HHS Spends $31.8M on Health Insurance Oversight System Contract with CGI Federal
Contract Overview
Contract Amount: $31,847,127 ($31.8M)
Contractor: CGI Federal Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2013-04-15
End Date: 2015-06-14
Contract Duration: 790 days
Daily Burn Rate: $40.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IGF::OT::IGF HEALTH INSURANCE OVERSIGHT SYSTEM (HIOS)
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $31.8 million to CGI FEDERAL INC. for work described as: IGF::OT::IGF HEALTH INSURANCE OVERSIGHT SYSTEM (HIOS) Key points: 1. Contract awarded to CGI Federal Inc. for IT services. 2. The contract value is $31.8 million over its period of performance. 3. Competition was full and open, suggesting potential for competitive pricing. 4. The sector is IT, specifically 'Other Computer Related Services'.
Value Assessment
Rating: fair
The contract was awarded using a Time and Materials pricing structure, which can lead to cost overruns if not managed carefully. The total award value of $31.8M for a 2-year period needs further analysis against similar IT service contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally allows for a broader range of bidders and can lead to better price discovery. The specific impact on pricing for this contract requires a deeper dive into the bidding process.
Taxpayer Impact: The $31.8M expenditure represents taxpayer funds allocated to maintaining critical health insurance oversight systems. Effective management of this contract is crucial to ensure value for money.
Public Impact
Ensures the functionality of the Health Insurance Oversight System (HIOS). Supports the Centers for Medicare and Medicaid Services (CMS) operations. Impacts the administration and regulation of health insurance in the US.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing structure can increase risk of cost overruns.
- Contract duration of 2 years may not be optimal for long-term system development.
Positive Signals
- Awarded under full and open competition.
- Supports a critical government function in healthcare.
Sector Analysis
This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Spending benchmarks for similar IT services contracts with federal agencies can vary widely based on scope and complexity.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses had an opportunity to participate in this contract.
Oversight & Accountability
Oversight of this contract would typically be managed by the Centers for Medicare and Medicaid Services (CMS). Accountability for performance and cost would rest with the contracting officers and program managers.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of clarity on specific performance metrics and outcomes.
- Limited contract duration for potentially long-term system needs.
- No explicit indication of small business participation.
Tags
other-computer-related-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $31.8 million to CGI FEDERAL INC.. IGF::OT::IGF HEALTH INSURANCE OVERSIGHT SYSTEM (HIOS)
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 $31.8 million.
What is the period of performance?
Start: 2013-04-15. End: 2015-06-14.
What was the competitive landscape during the bidding process for this contract?
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. While this suggests a broad competitive field, the specific number of bids received and the evaluation criteria used would provide a clearer picture of the competitive intensity and its potential impact on the final price.
What are the primary risks associated with the Time and Materials pricing structure for this contract?
The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours and materials used. Without robust oversight and clear task definitions, contractors may not have a strong incentive to control costs, leading to expenditures exceeding initial estimates.
How effectively does this contract support the long-term goals of the Health Insurance Oversight System?
The effectiveness of this contract in supporting long-term goals depends on the specific deliverables and the contractor's performance. While the contract ensures the system's operation, the T&M structure and a 2-year duration might not be ideal for significant system modernization or strategic development, potentially requiring future contracts for major enhancements.
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 (UEI: 248513116)
Address: 12601 FAIR LAKES CIRCLE, FAIRFAX, VA, 22033
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $31,847,127
Exercised Options: $31,847,127
Current Obligation: $31,847,127
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $4,085,175
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS35F4797H
IDV Type: FSS
Timeline
Start Date: 2013-04-15
Current End Date: 2015-06-14
Potential End Date: 2015-06-14 00:00:00
Last Modified: 2020-06-16
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