IHS awards $15.3M contract for health IT modernization, aiming to enhance data warehousing capabilities

Contract Overview

Contract Amount: $15,290,394 ($15.3M)

Contractor: Cherokee Nation Integrated Health, L.L.C.

Awarding Agency: Department of the Interior

Start Date: 2024-09-24

End Date: 2026-09-23

Contract Duration: 729 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: INDIAN HEALTH SERVICE (IHS) HEALTH INFORMATION TECHNOLOGY (IT) MODERNIZATION PROGRAM FOR THE DEVELOPMENT OF THE FOUR DIRECTIONS WAREHOUSE (4DW)

Place of Performance

Location: TULSA, TULSA County, OKLAHOMA, 74103

State: Oklahoma Government Spending

Plain-Language Summary

Department of the Interior obligated $15.3 million to CHEROKEE NATION INTEGRATED HEALTH, L.L.C. for work described as: INDIAN HEALTH SERVICE (IHS) HEALTH INFORMATION TECHNOLOGY (IT) MODERNIZATION PROGRAM FOR THE DEVELOPMENT OF THE FOUR DIRECTIONS WAREHOUSE (4DW) Key points: 1. Contract focuses on developing a data warehouse to support IHS's health IT modernization. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 4. The contractor, Cherokee Nation Integrated Health, L.L.C., will provide IT services for the Four Directions Warehouse. 5. The duration of the contract is 729 days, indicating a medium-term project. 6. The geographic location for performance is Oklahoma. 7. This contract is part of a broader effort to modernize IHS's health information technology infrastructure.

Value Assessment

Rating: fair

The contract value of $15.3 million for a 729-day period for IT modernization and data warehousing appears to be within a reasonable range for such services. However, without specific benchmarks for the 'Four Directions Warehouse' development or comparable IHS IT modernization projects, a precise value-for-money assessment is difficult. The Time and Materials (T&M) contract type introduces inherent risk for cost overruns if not diligently managed and monitored by the agency. Benchmarking against similar government IT development contracts would provide a clearer picture of pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. The presence of 8 bids suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and encourages contractors to offer competitive terms and innovative solutions.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition procurement. The agency received multiple offers, indicating that the government explored a range of options to meet its needs.

Public Impact

The primary beneficiaries are the Indian Health Service (IHS) and the American Indian and Alaska Native (AI/AN) communities it serves, through improved health IT capabilities. The contract will deliver a developed 'Four Directions Warehouse' (4DW) to support data management and analysis. The services will be performed in Oklahoma, potentially creating local employment opportunities. Modernized health IT infrastructure can lead to better patient care coordination, data-driven decision-making, and improved health outcomes for AI/AN populations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type carries a risk of cost escalation if not closely monitored and managed by the agency.
The complexity of health IT modernization projects can introduce unforeseen technical challenges and delays.
Ensuring data security and privacy within the new warehouse will be critical and requires robust oversight.

Positive Signals

The award was made under full and open competition, indicating a robust and fair bidding process.
The contractor, Cherokee Nation Integrated Health, L.L.C., is an established entity with experience in healthcare IT.
The contract is part of a strategic modernization effort by IHS, suggesting a commitment to improving its IT infrastructure.

Sector Analysis

The healthcare IT sector is a rapidly growing segment of the federal IT market, driven by the need for interoperability, data analytics, and improved patient care. Modernizing health information systems is a priority for many federal agencies, including IHS, to enhance service delivery to specific populations. This contract fits within the broader trend of federal agencies investing in cloud-based solutions and data warehousing to manage vast amounts of health-related information efficiently and securely. Comparable spending benchmarks for similar IT modernization and data warehousing projects within federal health agencies can vary significantly based on scope and complexity.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. However, the prime contractor, Cherokee Nation Integrated Health, L.L.C., may engage small businesses for subcontracting opportunities. The impact on the small business ecosystem will depend on the extent to which the prime contractor utilizes subcontracting and whether those opportunities are specifically targeted towards small or disadvantaged businesses.

Oversight & Accountability

Oversight for this contract will primarily reside with the Indian Health Service contracting and program officials. They will be responsible for monitoring performance, ensuring compliance with contract terms, and managing the Time and Materials aspects to control costs. Transparency is facilitated through federal contract databases like FPDS.gov. While specific Inspector General (IG) jurisdiction for this particular contract isn't explicitly stated, the HHS OIG generally has oversight over IHS programs and contracts, ensuring accountability and investigating fraud, waste, and abuse.

