HHS awards $38.3M contract for program integrity modeling and analytic support to General Dynamics Information Technology

Contract Overview

Contract Amount: $38,276,977 ($38.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2015-09-29

End Date: 2020-01-30

Contract Duration: 1,584 days

Daily Burn Rate: $24.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF PROCUREMENT OF THE SECOND OF TWO PROGRAM INTEGRITY MODELING AND ANALYTIC SUPPORT CONTRACTS

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $38.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF PROCUREMENT OF THE SECOND OF TWO PROGRAM INTEGRITY MODELING AND ANALYTIC SUPPORT CONTRACTS Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these services. 2. The contract duration of approximately 4.3 years provides a stable period for service delivery. 3. The Cost Plus Fixed Fee (CPFF) pricing structure may incentivize cost control by the contractor. 4. This is the second of two contracts for program integrity modeling, indicating a continued need for these specialized services. 5. The services fall under Computer Systems Design, a critical area for government operations. 6. The award value of $38.3 million is significant, reflecting the importance of program integrity. 7. The contractor, General Dynamics Information Technology, is a major player in the federal IT space.

Value Assessment

Rating: good

The contract value of $38.3 million over roughly 4.3 years suggests an average annual value of approximately $8.9 million. Benchmarking this against similar contracts for IT systems design and analytic support within HHS or other large agencies would be necessary for a precise value-for-money assessment. However, given the specialized nature of program integrity modeling and the CPFF structure, which aims to control costs while allowing for flexibility, the pricing appears reasonable for the scope of work. The competition level also suggests that pricing was likely competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors were likely invited to bid. The presence of four bidders (no=4) suggests a healthy level of competition for this specialized service. This competitive environment generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs and ensures the government receives the best possible value for its investment. The presence of multiple bidders reduces the risk of overpayment and encourages efficiency.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and ultimately, taxpayers, through improved program integrity. Services delivered include modeling and analytic support crucial for identifying and preventing fraud, waste, and abuse in federal healthcare programs. The geographic impact is national, as CMS programs serve beneficiaries across the United States. Workforce implications include the need for skilled data analysts, modelers, and IT professionals within General Dynamics Information Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to cost overruns if not managed carefully, although the fixed fee component aims to mitigate this.
The duration of the contract (over 4 years) means that potential issues or inefficiencies may persist for an extended period if not addressed promptly.
Reliance on a single contractor for a critical function like program integrity modeling could pose a risk if the contractor underperforms or faces significant challenges.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process that likely resulted in a fair price.
The contractor, General Dynamics Information Technology, is a well-established entity with significant experience in federal IT services.
This is the second of two contracts for this service, suggesting a sustained commitment and recognized need for program integrity efforts.
The CPFF structure, while having potential risks, also allows for flexibility in adapting to evolving program integrity needs.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and analytic services. The market for such services is large and competitive, with numerous firms offering specialized solutions. Government spending in this area is substantial, driven by the need for advanced analytics to manage complex programs like Medicare and Medicaid. Comparable spending benchmarks would involve looking at other large IT service contracts awarded by agencies like HHS, DoD, or DHS for similar analytical and system design capabilities.

Small Business Impact

This contract was not set aside for small businesses (sb=false) and was awarded through full and open competition. This suggests that the primary bidders were likely large, established companies capable of handling the scope and complexity of the requirement. There is no explicit information on subcontracting plans for small businesses within the provided data, but given the nature of the work and the prime contractor's size, there may be opportunities for small businesses to participate as subcontractors if they possess specialized skills.

Oversight & Accountability

Oversight for this contract would typically be provided by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. The Inspector General (IG) for the Department of Health and Human Services (HHS) would have jurisdiction to investigate any potential fraud, waste, or abuse related to the contract's performance. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and detailed oversight activities are often internal.

