool of contractors to offer their best pricing and services.

Public Impact

The primary beneficiaries are likely the Centers for Medicare and Medicaid Services (CMS) and potentially other Health and Human Services (HHS) agencies that utilize the TAS WEB PORTAL. The services delivered are related to 'Other Computer Related Services,' which could encompass a wide range of IT support, maintenance, development, or operational functions for the portal. The geographic impact is primarily within the United States, supporting federal operations, though the portal's reach could extend to beneficiaries and healthcare providers nationwide. Workforce implications include the direct employment of IT professionals by CGI Federal Inc. and potentially indirect employment through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can pose a risk of cost overruns if not meticulously managed and monitored for labor hours and material costs.
The broad 'Other Computer Related Services' category lacks specificity, making it difficult to precisely track performance and value without detailed task orders and deliverables.
The contractor, CGI Federal Inc., has faced scrutiny on other contracts regarding performance and billing practices, necessitating close oversight on this award.

Positive Signals

The award was made under full and open competition, indicating a robust bidding process that should yield competitive pricing and quality.
The contract duration of three years provides stability for the agency to receive consistent IT support for the TAS WEB PORTAL.
The contractor, CGI Federal Inc., is an established entity with significant experience in federal IT services, suggesting a level of capability and understanding of government requirements.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies like HHS being major spenders. Contracts for 'Other Computer Related Services' often include a mix of software development, system maintenance, cloud services, and IT support. The market size for federal IT services is in the hundreds of billions of dollars annually. This contract fits within the broader category of IT modernization and operational support for critical government functions, such as those managed by CMS.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). As a large contract awarded to CGI Federal Inc., a large business, the primary impact on small businesses would be through potential subcontracting opportunities. The extent of small business subcontracting would depend on the prime contractor's subcontracting plan and the specific nature of the services required. Without explicit set-aside provisions, direct benefits to small businesses are unlikely unless they are selected as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and specifically the Centers for Medicare and Medicaid Services (CMS). Mechanisms likely include contract officer representatives (CORs), regular performance reviews, and adherence to federal acquisition regulations. Transparency is facilitated through contract databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

HHS IT Modernization Initiatives
CMS Health IT Services
Federal Cloud Computing Strategy
Government-Wide IT Acquisition Contracts (e.g., GSA Schedules)
Cybersecurity Support Services

Risk Flags

Contract Type Risk (Time and Materials)
Scope Definition Ambiguity
Potential for Cost Overruns
Technology Obsolescence Risk
Contractor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.5 million to CGI FEDERAL INC.. TAS::75 0511::TAS WEB PORTAL

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 $23.5 million.

What is the period of performance?

Start: 2010-04-15. End: 2013-04-14.

What specific services fall under 'Other Computer Related Services' for the TAS WEB PORTAL?

The 'Other Computer Related Services' (NAICS code 541519) category is broad and encompasses a wide range of IT support functions not classified elsewhere. For the TAS WEB PORTAL, this could include activities such as system administration, database management, network support, cybersecurity monitoring, help desk services, software patching and updates, performance tuning, disaster recovery planning and execution, and potentially minor enhancements or bug fixes. The precise scope would be detailed in the contract's Statement of Work (SOW) and subsequent task orders. Without access to the SOW, it's difficult to provide a definitive list, but these are common services within this NAICS code for a web portal.

How does the Time and Materials (T&M) contract type compare to fixed-price contracts for similar IT services?

Time and Materials (T&M) contracts are best suited for situations where the scope of work is not clearly defined or is expected to change. They reimburse the contractor for direct labor hours at specified fixed hourly rates and for the actual cost of materials. While offering flexibility, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the final cost is not predetermined. Fixed-price contracts, conversely, establish a set price for a well-defined scope of work, shifting more risk to the contractor and providing greater cost certainty for the government. For IT services where requirements are stable, fixed-price contracts are often preferred for better cost control.

What is the significance of this award being a 'Delivery Order'?

A 'Delivery Order' (aw: DELIVERY ORDER) indicates that this contract is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract. IDIQ contracts allow agencies to procure supplies or services from vendors over a set period, with specific quantities or dollar amounts to be ordered through individual delivery or task orders. This approach provides flexibility for the agency to acquire services as needed. The fact that it's a delivery order suggests that the initial competition likely occurred when the parent IDIQ contract was awarded, and this specific order represents a defined scope of work and funding for a particular period (April 15, 2010 - April 14, 2013).

What is the historical spending pattern for 'Other Computer Related Services' at HHS or CMS?

Historical spending on 'Other Computer Related Services' (NAICS 541519) by HHS and CMS has been substantial, reflecting the critical role of IT in managing vast healthcare programs like Medicare and Medicaid. While specific aggregate data for this NAICS code across HHS isn't readily available in this format, agencies consistently invest heavily in IT support, maintenance, and modernization. For example, CMS alone manages billions in healthcare spending and relies heavily on robust IT infrastructure. Annual IT spending by federal agencies often runs into the tens of billions, with a significant portion allocated to services like those covered under 541519, encompassing everything from help desk support to complex system integrations and cybersecurity.

What is CGI Federal Inc.'s track record with the federal government, particularly HHS?

CGI Federal Inc. is a major IT contractor with a long history of serving U.S. federal agencies, including HHS. They have held numerous contracts across various departments, providing a wide array of IT services, including system modernization, application development, infrastructure management, and cybersecurity. Like many large federal contractors, CGI Federal has experienced both successes and challenges. Reviews and contract performance data available through federal procurement databases can offer insights into their past performance, including any past performance issues, awards, or contract disputes. Their extensive experience suggests a deep understanding of government contracting processes and requirements.

What are the potential risks associated with a 3-year contract for IT services?

A three-year contract duration (dur: 1095 days) for IT services presents several potential risks. Firstly, technology evolves rapidly; a three-year-old contract might not fully align with the latest technological advancements or security best practices by its end date, potentially leading to obsolescence or increased modernization costs later. Secondly, long-term contracts can sometimes lead to complacency from the contractor if performance monitoring is lax, potentially impacting service quality. Thirdly, if the scope of work is not meticulously managed, the T&M nature of this contract could lead to budget overruns over the three-year period. Finally, agency needs can shift, and a rigid three-year contract might hinder the agency's ability to adapt quickly to new requirements without costly modifications or re-competition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: CGI Inc

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,534,364

Exercised Options: $23,534,364

Current Obligation: $23,534,364

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F4797H

IDV Type: FSS

Timeline