HHS awards $32.7M contract for IT support to C&T Solutions, LLC, with 12 bids received

Contract Overview

Contract Amount: $32,766,487 ($32.8M)

Contractor: C&T Solutions, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2017-08-01

End Date: 2022-08-14

Contract Duration: 1,839 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF FMSG TECHNICAL SUPPORT CONTRACTOR

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $32.8 million to C&T SOLUTIONS, LLC for work described as: IGF::OT::IGF FMSG TECHNICAL SUPPORT CONTRACTOR Key points: 1. Contract value of $32.7 million over 5 years indicates significant investment in IT support. 2. Full and open competition suggests a robust bidding process, potentially leading to better pricing. 3. The contract type (Cost Plus Fixed Fee) carries inherent risk of cost overruns. 4. Performance is benchmarked against similar IT support contracts within the federal government. 5. This contract positions C&T Solutions, LLC as a key IT service provider for CMS. 6. The duration of 1839 days (approx. 5 years) suggests a long-term need for these services.

Value Assessment

Rating: fair

The contract's total value of $32.7 million over approximately five years averages to about $6.5 million annually. Benchmarking against similar IT support contracts for federal agencies of this size and scope, this figure appears within a reasonable range, though specific performance metrics and deliverables would be needed for a precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can sometimes lead to higher costs compared to fixed-price contracts if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while sources were initially excluded, the competition was ultimately opened to all responsible sources. With 12 bids received, the level of competition appears healthy, suggesting that multiple vendors were interested and capable of performing the required services. This broad participation generally supports price discovery and encourages competitive pricing.

Taxpayer Impact: A competitive bidding process with 12 bidders is beneficial for taxpayers as it increases the likelihood of securing services at a more favorable price point and encourages vendors to offer their best value propositions.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) staff who will receive enhanced IT support. Services delivered encompass computer systems design and related support, crucial for CMS operations. The geographic impact is primarily within Maryland, where the contractor is located. Workforce implications include potential job creation or utilization of existing IT professionals by C&T Solutions, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored.
The broad scope of 'Computer Systems Design Services' may present challenges in defining and controlling specific deliverables.
Reliance on a single contractor for critical IT support could pose risks if performance degrades or the contractor faces financial instability.

Positive Signals

Full and open competition with 12 bidders suggests a strong market response and potential for competitive pricing.
The contract's long duration (approx. 5 years) indicates a stable, long-term need, allowing for focused service delivery.
Successful completion of this contract could enhance C&T Solutions, LLC's reputation and future opportunities within HHS.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a portion of the broader federal spending on IT support, which is essential for the operational efficiency of agencies like CMS. Comparable spending benchmarks for IT support contracts of this nature vary widely based on scope, duration, and complexity, but a $32.7 million award over five years is a significant commitment.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'ss' (small business set-aside) field is false and the 'sb' (small business) field is also false. This suggests the contract was not specifically set aside for small businesses, and the prime contractor, C&T Solutions, LLC, is likely not classified as a small business for this award. There is no explicit information on subcontracting plans for small businesses within the provided data, which would typically be detailed in the contract itself.

Oversight & Accountability

Oversight for this contract would primarily fall under the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. The Department of Health and Human Services (HHS) Office of Inspector General (OIG) may also conduct audits or investigations related to this contract to ensure fiscal integrity and identify any potential fraud, waste, or abuse. Transparency is facilitated through contract databases like FPDS, where award details are publicly available.

Related Government Programs

Federal IT Support Services
Computer Systems Design Services
Centers for Medicare and Medicaid Services Contracts
Department of Health and Human Services IT Spending

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Potential for vendor lock-in due to long contract duration.
Reliance on a single contractor for critical IT functions.
Need for robust performance monitoring to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $32.8 million to C&T SOLUTIONS, LLC. IGF::OT::IGF FMSG TECHNICAL SUPPORT CONTRACTOR

Who is the contractor on this award?

The obligated recipient is C&T SOLUTIONS, 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 $32.8 million.

What is the period of performance?

Start: 2017-08-01. End: 2022-08-14.

What is the track record of C&T Solutions, LLC with federal contracts, particularly within HHS?

C&T Solutions, LLC has a history of federal contracting, with the provided data indicating this specific award from HHS for IT support. To fully assess their track record, a deeper dive into their contract history across various agencies would be necessary. This would involve examining past performance evaluations, any documented disputes or contract terminations, and the types and values of previous awards. A strong history of successful contract completion, particularly within complex environments like CMS, would be a positive indicator. Conversely, a history of performance issues or significant contract modifications could raise concerns about their capability to deliver effectively on this current $32.7 million award.

How does the pricing structure of this Cost Plus Fixed Fee (CPFF) contract compare to market rates for similar IT support services?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Benchmarking CPFF contracts is complex as it depends heavily on the 'cost' component, which can vary. However, the 'fixed fee' portion can be compared to industry standards for profit margins on IT services. Generally, CPFF contracts are used when costs are difficult to estimate accurately. For taxpayers, the risk lies in potential cost overruns, as the government bears the burden of actual costs incurred. A thorough analysis would compare the fixed fee percentage to typical profit margins in the IT services sector and assess if the estimated costs appear reasonable given the contract's scope and duration.

What are the key performance indicators (KPIs) used to measure the success of this IT support contract?

While specific KPIs are not detailed in the provided summary data, typical performance indicators for IT support contracts include system uptime percentages, response times for help desk tickets, resolution rates for technical issues, adherence to security protocols, and timely completion of project milestones. For this contract with CMS, KPIs would likely be tailored to ensure the continuous availability and functionality of critical healthcare IT systems. Performance would be evaluated against these metrics, and deviations could trigger corrective actions or impact future contract renewals. The effectiveness of these KPIs directly influences the value for money realized by the government.

What is the historical spending pattern for similar IT support services at CMS or HHS?

Historical spending data for IT support services at CMS and HHS would provide crucial context for evaluating the $32.7 million award. Analyzing past expenditures on similar contracts, including their values, durations, and the contractors involved, can reveal trends in IT investment and identify potential increases or decreases in spending. For instance, if CMS has consistently spent similar amounts on IT support over the years, this award might represent a continuation of established investment levels. Conversely, a significant jump in spending could warrant further investigation into the reasons, such as new system implementations or expanded service requirements. Understanding these patterns helps assess whether the current contract aligns with historical budgetary allocations and strategic IT priorities.

What are the potential risks associated with relying on C&T Solutions, LLC for critical IT infrastructure support?

Potential risks associated with relying on C&T Solutions, LLC include performance failures, such as system outages or slow response times, which could disrupt CMS operations. There's also the risk of cost overruns, particularly given the CPFF contract type, if project management is inadequate or unforeseen technical challenges arise. Security vulnerabilities are another concern; a breach originating from the contractor's systems or personnel could compromise sensitive healthcare data. Furthermore, the financial stability and long-term viability of C&T Solutions, LLC are factors; if the company faces significant financial distress, it could impact service continuity. Dependence on a single vendor also reduces flexibility and leverage for the government.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFPCMS20178A0006

Offers Received: 12

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 20 F ST NW STE 700, WASHINGTON, DC, 20001

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,128,859

Exercised Options: $32,766,487

Current Obligation: $32,766,487

Actual Outlays: $9,612,392

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline