HHS Awards $49M to General Dynamics for Computer Systems Design Services
Contract Overview
Contract Amount: $49,087,338 ($49.1M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2015-01-14
End Date: 2020-01-13
Contract Duration: 1,825 days
Daily Burn Rate: $26.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $49.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF Key points: 1. Contract awarded to a single large business, General Dynamics Information Technology, Inc. 2. Services fall under the 'Computer Systems Design Services' NAICS code. 3. The contract duration is 5 years, indicating a long-term need. 4. The award was made under full and open competition. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type, while allowing flexibility, carries inherent risks of cost escalation. Benchmarking against similar contracts for Computer Systems Design Services is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms within the Cost Plus Fixed Fee structure are not detailed, potentially impacting the final price.
Taxpayer Impact: Taxpayer funds are utilized for this contract. The Cost Plus Fixed Fee structure necessitates careful oversight to ensure costs remain reasonable and deliver value.
Public Impact
Impacts healthcare administration through IT support for Medicare and Medicaid. Ensures continuity of essential IT services for federal health programs. Supports a major federal agency's operational capabilities. Potential for cost overruns due to contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (5 years)
Positive Signals
- Full and open competition
- Awarded to established IT provider
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on computer systems design and related services. Spending benchmarks for this category can vary widely based on complexity and scope, but $49 million over five years for a federal agency like HHS is within a typical range for significant IT support.
Small Business Impact
The contract was awarded to a large business, General Dynamics Information Technology, Inc. There is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
The Cost Plus Fixed Fee contract type requires robust oversight to manage costs and ensure performance aligns with the fixed fee. The 5-year duration necessitates ongoing monitoring by the Centers for Medicare and Medicaid Services to ensure continued value and accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Cost Plus Fixed Fee contract type may lead to cost overruns.
- Long contract duration (5 years) increases exposure to potential performance issues or changing needs.
- Lack of detail on specific services and performance metrics.
- No indication of small business participation.
Tags
computer-systems-design-services, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $49.1 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 $49.1 million.
What is the period of performance?
Start: 2015-01-14. End: 2020-01-13.
What specific computer systems design services are being provided under this contract, and how do they align with CMS's strategic IT goals?
The contract is for 'Computer Systems Design Services' (NAICS 541512). While the specific services aren't detailed, they likely encompass the design, development, integration, and maintenance of complex IT systems supporting Medicare and Medicaid operations. Understanding alignment with CMS's strategic IT goals would require reviewing the contract's statement of work and performance metrics.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this $49 million award, and what mitigation strategies are in place?
The primary risk of CPFF is that the contractor may incur costs exceeding initial estimates, potentially leading to higher final prices for the government. Mitigation strategies typically involve stringent cost monitoring, detailed reporting requirements, and clear performance metrics to ensure the fixed fee is earned and costs are justified.
How does the pricing of this contract compare to industry benchmarks for similar computer systems design services, considering the 5-year duration and full and open competition?
Benchmarking is challenging without specific service details. However, a 5-year contract valued at $49 million, awarded under full and open competition, suggests a competitive price point. The CPFF structure introduces variability, making direct comparisons difficult without analyzing the cost components and the government's negotiated rates.
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: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
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: $49,087,338
Exercised Options: $49,087,338
Current Obligation: $49,087,338
Actual Outlays: $15,779
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSM500200700021I
IDV Type: IDC
Timeline
Start Date: 2015-01-14
Current End Date: 2020-01-13
Potential End Date: 2020-01-13 00:00:00
Last Modified: 2024-05-28
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