HHS Awards $54.5M for Continued HIDS Services to Ventech Solutions Inc

Contract Overview

Contract Amount: $54,514,920 ($54.5M)

Contractor: Ventech Solutions Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2023-03-16

End Date: 2023-12-15

Contract Duration: 274 days

Daily Burn Rate: $199.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: EXECUTE A CONTRACT TO CONTINUE HIDS WORK SUCH AS SERVICE CENTER TASKING, CLOUD OPERATIONS, AND SERVICE NOW SERVICES.

Place of Performance

Location: COLUMBUS, DELAWARE County, OHIO, 43240

State: Ohio Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $54.5 million to VENTECH SOLUTIONS INC for work described as: EXECUTE A CONTRACT TO CONTINUE HIDS WORK SUCH AS SERVICE CENTER TASKING, CLOUD OPERATIONS, AND SERVICE NOW SERVICES. Key points: 1. Contract focuses on critical IT infrastructure support for CMS. 2. Ventech Solutions Inc. is the sole awardee for this delivery order. 3. Risk of vendor lock-in and potential cost overruns exist. 4. IT services sector sees significant spending in cloud operations and system maintenance.

Value Assessment

Rating: fair

The contract value of $54.5M for a 9-month period appears high for Time and Materials, especially given the lack of a fixed price. Benchmarking against similar IT service contracts is difficult without more detailed cost breakdowns.

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. However, as a delivery order, the specific pricing and vendor selection within that competition are not detailed here, impacting price discovery assessment.

Taxpayer Impact: Taxpayers are funding essential IT services for Medicare and Medicaid, but the Time and Materials pricing model warrants close monitoring to ensure cost-effectiveness.

Public Impact

Ensures continuity of critical IT services for Medicare and Medicaid. Supports cloud operations and service center tasking, vital for healthcare administration. Potential for increased costs if work hours or rates are not managed effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing
Lack of detailed cost breakdown
Sole awardee for this delivery order

Positive Signals

Full and open competition
Essential IT services for healthcare

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services. Spending in this area is substantial, driven by the increasing reliance on cloud computing, data management, and system integration within government agencies.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The primary contractor, Ventech Solutions Inc., is not identified as a small business in this context, suggesting limited direct benefit to small businesses through this specific award.

Oversight & Accountability

Oversight is crucial for Time and Materials contracts to prevent scope creep and ensure fair pricing. The Centers for Medicare and Medicaid Services (CMS) should actively monitor hours, rates, and deliverables to ensure accountability and value for taxpayer money.

Related Government Programs

Computer Systems Design Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of detailed cost breakdown makes price reasonableness difficult to assess.
Sole awardee for this delivery order could indicate limited competition at this stage.
Vendor lock-in risk if follow-on contracts are not competitively bid.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $54.5 million to VENTECH SOLUTIONS INC. EXECUTE A CONTRACT TO CONTINUE HIDS WORK SUCH AS SERVICE CENTER TASKING, CLOUD OPERATIONS, AND SERVICE NOW SERVICES.

Who is the contractor on this award?

The obligated recipient is VENTECH SOLUTIONS INC.

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 $54.5 million.

What is the period of performance?

Start: 2023-03-16. End: 2023-12-15.

What is the estimated hourly rate for the services provided under this Time and Materials contract?

The provided data does not specify the estimated hourly rates for the services. Time and Materials contracts typically involve billing based on actual labor hours and material costs incurred. Without this breakdown, it's challenging to assess the cost-effectiveness or benchmark against industry standards.

How was the 'fair and reasonable' price determined for this delivery order given the Time and Materials structure?

Determining a 'fair and reasonable' price for Time and Materials contracts often relies on historical pricing, labor category rates, and market research. The agency likely reviewed Ventech's proposed rates against established benchmarks and previous contract performance. However, the lack of a fixed ceiling or detailed cost breakdown makes independent verification difficult.

What mechanisms are in place to ensure the efficiency and necessity of the hours billed under this contract?

Effective oversight mechanisms are essential. This includes regular reviews of timesheets, task completion reports, and performance metrics. The government contracting officer and technical monitors must actively verify that the hours billed directly correlate with approved work and are performed efficiently to prevent overbilling.

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

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 8425 PULSAR PL STE 300, COLUMBUS, OH, 43240

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,514,920

Exercised Options: $54,514,920

Current Obligation: $54,514,920

Actual Outlays: $53,068,214

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201600071I

IDV Type: IDC

Timeline