HHS Awards $117M Task Order for Unified Case Management to TISTA Science and Technology Corporation

Contract Overview

Contract Amount: $117,213,834 ($117.2M)

Contractor: Tista Science and Technology Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-29

End Date: 2024-09-28

Contract Duration: 1,826 days

Daily Burn Rate: $64.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TASK ORDER FOR UNIFIED CASE MANAGEMENT (UCM)

Place of Performance

Location: POTOMAC, MONTGOMERY County, MARYLAND, 20854

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $117.2 million to TISTA SCIENCE AND TECHNOLOGY CORPORATION for work described as: TASK ORDER FOR UNIFIED CASE MANAGEMENT (UCM) Key points: 1. The task order, valued at $117.2 million, is for Computer Systems Design Services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract duration is 5 years, ending September 28, 2024. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 5. The vendor, TISTA Science and Technology Corporation, is a small business.

Value Assessment

Rating: good

The contract value of $117.2 million over five years suggests a significant investment in case management systems. Benchmarking against similar IT services contracts of this scale would be necessary for a precise pricing assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price for the services rendered, benefiting taxpayers.

Public Impact

Enhances the Centers for Medicare and Medicaid Services' (CMS) ability to manage cases effectively. Impacts beneficiaries by potentially improving the efficiency and accuracy of services. Supports critical healthcare infrastructure through advanced IT solutions. The 5-year duration allows for long-term system development and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
The vendor is a small business, which may present capacity challenges for a contract of this magnitude.

Positive Signals

Awarded under full and open competition.
Long-term contract duration allows for sustained development.
Focus on critical healthcare IT infrastructure.

Sector Analysis

This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is substantial across federal agencies, supporting a wide range of operational and mission-critical functions. Benchmarks for similar IT service contracts vary widely based on complexity and duration.

Small Business Impact

TISTA Science and Technology Corporation is identified as a small business. While this award supports small business participation, the scale of the $117.2 million contract over five years warrants scrutiny to ensure the small business has the capacity and resources to successfully execute the requirements.

Oversight & Accountability

The contract's full and open competition status suggests a robust initial vetting process. Ongoing oversight by the Department of Health and Human Services and CMS will be crucial to monitor performance, cost control, and adherence to contract terms, especially given the Cost Plus Fixed Fee structure.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee contract type.
Vendor is a small business, potential capacity concerns.
Long contract duration (5 years) requires sustained oversight.
Complexity of IT systems design and implementation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $117.2 million to TISTA SCIENCE AND TECHNOLOGY CORPORATION. TASK ORDER FOR UNIFIED CASE MANAGEMENT (UCM)

Who is the contractor on this award?

The obligated recipient is TISTA SCIENCE AND TECHNOLOGY CORPORATION.

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 $117.2 million.

What is the period of performance?

Start: 2019-09-29. End: 2024-09-28.

What specific performance metrics are in place to ensure the effectiveness of the Unified Case Management system and the value derived from this $117.2 million investment?

The effectiveness of the UCM system will be measured by its ability to streamline case processing, improve data accuracy, and enhance user satisfaction among CMS staff. Key performance indicators (KPIs) likely include reduction in case processing times, error rates, and system uptime. Regular performance reviews and milestone assessments are critical to ensure the system delivers the intended value and meets the evolving needs of CMS operations.

What are the primary risks associated with the Cost Plus Fixed Fee contract type for this large IT services task order, and how are they being mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation strategies include stringent cost monitoring, detailed audits, clear definition of allowable costs, and robust performance management. CMS must actively oversee expenditures and ensure that the fixed fee remains appropriate for the scope of work delivered.

How does this $117.2 million investment in Unified Case Management align with broader CMS strategic goals for digital transformation and improved healthcare delivery?

This investment is likely a cornerstone of CMS's digital transformation strategy, aiming to modernize critical infrastructure and improve the efficiency of healthcare program administration. By enhancing case management, CMS can better serve beneficiaries, reduce administrative burdens, and ensure more accurate processing of claims and benefits. The UCM system's success is directly tied to achieving these broader strategic objectives.

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: TORPCMS190656

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1201 SEVEN LOCKS RD STE 350, ROCKVILLE, MD, 20854

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $117,213,834

Exercised Options: $117,213,834

Current Obligation: $117,213,834

Actual Outlays: $81,482,554

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201600060I

IDV Type: IDC

Timeline