HHS awards $97.3M contract to TRUSTSOLUTIONS, LLC for IT services over 10 years

Contract Overview

Contract Amount: $97,299,149 ($97.3M)

Contractor: Trustsolutions, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2002-05-16

End Date: 2012-05-25

Contract Duration: 3,662 days

Daily Burn Rate: $26.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: TAS::75 0511::TAS

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53214

State: Wisconsin Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $97.3 million to TRUSTSOLUTIONS, LLC for work described as: TAS::75 0511::TAS Key points: 1. The contract value is substantial at $97.3 million. 2. TRUSTSOLUTIONS, LLC is the sole awardee, raising questions about competition. 3. The contract spans a decade, indicating a long-term need. 4. The sector is Information Technology (IT) within healthcare administration.

Value Assessment

Rating: questionable

The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed tightly. Without benchmark data for similar IT services within CMS, it's difficult to definitively assess pricing fairness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This was awarded as a competitive delivery order, suggesting some level of competition existed, but the details of that competition are not provided. The limited nature of the award information makes it hard to gauge price discovery effectiveness.

Taxpayer Impact: The long duration and cost-plus nature of this contract warrant scrutiny to ensure taxpayer funds are used efficiently and effectively.

Public Impact

Impacts the Centers for Medicare and Medicaid Services (CMS) operations. Affects the IT infrastructure supporting critical healthcare programs. Potential for long-term reliance on a single vendor for essential services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information.
Cost Plus Award Fee contract type.
Long contract duration.

Positive Signals

Awarded to a specific company, indicating a potential need.
Likely supports essential CMS functions.

Sector Analysis

This contract falls within the IT sector, specifically supporting healthcare administration for CMS. IT spending in healthcare is significant, focusing on data management, system integration, and cybersecurity.

Small Business Impact

No information is provided regarding small business participation in this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The long duration of the contract necessitates robust oversight from CMS to ensure performance standards are met and costs remain controlled. Accountability mechanisms within the Cost Plus Award Fee structure are crucial.

Related Government Programs

Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Potential for cost overruns due to Cost Plus Award Fee structure.
Limited transparency on the competitive process.
Long-term vendor lock-in risk.
Lack of performance and outcome data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $97.3 million to TRUSTSOLUTIONS, LLC. TAS::75 0511::TAS

Who is the contractor on this award?

The obligated recipient is TRUSTSOLUTIONS, LLC.

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 $97.3 million.

What is the period of performance?

Start: 2002-05-16. End: 2012-05-25.

What specific IT services were procured under this contract, and how do they align with CMS's strategic IT goals?

The provided data does not specify the exact IT services. However, given the agency (CMS) and sector (IT), it likely involves software development, system maintenance, data analytics, or infrastructure support crucial for managing Medicare and Medicaid programs. Alignment with strategic goals would require reviewing CMS's IT modernization plans and procurement justifications.

What was the competitive landscape for this delivery order, and what prevented a more open competition?

The data indicates a 'COMPETITIVE DELIVERY ORDER' but lacks specifics on the number of bidders or the evaluation process. 'Limited' competition suggests that perhaps only a few pre-qualified vendors were considered, or it was part of a larger IDIQ where only certain contract holders could bid. Understanding the rationale for limited competition is key to assessing fairness.

How effectively has TRUSTSOLUTIONS, LLC performed, and have the award fees been justified based on outcomes?

Performance and award fee justification are not detailed in the provided data. A Cost Plus Award Fee contract relies heavily on performance metrics and objective evaluations. Assessing effectiveness would require access to performance reports, award fee determinations, and potentially user feedback from CMS.

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Federal Government Solutions, LLC (UEI: 828151584)

Address: 401 W MICHIGAN ST, MILWAUKEE, WI, 53203

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $97,299,149

Exercised Options: $97,299,149

Current Obligation: $97,299,149

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 500990020

IDV Type: IDC

Timeline