HHS awards $24.3M for Data Modernization, with a focus on custom programming services

Contract Overview

Contract Amount: $24,317,951 ($24.3M)

Contractor: Nava PBC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-07-14

End Date: 2026-09-28

Contract Duration: 1,172 days

Daily Burn Rate: $20.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DATA MODERNIZATION (DMOD) 2.0 PROCUREMENT - MPSM BPA

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.3 million to NAVA PBC for work described as: DATA MODERNIZATION (DMOD) 2.0 PROCUREMENT - MPSM BPA Key points: 1. The contract leverages a Blanket Purchase Agreement (BPA) for flexibility and efficiency. 2. Custom computer programming services are central to this data modernization effort. 3. The award was made under full and open competition, suggesting a robust bidding process. 4. The contract duration spans over three years, indicating a significant, ongoing need. 5. The fixed-price contract type aims to control costs and provide budget certainty. 6. The primary agency is HHS, with specific work likely supporting CMS initiatives.

Value Assessment

Rating: good

Benchmarking the value of this specific BPA call is challenging without more granular data on the services procured. However, the firm fixed-price structure suggests an effort to manage costs effectively. The total award amount of $24.3 million over approximately three years indicates a substantial investment in data modernization, which is crucial for government operations. Comparing this to similar custom programming services contracts within HHS or other agencies would provide a clearer picture of value for money, but the initial indication is that the pricing is aligned with a competitive procurement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The fact that it is a BPA Call suggests that the underlying BPA itself was likely competed. This level of competition is generally favorable for price discovery and ensures that the government receives offers from a wide range of potential contractors, leading to potentially better pricing and service offerings.

Taxpayer Impact: Full and open competition typically results in more competitive pricing, which is beneficial for taxpayers by ensuring that federal dollars are spent efficiently and effectively.

Public Impact

Federal agencies, particularly those within the Department of Health and Human Services, will benefit from enhanced data capabilities. The services delivered will focus on custom computer programming to modernize data systems. The geographic impact is primarily within the District of Columbia, where the agency is headquartered. The contract supports the development and maintenance of critical IT infrastructure for government functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in custom programming projects if not managed tightly.
Reliance on a single BPA call could concentrate risk if the contractor underperforms.
Ensuring the modernization efforts align with long-term strategic data goals requires ongoing oversight.

Positive Signals

The use of a BPA structure allows for streamlined procurement of needed services.
Firm fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a strong market response and potential for quality solutions.

Sector Analysis

The IT services sector, specifically custom computer programming, is a significant area of federal spending. Agencies continually invest in modernizing their data infrastructure to improve efficiency, security, and service delivery. This contract fits within the broader trend of digital transformation across government. Comparable spending benchmarks for custom programming services can vary widely based on complexity and duration, but a $24.3 million award over three years for a modernization effort is substantial and reflects the critical nature of data management.

Small Business Impact

The data indicates that small business participation was not a specific set-aside requirement for this BPA Call (ss: false, sb: false). While the primary awardee is NAVA PBC, further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract. Without explicit set-aside goals, the direct impact on the small business ecosystem may be limited unless subcontracting plans are actively pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Medicare and Medicaid Services (CMS) within HHS. As a BPA Call, the underlying BPA likely has established oversight mechanisms. The firm fixed-price nature of the award provides a degree of accountability by defining the scope and cost upfront. Transparency is generally facilitated through federal procurement databases, though specific performance metrics and ongoing monitoring details may not be publicly available.

Related Government Programs

HHS Data Modernization Initiative
CMS IT Modernization Efforts
Custom Software Development Services
Federal IT Services Procurement
Blanket Purchase Agreements (BPAs)

Risk Flags

Potential for scope creep in custom programming.
Reliance on contractor for specialized technical expertise.
Integration challenges with existing legacy systems.
Ensuring long-term data strategy alignment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.3 million to NAVA PBC. DATA MODERNIZATION (DMOD) 2.0 PROCUREMENT - MPSM BPA

Who is the contractor on this award?

The obligated recipient is NAVA PBC.

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 $24.3 million.

