HHS CMS Awards $18M IT Transformation Support Services Contract to Octo Metric LLC
Contract Overview
Contract Amount: $18,046,523 ($18.0M)
Contractor: Octo Metric LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2023-07-14
End Date: 2026-07-13
Contract Duration: 1,095 days
Daily Burn Rate: $16.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: LABOR HOURS
Sector: IT
Official Description: IT TRANSFORMATION SUPPORT SERVICES (ITTSS)
Place of Performance
Location: ATLANTA, FULTON County, GEORGIA, 30361
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $18.0 million to OCTO METRIC LLC for work described as: IT TRANSFORMATION SUPPORT SERVICES (ITTSS) Key points: 1. Contract awarded for IT Transformation Support Services (ITTSS) to Octo Metric LLC. 2. Total contract value is $18,046,522.68. 3. The contract is for custom computer programming services. 4. The period of performance is from July 14, 2023, to July 13, 2026. 5. This is a delivery order under an existing contract.
Value Assessment
Rating: good
The contract value of $18M over three years appears reasonable for IT transformation support services. Benchmarking against similar custom computer programming services contracts would provide a more precise 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 leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive award process is expected to yield fair pricing, ensuring taxpayer funds are used efficiently for essential IT services.
Public Impact
Ensures continued IT modernization and transformation at CMS. Supports critical healthcare services through improved technology. Provides specialized programming expertise to the agency. Impacts the efficiency and effectiveness of healthcare delivery systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in IT transformation projects.
- Reliance on a single vendor for critical IT services.
- Need for robust performance monitoring to ensure value.
Positive Signals
- Awarded through full and open competition.
- Clear period of performance and defined services.
- Supports a vital government agency (CMS).
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is significant across government, driven by the need for digital transformation and modernization of legacy systems.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not primary awardees, though they may participate as subcontractors.
Oversight & Accountability
The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight will focus on the performance of this specific order and its alignment with the parent contract's terms.
Related Government Programs
- Custom Computer Programming Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for cost overruns if scope is not well-managed.
- Dependency on a single vendor for critical transformation efforts.
- Need for continuous oversight to ensure value for money.
- Risk of technological obsolescence if transformation is not agile.
Tags
custom-computer-programming-services, department-of-health-and-human-services, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $18.0 million to OCTO METRIC LLC. IT TRANSFORMATION SUPPORT SERVICES (ITTSS)
Who is the contractor on this award?
The obligated recipient is OCTO METRIC 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 $18.0 million.
What is the period of performance?
Start: 2023-07-14. End: 2026-07-13.
What is the specific scope of 'IT Transformation Support Services' and how does it align with CMS's strategic IT goals?
The specific scope of IT Transformation Support Services (ITTSS) likely encompasses a range of activities aimed at modernizing CMS's technological infrastructure and processes. This could include software development, system integration, cloud migration, data analytics support, and cybersecurity enhancements. The alignment with CMS's strategic IT goals would involve ensuring these services directly contribute to objectives such as improving beneficiary experience, enhancing data security, increasing operational efficiency, and enabling innovation in healthcare policy implementation.
How will the performance of Octo Metric LLC be monitored to ensure the $18M investment delivers tangible improvements in IT capabilities?
Performance monitoring will likely involve a combination of key performance indicators (KPIs) tied to project milestones, service level agreements (SLAs), and technical performance metrics. CMS will assign a Contracting Officer's Representative (COR) to oversee the contractor's work, conduct regular progress reviews, and assess deliverables against the contract requirements. Feedback mechanisms, such as performance reports and user satisfaction surveys, will also be employed to gauge the effectiveness and value derived from the IT transformation support.
What are the potential risks associated with relying on a single delivery order for critical IT transformation, and how are they mitigated?
A primary risk is vendor lock-in and potential cost escalation if the scope expands beyond initial projections. Another risk is the potential for disruption if the vendor underperforms or faces financial instability. Mitigation strategies include clearly defined contract terms, robust performance management, regular market research to ensure continued fair pricing, and contingency planning for potential vendor issues. The full and open competition award method also helps mitigate risks by ensuring a competitive baseline.
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 - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 1175 PEACHTREE ST NE STE 1000 FL 10, ATLANTA, GA, 30361
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,060,019
Exercised Options: $18,046,523
Current Obligation: $18,046,523
Actual Outlays: $13,841,521
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $16,686,422
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QTCA19D00CY
IDV Type: FSS
Timeline
Start Date: 2023-07-14
Current End Date: 2026-07-13
Potential End Date: 2028-07-13 00:00:00
Last Modified: 2025-07-11
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