Related Government Programs

Program Integrity
Healthcare Analytics
IT Systems Design
Federal Procurement
Medicare and Medicaid Services

Risk Flags

Potential for cost overruns inherent in CPFF contracts.
Reliance on a single large contractor for critical analytic functions.
Need for robust government oversight to ensure cost control and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $38.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF PROCUREMENT OF THE SECOND OF TWO PROGRAM INTEGRITY MODELING AND ANALYTIC SUPPORT CONTRACTS

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 $38.3 million.

What is the period of performance?

Start: 2015-09-29. End: 2020-01-30.

What is the track record of General Dynamics Information Technology with similar government contracts, particularly within HHS?

General Dynamics Information Technology (GDIT) has a long and extensive history of performing IT services for various U.S. federal agencies, including the Department of Health and Human Services (HHS). They have been a significant contractor for agencies like the Centers for Medicare and Medicaid Services (CMS), the Food and Drug Administration (FDA), and the Centers for Disease Control and Prevention (CDC). Their portfolio often includes large-scale IT modernization, data analytics, cloud services, and cybersecurity solutions. GDIT has managed numerous complex contracts involving sensitive data and critical mission support. While specific performance details for every contract are not publicly available, their consistent presence as a major federal IT contractor suggests a generally satisfactory performance record, though like any large contractor, they may have faced performance challenges on specific projects that were addressed through contract modifications or corrective actions.

How does the value of this contract compare to other program integrity or analytic support contracts within HHS?

The award value of $38.3 million for this program integrity modeling and analytic support contract is substantial, reflecting the critical nature of ensuring the integrity of Medicare and Medicaid programs. To benchmark effectively, one would need to compare it against other contracts for similar services within HHS, particularly those awarded by CMS. For instance, contracts focused on data analytics, fraud detection systems, or IT modernization for healthcare programs often run into tens or hundreds of millions of dollars over their lifecycle. Given that this is the second of two such contracts, it suggests a sustained investment in program integrity capabilities. The annual value of approximately $8.9 million appears reasonable for specialized analytic support in the complex healthcare domain, especially when considering the potential savings generated by effective program integrity measures.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this service?

The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility for evolving requirements, carries specific risks. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as the government agrees to pay all allowable costs plus a fixed fee. If the contractor's cost estimates are inaccurate or if inefficiencies arise, the total cost to the government could exceed initial projections. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee remains profitable. If actual costs significantly exceed estimates, the fixed fee might not adequately compensate them. Effective oversight by the government is crucial to monitor costs, ensure efficiency, and verify that the work performed aligns with the contract's objectives and the fixed fee.

What is the expected impact of this contract on the effectiveness of Medicare and Medicaid program integrity efforts?

This contract is expected to significantly enhance the effectiveness of Medicare and Medicaid program integrity efforts by providing advanced modeling and analytic support. These services are crucial for identifying patterns of fraud, waste, and abuse within the vast datasets generated by these healthcare programs. By developing and applying sophisticated analytical models, the contractor can help CMS proactively detect improper payments, identify high-risk providers and beneficiaries, and inform policy decisions aimed at strengthening program safeguards. The continuity provided by this being the second of two contracts suggests a long-term strategy to leverage data analytics for maintaining program integrity, ultimately protecting taxpayer dollars and ensuring the sustainability of these vital healthcare programs.

How has federal spending on program integrity and related analytic services evolved over the past five years?

Federal spending on program integrity and related analytic services has seen a notable increase over the past five years, driven by legislative mandates and a growing recognition of the need to combat fraud, waste, and abuse in government programs, particularly in healthcare. Agencies like HHS, through CMS, have consistently allocated significant resources to enhance their program integrity capabilities. This includes investments in advanced data analytics, fraud detection technologies, and specialized IT support. The trend reflects a shift towards more proactive and data-driven approaches to oversight. While specific aggregate spending figures fluctuate annually based on budget appropriations and program needs, the overall trajectory indicates a sustained and growing emphasis on program integrity as a core government function.

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: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

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: $47,043,056

Exercised Options: $38,276,977

Current Obligation: $38,276,977

Actual Outlays: $-58,323

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200050W

IDV Type: GWAC

Timeline