HHS Awards $45.8M for Other Computer Services to Palmetto GBA, LLC
Contract Overview
Contract Amount: $45,847,467 ($45.8M)
Contractor: Palmetto GBA, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2019-09-03
End Date: 2024-05-29
Contract Duration: 1,730 days
Daily Burn Rate: $26.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CSFES
Place of Performance
Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29202
Plain-Language Summary
Department of Health and Human Services obligated $45.8 million to PALMETTO GBA, LLC for work described as: CSFES Key points: 1. Contract awarded to Palmetto GBA, LLC for 'Other Computer Related Services'. 2. The contract has a duration of 1730 days, ending May 29, 2024. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. The total value of the award is $45,847,467. 5. The contract falls under the Other Computer Related Services NAICS code (541519).
Value Assessment
Rating: fair
The contract value of $45.8M over approximately 4.7 years suggests a significant investment. Without specific benchmarks for 'Other Computer Related Services' for this agency, a direct pricing assessment is difficult, but the duration implies substantial ongoing needs.
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 method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers likely received a fair price for the services rendered, though the exact savings are not quantifiable without a baseline.
Public Impact
Impacts beneficiaries of Medicare and Medicaid services through the underlying computer-related services. Supports the operational efficiency of the Centers for Medicare and Medicaid Services (CMS). Ensures continued availability of essential IT support for healthcare programs. Potential for improved service delivery due to ongoing IT infrastructure support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the 'Other Computer Related Services' provided.
- No clear indication of performance metrics or success evaluation.
- Small business participation is not indicated (ss: false, sb: false).
Positive Signals
- Awarded through full and open competition.
- Long-term contract (1730 days) indicates sustained need and potential for stable service.
- Significant contract value suggests a critical function for CMS.
Sector Analysis
The IT services sector, particularly for government agencies like HHS, is vast and competitive. Spending benchmarks for 'Other Computer Related Services' can vary widely based on the specific nature of the services, but $45.8M over nearly five years for a major agency like CMS is substantial.
Small Business Impact
The data indicates that this contract did not involve small business participation (ss: false, sb: false). This suggests that the services required were likely beyond the scope or capacity of small businesses, or that larger, established firms were preferred for this particular award.
Oversight & Accountability
The contract was awarded by the Department of Health and Human Services (HHS) to Palmetto GBA, LLC. Oversight would typically involve CMS program managers ensuring service delivery and adherence to contract terms. The 'no' field indicates 2 delivery orders were issued under this contract.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Lack of detailed service description.
- No performance metrics provided.
- No small business participation.
- Long contract duration without clear interim reviews.
- Potential for vendor lock-in given the specialized nature of IT services.
Tags
other-computer-related-services, department-of-health-and-human-services, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $45.8 million to PALMETTO GBA, LLC. CSFES
Who is the contractor on this award?
The obligated recipient is PALMETTO GBA, 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 $45.8 million.
What is the period of performance?
Start: 2019-09-03. End: 2024-05-29.
What specific 'Other Computer Related Services' were procured under this contract, and how do they align with CMS's mission?
The specific services are not detailed in the provided data. However, given the agency (CMS), these services likely relate to maintaining, supporting, or enhancing the IT infrastructure and systems that underpin Medicare and Medicaid programs. This could include data management, system integration, cybersecurity support, or specialized software development crucial for healthcare administration and beneficiary services.
What are the key performance indicators (KPIs) for this contract, and how is Palmetto GBA, LLC's performance being measured?
The provided data does not include information on specific Key Performance Indicators (KPIs) or performance measurement criteria for this contract. Effective oversight would require CMS to establish and track metrics related to service uptime, response times, data accuracy, security compliance, and overall system reliability to ensure value for money and operational effectiveness.
How does the $45.8M contract value compare to similar IT service contracts awarded by HHS or other federal agencies for comparable services?
Without more granular data on the specific 'Other Computer Related Services' and their scope, a direct comparison is challenging. However, $45.8M over 1730 days (approx. 4.7 years) represents a significant, multi-year investment. Benchmarking would require analyzing contracts with similar NAICS codes (541519) and service descriptions within the federal government to determine if this represents a competitive price point.
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
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 17 TECHNOLOGY CIR, COLUMBIA, SC, 29203
Business Categories: Category Business, Limited Liability Corporation, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,021,938
Exercised Options: $45,847,467
Current Obligation: $45,847,467
Actual Outlays: $28,805,101
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F0462V
IDV Type: FSS
Timeline
Start Date: 2019-09-03
Current End Date: 2024-05-29
Potential End Date: 2024-09-29 00:00:00
Last Modified: 2025-03-20
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