HHS awards $147.5M for QPP CI&S Acquisition, supporting system operations and continuous improvement

Contract Overview

Contract Amount: $147,548,689 ($147.5M)

Contractor: Semanticbits LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2019-05-16

End Date: 2024-05-08

Contract Duration: 1,819 days

Daily Burn Rate: $81.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE QPP CI&S ACQUISITION WILL SUPPORT SYSTEM OPERATIONS, MAINTENANCE, AND CONTINUOUS IMPROVEMENT. THE CI&S CALL ORDER WILL TRANSITION THE WORK THAT HAS BEEN COMPLETED ON FOUR OF THE EXISTING QPP CALL ORDERS THAT CONSISTS OF 13 SCRUM TEAMS WIT

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $147.5 million to SEMANTICBITS LLC for work described as: THE QPP CI&S ACQUISITION WILL SUPPORT SYSTEM OPERATIONS, MAINTENANCE, AND CONTINUOUS IMPROVEMENT. THE CI&S CALL ORDER WILL TRANSITION THE WORK THAT HAS BEEN COMPLETED ON FOUR OF THE EXISTING QPP CALL ORDERS THAT CONSISTS OF 13 SCRUM TEAMS WIT Key points: 1. Contract value of $147.5M over its period of performance. 2. Supports system operations, maintenance, and continuous improvement for the Quality Payment Program (QPP). 3. Involves 13 Scrum teams, indicating a significant development and maintenance effort. 4. Awarded under a Blanket Purchase Agreement (BPA) Call, suggesting a pre-negotiated framework. 5. Firm Fixed Price contract type aims to control costs. 6. Contract duration of 1819 days (approximately 5 years).

Value Assessment

Rating: good

The contract value of $147.5M over nearly 5 years for IT system operations and maintenance appears reasonable given the scope. The firm fixed price structure provides cost certainty. Benchmarking against similar large-scale IT system support contracts would offer further insight into value for money, but the scale of the effort (13 Scrum teams) suggests a substantial undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield fair market pricing and encourage innovation. The specific number of bidders is not provided, but the 'full and open' designation is a positive indicator for price discovery.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are likely being used efficiently by fostering a competitive environment that drives down prices.

Public Impact

Beneficiaries include healthcare providers participating in the Quality Payment Program. Services delivered include system operations, maintenance, and continuous improvement for critical healthcare IT infrastructure. Geographic impact is national, supporting a federal program impacting healthcare providers across the United States. Workforce implications include the employment of approximately 13 Scrum teams, likely comprising software developers, testers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in continuous improvement efforts if not tightly managed.
Reliance on a single contractor for critical system operations could pose a risk if performance degrades.
Transitioning work from four existing call orders may present integration challenges.

Positive Signals

Firm Fixed Price contract type helps manage cost overruns.
Full and open competition suggests a robust bidding process.
Long-term contract duration allows for stability and continuity of operations.
Focus on continuous improvement indicates a commitment to modernizing and enhancing the system.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on software development, maintenance, and operations for government systems. The market for such services is large and competitive, with many firms capable of supporting large-scale federal IT initiatives. This contract represents a significant investment in maintaining and evolving a key component of the Centers for Medicare and Medicaid Services' (CMS) infrastructure.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. While the prime contractor is SEMANTICBITS LLC, the size of this contract suggests potential opportunities for small businesses to participate as subcontractors, particularly in specialized IT support roles, though this is not explicitly detailed.

Oversight & Accountability

Oversight for this contract would typically fall under the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. The firm fixed price nature of the contract provides a degree of financial oversight. Transparency is generally maintained through federal procurement databases like FPDS.gov. The specific Inspector General jurisdiction would be the HHS OIG.

Related Government Programs

Quality Payment Program (QPP)
Centers for Medicare and Medicaid Services (CMS) IT Systems
Healthcare IT Infrastructure Support
Federal IT Operations and Maintenance Contracts

Risk Flags

Potential for scope creep
Contractor performance risk
Transition challenges from existing orders

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $147.5 million to SEMANTICBITS LLC. THE QPP CI&S ACQUISITION WILL SUPPORT SYSTEM OPERATIONS, MAINTENANCE, AND CONTINUOUS IMPROVEMENT. THE CI&S CALL ORDER WILL TRANSITION THE WORK THAT HAS BEEN COMPLETED ON FOUR OF THE EXISTING QPP CALL ORDERS THAT CONSISTS OF 13 SCRUM TEAMS WIT

Who is the contractor on this award?

The obligated recipient is SEMANTICBITS 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 $147.5 million.

What is the period of performance?

Start: 2019-05-16. End: 2024-05-08.

What is the historical spending trend for the QPP CI&S Acquisition or its predecessor contracts?

The provided data focuses on a single award of $147.5M for the QPP CI&S Acquisition, with an award date of May 16, 2019, and an end date of May 8, 2024. This suggests a significant, multi-year investment. To understand historical trends, one would need to examine prior contract awards related to QPP system operations and maintenance, potentially looking at spending patterns over the last 5-10 years. Analyzing the cumulative spend across all related QPP IT contracts would reveal the overall investment in this critical system's lifecycle and identify any significant increases or decreases in funding over time.

How does the per-unit cost of the 13 Scrum teams compare to industry benchmarks?

Determining a precise per-unit cost for the Scrum teams requires more granular data than is currently available. The total contract value is $147.5M over approximately 5 years (1819 days). If we assume the entire value is for the 13 Scrum teams and prorate it over 5 years, the annual cost per team would be roughly $147.5M / 5 years / 13 teams ≈ $2.27M per team per year. Industry benchmarks for dedicated, high-performing Scrum teams supporting complex federal systems can range significantly based on skill sets, location, and overhead. However, this figure provides a starting point for comparison. A detailed analysis would involve breaking down labor categories, overhead, and profit margins within the contract.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for the QPP CI&S Acquisition. However, for a contract focused on system operations, maintenance, and continuous improvement, typical KPIs would likely include system uptime and availability, response times for issue resolution, successful deployment rates for new features, adherence to security protocols, user satisfaction ratings, and potentially metrics related to the efficiency and effectiveness of the Scrum teams (e.g., velocity, cycle time). These KPIs would be defined in the contract's Performance Work Statement (PWS) and monitored by CMS.

What is the track record of SEMANTICBITS LLC in managing large-scale federal IT contracts?

SEMANTICBITS LLC is the prime contractor for this $147.5M QPP CI&S Acquisition. To assess their track record, one would need to review their contract history in federal databases like FPDS.gov. This would involve looking at the number and value of previous prime contracts awarded to SEMANTICBITS, the agencies they have served, the types of services provided, and their past performance ratings. A history of successfully managing similar-sized, complex IT operations and maintenance contracts, particularly within the healthcare sector, would indicate a strong capability. Conversely, a history of performance issues or contract disputes would raise concerns.

What are the potential risks associated with the transition of work from four existing QPP call orders?

The transition of work from four existing QPP call orders to this new CI&S Acquisition presents several potential risks. These include the risk of knowledge transfer gaps, where critical information or undocumented processes are not fully transferred, leading to operational disruptions. There's also a risk of integration challenges, as the systems and processes from the four previous orders may not seamlessly merge. Furthermore, potential impacts on team morale and productivity during the transition period, as well as the risk of service interruptions or performance degradation if the transition is not managed meticulously, are significant concerns.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FCISJB980001B

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: ICF International, Inc.

Address: 13921 PARK CENTER RD STE 420, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $155,763,636

Exercised Options: $147,548,689

Current Obligation: $147,548,689

Actual Outlays: $85,463,595

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HHSM500201600011B

IDV Type: BPA

Timeline