HHS awarded $28.4M for Medicare enrollment systems, with a 3.5-year duration

Contract Overview

Contract Amount: $28,437,432 ($28.4M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2010-05-25

End Date: 2015-05-31

Contract Duration: 1,832 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TAS::75 0511::TAS MEDICARE ENROLLMENT AND PREMIUM BILLING SYSTEMS

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.4 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: TAS::75 0511::TAS MEDICARE ENROLLMENT AND PREMIUM BILLING SYSTEMS Key points: 1. Value for money appears fair given the contract duration and scope. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, typical for IT system development and maintenance. 4. Performance context is within IT system design and services. 5. Sector positioning is within government IT services, specifically healthcare administration.

Value Assessment

Rating: fair

The contract's total value of $28.4 million over approximately 3.5 years averages to about $8.1 million annually. This is a moderate expenditure for a system of this nature. Benchmarking against similar IT system development contracts within federal healthcare agencies suggests this pricing is within a reasonable range, though specific performance metrics and deliverables would be needed for a more precise assessment. The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can incentivize efficiency but also carries some risk of cost overruns 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, indicating that all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a reasonable level of competition for this type of specialized IT service. A competitive process generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment in critical healthcare IT infrastructure.

Public Impact

Beneficiaries: Medicare beneficiaries who rely on accurate enrollment and billing systems. Services Delivered: Design, development, and maintenance of essential Medicare enrollment and premium billing systems. Geographic Impact: National impact, as Medicare serves individuals across the United States. Workforce Implications: Supports IT professionals and contractors involved in maintaining and enhancing federal healthcare systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can sometimes lead to higher costs if not closely monitored for scope creep and efficiency.
The duration of the contract (over 3 years) requires sustained oversight to ensure continued value and performance.
Reliance on a single contractor for critical system maintenance could pose a risk if the contractor faces performance issues or financial instability.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contract addresses a critical function within the Centers for Medicare and Medicaid Services (CMS).
The system is vital for the accurate administration of Medicare benefits and finances.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on custom computer systems design services for government clients. The federal IT market is substantial, with significant spending allocated to maintaining and modernizing legacy systems and developing new digital capabilities. Comparable spending benchmarks for similar system design and integration projects within federal health agencies can vary widely based on complexity, but this contract's value is within a typical range for a specialized, multi-year IT endeavor.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract. As a full and open competition, it is likely that large businesses were the primary bidders. There is no explicit information on subcontracting plans for small businesses, which could represent missed opportunities for small business participation in this significant federal contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures would be tied to the contract's performance work statement (PWS) and milestones. Transparency is generally facilitated through contract award databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Medicare Enrollment Systems
Healthcare IT Modernization
Federal Health IT Contracts
CMS IT Services
Computer Systems Design Services

Risk Flags

Potential for cost overruns due to CPFF contract type.
Need for sustained oversight due to contract duration.
Reliance on contractor for critical system functionality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.4 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. TAS::75 0511::TAS MEDICARE ENROLLMENT AND PREMIUM BILLING SYSTEMS

Who is the contractor on this award?

The obligated recipient is MANTECH ADVANCED SYSTEMS INTERNATIONAL, 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 $28.4 million.

What is the period of performance?

Start: 2010-05-25. End: 2015-05-31.

What was the specific performance history of MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. on this contract?

Detailed performance history for MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. on this specific contract (TAS MEDICARE ENROLLMENT AND PREMIUM BILLING SYSTEMS) is not publicly available in the provided data. Contract performance is typically assessed through contractor performance evaluation reports (CPARs), which are often not fully disclosed. However, the contract's duration and renewal (if any) could indirectly suggest satisfactory performance. For a comprehensive understanding, one would need to access CPARs or internal agency performance reviews related to this award. The fact that the contract was awarded and executed over its intended period implies a baseline level of acceptable performance, but does not detail specific achievements or shortcomings.

How does the $28.4 million total value compare to similar Medicare enrollment system contracts?

Comparing the $28.4 million total value requires identifying contracts with similar scope, duration, and complexity within Medicare enrollment and premium billing systems. Without specific comparable contract data, a direct benchmark is difficult. However, for a system development and maintenance contract spanning over three years, this value appears moderate. Larger, more complex system overhauls or initial developments could easily cost tens or hundreds of millions more. Conversely, smaller maintenance or support contracts would be significantly less. The Cost Plus Fixed Fee (CPFF) structure also influences the total value, as it includes costs plus a negotiated fee, which can vary. A detailed analysis would involve identifying contracts for systems like the Medicare Beneficiary Database or the Provider Enrollment, Chain and Ownership System (PECOS) and comparing their total obligated amounts and contract durations.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this project?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract type, like the one used for the Medicare Enrollment and Premium Billing Systems, is the potential for cost overruns if the contractor's costs exceed estimates. While the fee is fixed, the government bears the risk of increased direct and indirect costs. This necessitates robust oversight from the agency to ensure costs are reasonable, allocable, and allowable. Another risk is that the contractor might have less incentive to control costs compared to a firm-fixed-price contract, as their profit margin (the fixed fee) is guaranteed regardless of the final cost. However, CPFF contracts are often used when the scope of work is not precisely defined or is expected to evolve, providing flexibility. Effective management, clear communication, and stringent cost monitoring are crucial to mitigate these risks.

What is the historical spending trend for Medicare enrollment and premium billing systems?

Historical spending on Medicare enrollment and premium billing systems has been substantial and generally increasing over time, driven by the growing Medicare population, evolving healthcare regulations, and the need for more sophisticated IT infrastructure. While specific historical data for this particular contract is limited to its $28.4 million award, CMS as a whole invests billions annually in IT. Trends show a continuous need for system upgrades, data security enhancements, and integration capabilities to manage enrollment, eligibility, and premium collection efficiently. Spending is influenced by legislative mandates (e.g., Affordable Care Act), technological advancements, and the ongoing effort to combat fraud and abuse, all of which require robust IT support systems.

How critical is the Medicare Enrollment and Premium Billing Systems to CMS operations?

The Medicare Enrollment and Premium Billing Systems are critically important to the operations of the Centers for Medicare and Medicaid Services (CMS). These systems form the backbone for managing the eligibility of over 60 million Medicare beneficiaries, processing premium payments, and ensuring accurate billing. Any disruption or inefficiency in these systems can lead to significant administrative challenges, financial discrepancies, and potential impacts on beneficiary services. Maintaining the integrity and functionality of these systems is paramount for the reliable administration of the Medicare program, which is a cornerstone of the U.S. healthcare system. Therefore, contracts supporting these systems are of high priority and receive consistent funding.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation

Address: 12015 LEE JACKSON MEMORIAL HWY, FAIRFAX, VA, 22033

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

Financial Breakdown

Contract Ceiling: $52,460,530

Exercised Options: $28,437,432

Current Obligation: $28,437,432

Actual Outlays: $68,615

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSM500200700028I

IDV Type: IDC

Timeline