HHS Awards $135.8M for Computer Systems Design Services to General Dynamics IT
Contract Overview
Contract Amount: $135,829,250 ($135.8M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2012-09-24
End Date: 2017-06-19
Contract Duration: 1,729 days
Daily Burn Rate: $78.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: IGF::OT::IGF
Place of Performance
Location: COLUMBIA, HOWARD County, MARYLAND, 21044
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $135.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF Key points: 1. The contract value is substantial at $135.8 million. 2. General Dynamics Information Technology, Inc. is the sole awardee. 3. The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed carefully. 4. The sector is IT services, specifically computer systems design.
Value Assessment
Rating: fair
The Cost Plus Award Fee contract type allows for flexibility but can incentivize higher spending. Without specific performance metrics and award fee criteria, it's difficult to assess if the pricing is optimal compared to similar fixed-price contracts.
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 specific award mechanism (Delivery Order) and contract type (Cost Plus Award Fee) may influence the final price discovery and overall cost-effectiveness.
Taxpayer Impact: Taxpayer funds are utilized for IT services. The Cost Plus Award Fee structure requires careful oversight to ensure value for money and prevent excessive costs.
Public Impact
This contract supports critical IT infrastructure for the Centers for Medicare and Medicaid Services. The duration of the contract (nearly 5 years) indicates a long-term need for these services. The award to a large, established contractor like General Dynamics IT suggests a focus on stability and expertise.
Waste & Efficiency Indicators
Waste Risk Score: 78 / 10
Warning Flags
- Cost Plus Award Fee structure can lead to higher costs.
- Lack of specific performance metrics for award fee assessment.
- Long contract duration may not adapt to rapidly changing IT needs.
Positive Signals
- Awarded under full and open competition.
- Contract supports essential healthcare IT services.
- Experienced contractor selected.
Sector Analysis
This contract falls within the Information Technology sector, specifically computer systems design services. Spending in this area is crucial for government operations, but benchmarks vary widely based on complexity and scope.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further analysis would be needed to determine if small businesses were involved.
Oversight & Accountability
The Cost Plus Award Fee contract type necessitates robust oversight from the Centers for Medicare and Medicaid Services to ensure performance targets are met and costs are controlled effectively. Regular reviews of award fee determinations are critical.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Award Fee structure.
- Lack of transparency on specific award fee criteria.
- Long contract duration may not be agile enough for evolving IT needs.
- No clear indication of small business participation.
Tags
computer-systems-design-services, department-of-health-and-human-services, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $135.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, 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 $135.8 million.
What is the period of performance?
Start: 2012-09-24. End: 2017-06-19.
What specific performance metrics were used to determine the award fees, and how did they align with the overall objectives of the contract?
The effectiveness of a Cost Plus Award Fee contract hinges on clearly defined and measurable performance metrics. Without access to the specific criteria used for determining award fees, it's challenging to ascertain if General Dynamics IT was adequately incentivized to achieve optimal outcomes and cost efficiencies. A thorough review of the contract's performance work statement and award fee plan is necessary.
How does the total contract value compare to similar IT systems design contracts awarded by other federal agencies for comparable services?
Benchmarking this $135.8 million contract against similar federal IT systems design contracts is crucial for assessing value. Factors like contract duration, scope of work, and specific technologies employed significantly influence pricing. A comprehensive analysis would involve comparing unit costs, labor rates, and overall project costs for contracts with similar objectives and complexities.
What mechanisms are in place to ensure the Cost Plus Award Fee structure does not lead to unnecessary cost growth over the contract's nearly five-year duration?
The inherent risk with Cost Plus Award Fee contracts is potential cost escalation. Effective oversight by the Centers for Medicare and Medicaid Services is paramount. This includes rigorous monitoring of incurred costs, independent verification of expenses, and a transparent, objective process for evaluating performance against award fee criteria to ensure taxpayer funds are used judiciously.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HHSM5002012R3127004
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 15036 CONFERENCE CENTER DR, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $139,212,146
Exercised Options: $135,829,250
Current Obligation: $135,829,250
Actual Outlays: $226,995
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00Q09BGD0055
IDV Type: GWAC
Timeline
Start Date: 2012-09-24
Current End Date: 2017-06-19
Potential End Date: 2017-06-19 00:00:00
Last Modified: 2019-09-30
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