Related Government Programs

IHS Health Information Technology Modernization Program
Federal Health IT Initiatives
Data Warehousing Solutions
Department of the Interior IT Contracts
Healthcare Data Analytics

Risk Flags

Cost Overrun Risk (Time and Materials Contract)
Scope Creep Potential
Data Security and Privacy Concerns
Integration Challenges with Legacy Systems

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $15.3 million to CHEROKEE NATION INTEGRATED HEALTH, L.L.C.. INDIAN HEALTH SERVICE (IHS) HEALTH INFORMATION TECHNOLOGY (IT) MODERNIZATION PROGRAM FOR THE DEVELOPMENT OF THE FOUR DIRECTIONS WAREHOUSE (4DW)

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION INTEGRATED HEALTH, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $15.3 million.

What is the period of performance?

Start: 2024-09-24. End: 2026-09-23.

What is the track record of Cherokee Nation Integrated Health, L.L.C. in performing similar federal IT contracts?

Cherokee Nation Integrated Health, L.L.C. has a history of performing federal contracts, particularly within the healthcare and IT domains. While specific details on past performance for projects of identical scope and scale to the IHS Health Information Technology Modernization Program require deeper analysis of contract databases, the company's existence and its ability to win this competitive bid suggest a level of established capability. Further investigation into their past performance ratings, contract history with IHS and other agencies, and any reported issues or successes would provide a more comprehensive understanding of their reliability and expertise in delivering complex IT solutions.

How does the $15.3 million contract value compare to similar health IT modernization projects within the federal government?

Benchmarking the $15.3 million contract value requires comparing it to similar health IT modernization and data warehousing projects undertaken by federal agencies. Projects of this nature can vary widely in cost based on scope, complexity, duration, and the specific technologies employed. For instance, large-scale Electronic Health Record (EHR) system implementations or enterprise-wide data analytics platform developments can run into tens or hundreds of millions of dollars. A $15.3 million award for a specific data warehouse development over approximately two years suggests a focused effort rather than a complete system overhaul. Without detailed scope comparisons, it's challenging to definitively state if this represents high or low value, but it appears to be a significant investment for a specialized IT component.

What are the primary risks associated with the Time and Materials (T&M) contract type for this project?

The primary risk associated with the Time and Materials (T&M) contract type for this health IT modernization project is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used, plus a fixed fee or percentage. If the project scope is not well-defined, if the contractor's efficiency is low, or if unforeseen technical challenges lead to extended work, the total cost can exceed initial estimates. Effective oversight, detailed work breakdown structures, and vigilant monitoring of labor hours and material costs by the Indian Health Service are crucial to mitigate these risks and ensure the project stays within budget.

How will the 'Four Directions Warehouse' (4DW) specifically improve health data management and analysis for IHS?

The 'Four Directions Warehouse' (4DW) is intended to serve as a centralized repository for health data, consolidating information from various sources within the Indian Health Service. This consolidation is expected to improve data management by providing a single, standardized source of truth, reducing data silos and inconsistencies. For analysis, the 4DW will enable more sophisticated reporting and data mining capabilities, allowing IHS to gain deeper insights into health trends, patient outcomes, resource allocation, and program effectiveness across AI/AN communities. Ultimately, this enhanced data infrastructure aims to support evidence-based decision-making, improve the quality and accessibility of healthcare services, and facilitate better public health initiatives.

What is the historical spending pattern of the Indian Health Service on IT modernization efforts?

The Indian Health Service (IHS) has historically allocated significant resources towards IT modernization, recognizing the critical role of technology in delivering healthcare services to American Indian and Alaska Native populations. Spending patterns have evolved over time, with increasing investments in areas such as electronic health records (EHRs), data analytics, telehealth, and cybersecurity. Recent years have seen a continued focus on upgrading legacy systems and implementing modern IT infrastructure to improve interoperability, data sharing, and patient engagement. Specific historical spending figures for IHS IT modernization would require detailed analysis of agency budget documents and contract databases over several fiscal years to identify trends and the scale of investment in such initiatives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140D0424R0069

Offers Received: 8

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cherokee Nation

Address: 2 W. 2ND ST, TULSA, OK, 74103

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,367,135

Exercised Options: $15,290,394

Current Obligation: $15,290,394

Actual Outlays: $7,282,053

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline