HHS awarded $37.7M for TAS CMS Databases to support health services research

Contract Overview

Contract Amount: $37,716,919 ($37.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2010-04-01

End Date: 2015-09-29

Contract Duration: 2,007 days

Daily Burn Rate: $18.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TAS::75 8189::TAS CMS DATABASES TO SUPPORT HEALTH SERVICES RESEARCH

Place of Performance

Location: WARRENTON, FAUQUIER County, VIRGINIA, 20187

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $37.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TAS::75 8189::TAS CMS DATABASES TO SUPPORT HEALTH SERVICES RESEARCH Key points: 1. Contract value of $37.7M over 5 years suggests a significant investment in health data infrastructure. 2. The contract was competed fully, indicating a competitive market for these specialized IT services. 3. A Cost Plus Fixed Fee (CPFF) contract type can introduce cost escalation risks if not managed closely. 4. The duration of the contract (over 5 years) points to a long-term need for these data services. 5. The North American Industry Classification System (NAICS) code 518210 highlights the focus on data processing and hosting. 6. The award to General Dynamics Information Technology, Inc. places it within a sector dominated by large IT service providers.

Value Assessment

Rating: fair

The contract's total value of $37.7 million over approximately five years averages to about $7.5 million annually. Benchmarking this against similar contracts for large-scale database management and IT infrastructure support within federal health agencies is challenging without more specific service details. However, the CPFF pricing structure warrants careful monitoring to ensure costs remain aligned with the fixed fee and do not escalate beyond initial projections. The absence of a specific benchmark for per-unit cost makes a direct value-for-money assessment difficult.

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 the competition was broad, specific sources may have been excluded at some stage. The presence of multiple bidders (3 noted) suggests a healthy level of competition for this type of IT service. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A fully competed contract helps ensure taxpayer dollars are used efficiently by driving down prices through market forces. The exclusion of sources, however, could potentially limit the most competitive offers if not justified by specific technical or security requirements.

Public Impact

Beneficiaries include researchers and policymakers who rely on comprehensive health services data. The contract delivers essential IT infrastructure for managing and accessing critical health databases. The geographic impact is national, supporting federal health initiatives across the United States. Workforce implications include the need for skilled IT professionals in data management, processing, and hosting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
The 'after exclusion of sources' clause in the competition type warrants scrutiny to ensure it did not unduly limit competition.
Lack of specific performance metrics makes it difficult to assess the effectiveness of the delivered services.
The contract's duration of over 5 years requires ongoing oversight to ensure continued relevance and value.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contract supports critical health services research, aligning with a key government mission.
The award to a large, established IT provider like General Dynamics suggests a degree of reliability and experience.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computing infrastructure, data processing, and hosting. The market for these services is large and highly competitive, with numerous providers ranging from large system integrators to specialized cloud hosting companies. Federal spending in this area is substantial, driven by the need to manage vast amounts of data for various agencies. Comparable spending benchmarks would typically involve analyzing other large-scale data management contracts within HHS and other federal health agencies.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor is there explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a large business. The impact on the small business ecosystem is likely minimal unless General Dynamics Information Technology, Inc. actively engages small businesses as subcontractors, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by the contract award data being publicly available, but detailed operational oversight and Inspector General jurisdiction would depend on specific contract clauses and agency policies.

Related Government Programs

HHS Data Management Contracts
CMS IT Infrastructure Support
Health Services Research Data Platforms
Federal Cloud Computing Services
Large-Scale Database Management Contracts

Risk Flags

Potential for cost overruns due to CPFF structure
Limited transparency on source exclusion justification
Lack of specific performance metrics in award data

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $37.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TAS::75 8189::TAS CMS DATABASES TO SUPPORT HEALTH SERVICES RESEARCH

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 $37.7 million.

What is the period of performance?

Start: 2010-04-01. End: 2015-09-29.

What is the specific nature of the health services research supported by these TAS CMS databases?

The provided data indicates the contract is for 'TAS CMS DATABASES TO SUPPORT HEALTH SERVICES RESEARCH.' While the specific research areas are not detailed, these databases likely house information crucial for analyzing healthcare utilization, costs, quality of care, and population health trends. This could encompass research into Medicare and Medicaid program effectiveness, the impact of health policies, patient outcomes, and the development of new healthcare delivery models. The data's purpose is to provide a foundation for evidence-based decision-making within the Centers for Medicare and Medicaid Services (CMS) and the broader health policy community.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar IT services?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is well-defined but the exact costs are uncertain, allowing for flexibility. In this case, it means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty for the government but can be advantageous when innovation or adaptation is required. However, it carries a higher risk of cost overruns if cost controls are not robust. For IT infrastructure and data processing, FFP or fixed-price incentive fee contracts might offer better cost predictability if requirements are stable.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' clause?

The 'Full and Open Competition After Exclusion of Sources' clause implies that while the competition was intended to be broad, certain potential offerors were deliberately excluded. The primary risk is that this exclusion may have limited the pool of highly qualified or cost-competitive vendors, potentially leading to a less optimal outcome for the government. Without a clear justification for the exclusion (e.g., specific technical capabilities, security clearances, or prior performance), it raises questions about whether the government secured the best possible value. Transparency regarding the reasons for exclusion is crucial for assessing the integrity of the competition.

What is the historical spending pattern for TAS CMS Databases or similar services within HHS?

The provided data shows a single award of $37.7 million from 2010 to 2015 for these specific TAS CMS databases. To understand historical spending patterns, one would need to examine prior contracts for similar database support within CMS and HHS, as well as subsequent contracts awarded after 2015. Analyzing trends in contract values, durations, and competition levels over time would reveal whether spending on such services is increasing, decreasing, or remaining stable, and how procurement strategies have evolved.

How does General Dynamics Information Technology, Inc.'s performance on this contract compare to its overall track record?

Assessing General Dynamics Information Technology, Inc.'s performance on this specific $37.7 million contract requires access to performance evaluations, contract close-out reports, and any documented issues or successes. Without this granular data, a direct comparison is not possible. However, General Dynamics is a large, established defense and IT contractor with a broad portfolio of federal contracts. Their overall track record is extensive, encompassing numerous large-scale IT service delivery programs across various agencies. Performance on this particular contract would need to be evaluated against its specific deliverables and the CPFF structure.

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

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for IT infrastructure and data processing contracts, KPIs would include metrics related to system availability (uptime), data integrity, response times for data retrieval, security compliance, and adherence to project milestones. For a CPFF contract, KPIs might also focus on cost management and efficiency in resource utilization. The effectiveness of the contract is measured by how well these KPIs are met, ensuring the databases reliably support health services research.

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: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFPCMS20098A0001

Offers Received: 3

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: $40,191,786

Exercised Options: $37,716,919

Current Obligation: $37,716,919

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSM500201000001I

IDV Type: IDC

Timeline