HHS Awards $41.9M Custom Programming Contract to ODDBALL, INC. via Full and Open Competition

Contract Overview

Contract Amount: $41,891,530 ($41.9M)

Contractor: Oddball, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2023-02-19

End Date: 2026-05-18

Contract Duration: 1,184 days

Daily Burn Rate: $35.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: 003708-NEW AWARD FOR BEDAP CONTRACT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $41.9 million to ODDBALL, INC. for work described as: 003708-NEW AWARD FOR BEDAP CONTRACT Key points: 1. Contract awarded for custom computer programming services. 2. ODDBALL, INC. secured the contract. 3. The contract has a duration of 1184 days. 4. This is a Time and Materials contract. 5. The award value is approximately $41.9 million.

Value Assessment

Rating: fair

The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. The benchmark for similar custom programming services is difficult to ascertain without more detailed scope information, but the award value suggests a significant project.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. However, the Time and Materials pricing structure may not guarantee the most cost-effective outcome compared to a fixed-price contract.

Taxpayer Impact: Taxpayers are impacted by the $41.9 million expenditure, with the effectiveness of this spending dependent on the successful delivery of custom programming services.

Public Impact

Potential for enhanced healthcare services through custom software development. Job creation within the IT sector for programming and related roles. Ensures government access to specialized IT capabilities for critical health programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing structure carries inherent cost risk.
Lack of specific performance metrics makes value assessment challenging.
Small business participation is not indicated.

Positive Signals

Awarded through full and open competition.
Long contract duration allows for sustained development and support.
Supports critical Centers for Medicare and Medicaid Services initiatives.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Spending benchmarks for such services vary widely based on complexity, duration, and required expertise. The $41.9 million award is substantial and suggests a significant project for CMS.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the contract was awarded to a larger entity or that small businesses were not prime contractors.

Oversight & Accountability

Oversight will be crucial to manage the Time and Materials aspect of this contract, ensuring that costs remain aligned with project milestones and deliverables. The Centers for Medicare and Medicaid Services will need robust project management to ensure accountability.

Related Government Programs

Custom Computer Programming Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Time and Materials pricing model.
Lack of detailed scope of work in award notice.
No indication of small business subcontracting goals.
Potential for cost overruns without strict oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $41.9 million to ODDBALL, INC.. 003708-NEW AWARD FOR BEDAP CONTRACT

Who is the contractor on this award?

The obligated recipient is ODDBALL, 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 $41.9 million.

What is the period of performance?

Start: 2023-02-19. End: 2026-05-18.

What specific custom programming services are being procured, and how do they align with CMS strategic goals?

The contract specifies 'Custom Computer Programming Services' (NA 541511). While the exact services are not detailed, they are intended to support the Centers for Medicare and Medicaid Services (CMS). The alignment with strategic goals would require further investigation into CMS's current IT modernization and program support priorities, but it is likely related to enhancing healthcare program administration or data management.

What are the potential risks associated with a Time and Materials contract of this magnitude for custom programming?

Time and Materials (T&M) contracts carry a significant risk of cost escalation if not closely monitored. For a $41.9 million contract, there's a risk that the 'time' component could expand beyond initial projections, leading to higher overall spending than anticipated. Effective oversight, clear task orders, and diligent tracking of labor hours and material costs are essential to mitigate this risk.

How will the effectiveness of the custom programming services be measured to ensure value for taxpayer money?

Effectiveness will likely be measured through the successful completion of defined milestones, adherence to project timelines, and the functionality and performance of the delivered software. Key Performance Indicators (KPIs) should be established within the contract's statement of work to objectively assess the quality and impact of the custom programming. Regular reviews and acceptance testing by CMS will be critical.

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

Solicitation ID: RFQ-CMS-2023-230838

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1775 TYSONS BLVD, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $43,226,534

Exercised Options: $41,891,530

Current Obligation: $41,891,530

Actual Outlays: $37,046,425

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F666GA

IDV Type: FSS

Timeline