HHS awards $73.2M for Quality Measures Implementation and Reporting, with 4 bidders

Contract Overview

Contract Amount: $73,195,199 ($73.2M)

Contractor: Semanticbits LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-23

End Date: 2025-04-28

Contract Duration: 1,678 days

Daily Burn Rate: $43.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: QUALITY MEASURES IMPLEMENTATION AND REPORTING (QMIR)

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $73.2 million to SEMANTICBITS LLC for work described as: QUALITY MEASURES IMPLEMENTATION AND REPORTING (QMIR) Key points: 1. Contract value represents a significant investment in healthcare data infrastructure. 2. The firm-fixed-price structure aims to control costs and provide predictability. 3. A moderate number of bidders suggests a competitive but potentially concentrated market. 4. The contract duration extends over several fiscal years, indicating a long-term need. 5. Performance is tied to the Centers for Medicare and Medicaid Services' strategic goals. 6. The 'Other Computer Related Services' NAICS code points to a broad scope of IT support.

Value Assessment

Rating: good

The contract's total value of $73.2 million over approximately 5.5 years suggests a substantial investment. Benchmarking against similar IT services contracts for healthcare data management and reporting is crucial. The firm-fixed-price (FFP) award type indicates that the contractor bears the risk of cost overruns, which can be favorable for the government if managed effectively. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive nature of the award provides a baseline for fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. With four bidders, the competition level appears moderate. This suggests that while there was interest from multiple companies, the market for these specialized services might not be extremely broad. A moderate number of bidders generally allows for price discovery and encourages competitive pricing, though a higher number of bidders typically leads to more aggressive pricing.

Taxpayer Impact: The full and open competition and four bidders suggest that taxpayers likely received a fair price due to market forces. The government had a reasonable selection of qualified vendors, preventing a situation where a single provider could dictate terms.

Public Impact

Beneficiaries include healthcare providers who will use the QMIR system for reporting quality measures. Services delivered are critical for the Centers for Medicare and Medicaid Services (CMS) to monitor and improve healthcare quality across the nation. The geographic impact is national, affecting healthcare providers and patients across the United States. Workforce implications include the need for skilled IT professionals to develop, implement, and maintain the QMIR system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the broad 'Other Computer Related Services' NAICS code.
Dependence on a single contractor for a critical system like QMIR could pose a risk if performance falters.
Ensuring data security and privacy for sensitive healthcare information is paramount and requires continuous vigilance.

Positive Signals

Awarded under full and open competition, indicating a robust selection process.
Firm-fixed-price contract type helps manage cost certainty for the government.
Long contract duration allows for stability and continuity in critical reporting functions.

Sector Analysis

The contract falls within the IT services sector, specifically focusing on software development, implementation, and support for healthcare data reporting. The market for such services is substantial, driven by government mandates and the increasing need for data analytics in healthcare to improve patient outcomes and control costs. Comparable spending benchmarks would involve looking at other large-scale IT modernization and data management contracts within federal health agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and the awardee, SEMANTICBITS LLC, is not explicitly identified as a small business in this context. Therefore, there are no direct small business set-aside implications. However, the prime contractor may engage small businesses for subcontracting opportunities, depending on their subcontracting plan and the nature of the services required. The impact on the small business ecosystem would be indirect, through potential subcontracting.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services, specifically the Centers for Medicare and Medicaid Services (CMS). Contract performance is likely monitored through regular progress reports, performance reviews, and adherence to established milestones. Transparency is facilitated through contract award databases and public reporting requirements. The potential for Inspector General (IG) involvement exists for audits and investigations into fraud, waste, or abuse.

Related Government Programs

Healthcare Information Technology Services
Medicare Quality Payment Program
Medicaid Electronic Health Records Incentive Program
Federal Health IT Modernization Initiatives
Data Analytics and Reporting Services

Risk Flags

Potential for scope creep due to broad NAICS code.
Risk of technological obsolescence over the contract's long duration.
Need for continuous performance monitoring to ensure contractor effectiveness.
Data security and privacy compliance are critical and ongoing concerns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $73.2 million to SEMANTICBITS LLC. QUALITY MEASURES IMPLEMENTATION AND REPORTING (QMIR)

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 $73.2 million.

What is the period of performance?

