HHS CMS Spends $80M on Cloud IT Operations & Maintenance with NAVA PBC
Contract Overview
Contract Amount: $80,290,523 ($80.3M)
Contractor: Nava PBC
Awarding Agency: Department of Health and Human Services
Start Date: 2019-09-10
End Date: 2023-09-11
Contract Duration: 1,462 days
Daily Burn Rate: $54.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 12
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: CLOUD INFORMATION TECHNOLOGY OPERATIONS&MAINTENANCE (CLOUD ITOPS)
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $80.3 million to NAVA PBC for work described as: CLOUD INFORMATION TECHNOLOGY OPERATIONS&MAINTENANCE (CLOUD ITOPS) Key points: 1. Significant contract value of $80.3M over 4 years. 2. Competition method is 'Full and Open', suggesting broad market access. 3. No small business participation noted. 4. Contract type is Time and Materials, which can pose cost control risks.
Value Assessment
Rating: fair
The Time and Materials contract type for Cloud ITOps raises concerns about cost escalation. Benchmarking against similar custom computer programming services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the Time and Materials pricing structure may limit the effectiveness of competitive pressures on final costs.
Taxpayer Impact: Taxpayer funds are being utilized for cloud IT operations. The T&M structure necessitates careful oversight to ensure value for money and prevent cost overruns.
Public Impact
Ensures critical cloud infrastructure for Medicare and Medicaid services remains operational. Supports the ongoing digital transformation and service delivery of CMS. Potential for cost overruns due to Time and Materials contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type
- Lack of small business participation
- High contract value
Positive Signals
- Full and open competition
- Essential IT services for healthcare programs
Sector Analysis
This contract falls under IT services, specifically custom computer programming. The benchmark for IT operations and maintenance can vary widely based on complexity and scale, but $80M over four years indicates a substantial program.
Small Business Impact
The contract data indicates no small business participation (ss: false, sb: false). This suggests that opportunities for small businesses in this significant IT services contract were not pursued or realized.
Oversight & Accountability
The contract was awarded via a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on monitoring task orders, labor hours, and material costs to manage the T&M structure effectively.
Related Government Programs
- Custom Computer Programming Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of small business participation.
- Limited visibility into specific per-unit costs.
- Contract duration and value require sustained oversight.
Tags
custom-computer-programming-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $80.3 million to NAVA PBC. CLOUD INFORMATION TECHNOLOGY OPERATIONS&MAINTENANCE (CLOUD ITOPS)
Who is the contractor on this award?
The obligated recipient is NAVA PBC.
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 $80.3 million.
What is the period of performance?
Start: 2019-09-10. End: 2023-09-11.
What is the estimated cost per hour or per unit of service for this Time and Materials contract, and how does it compare to industry benchmarks?
The provided data does not include specific hourly rates or unit costs, making a direct comparison to industry benchmarks impossible. Time and Materials contracts often have negotiated labor rates and material markups. A detailed review of the contract's CLIN structure and awarded rates would be necessary to assess cost-effectiveness against similar custom computer programming services.
What are the specific risks associated with the Time and Materials contract type for cloud IT operations, and what mitigation strategies are in place?
The primary risk of T&M is the potential for cost escalation as the contractor is reimbursed for actual labor hours and materials, plus a fee. Mitigation strategies typically include robust oversight, defined ceilings, detailed reporting requirements, and clear statements of work to prevent scope creep and ensure efficient resource utilization.
How effectively does this contract ensure the continuous and secure operation of critical healthcare IT systems for CMS?
The contract's objective is to maintain cloud IT operations, which is crucial for CMS systems. Effectiveness hinges on the contractor's performance, adherence to SLAs, and the government's oversight. While the contract value and duration suggest importance, the T&M structure requires diligent monitoring to ensure value and prevent performance degradation due to cost-saving pressures.
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: 12
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1445 NEW YORK AVE NW STE 300, WASHINGTON, DC, 20005
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $80,290,523
Exercised Options: $80,290,523
Current Obligation: $80,290,523
Actual Outlays: $34,091,641
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QTCA18D008M
IDV Type: FSS
Timeline
Start Date: 2019-09-10
Current End Date: 2023-09-11
Potential End Date: 2023-09-11 00:00:00
Last Modified: 2024-07-09
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