HHS awards $203.6M FFM Bridge Contract to Accenture Federal Services

Contract Overview

Contract Amount: $203,599,426 ($203.6M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-01-11

End Date: 2022-07-15

Contract Duration: 550 days

Daily Burn Rate: $370.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: FEDERALLY FACILITATED MARKETPLACE (FFM) BRIDGE CONTRACT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $203.6 million to ACCENTURE FEDERAL SERVICES LLC for work described as: FEDERALLY FACILITATED MARKETPLACE (FFM) BRIDGE CONTRACT Key points: 1. Significant contract value for IT services supporting a critical healthcare marketplace. 2. Accenture Federal Services is a major player in government IT contracting. 3. Potential risk associated with a large, single-award contract for essential services. 4. IT sector spending is substantial, with this contract representing a portion of it.

Value Assessment

Rating: good

The contract's Cost Plus Award Fee (CPAF) structure allows for performance-based incentives. Benchmarking against similar large-scale IT system design contracts is difficult without more granular cost data, but the total value appears within a reasonable range for the scope.

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. The use of a Delivery Order under a larger contract vehicle implies that the initial competition for the vehicle itself was thorough.

Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure supporting healthcare access. The competitive award aims to ensure value for money.

Public Impact

Ensures continued operation of the Federally Facilitated Marketplace (FFM). Supports millions of Americans accessing health insurance. Maintains critical IT infrastructure for healthcare enrollment and administration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single vendor for critical infrastructure.
Potential for cost overruns with CPAF contract type if not managed closely.

Positive Signals

Awarded through full and open competition.
Supports a vital government function (healthcare access).

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Government spending on IT continues to be a significant area, with contracts like this supporting essential digital infrastructure and services.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee is a large corporation. There is no direct indication of small business subcontracting in the provided data.

Oversight & Accountability

The Centers for Medicare and Medicaid Services (CMS) is responsible for overseeing this contract. The use of a CPAF structure necessitates active performance monitoring and management to ensure contractor accountability and value.

Related Government Programs

Computer Systems Design Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Single award for critical infrastructure.
Cost Plus Award Fee (CPAF) can lead to cost growth if not managed.
Lack of small business participation noted.
Contract duration and value warrant close monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $203.6 million to ACCENTURE FEDERAL SERVICES LLC. FEDERALLY FACILITATED MARKETPLACE (FFM) BRIDGE CONTRACT

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES 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 $203.6 million.

What is the period of performance?

Start: 2021-01-11. End: 2022-07-15.

What specific performance metrics are tied to the award fee in this CPAF contract, and how are they measured?

The provided data does not detail the specific performance metrics or measurement methodologies for the award fee. A thorough review of the contract's Statement of Work (SOW) and the Contractor Performance Evaluation Plan (CPEP) would be necessary to understand these criteria and how they are assessed to determine the awarded fee.

Given the critical nature of the FFM, what contingency plans are in place if Accenture Federal Services fails to perform adequately?

While the contract is awarded to a single entity, the government typically maintains contingency plans for critical services. These could include pre-identified alternative vendors, internal government capabilities, or mechanisms within the contract to transition services if performance issues arise and cannot be rectified.

How does the $203.6 million cost compare to previous contracts or estimated costs for maintaining the FFM IT infrastructure?

Without historical contract data or detailed cost estimates for the FFM IT infrastructure, a direct comparison is not possible. The value represents the cost for the specified period (January 2021 to July 2022) and the scope of services defined in the delivery order. Benchmarking would require access to similar historical contract awards for comparable IT services.

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 › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 800 NORTH GLEBE RD #300, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $205,006,767

Exercised Options: $203,599,426

Current Obligation: $203,599,426

Actual Outlays: $134,635,738

Subaward Activity

Number of Subawards: 105

Total Subaward Amount: $59,415,586

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201600003I

IDV Type: IDC

Timeline