HHS Awards $57.1M for Business Intelligence Analytics to Apprio Inc

Contract Overview

Contract Amount: $57,130,448 ($57.1M)

Contractor: Apprio Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2018-08-22

End Date: 2023-08-21

Contract Duration: 1,825 days

Daily Burn Rate: $31.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 18

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BUSINESS INTELLIGENCE ANALYTICS

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $57.1 million to APPRIO INC for work described as: BUSINESS INTELLIGENCE ANALYTICS Key points: 1. Contract awarded to Apprio Inc. for Business Intelligence Analytics. 2. The contract falls under Computer Systems Design Services (NAICS 541512). 3. Full and open competition was utilized for this award. 4. The contract duration is 5 years, ending August 21, 2023. 5. The total value is $57.1 million.

Value Assessment

Rating: good

The contract value of $57.1 million over five years suggests a significant investment in business intelligence analytics. Benchmarking against similar contracts for complex IT services requires detailed analysis of scope and deliverables, but the firm-fixed-price structure indicates a defined cost expectation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery and achieving a competitive price. This method allows all eligible vendors to bid, fostering a market-driven approach to pricing for these critical analytics services.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently by securing services at a fair market price.

Public Impact

Enhances data analysis capabilities for the Centers for Medicare and Medicaid Services (CMS). Supports informed decision-making in healthcare policy and operations. Potential for improved efficiency and effectiveness in healthcare program management. The contract duration allows for sustained support and development of analytics tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long (5 years).
No small business participation noted.

Positive Signals

Firm Fixed Price contract type.
Full and Open Competition utilized.
Significant investment in critical analytics capabilities.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending benchmarks for similar large-scale analytics contracts within federal health agencies can vary widely based on complexity, but $57.1M over five years is a substantial award, reflecting the importance of data analytics for CMS operations.

Small Business Impact

The data indicates that this contract did not involve small business participation. For future procurements, exploring opportunities to set aside portions for small businesses could foster competition and support economic development goals.

Oversight & Accountability

The firm-fixed-price contract type provides cost certainty. Oversight by CMS is crucial to ensure Apprio Inc. meets performance requirements and delivers the expected value from the business intelligence analytics services throughout the contract period.

Related Government Programs

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

Risk Flags

Long contract duration (5 years) may limit flexibility.
No small business participation noted.
Potential for vendor lock-in with long-term IT contracts.
Reliance on a single vendor for critical analytics functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $57.1 million to APPRIO INC. BUSINESS INTELLIGENCE ANALYTICS

Who is the contractor on this award?

The obligated recipient is APPRIO 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 $57.1 million.

What is the period of performance?

Start: 2018-08-22. End: 2023-08-21.

What specific business intelligence capabilities are being procured, and how do they align with CMS's strategic goals?

The contract is for 'BUSINESS INTELLIGENCE ANALYTICS' under 'Computer Systems Design Services'. While the specific capabilities aren't detailed, they likely involve developing and implementing systems for data collection, processing, analysis, and visualization to support CMS's mission. This aligns with strategic goals related to improving healthcare quality, affordability, and efficiency through data-driven insights and program management.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

Key performance indicators are not explicitly provided in the data. However, for a contract of this nature, KPIs would typically focus on the accuracy and timeliness of data analysis, the usability and adoption of the analytics tools by CMS staff, and the impact of the insights generated on decision-making and operational improvements. CMS would likely monitor these through regular reporting and performance reviews.

How does the $57.1M contract value compare to industry benchmarks for similar analytics solutions in the federal healthcare sector?

Benchmarking this $57.1M contract requires a detailed comparison of the specific services, deliverables, and contract duration against similar federal contracts. Given it's a 5-year firm-fixed-price award for comprehensive business intelligence analytics within a complex agency like CMS, the value appears substantial but potentially reasonable if it encompasses significant system development, integration, and ongoing support. Industry benchmarks vary greatly based on scope.

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

Solicitation ID: RFPCMS2016SPARC

Offers Received: 18

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 425 3RD ST SW STE 600, WASHINGTON, DC, 20024

Business Categories: Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $62,309,606

Exercised Options: $57,130,448

Current Obligation: $57,130,448

Actual Outlays: $25,552,615

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201700009I

IDV Type: IDC

Timeline