HHS awards $55M for web experience and content management, with 4 bidders competing

Contract Overview

Contract Amount: $54,955,594 ($55.0M)

Contractor: Civicactions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2020-03-02

End Date: 2024-11-29

Contract Duration: 1,733 days

Daily Burn Rate: $31.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: WEB EXPERIENCE AND CONTENT MANAGEMENT SERVICES (WECMS)

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $55.0 million to CIVICACTIONS, INC. for work described as: WEB EXPERIENCE AND CONTENT MANAGEMENT SERVICES (WECMS) Key points: 1. Contract value of $55M over nearly 5 years suggests a significant investment in digital services. 2. Full and open competition indicates a healthy market for these services, potentially driving competitive pricing. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The contract's duration of 1733 days (approx. 4.7 years) allows for sustained service delivery. 5. The North American Industry Classification System (NAICS) code 541519 covers a broad range of computer-related services. 6. The award was a delivery order, implying it was placed against an existing contract vehicle.

Value Assessment

Rating: good

The contract value of $55M over approximately 4.7 years averages to about $11.7M annually. Benchmarking this against similar large-scale web experience and content management contracts is difficult without more specific service details. However, the presence of 4 bidders in a full and open competition suggests that the pricing is likely competitive. The firm-fixed-price nature of the contract also indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. Four bidders submitted proposals, indicating a reasonable level of competition for this requirement. A competition with four bidders generally allows for robust price discovery and encourages contractors to offer competitive terms to win the award.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition award. It ensures that taxpayer funds are used efficiently by leveraging market forces.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) benefits from enhanced web experience and content management capabilities. The public, particularly beneficiaries and healthcare providers, will likely experience improved access to information and services through updated web platforms. The contract supports the delivery of critical digital services for a major health agency. The geographic impact is primarily national, given CMS's role in healthcare administration across the United States.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on a single contractor for critical web infrastructure could pose a risk if performance falters.
Ensuring continued alignment with evolving digital best practices and security standards will be crucial.

Positive Signals

The firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Full and open competition suggests a competitive market, likely leading to better value.
The contract duration allows for stability and long-term development of web services.

Sector Analysis

The IT services sector, specifically focusing on web experience and content management, is a critical area for government agencies. This contract falls within the broader IT consulting and software development market, which is highly competitive. Government spending in this area is substantial, driven by the need for modern, user-friendly digital platforms to deliver services and information. Comparable spending benchmarks would depend on the specific scope of services, but multi-year contracts in the tens of millions are common for agencies of CMS's size and mission.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the contract's value and the nature of web experience and content management services, it is likely that larger IT firms were the primary bidders. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Contracting Officer's Representative (COR) within CMS, who is responsible for monitoring performance and ensuring compliance with contract terms. The Department of Health and Human Services (HHS) also has an Office of Inspector General (OIG) that provides audit and investigative oversight for federal healthcare programs and associated contracts, ensuring accountability and preventing fraud, waste, and abuse.

Related Government Programs

Health Information Technology Services
Digital Government Services
IT Modernization Contracts
Website Development and Maintenance

Risk Flags

Contract Duration
Contract Value
Competition Level

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $55.0 million to CIVICACTIONS, INC.. WEB EXPERIENCE AND CONTENT MANAGEMENT SERVICES (WECMS)

Who is the contractor on this award?

The obligated recipient is CIVICACTIONS, 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 $55.0 million.

What is the period of performance?

Start: 2020-03-02. End: 2024-11-29.

What is the track record of Civicactions, Inc. with federal contracts, particularly in web experience and content management?

Civicactions, Inc. has a history of federal contracting, with this award representing a significant portion of their reported federal obligations. Analyzing their past performance on similar contracts, including adherence to schedules, quality of deliverables, and customer satisfaction, would provide further insight into their capabilities. A review of contract close-out data and any past performance evaluations would be necessary for a comprehensive assessment. Without access to detailed performance history, it's difficult to definitively assess their track record beyond the fact they were awarded this substantial contract.

How does the $55M contract value compare to similar web experience and content management contracts awarded by HHS or other agencies?

The $55M contract value over nearly five years, averaging approximately $11.7M annually, places this contract in the mid-to-large tier for IT services. Without specific details on the scope of services (e.g., complexity of websites, volume of content, specific functionalities), direct comparison is challenging. However, large federal agencies like HHS frequently award contracts in this range for comprehensive digital transformation, website redesigns, and ongoing content management. The number of bidders (4) suggests it was a competitive procurement, which typically helps align pricing with market rates for similar services.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how are they measured?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for web experience and content management services, KPIs might include website uptime, page load speed, user satisfaction scores, content accuracy, and response times for updates or issue resolution. SLAs would define the acceptable performance thresholds for these KPIs. Measurement methods would likely involve automated monitoring tools, user surveys, and regular reporting by the contractor, with government oversight by the COR to ensure compliance and identify any performance deficiencies.

What is the potential impact of this contract on the modernization of CMS's digital platforms and citizen engagement?

This contract is likely a significant driver for the modernization of CMS's digital platforms. By investing $55M over nearly five years, CMS aims to improve the user experience and content management capabilities of its web presence. This can lead to more accessible, user-friendly, and informative websites for beneficiaries, healthcare providers, and other stakeholders. Enhanced digital platforms can improve citizen engagement by making it easier to access services, find information, and interact with the agency, ultimately supporting CMS's mission to improve health and healthcare. The specific impact will depend on the successful execution of the contract's objectives.

How does the firm-fixed-price contract type influence risk allocation and potential cost savings for the government?

The firm-fixed-price (FFP) contract type is generally advantageous for the government as it shifts the majority of performance risk to the contractor, Civicactions, Inc. Under an FFP contract, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This incentivizes the contractor to manage their resources efficiently and control costs. For the government, it provides cost certainty, making budgeting more predictable. Potential cost savings arise because the contractor bears the risk of cost overruns, and competition under this structure often drives down the initial price offered.

What is the historical spending trend for web experience and content management services at CMS or HHS?

The provided data only includes details for this specific contract award. To understand historical spending trends for web experience and content management services at CMS or HHS, one would need to analyze historical contract databases (like FPDS or USASpending.gov) for similar NAICS codes (e.g., 541519, 541511, 541512) and contract types over several fiscal years. This would reveal patterns in spending levels, types of services procured, and the primary contractors utilized, providing context for the current $55M award.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3470 SHANGRI LA RD, LAFAYETTE, CA, 94549

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $58,855,061

Exercised Options: $54,955,594

Current Obligation: $54,955,594

Actual Outlays: $45,194,022

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F337BA

IDV Type: FSS

Timeline