What is the period of performance?

Start: 2023-07-14. End: 2026-09-28.

What is the specific nature of the 'Data Modernization (DMOD) 2.0 Procurement - MPSM BPA' and how does this call contribute to it?

The 'Data Modernization (DMOD) 2.0 Procurement - MPSM BPA' refers to a broader initiative by the Department of Health and Human Services (HHS), likely managed by the Centers for Medicare and Medicaid Services (CMS), aimed at upgrading and modernizing its data systems and capabilities. This specific BPA Call, awarded to NAVA PBC for approximately $24.3 million, represents a task order under an existing Blanket Purchase Agreement (BPA). It focuses on procuring custom computer programming services (NAICS code 541511) essential for achieving the goals of DMOD 2.0. These services could include developing new software, integrating existing systems, enhancing data analytics platforms, or improving data security and accessibility, all contributing to a more robust and modern data infrastructure for CMS operations.

How does the firm fixed-price contract type impact the risk and value proposition for the government?

A firm fixed-price (FFP) contract type is generally advantageous for the government when the scope of work is well-defined and unlikely to change significantly. It shifts the risk of cost overruns to the contractor, NAVA PBC in this case. For the government, this provides budget certainty, as the total cost is established upfront. The value proposition is enhanced because the contractor has a strong incentive to control costs and deliver the specified services efficiently to maximize their profit. However, if the scope is not perfectly defined or unforeseen issues arise, the government might be locked into a price that becomes less favorable, or the contractor might be incentivized to cut corners if not properly overseen. For data modernization, where requirements can evolve, careful scope management is crucial even with an FFP contract.

What does the 'full and open competition' designation imply about the contractor selection and potential pricing?

The 'full and open competition' designation signifies that the procurement process allowed any responsible business concern to submit a bid, without restrictions on the number or types of potential offerors. This is the preferred method of government procurement as it maximizes the pool of potential contractors, fostering a competitive environment. For this BPA Call, it implies that multiple companies likely vied for the contract, leading to a more rigorous evaluation of technical capabilities and pricing. The outcome of such competition typically results in more favorable pricing for the government compared to sole-source or limited competition scenarios, as contractors must offer competitive terms to win the award. It also suggests that NAVA PBC was selected based on having the best overall value proposition among the bidders.

What are the potential performance risks associated with custom computer programming services for data modernization?

Custom computer programming services for data modernization projects carry several inherent performance risks. One significant risk is the potential for scope creep, where project requirements expand beyond the initial agreement, leading to delays and cost increases, even under a fixed-price contract if not managed meticulously. Another risk involves technical challenges, such as unforeseen integration issues with legacy systems, compatibility problems, or the need for specialized expertise that may be difficult to secure. Contractor performance itself is a risk; the quality of the code, adherence to timelines, and effective project management by NAVA PBC are critical. Furthermore, cybersecurity vulnerabilities can arise during development if not rigorously addressed. Finally, ensuring the developed solutions meet the evolving needs of CMS and align with long-term data strategy requires continuous monitoring and adaptation.

How does this contract align with broader federal IT modernization trends and spending priorities?

This contract aligns directly with the broader federal IT modernization trends and spending priorities, particularly the emphasis on improving data management, analytics, and digital services. Agencies across the government are under pressure to update legacy systems, enhance cybersecurity, and leverage data more effectively for decision-making and service delivery. The Data Modernization (DMOD) 2.0 initiative at HHS/CMS is a clear example of this trend. Federal spending priorities increasingly favor investments in cloud computing, data analytics, cybersecurity, and agile development methodologies – all of which are likely components of the custom programming services being procured here. This contract represents a tangible allocation of resources towards achieving these modernization goals, reflecting a commitment to updating critical government infrastructure.

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 - 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: 1 THOMAS CIR NW FL 9, WASHINGTON, DC, 20005

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

Financial Breakdown

Contract Ceiling: $42,378,446

Exercised Options: $24,317,951

Current Obligation: $24,317,951

Actual Outlays: $17,777,483

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $3,880,575

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75FCMC19A0010

IDV Type: BPA

Timeline