CMS's $37.6M API Gateway Project Aims for Real-Time Data Correlation and Access
Contract Overview
Contract Amount: $37,560,992 ($37.6M)
Contractor: CGI Federal Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2021-06-01
End Date: 2026-05-31
Contract Duration: 1,825 days
Daily Burn Rate: $20.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CMS IS IMPLEMENTING A NEW SYSTEMS PROJECT CALLED THE APPLICATION PROGRAMMING INTERFACE (API) GATEWAY. THE OBJECTIVE IS TO PROVIDE THE ABILITY TO CORRELATE DATA EXCHANGES WITH THE BUSINESS EVENTS THAT TRIGGERED THEM NEAR REAL TIME DATA ACCESS WITH A
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $37.6 million to CGI FEDERAL INC. for work described as: CMS IS IMPLEMENTING A NEW SYSTEMS PROJECT CALLED THE APPLICATION PROGRAMMING INTERFACE (API) GATEWAY. THE OBJECTIVE IS TO PROVIDE THE ABILITY TO CORRELATE DATA EXCHANGES WITH THE BUSINESS EVENTS THAT TRIGGERED THEM NEAR REAL TIME DATA ACCESS WITH A Key points: 1. The API Gateway project by CMS focuses on near real-time data access and correlating data exchanges with triggering business events. 2. CGI Federal Inc. is the prime contractor for this significant IT systems project. 3. The contract utilizes a Firm Fixed Price (FFP) type, indicating a defined cost for the services. 4. This project falls under Computer Systems Design Services, a crucial area for modernizing government IT infrastructure.
Value Assessment
Rating: good
The contract's value of $37.6 million over five years appears reasonable for a complex IT systems integration project of this nature. Benchmarking against similar large-scale API gateway implementations 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. This method typically leads to more competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for this critical data infrastructure project.
Public Impact
Improved data accessibility for CMS operations and potentially for external stakeholders. Enhanced ability to track and understand data flows, leading to better operational insights. Modernization of critical IT infrastructure within the Department of Health and Human Services. Potential for increased efficiency in data-driven decision-making processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in a complex systems integration project.
- Reliance on a single contractor for a critical IT component.
- Ensuring long-term maintainability and scalability of the API Gateway.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract structure provides cost certainty.
- Clear objective of improving data access and correlation.
Sector Analysis
This project falls within the IT services sector, specifically Computer Systems Design Services. Spending in this area is substantial across government, driven by the need for modernization and digital transformation. Benchmarks for similar large-scale system integration projects are typically in the tens to hundreds of millions of dollars.
Small Business Impact
The data indicates this contract was awarded to CGI Federal Inc. and does not specify any set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract is managed by the Centers for Medicare and Medicaid Services (CMS) under the Department of Health and Human Services. Oversight would involve regular performance reviews, milestone tracking, and financial audits to ensure project delivery and adherence to contract terms.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Complexity of integrating with existing systems.
- Potential for vendor lock-in despite initial competition.
- Ensuring adequate training and knowledge transfer for CMS staff.
- Long-term maintenance and upgrade costs.
Tags
computer-systems-design-services, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $37.6 million to CGI FEDERAL INC.. CMS IS IMPLEMENTING A NEW SYSTEMS PROJECT CALLED THE APPLICATION PROGRAMMING INTERFACE (API) GATEWAY. THE OBJECTIVE IS TO PROVIDE THE ABILITY TO CORRELATE DATA EXCHANGES WITH THE BUSINESS EVENTS THAT TRIGGERED THEM NEAR REAL TIME DATA ACCESS WITH A
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 $37.6 million.
What is the period of performance?
Start: 2021-06-01. End: 2026-05-31.
What is the expected impact of the API Gateway on data security and privacy?
The API Gateway is expected to enhance data security by providing a centralized point for managing and monitoring data access. It should implement robust authentication and authorization mechanisms to ensure only authorized users and systems can access sensitive data. Furthermore, by correlating data exchanges with business events, it can aid in auditing and detecting potential breaches or unauthorized access in near real-time, thereby strengthening privacy controls.
How will the success of the API Gateway be measured, and what are the key performance indicators (KPIs)?
Success will likely be measured by the achievement of key objectives such as the speed and reliability of data access, the accuracy of data correlation with business events, and the reduction in data processing latency. Key Performance Indicators (KPIs) could include metrics like API response times, uptime percentages, the number of successful data correlations, and user satisfaction ratings from internal CMS stakeholders and potentially external partners relying on the data.
What are the potential risks associated with integrating this new API Gateway with existing CMS legacy systems?
Integrating a new API Gateway with complex legacy systems presents several risks. These include technical compatibility issues, data format mismatches, and potential disruptions to ongoing operations during the integration phase. There's also a risk of performance degradation if the gateway cannot efficiently handle the volume or complexity of data from older systems. Thorough testing, phased implementation, and robust middleware solutions will be critical to mitigate these integration challenges.
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 - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Timken Company
Address: 12601 FAIR LAKES CIR, 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: $37,560,992
Exercised Options: $37,560,992
Current Obligation: $37,560,992
Actual Outlays: $33,337,238
Subaward Activity
Number of Subawards: 25
Total Subaward Amount: $8,482,957
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSM500201600021I
IDV Type: IDC
Timeline
Start Date: 2021-06-01
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 00:00:00
Last Modified: 2026-03-12
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