Start: 2020-09-23. End: 2025-04-28.

What is the historical spending trend for Quality Measures Implementation and Reporting (QMIR) by CMS?

Analyzing historical spending for QMIR requires accessing CMS's budget and contract databases over several years. While this specific contract award is for $73.2 million, understanding the trend involves looking at previous contract values, the number of contracts awarded for similar services, and any fluctuations in spending. For instance, if spending has been steadily increasing, it might indicate growing needs or new initiatives in quality reporting. Conversely, a decrease could suggest program consolidation or efficiency gains. Without access to historical data specific to QMIR or closely related functions, it's difficult to provide precise figures, but federal IT spending in healthcare has generally seen consistent investment due to regulatory requirements and the push for value-based care.

How does the per-unit cost or pricing structure of this contract compare to similar government IT service contracts?

The contract is a Firm Fixed Price (FFP) BPA Call, valued at $73.2 million over approximately 5.5 years. Benchmarking the per-unit cost is challenging without knowing the specific units of service or deliverables. FFP contracts aim to provide cost certainty, meaning the contractor assumes the risk of cost overruns. To compare pricing, one would need to identify similar contracts for IT services, particularly those involving implementation, reporting, and data management within federal health agencies. Key comparison points would include the hourly rates for different labor categories, project management fees, and overhead. A moderate competition level (4 bidders) suggests pricing is likely competitive but may not be as aggressive as in highly saturated markets. A detailed cost-volume-profit analysis or comparison with industry standard rates for similar IT services would be necessary for a definitive assessment.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a contract focused on Quality Measures Implementation and Reporting (QMIR), typical KPIs would likely revolve around system uptime and availability, data accuracy and integrity, timeliness of reporting, successful implementation of new features or updates, and user satisfaction. SLAs would define the acceptable performance thresholds for these KPIs, potentially including response times for technical support and resolution times for system issues. These metrics are crucial for CMS to ensure the QMIR system effectively supports its mission of monitoring and improving healthcare quality.

What is the track record of SEMANTICBITS LLC in performing similar federal IT contracts, particularly within the healthcare sector?

Assessing SEMANTICBITS LLC's track record requires reviewing their past performance on federal contracts, accessible through databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). Information on their past performance would include details on contract values, agencies served, types of services rendered, and client feedback on performance, quality, timeliness, and cost control. For this specific contract, understanding their experience with CMS or similar health agencies, and their success in implementing and managing complex IT systems, especially those related to data reporting and quality measures, would be highly relevant. A positive performance history on comparable contracts would increase confidence in their ability to meet the requirements of the QMIR contract.

What are the potential risks associated with the long duration (approx. 5.5 years) of this contract?

The long duration of this contract, spanning approximately 5.5 years, presents several potential risks. Firstly, technology can rapidly evolve, and a system implemented today might become outdated or inefficient before the contract ends, requiring significant adaptation or modernization efforts. Secondly, there's a risk of contractor performance degradation over time; initial high performance might wane, especially if incentives are not continuously aligned or if the contractor faces internal challenges. Thirdly, long-term reliance on a single contractor can reduce flexibility and potentially lead to complacency. Finally, changes in government priorities, regulations, or budget allocations over such an extended period could necessitate contract modifications, potentially impacting scope, cost, or schedule. Robust oversight and performance management are critical to mitigate these risks.

How does the 'Other Computer Related Services' NAICS code (541519) influence the scope and potential flexibility of this contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide range of IT services not specified under other, more narrowly defined codes. This broadness offers significant flexibility for the government, allowing the contract to potentially cover various IT needs related to the QMIR program, such as custom software development, IT consulting, data processing, and integration services, as they arise. However, this flexibility also introduces risks. It can lead to scope creep if not carefully managed, where the contract's objectives expand beyond the original intent. For the contractor, it necessitates a broad range of capabilities or the ability to quickly acquire them. For oversight, it requires diligent monitoring to ensure that all services performed align with the core objectives of the QMIR program and represent good value for taxpayer money.

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: 75FCMC20Q0023

Offers Received: 4

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: $73,195,199

Exercised Options: $73,195,199

Current Obligation: $73,195,199

Actual Outlays: $63,015,883

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HHSM500201600011B

IDV Type: BPA

Timeline