HHS Awards $22.9M for IT Project Management Oversight to Armavel LLC
Contract Overview
Contract Amount: $22,927,529 ($22.9M)
Contractor: Armavel LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2022-05-01
End Date: 2026-04-30
Contract Duration: 1,460 days
Daily Burn Rate: $15.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE SERVICES BEING ACQUIRED INCLUDE PROJECT MANAGEMENT OVERSIGHT AND GOVERNANCE ADVICE, GUIDANCE AND SUPPORT SERVICES UNDER THE OFFICE OF INFORMATION TECHNOLOGY TO FACILITATE CONSISTENT AND EFFECTIVE PLANNING AND MONITORING OF THE PROGRESS AND STATUS
Place of Performance
Location: TACOMA, PIERCE County, WASHINGTON, 98422
Plain-Language Summary
Department of Health and Human Services obligated $22.9 million to ARMAVEL LLC for work described as: THE SERVICES BEING ACQUIRED INCLUDE PROJECT MANAGEMENT OVERSIGHT AND GOVERNANCE ADVICE, GUIDANCE AND SUPPORT SERVICES UNDER THE OFFICE OF INFORMATION TECHNOLOGY TO FACILITATE CONSISTENT AND EFFECTIVE PLANNING AND MONITORING OF THE PROGRESS AND STATUS Key points: 1. Contract awarded to Armavel LLC for IT project management oversight. 2. Significant funding of $22.9 million allocated over four years. 3. Services support the Centers for Medicare and Medicaid Services (CMS). 4. Focus on consistent planning and progress monitoring for IT projects.
Value Assessment
Rating: fair
The contract's firm-fixed-price structure aims for cost predictability. However, without a specific benchmark or comparison to similar contracts for project management oversight services, a definitive assessment of value is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The competitive award process is intended to ensure taxpayer funds are used efficiently for necessary IT project management services.
Public Impact
Ensures effective oversight of critical IT projects within CMS. Supports consistent planning and monitoring, potentially reducing project delays and cost overruns. Aims to improve the governance and progress tracking of health IT initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics provided.
- Potential for scope creep in project management services.
- Reliance on a single vendor for critical oversight.
Positive Signals
- Awarded through full and open competition.
- Firm-fixed-price contract type.
- Long-term commitment allows for sustained support.
Sector Analysis
This contract falls within the IT consulting and professional services sector, specifically Computer Systems Design Services. Spending in this area is substantial across federal agencies, with significant investment in project management and IT governance.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to Armavel LLC. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract includes project management oversight and governance advice, implying internal oversight mechanisms. However, the effectiveness of external oversight and accountability for this specific contract is not detailed in the provided data.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Lack of defined performance metrics.
- Potential for vendor lock-in.
- Limited transparency on subcontractor utilization.
- No clear benchmark for value for money.
Tags
computer-systems-design-services, department-of-health-and-human-services, wa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $22.9 million to ARMAVEL LLC. THE SERVICES BEING ACQUIRED INCLUDE PROJECT MANAGEMENT OVERSIGHT AND GOVERNANCE ADVICE, GUIDANCE AND SUPPORT SERVICES UNDER THE OFFICE OF INFORMATION TECHNOLOGY TO FACILITATE CONSISTENT AND EFFECTIVE PLANNING AND MONITORING OF THE PROGRESS AND STATUS
Who is the contractor on this award?
The obligated recipient is ARMAVEL 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 $22.9 million.
What is the period of performance?
Start: 2022-05-01. End: 2026-04-30.
What is the expected impact of these services on the success rate of CMS IT projects?
These services are intended to improve the success rate of CMS IT projects by providing consistent planning, monitoring, and governance. Effective project management oversight can help identify risks early, ensure adherence to timelines and budgets, and facilitate better decision-making, ultimately contributing to more successful project outcomes and better utilization of taxpayer funds.
What are the key performance indicators (KPIs) used to measure the effectiveness of Armavel LLC's services?
The provided data does not specify the key performance indicators (KPIs) used to measure the effectiveness of Armavel LLC's services. Typically, such contracts would include metrics related to project milestone achievement, budget adherence, risk mitigation, and stakeholder satisfaction. Without these defined KPIs, assessing the contractor's performance and the true value delivered is challenging.
How does the pricing of this contract compare to similar government contracts for IT project management oversight?
A direct comparison of this contract's pricing to similar government contracts for IT project management oversight is not possible with the given data. While the contract is firm-fixed-price, the specific services and scope are unique to CMS needs. Benchmarking would require access to data on contracts with comparable service levels, duration, and agency context.
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
Solicitation ID: 75FCMC22R0010
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2715 64TH AVE NE, TACOMA, WA, 98422
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,042,124
Exercised Options: $22,927,529
Current Obligation: $22,927,529
Actual Outlays: $21,442,648
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QTCA21D00B5
IDV Type: FSS
Timeline
Start Date: 2022-05-01
Current End Date: 2026-04-30
Potential End Date: 2027-04-30 00:00:00
Last Modified: 2026-02-17
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