HHS awards $39M task order for IT systems design to General Dynamics Information Technology

Contract Overview

Contract Amount: $38,970,791 ($39.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2015-09-28

End Date: 2019-09-27

Contract Duration: 1,460 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF TRUSTED THIRD PARTY (TTP) RECOMPETE-----AWARD A NEW TASK ORDER UNDER THE NITAAC CIO-SP3 UNRESTRICTED

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $39.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF TRUSTED THIRD PARTY (TTP) RECOMPETE-----AWARD A NEW TASK ORDER UNDER THE NITAAC CIO-SP3 UNRESTRICTED Key points: 1. Contract awarded under a large, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) vehicle, suggesting potential for streamlined procurement. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but requires robust oversight. 3. Competition level was 'Full and Open', indicating broad market access and potentially competitive pricing. 4. The task order duration is 4 years, aligning with typical IT service lifecycles. 5. The awardee, General Dynamics Information Technology, is a large, established federal contractor. 6. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services.

Value Assessment

Rating: good

Benchmarking the value of this specific task order is challenging without detailed scope and deliverables. However, the award was made under the CIO-SP3 IDIQ, a widely used contract vehicle for IT services. The CPFF contract type requires careful monitoring of costs to ensure value for money, as it shifts some cost risk to the government. Comparing the per-task order value to the overall ceiling of the CIO-SP3 IDIQ would provide further context on its relative size.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under the CIO-SP3 Unrestricted IDIQ contract, which was competed on a full and open basis. This means that all eligible large businesses could compete for the underlying IDIQ contract. The specific task order competition details are not provided, but the nature of the IDIQ suggests a competitive environment for its establishment.

Taxpayer Impact: A full and open competition for the underlying IDIQ contract generally benefits taxpayers by fostering a competitive landscape that can lead to better pricing and service offerings.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) benefits from enhanced computer systems design services. This contract supports the operational needs of a key agency within the Department of Health and Human Services. The services delivered are crucial for the functioning of healthcare IT infrastructure. The geographic impact is primarily within the United States, supporting federal operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage costs effectively and prevent overruns.
Reliance on a large IDIQ vehicle may limit opportunities for smaller, specialized firms if not managed with subcontracting goals.
The specific performance metrics and quality assurance for this task order are not detailed, posing a potential risk if not adequately defined.

Positive Signals

Awarded under a well-established and widely used IT services IDIQ (CIO-SP3), indicating a structured procurement process.
The contractor, General Dynamics Information Technology, is a reputable and experienced provider of federal IT services.
The 'Full and Open' competition for the underlying IDIQ suggests a robust market engagement.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design services. The federal IT services market is substantial, with agencies like HHS being significant spenders. Contracts under vehicles like CIO-SP3 are common for procuring a wide range of IT support, from hardware and software to complex system integration and design.

Small Business Impact

As this task order was awarded under the unrestricted portion of the CIO-SP3 IDIQ, it does not appear to be a small business set-aside. However, the prime contractor, General Dynamics Information Technology, may have subcontracting obligations to small businesses as part of its overall contract performance, which would need to be monitored.

Oversight & Accountability

Oversight for this task order would typically be managed by the Contracting Officer's Representative (COR) at CMS, responsible for monitoring performance, costs, and compliance. The CPFF structure necessitates close financial oversight. Inspector General involvement would be triggered by specific allegations of fraud, waste, or abuse.

Related Government Programs

CIO-SP3 Government-Wide IDIQ
HHS IT Modernization Efforts
CMS Health IT Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost oversight.
Performance metrics and specific deliverables not detailed in summary data.
Reliance on large IDIQ vehicle may limit visibility into specific task order competition dynamics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $39.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF TRUSTED THIRD PARTY (TTP) RECOMPETE-----AWARD A NEW TASK ORDER UNDER THE NITAAC CIO-SP3 UNRESTRICTED

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 $39.0 million.

What is the period of performance?

Start: 2015-09-28. End: 2019-09-27.

What is the historical spending pattern for computer systems design services at CMS?

Analyzing historical spending patterns for computer systems design services at CMS requires access to detailed federal procurement data over several fiscal years. Generally, CMS, as a large healthcare agency, invests significantly in IT to manage programs like Medicare and Medicaid. Spending in this category can fluctuate based on modernization initiatives, system upgrades, and the introduction of new healthcare policies requiring IT support. Without specific data for this NAICS code at CMS, it's difficult to provide precise figures, but it is reasonable to assume consistent, substantial investment in IT infrastructure and design services to support its mission-critical operations.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar IT services?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined at the outset or is expected to evolve. In a CPFF contract, the government reimburses the contractor for allowable costs plus a fixed fee representing profit. This differs from Fixed Price contracts, where the price is set upfront, and Cost Plus Incentive Fee (CPIF) contracts, which include incentives for meeting cost or performance targets. For IT services, CPFF can be advantageous when innovation or flexibility is paramount, but it places a greater burden on the government to monitor costs diligently to ensure value. Fixed-price contracts might offer better price certainty if the scope is well-defined, while CPIF can align contractor and government interests more closely on cost control.

What is General Dynamics Information Technology's track record with similar IT systems design contracts for HHS or CMS?

General Dynamics Information Technology (GDIT) has a substantial track record as a prime contractor for the Department of Health and Human Services (HHS) and its sub-agencies, including the Centers for Medicare and Medicaid Services (CMS). They have historically been awarded numerous large contracts for IT services, encompassing system design, development, integration, and maintenance. Their experience often includes supporting complex healthcare IT systems and large-scale federal IT infrastructure. A review of federal procurement databases would reveal specific past performance details, including contract values, durations, and customer satisfaction ratings, which are typically considered during the evaluation of new awards.

What are the key performance indicators (KPIs) typically associated with computer systems design services contracts?

Key Performance Indicators (KPIs) for computer systems design services contracts often focus on technical performance, project management, and adherence to requirements. These can include metrics such as system uptime and availability, defect density in delivered code, on-time completion of design milestones, adherence to budget, successful integration of system components, and user satisfaction with the designed solutions. For CPFF contracts, KPIs also extend to cost control and efficient resource utilization. The specific KPIs for this task order would be detailed in the contract's Performance Work Statement (PWS) and are crucial for assessing the contractor's performance and ensuring value for the government.

How does this contract fit into the broader IT modernization strategy of CMS?

This task order, focused on computer systems design services, likely supports CMS's broader IT modernization strategy by enabling the development or enhancement of critical systems. CMS, like many large federal agencies, continuously works to update its technological infrastructure to improve efficiency, security, and service delivery for programs like Medicare and Medicaid. Modernization efforts often involve redesigning legacy systems, migrating to cloud-based solutions, or developing new applications to meet evolving healthcare needs and regulatory requirements. This contract's specific contribution would depend on the system(s) it is designed to improve or create, aligning with CMS's strategic goals for technological advancement.

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: NIHJT2010001

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,243,516

Exercised Options: $38,970,791

Current Obligation: $38,970,791

Actual Outlays: $-157,221

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200013W

IDV Type: GWAC

Timeline