HHS awards $37.4M ServiceNow contract to ICF for CMS, highlighting custom programming services
Contract Overview
Contract Amount: $37,388,955 ($37.4M)
Contractor: ICF Incorporated, L.L.C.
Awarding Agency: Department of Health and Human Services
Start Date: 2022-08-01
End Date: 2026-07-31
Contract Duration: 1,460 days
Daily Burn Rate: $25.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SERVICENOW APPLICATION DEVELOPMENT & WORKFLOW (SNOW) DESIGN CONTRACT
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $37.4 million to ICF INCORPORATED, L.L.C. for work described as: SERVICENOW APPLICATION DEVELOPMENT & WORKFLOW (SNOW) DESIGN CONTRACT Key points: 1. Contract focuses on custom computer programming services for ServiceNow. 2. ICF Incorporated, L.L.C. is the sole awardee. 3. The contract is a Firm Fixed Price delivery order. 4. Spending is concentrated within Maryland. 5. No small business participation noted.
Value Assessment
Rating: good
The contract value of $37.4M over 4 years for custom programming services appears reasonable. Benchmarking against similar custom software development contracts is needed for a definitive assessment.
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 $37.4M expenditure represents taxpayer funds allocated to enhance federal IT infrastructure and workflow management at CMS.
Public Impact
Enhances critical healthcare IT systems at CMS. Supports workflow automation and application development. Potential for improved efficiency in healthcare services delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Concentration of spending in one state.
- Potential for vendor lock-in with custom development.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type controls costs.
- Long-term engagement allows for sustained development.
Sector Analysis
This contract falls within the IT sector, specifically custom computer programming services. Benchmarks for similar federal IT development contracts vary widely based on scope and complexity, but $37.4M for a 4-year ServiceNow engagement is within a typical range for significant federal projects.
Small Business Impact
The data indicates no small business participation in this contract. Further investigation may be warranted to understand if opportunities were missed or if the nature of the work precluded small business involvement.
Oversight & Accountability
The contract is a delivery order under a larger framework, suggesting it has undergone some level of initial review. Ongoing oversight by CMS will be crucial to ensure performance and cost-effectiveness.
Related Government Programs
- Custom Computer Programming Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- No small business participation.
- Geographic concentration of spending.
- Potential for scope creep in custom development.
- Reliance on a single vendor for critical IT functions.
Tags
custom-computer-programming-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $37.4 million to ICF INCORPORATED, L.L.C.. SERVICENOW APPLICATION DEVELOPMENT & WORKFLOW (SNOW) DESIGN CONTRACT
Who is the contractor on this award?
The obligated recipient is ICF INCORPORATED, 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 $37.4 million.
What is the period of performance?
Start: 2022-08-01. End: 2026-07-31.
What is the specific scope of work for ServiceNow application development and workflow?
The provided data does not detail the specific applications or workflows being developed. Understanding the precise functionalities, integrations, and user base impacted by this ServiceNow contract is essential for a comprehensive value assessment. This information would clarify the criticality and potential benefits of the development efforts.
What are the key performance indicators (KPIs) for this contract?
Key performance indicators are not specified in the provided data. Establishing clear KPIs related to application performance, user adoption, workflow efficiency gains, and system uptime is crucial for measuring the success of this ServiceNow development contract and ensuring accountability.
How does the cost compare to similar ServiceNow implementations in other federal agencies?
A direct cost comparison is difficult without detailed scope information. However, the $37.4M value over four years for custom development suggests a significant investment. Benchmarking against contracts with similar complexity, user numbers, and module implementations in other agencies would provide valuable context for cost-effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DELIVERY
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 75FCMC22R0014
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: ICF International, Inc.
Address: 1902 RESTON METRO PLAZA, RESTON, VA, 20190
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,441,470
Exercised Options: $37,388,955
Current Obligation: $37,388,955
Actual Outlays: $32,261,288
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $2,515,172
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F328DA
IDV Type: FSS
Timeline
Start Date: 2022-08-01
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2025-07-29
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