HHS Awards $90.5M PECOS 2.0 Contract to CGI Federal for IT Services
Contract Overview
Contract Amount: $90,565,419 ($90.6M)
Contractor: CGI Federal Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2020-08-04
End Date: 2024-09-14
Contract Duration: 1,502 days
Daily Burn Rate: $60.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PROVIDER ENROLLMENT, CHAIN AND OWNERSHIP SYSTEM (PECOS) 2.0
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $90.6 million to CGI FEDERAL INC. for work described as: PROVIDER ENROLLMENT, CHAIN AND OWNERSHIP SYSTEM (PECOS) 2.0 Key points: 1. Contract value of $90.5M over 5 years. 2. CGI Federal Inc. is the sole awardee. 3. Risk of vendor lock-in due to sole awardee. 4. IT sector spending with a focus on health systems.
Value Assessment
Rating: good
The contract value of $90.5M over approximately 5 years appears reasonable for a system of PECOS's complexity. Benchmarking against similar large-scale IT system development and maintenance contracts would provide a more precise assessment.
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. However, the award is a delivery order, implying it might be part of a larger IDIQ, which could influence the competitive landscape.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential healthcare IT infrastructure.
Public Impact
Ensures continued operation and modernization of the Provider Enrollment, Chain, and Ownership System (PECOS). Supports Medicare and Medicaid provider enrollment, crucial for healthcare program integrity. Impacts healthcare providers by managing their enrollment and participation in federal programs. Modernization efforts could lead to improved efficiency and data accuracy in healthcare administration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if future phases are not competed.
- Reliance on a single contractor for a critical system.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type controls costs.
- Long-term contract provides stability for system development.
Sector Analysis
This contract falls within the IT services sector, specifically related to government IT systems supporting healthcare. Benchmarks for similar large-scale health IT system development and maintenance contracts would be relevant for a deeper analysis.
Small Business Impact
The data indicates the prime contractor is CGI Federal Inc., a large business. There is no explicit information on small business subcontracting participation in this specific award, which warrants further investigation.
Oversight & Accountability
The Centers for Medicare and Medicaid Services (CMS) is responsible for overseeing this contract. Standard government oversight mechanisms for IT contracts, including performance monitoring and quality assurance, should be in place.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Lack of small business participation noted.
- Potential for vendor lock-in.
- Reliance on a single contractor for a critical system.
- Need for clear future competition strategy.
Tags
other-computer-related-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 $90.6 million to CGI FEDERAL INC.. PROVIDER ENROLLMENT, CHAIN AND OWNERSHIP SYSTEM (PECOS) 2.0
Who is the contractor on this award?
The obligated recipient is CGI FEDERAL 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 $90.6 million.
What is the period of performance?
Start: 2020-08-04. End: 2024-09-14.
What is the specific scope of work for PECOS 2.0 and how does it align with current healthcare IT needs?
PECOS 2.0 is critical for managing provider enrollment in Medicare and Medicaid. Its scope likely includes modernizing the existing system to improve data accuracy, streamline enrollment processes for providers, enhance security, and ensure compliance with evolving healthcare regulations. This modernization is vital for maintaining the integrity of federal healthcare programs and ensuring efficient program administration.
What are the key performance indicators (KPIs) for this contract and how is CGI Federal's performance being measured?
Key performance indicators likely focus on system uptime, data accuracy rates, processing times for enrollment applications, security compliance, and user satisfaction. CMS would typically monitor these KPIs through regular reporting, system audits, and performance reviews to ensure CGI Federal meets its contractual obligations and delivers a high-quality, reliable system.
What is the long-term strategy for PECOS beyond this contract, and will future enhancements be competed?
The long-term strategy for PECOS should involve continuous modernization and adaptation to new healthcare policies and technologies. It is crucial that future enhancements or significant system upgrades are subject to competitive bidding processes to ensure continued value for taxpayers and to foster innovation. A clear roadmap for future development and procurement strategies should be established.
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: 12601 FAIR LAKES CIR # 100, FAIRFAX, VA, 22033
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $103,797,203
Exercised Options: $90,565,419
Current Obligation: $90,565,419
Actual Outlays: $67,861,156
Subaward Activity
Number of Subawards: 70
Total Subaward Amount: $49,948,627
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F281DA
IDV Type: FSS
Timeline
Start Date: 2020-08-04
Current End Date: 2024-09-14
Potential End Date: 2025-09-14 00:00:00
Last Modified: 2024-07-05
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