HHS awards $59M for Enterprise Systems Development to General Dynamics IT
Contract Overview
Contract Amount: $59,008,853 ($59.0M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2009-02-01
End Date: 2014-03-31
Contract Duration: 1,884 days
Daily Burn Rate: $31.3K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: ENTERPRISE SYSTEMS DEVELOPMENT
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $59.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: ENTERPRISE SYSTEMS DEVELOPMENT Key points: 1. The contract value is $59 million. 2. General Dynamics Information Technology, Inc. is the sole awardee. 3. The contract falls under Computer Systems Design Services. 4. This represents spending in the IT sector.
Value Assessment
Rating: fair
The contract is a Cost Plus Award Fee type, which can lead to higher costs if not managed effectively. Benchmarking against similar IT development contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was awarded as a competitive delivery order, suggesting some level of competition existed. However, the specific competition method and its impact on price discovery are not detailed.
Taxpayer Impact: Taxpayer funds are being used for enterprise systems development, with the ultimate impact depending on the effectiveness and efficiency of the delivered systems.
Public Impact
Impacts the Centers for Medicare and Medicaid Services (CMS) IT infrastructure. Potential for improved or degraded healthcare system performance. Affects the efficiency of government operations related to healthcare.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can incentivize higher spending.
- Lack of detailed competition information hinders price analysis.
- Long contract duration (5 years) increases risk of cost overruns or obsolescence.
Positive Signals
- Awarded under a competitive delivery order.
- Supports critical enterprise systems for CMS.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Spending benchmarks for similar enterprise system development projects vary widely based on scope and complexity.
Small Business Impact
The data indicates that small business participation was not a stated factor in this award (sb: false). Further analysis would be needed to determine if small businesses were subcontracting opportunities.
Oversight & Accountability
Oversight would focus on the performance metrics within the Cost Plus Award Fee structure and the successful delivery of the enterprise systems. Accountability lies with CMS to ensure value for money.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Risk of system obsolescence over the 5-year contract term.
- Limited transparency on competition details.
- Lack of specific system details hinders value assessment.
Tags
computer-systems-design-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $59.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. ENTERPRISE SYSTEMS DEVELOPMENT
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 $59.0 million.
What is the period of performance?
Start: 2009-02-01. End: 2014-03-31.
What specific enterprise systems are being developed or enhanced under this contract, and what is the expected return on investment for CMS?
The contract is for 'ENTERPRISE SYSTEMS DEVELOPMENT' but lacks specificity on the exact systems. A robust ROI analysis would detail expected improvements in operational efficiency, data management, or service delivery for CMS, justifying the $59 million investment.
How was the 'award fee' component structured, and what criteria were used to determine the fee, to ensure it incentivized cost-effectiveness and performance?
The Cost Plus Award Fee (CPAF) structure typically involves performance metrics and objective criteria for earning the award fee. Detailed information on these specific criteria and how they were applied is crucial to assess if the fee truly drove desired outcomes and prevented excessive costs.
Given the 5-year duration, what measures are in place to ensure the developed systems remain relevant and do not become technologically obsolete?
Long-term IT contracts require proactive technology refresh strategies. CMS likely has clauses for system updates or phased replacements, but continuous monitoring of technological advancements and agile development practices would be essential to maintain system relevance.
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: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $60,380,930
Exercised Options: $59,008,853
Current Obligation: $59,008,853
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSM500200700021I
IDV Type: IDC
Timeline
Start Date: 2009-02-01
Current End Date: 2014-03-31
Potential End Date: 2014-07-31 00:00:00
Last Modified: 2022-04-02
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