HHS awards $90M for SAS Enterprise License Agreement to Executive Information Systems, LLC

Contract Overview

Contract Amount: $90,133,986 ($90.1M)

Contractor: Executive Information Systems, L.L.C.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-12-23

End Date: 2026-12-30

Contract Duration: 1,833 days

Daily Burn Rate: $49.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SAS ENTERPRISE LICENSE AGREEMENT (ELA)

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $90.1 million to EXECUTIVE INFORMATION SYSTEMS, L.L.C. for work described as: SAS ENTERPRISE LICENSE AGREEMENT (ELA) Key points: 1. Contract value represents a significant investment in data analytics capabilities for CMS. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide predictable spending. 4. The duration of the contract extends over several years, indicating a long-term need. 5. The specific NAICS code suggests a focus on specialized computer-related services. 6. The award amount is substantial, warranting scrutiny for value for money.

Value Assessment

Rating: fair

The contract value of approximately $90.1 million over its term is substantial. Benchmarking this against similar enterprise license agreements for SAS software across federal agencies is challenging without more specific details on the scope of services and user base. However, the fixed-price nature of the contract provides some cost certainty. The reported 'br' value of 49173, if representing a benchmark or previous award, would need further context to assess its relevance and whether this award represents an increase or decrease in cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more favorable terms for the government. The number of bidders is not specified, but the designation implies that multiple offers were likely received and evaluated.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for the government's investment.

Public Impact

Beneficiaries include CMS staff and potentially other HHS components requiring advanced data analytics. Services delivered include access to SAS software licenses and potentially associated support. The geographic impact is primarily within the operational scope of CMS, likely nationwide. Workforce implications may involve training and utilization of personnel skilled in SAS software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with enterprise-level software licenses.
Ensuring the full utilization of the licensed software to maximize return on investment.
The long-term nature of the contract requires ongoing monitoring of performance and evolving needs.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Fixed-price contract type provides cost predictability.
Long contract duration suggests a sustained and critical need for these services.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on software licensing and related services. The market for enterprise analytics software, such as SAS, is dominated by a few major players. Federal spending in this area is significant, driven by the increasing need for data-driven decision-making across all agencies. Comparable spending benchmarks would typically involve analyzing other large-scale software enterprise license agreements within the federal government, particularly for data analytics platforms.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large enterprise license agreement, it is unlikely to be directly awarded to a small business. However, the prime contractor, Executive Information Systems, L.L.C., may have obligations for subcontracting with small businesses, depending on the total contract value and federal regulations. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program officials within CMS. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Federal Data Analytics Services
Software Licensing Agreements
Health Information Technology Contracts
CMS IT Modernization Efforts

Risk Flags

Potential for vendor lock-in
Ensuring full software utilization
Long-term financial commitment

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $90.1 million to EXECUTIVE INFORMATION SYSTEMS, L.L.C.. SAS ENTERPRISE LICENSE AGREEMENT (ELA)

Who is the contractor on this award?

The obligated recipient is EXECUTIVE INFORMATION SYSTEMS, L.L.C..

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 $90.1 million.

What is the period of performance?

Start: 2021-12-23. End: 2026-12-30.

What is the specific scope of services included in this SAS Enterprise License Agreement?

The provided data indicates this is a 'SAS ENTERPRISE LICENSE AGREEMENT (ELA)'. While the specific details of the scope are not fully elaborated in the summary data, an ELA typically includes the right to use SAS software products across the organization, often with unlimited or site-wide usage rights for a defined period. This can encompass a wide range of SAS analytical tools, data management software, and potentially associated maintenance and support services. The contract value of approximately $90.1 million suggests a comprehensive offering, likely covering numerous users and a broad suite of SAS functionalities critical for the Centers for Medicare and Medicaid Services (CMS) operations, such as data analysis, reporting, and predictive modeling for healthcare programs.

How does the award value of $90.1 million compare to historical spending on SAS software by HHS or CMS?

Without access to historical spending data specifically for SAS software within HHS or CMS, a direct comparison is difficult. However, an award of this magnitude for an enterprise license agreement suggests a significant and sustained investment. To provide a meaningful comparison, one would need to analyze prior contracts for SAS software, noting any changes in scope, user base, or pricing structures over time. It would also be beneficial to benchmark this against similar ELA awards for SAS or comparable analytics platforms in other large federal agencies to gauge if the pricing is within expected ranges for the scope and duration.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this SAS Enterprise License Agreement. However, for a contract of this nature and value, it is highly probable that such metrics are included in the full contract documentation. Typical KPIs for software licensing and support contracts might include software uptime, response times for technical support, availability of software updates and patches, and potentially performance metrics related to the delivery of specific analytical capabilities. These would be crucial for ensuring CMS receives the expected value and functionality from the SAS software.

What is the track record of Executive Information Systems, L.L.C. in delivering similar large-scale software licensing agreements to the federal government?

Executive Information Systems, L.L.C. (EIS) has a history of performing federal IT contracts. Information available through federal procurement databases (like FPDS) would detail their past performance, including contract types, agencies served, and award values. For a contract of this size and importance, it is expected that EIS would have demonstrated relevant experience in managing and delivering complex software licensing solutions, potentially including other enterprise agreements. A review of their past performance would assess their reliability, technical capabilities, and ability to meet contractual obligations, particularly for large, mission-critical systems like those at CMS.

What are the potential risks associated with a long-term, high-value enterprise license agreement for software?

Several risks are associated with long-term, high-value enterprise license agreements. One primary risk is vendor lock-in, where the agency becomes heavily reliant on a specific vendor's technology, making it difficult and costly to switch to alternatives. Another risk is the potential for underutilization of the licensed software, leading to a poor return on investment if the full capabilities are not leveraged. Technological obsolescence is also a concern; the software landscape evolves rapidly, and the licensed software might become outdated before the contract term ends. Furthermore, changes in agency needs or budget constraints could make the long-term commitment financially burdensome. Finally, ensuring continuous and adequate technical support throughout the contract duration is 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 - APLLICATIONS

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

Address: 6903 ROCKLEDGE DR STE 760, BETHESDA, MD, 20817

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

Financial Breakdown

Contract Ceiling: $91,102,340

Exercised Options: $90,133,986

Current Obligation: $90,133,986

Actual Outlays: $86,408,786

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA18D0081

IDV Type: FSS

Timeline