HHS Spends $39.7M on IT Services with General Dynamics, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $39,751,542 ($39.8M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2013-03-11
End Date: 2019-01-31
Contract Duration: 2,152 days
Daily Burn Rate: $18.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: IGF::OT::IGF
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $39.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF Key points: 1. Significant contract value of $39.7M for IT services. 2. General Dynamics Information Technology, Inc. is the primary contractor. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. Contract duration spans over 5 years, indicating a long-term need. 5. Services fall under Computer Systems Design, a critical IT sector.
Value Assessment
Rating: good
The contract type is Cost Plus Award Fee, which allows for performance-based incentives. Without specific award fee data, a precise value assessment is difficult, but the competitive award suggests a reasonable price discovery mechanism.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds were likely used efficiently, as multiple bids would drive down costs.
Public Impact
Impacts healthcare IT infrastructure managed by CMS. Ensures continued operation of critical Medicare and Medicaid systems. Supports the technological backbone for health insurance programs. Potential for improved efficiency and service delivery through IT support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long (over 5 years).
- Cost Plus Award Fee contract type can lead to cost overruns if not managed carefully.
Positive Signals
- Awarded under full and open competition.
- Contract supports critical healthcare systems.
- General Dynamics is a well-established IT provider.
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending benchmarks for this category can vary widely based on complexity and scope, but $39.7M over 5 years for a federal agency like HHS is substantial.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Therefore, it is unclear what portion, if any, of this contract value was directed towards small business participation.
Oversight & Accountability
The contract was awarded by the Centers for Medicare and Medicaid Services (CMS), a major agency within HHS. Oversight would typically involve program managers and contracting officers ensuring performance and adherence to contract terms.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Long contract duration may reduce flexibility.
- CPAF contract type requires diligent oversight to control costs.
- Lack of small business participation noted.
- Specific performance metrics and award fee details are not provided.
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 $39.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF
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 $39.8 million.
What is the period of performance?
Start: 2013-03-11. End: 2019-01-31.
What specific IT systems or services were provided under this contract, and how did they contribute to CMS's mission?
The contract was for Computer Systems Design Services. These services likely encompassed the design, development, integration, and maintenance of IT systems crucial for CMS operations, such as those managing Medicare and Medicaid claims, beneficiary data, and program administration. The contribution would be in ensuring the reliability, security, and functionality of these vital healthcare IT infrastructures.
Given the Cost Plus Award Fee structure, what were the key performance metrics and award criteria that influenced the final cost?
The Cost Plus Award Fee (CPAF) structure implies that the contractor's costs were reimbursed, plus a fee that was determined by the government based on performance against pre-defined metrics. These metrics would likely relate to system uptime, security compliance, project delivery timelines, user satisfaction, and achievement of specific IT modernization goals relevant to CMS's mission.
How did the full and open competition process ensure the best value was achieved for these IT services compared to other contracting methods?
Full and open competition allows all responsible sources to submit bids, fostering a competitive environment that typically drives down prices and encourages innovation. For IT services, this process likely resulted in multiple proposals detailing technical approaches and costs, enabling CMS to select the offer that provided the best balance of technical capability, past performance, and price, thereby maximizing value for taxpayers.
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
Solicitation ID: HHSM5002013RFP0014
Offers Received: 2
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: $49,166,890
Exercised Options: $39,751,542
Current Obligation: $39,751,542
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSM500200700021I
IDV Type: IDC
Timeline
Start Date: 2013-03-11
Current End Date: 2019-01-31
Potential End Date: 2019-03-11 00:00:00
Last Modified: 2023-06-01
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