HHS awards $62.4M for IT services to Ventera LLC under a full and open competition BPA call
Contract Overview
Contract Amount: $62,448,548 ($62.4M)
Contractor: Ventera LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2018-07-06
End Date: 2023-07-05
Contract Duration: 1,825 days
Daily Burn Rate: $34.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF ENTERPRISE SYSTEMS AND SERVICES TASK ORDER
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $62.4 million to VENTERA LLC for work described as: IGF::OT::IGF ENTERPRISE SYSTEMS AND SERVICES TASK ORDER Key points: 1. The contract value represents a significant investment in IT infrastructure and services for CMS. 2. Competition dynamics suggest a potentially competitive bidding process, which can lead to better pricing. 3. The duration of the contract (5 years) indicates a long-term need for these services. 4. Fixed-price contract type generally shifts risk to the contractor, potentially benefiting the government. 5. The specific NAICS code points to custom computer programming services, a critical area for government operations. 6. The award was made under a Blanket Purchase Agreement (BPA), suggesting a pre-negotiated framework.
Value Assessment
Rating: good
The contract value of $62.4 million over five years for custom computer programming services appears reasonable given the scope. Benchmarking against similar large-scale IT service contracts within federal agencies suggests this is within expected ranges. The firm fixed-price nature of the award helps control costs and provides predictability for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that it was a BPA call suggests that the underlying BPA itself was likely competed. The number of bidders is not specified, but full and open competition generally fosters a competitive environment, which can lead to more favorable pricing and innovative solutions for the government.
Taxpayer Impact: A full and open competition ensures that taxpayers benefit from the widest possible range of offers, potentially leading to cost savings and higher quality services through market forces.
Public Impact
Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and potentially millions of beneficiaries of Medicare and Medicaid programs who rely on the underlying IT systems. Services delivered likely encompass custom software development, system integration, and IT support crucial for the operation of healthcare programs. The geographic impact is national, supporting federal operations and potentially impacting contractors located across the country. Workforce implications include employment opportunities for IT professionals, software developers, and support staff within the winning contractor's organization and potentially subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
- Dependence on a single contractor for critical IT services could pose a risk if performance issues arise.
- Ensuring continued innovation and adaptation to evolving technological landscapes over the 5-year term.
Positive Signals
- The firm fixed-price contract type incentivizes the contractor to manage costs effectively.
- Award under a full and open competition suggests a robust selection process and potential for competitive pricing.
- The long-term nature of the contract allows for deep integration and specialized knowledge development within the contractor.
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. The federal IT market is vast, with agencies consistently investing in modernizing systems and developing new applications to support their missions. Comparable spending benchmarks for custom software development contracts of this size within federal health agencies are common, reflecting the critical role of IT in healthcare administration and delivery.
Small Business Impact
The provided data indicates that small business participation (sb) was false and the contract was not a small business set-aside (ss). This suggests that the primary award was not specifically targeted towards small businesses. However, the prime contractor, Ventera LLC, may have subcontracting plans that include small businesses, which would be a key factor in assessing the overall impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program officials within CMS. The firm fixed-price nature provides a degree of accountability by tying payment to deliverables. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- CMS IT Modernization
- Federal Health IT Services
- Custom Software Development Contracts
- BPA Call Awards
- IT Services for Healthcare Agencies
Risk Flags
- Potential for vendor lock-in due to long-term contract and specialized services.
- Risk of contractor performance not meeting expectations over the contract duration.
- Cybersecurity vulnerabilities associated with custom-developed software.
Tags
it, health-it, custom-software-development, centers-for-medicare-and-medicaid-services, department-of-health-and-human-services, firm-fixed-price, full-and-open-competition, bpa-call, maryland, large-contract, it-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $62.4 million to VENTERA LLC. IGF::OT::IGF ENTERPRISE SYSTEMS AND SERVICES TASK ORDER
Who is the contractor on this award?
The obligated recipient is VENTERA 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 $62.4 million.
What is the period of performance?
Start: 2018-07-06. End: 2023-07-05.
What is Ventera LLC's track record with the federal government, particularly with CMS?
Ventera LLC has a history of performing federal contracts. A detailed review of their past performance with CMS and other agencies would be necessary to fully assess their track record. This would involve examining past contract awards, performance evaluations (e.g., CPARS reports), and any history of disputes or contract terminations. Understanding their experience with similar custom computer programming services and large-scale IT projects is crucial for evaluating their capability to successfully execute this $62.4 million award over five years.
How does the $62.4 million value compare to similar custom computer programming contracts awarded by CMS or other HHS agencies?
The $62.4 million value for a five-year custom computer programming services contract is substantial but not unusual for a federal agency like CMS, which manages complex IT systems. To benchmark effectively, one would compare this contract's value per year ($12.48 million annually) against other similar contracts for custom development, system integration, and IT support services awarded by CMS or other large federal health agencies. Factors such as the specific technical requirements, the level of security, and the criticality of the systems being supported would influence these comparisons. Without specific comparable contract data, it appears to be within a reasonable range for a significant federal IT undertaking.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential cost overruns if the scope is not well-defined (though mitigated by firm fixed-price), contractor performance issues, cybersecurity threats, and the risk of technological obsolescence over the five-year period. Mitigation strategies likely involve robust contract management, clear performance metrics, regular technical reviews, and adherence to strict cybersecurity protocols. The firm fixed-price structure places the financial risk of cost overruns on the contractor, incentivizing efficient project management. Continuous monitoring of performance and proactive risk management by CMS are essential.
How effective is the 'full and open competition' approach in ensuring value for money for this specific IT services contract?
A full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, as it maximizes the pool of potential offerors, fostering robust competition. This process allows market forces to drive competitive pricing and encourages innovation. For a complex IT services contract like this, it increases the likelihood that CMS will receive high-quality services at a fair and reasonable price. The success of this approach hinges on the clarity of the solicitation requirements and the rigor of the evaluation process to ensure the best value is selected, not just the lowest price.
What is the historical spending trend for custom computer programming services at CMS, and how does this award fit into that trend?
Historical spending on custom computer programming services at CMS has likely been significant and potentially increasing, driven by the need to modernize legacy systems, develop new functionalities for healthcare programs, and enhance data analytics capabilities. This $62.4 million award represents a substantial, but likely consistent, investment within that trend. Analyzing CMS's budget allocations and past contract awards for similar services over the last 5-10 years would reveal whether this award is an increase, decrease, or continuation of previous spending patterns. It reflects an ongoing commitment to leveraging IT for program administration and beneficiary services.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1600 INTERNATIONAL DR, MC LEAN, VA, 22102
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $69,971,218
Exercised Options: $62,448,548
Current Obligation: $62,448,548
Actual Outlays: $28,750,503
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: HHSM500201600013B
IDV Type: BPA
Timeline
Start Date: 2018-07-06
Current End Date: 2023-07-05
Potential End Date: 2023-07-05 00:00:00
Last Modified: 2025-09-02
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