CMS awards $48.2M contract for digital communication services to FedResults, Inc

Contract Overview

Contract Amount: $48,245,868 ($48.2M)

Contractor: Fedresults, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2017-03-30

End Date: 2022-03-31

Contract Duration: 1,827 days

Daily Burn Rate: $26.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 000764-AWARD A NEW CONTRACT THAT WILL ALLOW CMS TO CONTINUE UTILIZING THE SERVICES PROVIDED IN THE GOVDELIVERY DIGITAL COMMUNICATION SUITE FOR OUTREACH AND COMMUNICATION EFFORTS. THESE SERVICES INCLUDE BUT IS NOT LIMITED TO: GOVDELIVERY DIGITAL COMMUNICATIONS MANAGEMENT (DCM) GOVDELIVERY DIGITAL COMMUNICATIONS MANAGEMENT (DCM) ADVANCED MODULE GOVDELIVERY CITIZEN SERVICE MANAGEMENT (CSM) GOVDELIVERY TRANSACTIONAL MESSAGING SERVICE (TMS) GOVDELIVERY INTEGRATED SUPPORT SERVICES GOVDELIVERY INTERACTIVE TEXT MESSAGING (OPTIONAL)

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $48.2 million to FEDRESULTS, INC. for work described as: 000764-AWARD A NEW CONTRACT THAT WILL ALLOW CMS TO CONTINUE UTILIZING THE SERVICES PROVIDED IN THE GOVDELIVERY DIGITAL COMMUNICATION SUITE FOR OUTREACH AND COMMUNICATION EFFORTS. THESE SERVICES INCLUDE BUT IS NOT LIMITED TO: GOVDELIVERY DIGITAL COMMUNICATIONS MANAGEMENT (DCM) … Key points: 1. Contract provides essential digital communication tools for CMS outreach. 2. Services include communication management, citizen service management, and transactional messaging. 3. FedResults, Inc. is the contractor for this essential service. 4. The contract duration spans over five years, indicating a long-term need. 5. This award falls under the Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services NAICS code. 6. The contract was awarded using full and open competition. 7. The contract type is Firm Fixed Price, offering cost certainty. 8. The award value is substantial, reflecting the scope of digital outreach required.

Value Assessment

Rating: good

The contract value of $48.2 million over five years for digital communication services appears reasonable given the scope of services provided by GovDelivery. These services are critical for government outreach and citizen engagement. Benchmarking against similar large-scale digital communication platforms for federal agencies suggests this pricing is within expected ranges. The firm fixed-price structure provides cost predictability for CMS.

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 had the opportunity to bid. The fact that there were 26407 bids suggests a highly competitive process. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing for the services rendered.

Taxpayer Impact: A robust competition ensures that taxpayer dollars are used efficiently, as vendors are incentivized to offer their best pricing and services to win the contract.

Public Impact

Beneficiaries include Medicare and Medicaid beneficiaries who receive important program updates and information. Services delivered enable effective outreach and communication strategies for CMS programs. The geographic impact is nationwide, reaching citizens across the United States. Workforce implications include support for CMS staff managing communication campaigns and citizen interactions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative solutions are not explored in future procurements.
Reliance on a single vendor for critical communication infrastructure could pose a risk if the vendor experiences service disruptions.

Positive Signals

The use of a well-established digital communication suite suggests a proven and reliable solution.
The firm fixed-price contract provides budget certainty for the agency.
Full and open competition indicates a healthy market for these services.

Sector Analysis

The contract falls within the IT services sector, specifically focusing on computing infrastructure, data processing, and web hosting. The market for digital communication and citizen engagement platforms is robust, with numerous vendors offering solutions. This contract represents a significant investment in maintaining effective government-to-citizen communication channels, a critical function for agencies like CMS. Comparable spending benchmarks for similar large-scale IT service contracts often range in the tens of millions of dollars annually.

Small Business Impact

This contract does not appear to have a specific small business set-aside. However, the large value of the contract and the nature of the services provided (digital communication suite) might offer subcontracting opportunities for specialized small businesses in areas like content creation, data analytics, or targeted outreach campaigns, depending on the prime contractor's strategy.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Centers for Medicare and Medicaid Services (CMS) is responsible for managing and overseeing the performance of FedResults, Inc. Transparency is maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

CMS Outreach and Communication Services
Digital Government Services
Citizen Engagement Platforms
IT Infrastructure and Hosting Services

Risk Flags

Potential for vendor lock-in
Reliance on a single vendor for critical communication infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $48.2 million to FEDRESULTS, INC.. 000764-AWARD A NEW CONTRACT THAT WILL ALLOW CMS TO CONTINUE UTILIZING THE SERVICES PROVIDED IN THE GOVDELIVERY DIGITAL COMMUNICATION SUITE FOR OUTREACH AND COMMUNICATION EFFORTS. THESE SERVICES INCLUDE BUT IS NOT LIMITED TO: GOVDELIVERY DIGITAL COMMUNICATIONS MANAGEMENT (DCM) GOVDELIVERY DIGITAL COMMUNICATIONS MANAGEMENT (DCM) ADVANCED MODULE GOVDELIVERY CITIZEN SERVICE MANAGEMENT (CSM) GOVDELIVERY TRANSACTIONAL MESSAGING SERVICE (TMS) GOVDELIVERY INTEGRATED SUPPORT SERVICES GOVDELIVERY INTER

Who is the contractor on this award?

The obligated recipient is FEDRESULTS, 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 $48.2 million.

What is the period of performance?

Start: 2017-03-30. End: 2022-03-31.

What is the track record of FedResults, Inc. in providing similar digital communication services to federal agencies?

FedResults, Inc. has a history of providing IT services and solutions to the federal government. While specific details on their track record with GovDelivery's suite are not provided in this data, their ability to win a contract of this magnitude through full and open competition suggests they possess the necessary capabilities and experience. Further investigation into their past performance on similar contracts, client feedback, and any past performance evaluations would provide a more comprehensive understanding of their reliability and effectiveness in delivering digital communication services.

How does the $48.2 million contract value compare to similar digital communication contracts awarded by other federal agencies?

The $48.2 million contract value over five years for comprehensive digital communication services is substantial but appears to be within the expected range for large federal agencies like CMS. Agencies often invest significant amounts in platforms that manage citizen outreach, information dissemination, and engagement. Comparable contracts for similar functionalities, such as mass notification systems, CRM platforms for citizen interaction, or integrated communication suites, can also reach tens of millions of dollars over multi-year periods. The specific features included in the GovDelivery suite (DCM, CSM, TMS) are critical for modern government operations, justifying this level of investment.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential vendor lock-in, service disruptions, and data security breaches. Vendor lock-in can occur if CMS becomes overly reliant on the GovDelivery platform, making future transitions difficult or costly. Service disruptions could impact critical communication channels. Data security is paramount given the sensitive nature of government communications. Mitigation strategies likely involve robust Service Level Agreements (SLAs) with FedResults, Inc., clear performance metrics, regular security audits, contingency planning, and potentially exploring alternative solutions during the contract period or in future procurements to ensure continuity and competitive pricing.

How effective is the GovDelivery Digital Communication Suite in achieving CMS's outreach and communication goals?

The effectiveness of the GovDelivery Digital Communication Suite for CMS is directly tied to its utilization and the strategic implementation of its features. The suite's capabilities, including Digital Communications Management (DCM), Citizen Service Management (CSM), and Transactional Messaging Service (TMS), are designed to enhance outreach and communication efforts. Success would be measured by metrics such as increased citizen engagement, improved dissemination of critical information (e.g., health advisories, program updates), higher open and click-through rates for communications, and overall citizen satisfaction with received information. Without specific performance data from CMS, a definitive assessment of effectiveness is challenging, but the contract's renewal and duration suggest perceived value.

What are the historical spending patterns for digital communication services at CMS or similar agencies?

Historical spending on digital communication services by agencies like CMS has generally trended upwards as government entities increasingly rely on digital channels for citizen engagement and information dissemination. Prior to this $48.2 million award, CMS likely had existing contracts for similar services, potentially with the same or different vendors. Analyzing past spending on IT infrastructure, communication platforms, and outreach tools would reveal trends in investment. The significant value of this current contract suggests a sustained or increased commitment to robust digital communication capabilities, reflecting a broader government-wide shift towards digital-first strategies.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1900 CAMPUS COMMONS DR STE 100, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $48,245,868

Exercised Options: $48,245,868

Current Obligation: $48,245,868

Actual Outlays: $801,547

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0256K

IDV Type: FSS

Timeline