HHS awards $68.7M for custom computer programming, with 14 bids received
Contract Overview
Contract Amount: $68,733,829 ($68.7M)
Contractor: AD HOC LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2016-09-30
End Date: 2019-12-19
Contract Duration: 1,175 days
Daily Burn Rate: $58.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF AWARD OF NEW GSA IT SCHEDULE 70 TASK ORDER. WEBSITE DEVELOPMENT SUPPORT (WDS)
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $68.7 million to AD HOC LLC for work described as: IGF::OT::IGF AWARD OF NEW GSA IT SCHEDULE 70 TASK ORDER. WEBSITE DEVELOPMENT SUPPORT (WDS) Key points: 1. The contract was awarded using full and open competition, indicating a robust bidding process. 2. The fixed-price contract type suggests a clear scope and predictable costs for the government. 3. The duration of over 3 years provides stability for service delivery. 4. The award falls under IT services, a critical sector for government operations. 5. The geographic location of Maryland is noted for this contract.
Value Assessment
Rating: good
The contract's firm fixed-price nature suggests that pricing was established upfront. Benchmarking against similar custom computer programming services is necessary to fully assess value. Given the competitive nature of the award, it is likely that the pricing reflects market rates. However, without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, with 14 bids received. This high number of bidders suggests a healthy competitive environment, which typically drives down prices and encourages innovation. The extensive competition likely allowed the agency to select the most cost-effective and technically capable offer.
Taxpayer Impact: The broad competition ensures that taxpayer dollars are used efficiently by fostering a market where contractors must offer competitive pricing to win awards.
Public Impact
The Centers for Medicare and Medicaid Services (CMS) benefits from enhanced website development support. Services delivered include custom computer programming to support website functionalities. The primary geographic impact is within Maryland, where the contractor is located. The contract supports the IT workforce, likely involving skilled programmers and developers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if initial requirements were not precisely defined.
- Reliance on a single contractor for an extended period could lead to vendor lock-in.
- Ensuring continued alignment with evolving CMS digital strategy requires ongoing oversight.
Positive Signals
- Awarded through full and open competition, maximizing potential for best value.
- Firm fixed-price contract provides cost certainty for the government.
- Long-term duration allows for stable service provision and relationship building.
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. The IT services market is vast and highly competitive, with numerous companies offering specialized development capabilities. This award represents a portion of the government's significant investment in maintaining and enhancing its digital infrastructure, particularly for critical agencies like CMS.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, AD HOC LLC, is likely a larger entity. There is no explicit information on subcontracting plans, but the absence of a small business set-aside suggests that opportunities for small businesses may be limited unless they are part of a larger subcontracting effort managed by the prime contractor.
Oversight & Accountability
The contract is a Delivery Order under a GSA IT Schedule 70 task order, implying adherence to GSA's procurement regulations and oversight. The firm fixed-price structure provides a degree of financial oversight. Further oversight would typically involve contract performance management by CMS, regular reporting from the contractor, and potentially reviews by agency program managers and contracting officers. Inspector General jurisdiction would apply if any fraud or mismanagement were suspected.
Related Government Programs
- GSA IT Schedule 70
- Website Development Services
- Custom Software Development
- Health IT Services
- CMS IT Modernization Efforts
Risk Flags
- Potential for cost overruns if scope is not tightly managed.
- Risk of vendor lock-in due to long contract duration.
- Dependency on contractor's ability to keep pace with technological advancements.
Tags
it, health-it, hhs, cms, custom-computer-programming, full-and-open-competition, firm-fixed-price, delivery-order, gsa-schedule-70, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $68.7 million to AD HOC LLC. IGF::OT::IGF AWARD OF NEW GSA IT SCHEDULE 70 TASK ORDER. WEBSITE DEVELOPMENT SUPPORT (WDS)
Who is the contractor on this award?
The obligated recipient is AD HOC LLC.
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 $68.7 million.
What is the period of performance?
Start: 2016-09-30. End: 2019-12-19.
What is the track record of AD HOC LLC in performing similar government contracts?
Information regarding AD HOC LLC's specific track record on similar government contracts is not provided in the data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous awards. This would help determine their experience level and reliability in delivering custom computer programming services, particularly for large federal agencies like HHS. Without this data, it's difficult to gauge their past performance beyond the fact that they were awarded this significant contract.
How does the awarded price compare to market rates for similar custom computer programming services?
The provided data does not include specific pricing details beyond the total award amount ($68.7 million) and contract type (Firm Fixed Price). To compare this to market rates, one would need to analyze the labor categories, hours, and rates included in the contract, and then benchmark these against industry data for custom computer programming services in the Maryland region. The fact that it was awarded under GSA Schedule 70 and faced 14 bidders suggests competitive pricing, but a precise comparison requires more granular cost information and market analysis tools.
What are the primary risks associated with this contract, and how are they being mitigated?
Potential risks include scope creep, contractor performance issues, and technological obsolescence. Scope creep can be mitigated through clear and detailed initial requirements and robust change control processes. Contractor performance risks are managed through ongoing monitoring, performance metrics, and contractual remedies. Technological obsolescence is addressed by ensuring the contract allows for flexibility and adaptation to new technologies, and by regular reviews of the system's relevance. The firm fixed-price nature helps mitigate cost overrun risks, assuming the scope is well-defined.
How effective has CMS been in managing similar IT development contracts in the past?
The effectiveness of CMS in managing similar IT development contracts is not detailed in the provided data. CMS manages a vast and complex IT portfolio, including critical systems like Medicare and Medicaid. Their success in managing contracts can be inferred from the continued operation and evolution of these systems, but specific performance metrics for past contracts are needed for a thorough evaluation. Past IG reports or GAO reviews related to CMS IT procurements could offer insights into their management capabilities and areas for improvement.
What is the historical spending pattern for custom computer programming services at CMS?
The provided data focuses on a single contract award and does not offer historical spending patterns for custom computer programming services at CMS. To analyze historical spending, one would need access to broader procurement data, looking at the total dollar amounts spent on similar services (NAICS code 541511) by CMS over several fiscal years. This would reveal trends, identify major vendors, and indicate whether spending has increased, decreased, or remained stable, potentially highlighting shifts in IT strategy or needs.
What specific website development support is being provided under this task order?
The data specifies 'Website Development Support (WDS)' as the service provided under this task order, falling under the NAICS code 'Custom Computer Programming Services'. This implies a range of activities related to the design, development, implementation, and potentially maintenance of websites for the Centers for Medicare and Medicaid Services. The exact nature of the support, such as front-end/back-end development, user interface design, database integration, or content management system implementation, would be detailed in the specific task order documentation, which is not included here.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: RFQCMS160737
Offers Received: 14
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1350 I ST NW STE 550, WASHINGTON, DC, 20005
Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $68,733,829
Exercised Options: $68,733,829
Current Obligation: $68,733,829
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS35F392DA
IDV Type: FSS
Timeline
Start Date: 2016-09-30
Current End Date: 2019-12-19
Potential End Date: 2020-03-19 00:00:00
Last Modified: 2023-04-05
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