HHS Awards $388M Marketplace System Integrator Contract to Booz Allen Hamilton
Contract Overview
Contract Amount: $388,263,834 ($388.3M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2020-07-23
End Date: 2025-07-22
Contract Duration: 1,825 days
Daily Burn Rate: $212.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: MARKETPLACE SYSTEM INTEGRATOR (MSI)
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $388.3 million to BOOZ ALLEN HAMILTON INC for work described as: MARKETPLACE SYSTEM INTEGRATOR (MSI) Key points: 1. Contract awarded to Booz Allen Hamilton for $388.3M over 5 years. 2. Competition was full and open, indicating a competitive bidding process. 3. The contract falls under Computer Systems Design Services (NAICS 541512). 4. This spending is within the IT sector, supporting healthcare systems.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee (CPFF) structure allows for flexibility but requires careful oversight to manage costs. Benchmarking against similar large-scale IT system integration contracts is recommended.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.
Taxpayer Impact: The competitive award aims to ensure taxpayer funds are used efficiently for critical healthcare IT infrastructure.
Public Impact
Ensures continued operation and enhancement of the Health Insurance Marketplace. Supports millions of Americans accessing health insurance. Potential for improved healthcare access and affordability through technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can lead to cost overruns if not managed tightly.
- No small business participation noted, potentially missing opportunities for smaller firms.
Positive Signals
- Full and open competition suggests a fair and competitive pricing environment.
- Long-term contract provides stability for critical system development.
Sector Analysis
This contract is within the Information Technology sector, specifically focusing on complex system integration for government healthcare platforms. Spending benchmarks for similar large-scale IT projects can vary widely, but this award represents a significant investment in maintaining and evolving essential public services.
Small Business Impact
The data indicates that small businesses were not directly involved in this prime contract award. Further analysis could explore subcontracting opportunities to ensure small business participation in this significant IT project.
Oversight & Accountability
The CPFF contract type necessitates strong oversight from the Centers for Medicare and Medicaid Services to ensure cost control and adherence to project scope. Regular performance reviews and audits will be 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 carries inherent cost overrun risks.
- Lack of explicit small business participation in prime award.
- Complexity of integrating and maintaining large-scale government IT systems.
- Potential for scope creep in system enhancements over the contract period.
Tags
computer-systems-design-services, department-of-health-and-human-services, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $388.3 million to BOOZ ALLEN HAMILTON INC. MARKETPLACE SYSTEM INTEGRATOR (MSI)
Who is the contractor on this award?
The obligated recipient is BOOZ ALLEN HAMILTON INC.
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 $388.3 million.
What is the period of performance?
Start: 2020-07-23. End: 2025-07-22.
What is the projected return on investment for this $388M contract in terms of improved healthcare access or system efficiency?
The return on investment is multifaceted, aiming to improve the efficiency and user experience of the Health Insurance Marketplace, thereby potentially increasing enrollment and reducing administrative overhead. Quantifying direct ROI is challenging, but the contract's success will be measured by system uptime, user satisfaction, and the ability to adapt to evolving healthcare policy requirements.
What are the key performance indicators (KPIs) being used to measure the success of Booz Allen Hamilton's performance under this contract?
Key performance indicators likely include system availability and reliability metrics, user satisfaction scores from both consumers and administrators, successful implementation of new features or policy changes, and adherence to security protocols. The agency will monitor these KPIs closely to ensure the contractor meets its obligations and delivers value.
How will the Centers for Medicare and Medicaid Services ensure that the fixed fee component of the CPFF contract remains reasonable and justified throughout the contract's duration?
CMS will ensure the fixed fee's reasonableness through rigorous initial negotiation based on market rates for similar services and contractor expertise. Throughout the contract, ongoing oversight, performance monitoring, and potential audits will verify that the contractor's efforts align with the agreed-upon scope and that the fee remains justified by the value delivered and risks managed.
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: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation
Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $402,073,195
Exercised Options: $388,263,834
Current Obligation: $388,263,834
Actual Outlays: $319,542,970
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $1,053,174
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSM500201600015I
IDV Type: IDC
Timeline
Start Date: 2020-07-23
Current End Date: 2025-07-22
Potential End Date: 2025-07-22 00:00:00
Last Modified: 2024-11-15
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