HHS awarded $46.8M for IT services, with General Dynamics Information Technology Inc. securing the contract

Contract Overview

Contract Amount: $46,782,217 ($46.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2014-03-24

End Date: 2019-05-31

Contract Duration: 1,894 days

Daily Burn Rate: $24.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: IGF::CL::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 $46.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::CL::IGF Key points: 1. The contract value represents a significant investment in IT modernization and support for critical health programs. 2. Competition dynamics for this contract are crucial for ensuring taxpayer value and efficient service delivery. 3. Performance context suggests a need for robust oversight to ensure services meet evolving healthcare demands. 4. The sector positioning highlights the increasing reliance on IT infrastructure within the federal healthcare system. 5. Risk indicators may include potential cost overruns and the need for continuous adaptation to technological advancements.

Value Assessment

Rating: good

Benchmarking this contract's value against similar IT service contracts within the federal government requires detailed analysis of scope and duration. However, the $46.8 million award over its period of performance suggests a substantial commitment. Without specific comparable contract data, a definitive value-for-money assessment is challenging, but the pricing appears within a reasonable range for complex IT systems design and integration services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a competitive environment, which typically drives better pricing and service quality. The level of competition is a positive sign for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among contractors.

Public Impact

Beneficiaries include federal agencies reliant on robust IT infrastructure for program management and service delivery. Services delivered encompass computer systems design, integration, and potentially ongoing support for healthcare IT systems. Geographic impact is likely nationwide, supporting federal operations across various locations. Workforce implications may involve specialized IT professionals, including system architects, developers, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep leading to increased costs.
Dependency on a single contractor for critical IT functions.
Ensuring data security and privacy of sensitive health information.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Contractor has a track record in providing IT services to the federal government.
Clear performance metrics and oversight mechanisms are expected for a contract of this nature.

Sector Analysis

The federal IT services sector is a vast and critical component of government operations, encompassing everything from infrastructure management to software development and cybersecurity. Spending in this sector is consistently high due to the increasing digitization of government functions and the need for advanced technological solutions. This contract for computer systems design services fits within the broader market for IT support, where companies like General Dynamics Information Technology play a significant role in enabling agency missions.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears limited for this particular award. Future contracts or broader program strategies may include small business participation, but this specific award does not highlight such provisions.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of Health and Human Services. Accountability measures would be tied to the contract's performance work statement, including service level agreements and deliverable milestones. Transparency is generally maintained through contract databases and reporting requirements, though specific internal oversight processes are not detailed here.

Related Government Programs

Health Information Technology Services
Federal Civilian IT Modernization
Centers for Medicare and Medicaid Services IT Support
General IT Services Contracts

Risk Flags

Potential for cost overruns under CPAF structure.
Ensuring adequate performance metrics for award fee determination.
Cybersecurity risks associated with sensitive health data.
Contractor performance history requires detailed review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $46.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::CL::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 $46.8 million.

What is the period of performance?

Start: 2014-03-24. End: 2019-05-31.

What is General Dynamics Information Technology's track record with similar federal IT contracts?

General Dynamics Information Technology (GDIT) has a substantial history of performing IT services for various federal agencies. Their portfolio includes large-scale system integration, cloud migration, cybersecurity, and IT support contracts across defense, civilian, and intelligence sectors. For instance, GDIT has held significant contracts with the Department of Defense, NASA, and other civilian agencies for complex IT modernization efforts. Their experience often involves managing large teams, adhering to stringent security protocols, and delivering mission-critical systems. Evaluating their performance on this specific HHS contract would involve reviewing past performance evaluations, any incurred penalties or awards, and client satisfaction metrics from similar projects.

How does the $46.8 million award compare to average federal spending on computer systems design services?

The $46.8 million award for computer systems design services over its 1894-day duration (approximately 5.2 years) translates to an average annual spend of roughly $9 million. This figure is substantial but needs to be contextualized within the vast federal IT budget. Federal spending on IT services, including systems design, development, and integration, often runs into the tens of billions of dollars annually across all agencies. While this specific contract represents a significant investment for the Centers for Medicare and Medicaid Services (CMS) and HHS, it is one of many such contracts supporting the federal government's extensive IT needs. Benchmarking requires comparing it against contracts of similar scope, complexity, and duration within the healthcare IT domain.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for IT services?

Cost Plus Award Fee (CPAF) contracts, like this one, present specific risks. The primary risk for the government is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. The 'award fee' component aims to mitigate this by providing additional profit for meeting or exceeding performance objectives. However, defining and objectively measuring these objectives can be challenging, potentially leading to disputes or subjective evaluations. For the contractor, the risk lies in not achieving the performance targets required to earn the full award fee, impacting their overall profitability. Effective oversight and clear performance metrics are crucial to managing these risks.

How effective are full and open competitions in ensuring value for taxpayer money in IT procurements?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in IT procurements. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices, encourages innovation, and increases the likelihood of selecting the best-value solution. The presence of multiple bidders, as indicated by the 3 bidders in this case, strengthens this effect. However, the effectiveness also depends on the clarity of the solicitation requirements, the evaluation criteria, and the government's ability to accurately assess proposals. Poorly defined requirements or flawed evaluation processes can diminish the value realized, even under full competition.

What are the historical spending patterns for computer systems design services at HHS?

Historical spending patterns for computer systems design services at the Department of Health and Human Services (HHS) reflect a consistent and significant investment in IT infrastructure and modernization. Agencies within HHS, such as the Centers for Medicare and Medicaid Services (CMS), rely heavily on complex IT systems to manage programs like Medicare and Medicaid. Spending in this category has generally trended upwards over the years, driven by increasing data volumes, evolving regulatory requirements, and the need for more sophisticated analytics and digital services. Analyzing past contract awards for similar services would reveal trends in contract types, average award values, and key contractors, providing context for the $46.8 million awarded here.

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 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: $49,587,554

Exercised Options: $46,782,217

Current Obligation: $46,782,217

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $4,662,382

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSM500200700021I

IDV Type: IDC

Timeline