HHS Awards $12.16M for Other Computer Related Services to National Government Services, Inc
Contract Overview
Contract Amount: $12,162,498 ($12.2M)
Contractor: National Government Services, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2023-09-26
End Date: 2027-01-25
Contract Duration: 1,217 days
Daily Burn Rate: $10.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: INNOVATION PAYMENT CONTRACTOR (IPC) CONTRACT AWARD
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46250
State: Indiana Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $12.2 million to NATIONAL GOVERNMENT SERVICES, INC. for work described as: INNOVATION PAYMENT CONTRACTOR (IPC) CONTRACT AWARD Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for 'Other Computer Related Services' under NAICS code 541519. 3. National Government Services, Inc. is the contractor, with the award being a delivery order. 4. The contract duration is over 3 years, indicating a significant, ongoing need.
Value Assessment
Rating: fair
The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. The award amount is $12.16M, but the specific value of the delivery order is not detailed, making a precise pricing assessment difficult without further data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, as a delivery order, the specific pricing mechanisms and their effectiveness in achieving best value are not fully detailed in this summary.
Taxpayer Impact: The use of full and open competition is positive for taxpayer value. However, the Time and Materials pricing structure warrants careful monitoring to ensure costs remain controlled and do not exceed expectations.
Public Impact
Impacts beneficiaries of Medicare and Medicaid services through the underlying IT support. Supports the operational efficiency of the Centers for Medicare and Medicaid Services. Potential for improved data processing and service delivery through contracted computer services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can lead to cost uncertainty.
- Lack of specific performance metrics for this delivery order.
- Contract duration extends into 2027, requiring ongoing oversight.
Positive Signals
- Awarded through full and open competition.
- Supports critical health services administration.
- Contractor has a significant role in government IT services.
Sector Analysis
This contract falls under 'Other Computer Related Services,' a broad category within the IT sector. Spending in this area is substantial across federal agencies, supporting various IT functions from software development to system maintenance. Benchmarks for this specific sub-sector are highly variable.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The Centers for Medicare and Medicaid Services (CMS) is responsible for oversight. As a delivery order under a larger contract, oversight would focus on the specific tasks and deliverables outlined in the order, ensuring compliance with terms and conditions.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Time and Materials pricing structure.
- Lack of specific performance metrics in the provided data.
- Contract duration extends over three years.
- No indication of small business subcontracting.
Tags
other-computer-related-services, department-of-health-and-human-services, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $12.2 million to NATIONAL GOVERNMENT SERVICES, INC.. INNOVATION PAYMENT CONTRACTOR (IPC) CONTRACT AWARD
Who is the contractor on this award?
The obligated recipient is NATIONAL GOVERNMENT SERVICES, 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 $12.2 million.
What is the period of performance?
Start: 2023-09-26. End: 2027-01-25.
What specific computer-related services are being provided under this delivery order, and how do they align with CMS's strategic IT goals?
The provided data categorizes the services broadly as 'Other Computer Related Services' (NAICS 541519). To understand the alignment with CMS's strategic IT goals, a detailed review of the delivery order's statement of work is necessary. This would clarify if the services support modernization efforts, data analytics, system maintenance, or other critical functions essential for CMS operations and beneficiary services.
What are the key performance indicators (KPIs) for this contract, and how will their performance be measured to ensure value for money?
The current data does not specify the key performance indicators (KPIs) for this delivery order. For a Time and Materials contract, effective oversight typically involves tracking labor hours, material costs, and adherence to project milestones. Robust performance measurement would require defined metrics related to service delivery, system uptime, or issue resolution times, which are not detailed here.
Given the Time and Materials pricing structure, what mechanisms are in place to prevent cost overruns and ensure efficient use of taxpayer funds?
Time and Materials contracts inherently carry a risk of cost overruns. Effective mechanisms to mitigate this include establishing clear labor rate ceilings, defining not-to-exceed (NTE) limits for specific tasks or the overall order, and implementing rigorous monitoring of hours worked and materials used. Regular reporting and independent verification by the contracting officer's representative are crucial for controlling costs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Elevance Health, Inc.
Address: 220 VIRGINIA AVE, INDIANAPOLIS, IN, 46204
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,936,018
Exercised Options: $12,162,498
Current Obligation: $12,162,498
Actual Outlays: $6,771,863
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F0674T
IDV Type: FSS
Timeline
Start Date: 2023-09-26
Current End Date: 2027-01-25
Potential End Date: 2029-01-25 00:00:00
Last Modified: 2026-03-25
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