HHS awards $72.6M for Marketplace Testing Support to TISTA Science and Technology Corp

Contract Overview

Contract Amount: $72,623,273 ($72.6M)

Contractor: Tista Science and Technology Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2020-03-18

End Date: 2025-03-22

Contract Duration: 1,830 days

Daily Burn Rate: $39.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: MARKETPLACE TESTING SUPPORT TEAM (MTST)

Place of Performance

Location: POTOMAC, MONTGOMERY County, MARYLAND, 20854

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $72.6 million to TISTA SCIENCE AND TECHNOLOGY CORPORATION for work described as: MARKETPLACE TESTING SUPPORT TEAM (MTST) Key points: 1. Contract awarded to TISTA Science and Technology Corporation for $72.6M. 2. Services fall under Computer Systems Design, NAICS 541512. 3. Contract duration is 1830 days, ending March 22, 2025. 4. Awarded via full and open competition. 5. Contract type is Cost Plus Fixed Fee.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed carefully. Benchmarking CPFF contracts for similar IT services is difficult without more granular data on scope and performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the CPFF structure requires diligent oversight to ensure costs remain reasonable.

Taxpayer Impact: Taxpayer funds are being used for IT support services. The CPFF structure necessitates careful monitoring to ensure value for money and prevent excessive costs.

Public Impact

Ensures continued operation and improvement of the Health Insurance Marketplace. Supports critical IT infrastructure for healthcare access. Potential impact on user experience and accessibility of healthcare options.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type risk
Potential for cost overruns
Limited visibility into specific performance metrics

Positive Signals

Full and open competition
Long-term contract for stability
Supports essential government function

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending benchmarks for similar government IT contracts vary widely based on scope and complexity, but $72.6M over five years for testing support is substantial.

Small Business Impact

The contract was awarded through full and open competition, with no specific mention of small business set-asides or participation. This suggests that large businesses were likely the primary bidders.

Oversight & Accountability

The Cost Plus Fixed Fee structure requires strong government oversight to manage costs and ensure contractor performance. Regular reviews and audits are crucial for accountability.

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 (CPFF) contract type
Potential for cost overruns
Long contract duration (5 years)
Lack of specific small business participation noted
Reliance on government oversight for cost control

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $72.6 million to TISTA SCIENCE AND TECHNOLOGY CORPORATION. MARKETPLACE TESTING SUPPORT TEAM (MTST)

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 $72.6 million.

What is the period of performance?

Start: 2020-03-18. End: 2025-03-22.

What specific testing methodologies and quality assurance processes are employed under this contract to ensure the Marketplace's reliability?

The contract likely mandates adherence to established testing frameworks (e.g., Agile testing, performance testing, security testing) and requires detailed documentation of test cases, execution results, and defect tracking. The Centers for Medicare and Medicaid Services (CMS) would oversee the implementation and effectiveness of these processes through regular reporting and performance reviews.

How does the CPFF structure mitigate risks associated with evolving technology and undefined scope in IT testing services?

While CPFF can incentivize cost efficiency, it also carries inherent risks of cost escalation. Mitigation strategies likely involve strict baseline cost controls, detailed work breakdown structures, and robust change management processes. CMS's oversight is critical in ensuring that cost increases are justified and directly tied to necessary scope adjustments or unforeseen technical challenges.

What are the key performance indicators (KPIs) used to measure the success and value delivered by TISTA Science and Technology Corporation for this contract?

Key performance indicators would likely focus on test coverage, defect detection rates, test execution timelines, system uptime and performance post-testing, and user satisfaction metrics. CMS would monitor these KPIs through regular performance reports and potentially user feedback mechanisms to ensure the contractor is meeting objectives and delivering value.

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

Offers Received: 4

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: $72,723,729

Exercised Options: $72,623,273

Current Obligation: $72,623,273

Actual Outlays: $50,548,351

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