HHS awards $11.2M for QIO system support, with SemanticsBits LLC managing operations and continuous improvement

Contract Overview

Contract Amount: $11,254,120 ($11.3M)

Contractor: Semanticbits LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-02-03

End Date: 2025-09-06

Contract Duration: 1,676 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE QIO DELIVERABLE INVOICE AND VOUCHERING SYSTEMS (QDIVS) CONTRACT IS A CONTRACT TO SUPPORT THE OPERATIONS AND CONTINUOUS IMPROVEMENT (O&CI) OF TWO QIO SYSTEMS, DELIVERABLES ADMINISTRATION REVIEW AND REPOSITORY TOOL (DARRT) AND FINANCIAL INFORMA

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.3 million to SEMANTICBITS LLC for work described as: THE QIO DELIVERABLE INVOICE AND VOUCHERING SYSTEMS (QDIVS) CONTRACT IS A CONTRACT TO SUPPORT THE OPERATIONS AND CONTINUOUS IMPROVEMENT (O&CI) OF TWO QIO SYSTEMS, DELIVERABLES ADMINISTRATION REVIEW AND REPOSITORY TOOL (DARRT) AND FINANCIAL INFORMA Key points: 1. The contract focuses on supporting critical QIO systems, DARRT and FINFORMA, essential for healthcare operations. 2. SemanticsBits LLC, the contractor, is tasked with ongoing operations and continuous improvement of these systems. 3. The contract duration extends to September 2025, indicating a medium-term commitment to system maintenance. 4. The award was made under a Full and Open Competition, suggesting a competitive bidding process. 5. The contract type is Firm Fixed Price, which helps in budget predictability for the agency. 6. The North American Industry Classification System (NAICS) code 541519 points to 'Other Computer Related Services', a broad category. 7. The contract is a BPA Call, indicating it was awarded under an existing Blanket Purchase Agreement.

Value Assessment

Rating: good

The contract value of $11.2 million over its period of performance appears reasonable for supporting and improving complex IT systems like DARRT and FINFORMA. Benchmarking against similar IT support contracts for government agencies would provide a more precise value-for-money assessment. The Firm Fixed Price structure offers cost certainty, which is a positive indicator for efficient spending. However, without detailed performance metrics or comparisons to industry standards for similar system support, a definitive assessment of 'excellent' value is not yet possible.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding process designed to foster price discovery and identify the most capable and cost-effective solution. The specific number of bidders is not provided, but the designation implies a competitive environment was sought.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives competitive offers, leading to better value for public funds.

Public Impact

The primary beneficiaries are the Centers for Medicare and Medicaid Services (CMS) and the Quality Improvement Organizations (QIOs) that rely on these systems for operational efficiency. The services delivered include the ongoing operation, maintenance, and continuous improvement of the DARRT and FINFORMA systems. The geographic impact is national, as these systems support healthcare quality initiatives across the United States. The contract supports the IT workforce involved in maintaining and enhancing these critical healthcare infrastructure systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'continuous improvement' is not tightly managed.
Dependence on a single contractor for critical system operations could pose a risk if performance falters.
The broad NAICS code might obscure the specific technical expertise required, potentially impacting long-term system evolution.

Positive Signals

Firm Fixed Price contract type provides cost predictability.
Full and Open Competition suggests a competitive award process.
Contract duration allows for stable system support and development.
Awarded to SemanticsBits LLC, whose performance history would need further review for specific strengths.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on software operations and maintenance for government systems. The market for such services is large and competitive, with numerous firms offering specialized support. The spending of $11.2 million is moderate for a multi-year IT support contract within the federal government. Comparable contracts often involve system integration, cloud migration, or cybersecurity enhancements, but this contract's focus is on the operational continuity and incremental improvement of existing, crucial platforms.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if SemanticsBits LLC chooses to engage them. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem. However, the absence of a set-aside means larger, established firms were likely the primary focus of the competition.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Centers for Medicare and Medicaid Services (CMS). As a federal contract, it is subject to standard oversight mechanisms, including performance reviews, audits, and potential review by the HHS Office of Inspector General (OIG) if performance issues or financial irregularities arise. Transparency is generally maintained through contract databases like FPDS, though detailed operational performance metrics may not always be publicly disclosed.

Related Government Programs

Quality Improvement Organization (QIO) Program
Healthcare IT Modernization Efforts
CMS Financial Management Systems
Federal IT Operations and Maintenance Contracts

Risk Flags

Potential for scope creep in 'continuous improvement' tasks.
Dependence on contractor for critical system operations.
Need for detailed performance metrics to ensure value for money.
Limited public information on specific competition details (number of bidders).

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.3 million to SEMANTICBITS LLC. THE QIO DELIVERABLE INVOICE AND VOUCHERING SYSTEMS (QDIVS) CONTRACT IS A CONTRACT TO SUPPORT THE OPERATIONS AND CONTINUOUS IMPROVEMENT (O&CI) OF TWO QIO SYSTEMS, DELIVERABLES ADMINISTRATION REVIEW AND REPOSITORY TOOL (DARRT) AND FINANCIAL INFORMA

Who is the contractor on this award?

The obligated recipient is SEMANTICBITS 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 $11.3 million.

What is the period of performance?

Start: 2021-02-03. End: 2025-09-06.

What is the track record of SemanticsBits LLC in supporting similar federal IT systems, particularly those related to healthcare operations?

Assessing the track record of SemanticsBits LLC requires a deeper dive into their past performance on federal contracts. While this award indicates they were selected for the QIO Deliverable Invoice and Vouchering Systems (QDIVS) contract, their specific experience with systems like DARRT and FINFORMA, or comparable healthcare IT platforms, is crucial. Information on past performance evaluations, any contract disputes, or successful project completions would provide insight into their capability to deliver on the operational and continuous improvement requirements. Without this specific data, the assessment of their reliability and expertise remains preliminary, relying solely on their ability to win this competitive bid.

How does the $11.2 million contract value compare to the cost of similar IT system support contracts within HHS or other federal agencies?

The $11.2 million contract value for supporting the QIO systems over approximately 4.5 years (February 2021 to September 2025) translates to an average annual cost of roughly $2.5 million. To benchmark this effectively, it needs comparison against contracts for similar scope and complexity. For instance, contracts supporting large-scale data management, financial vouchering, and reporting systems within agencies like the Department of Veterans Affairs or the Social Security Administration could offer relevant comparisons. Factors such as the number of users, data volume, system criticality, and required service level agreements (SLAs) heavily influence pricing. A preliminary assessment suggests this figure is within a reasonable range for specialized federal IT support, but a detailed analysis would require access to comparable contract data and performance metrics.

What are the key performance indicators (KPIs) used to measure the success of SemanticsBits LLC's support for the QIO systems?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for a contract focused on 'operations and continuous improvement' of IT systems like DARRT and FINFORMA, typical KPIs would likely include system uptime and availability, response times for issue resolution, successful completion of system updates and patches, user satisfaction ratings, and the timely delivery of new features or improvements. The effectiveness of the 'continuous improvement' aspect would be measured by the successful implementation of enhancements that demonstrably improve system efficiency, security, or user experience. Oversight by CMS program managers would involve regular reviews against these defined KPIs.

What is the historical spending trend for supporting the QIO Deliverable Invoice and Vouchering Systems (QDIVS) prior to this contract?

The provided data focuses on the current contract award and does not include historical spending details for the QIO Deliverable Invoice and Vouchering Systems (QDIVS). To understand historical spending trends, one would need to access federal procurement databases (like FPDS) and search for previous contracts related to the DARRT and FINFORMA systems or their predecessors. Analyzing past expenditures would reveal whether spending has been consistent, increasing, or decreasing, and could highlight any significant shifts in support needs or contract types over time. This context is vital for assessing the current award's value and the long-term financial commitment to these systems.

What are the potential risks associated with the 'continuous improvement' aspect of this contract, and how are they mitigated?

The 'continuous improvement' mandate carries inherent risks, primarily related to scope creep, uncontrolled cost increases, and the potential for introducing instability into critical systems. Without clear definitions and robust change control processes, 'improvement' can lead to ever-expanding requirements. Mitigation strategies typically involve a well-defined contract modification process, rigorous testing phases before deploying any improvements, and strong program management oversight from the agency. Establishing clear objectives for improvements, prioritizing them based on impact and feasibility, and ensuring adequate funding are also key. The Firm Fixed Price nature of this contract may inherently limit uncontrolled cost increases, but careful management of the scope of improvements remains critical.

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 › 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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: ICF International, Inc.

Address: 13921 PARK CENTER RD STE 420, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $11,254,120

Exercised Options: $11,254,120

Current Obligation: $11,254,120

Actual Outlays: $9,845,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201600011B

IDV Type: BPA

Timeline