HHS awards $12.1M contract to NAVA PBC for Agile services in health and human services benefit automation

Contract Overview

Contract Amount: $12,122,311 ($12.1M)

Contractor: Nava PBC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-22

End Date: 2026-09-21

Contract Duration: 1,095 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: PROFESSIONAL COMMERCIAL AGILE SERVICES TO PURSUE TWO STRATEGIC AREAS OF FOCUS- AUTOMATING VERIFICATIONS FOR HEALTH AND HUMAN SERVICES BENEFITS ACCESS AND, SECOND, INCREASING STATE CAPACITY IN BENEFITS DELIVERY GUIDED BY A CMS DIGITAL PRODUCT OWNER TO

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 $12.1 million to NAVA PBC for work described as: PROFESSIONAL COMMERCIAL AGILE SERVICES TO PURSUE TWO STRATEGIC AREAS OF FOCUS- AUTOMATING VERIFICATIONS FOR HEALTH AND HUMAN SERVICES BENEFITS ACCESS AND, SECOND, INCREASING STATE CAPACITY IN BENEFITS DELIVERY GUIDED BY A CMS DIGITAL PRODUCT OWNER TO Key points: 1. Contract aims to automate verifications for health and human services benefits access. 2. Focus on increasing state capacity in benefits delivery through CMS guidance. 3. Utilizes a Time and Materials pricing model, which can pose cost control challenges. 4. Awarded via full and open competition, suggesting a competitive bidding process. 5. Performance period spans three years, indicating a medium-term engagement. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

The contract value of $12.1 million over three years is moderate for IT services. The Time and Materials (T&M) pricing structure, while flexible, requires diligent oversight to manage costs effectively and prevent scope creep. Benchmarking against similar Agile development contracts for government agencies would be necessary to fully assess value for money, as T&M rates can vary significantly based on skill sets and market demand. Without specific performance metrics or comparable contract data, it's difficult to definitively gauge the cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This suggests a robust bidding process where the government sought the best value from the market. The number of bidders is not specified, but the open competition generally fosters price discovery and encourages competitive pricing among offerors.

Taxpayer Impact: Taxpayers benefit from a competitive process that is intended to yield a fair price and high-quality services. Open competition reduces the risk of overpayment and ensures that the government is not limited to a single provider's offerings.

Public Impact

Citizens seeking health and human services benefits will experience improved access and delivery. State governments will receive enhanced capacity to manage and distribute benefits. The Centers for Medicare and Medicaid Services (CMS) will benefit from modernized verification processes. IT professionals and Agile specialists will be engaged in critical government modernization efforts. The District of Columbia is the primary geographic location for this contract's performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not closely monitored.
The success of the project is heavily reliant on the effective guidance of the CMS Digital Product Owner.
Potential for scope creep exists with T&M contracts, requiring strong project management.
Dependence on Agile methodologies requires a flexible and adaptive approach from both contractor and government.

Positive Signals

Awarded through full and open competition, suggesting a competitive and fair process.
Focus on critical areas of health and human services benefits delivery addresses significant public needs.
NAVA PBC's engagement with Agile services indicates a modern approach to software development.
The contract duration of three years allows for sustained effort and potential for significant impact.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically Custom Computer Programming Services. The market for government IT modernization and digital transformation services is substantial, with agencies increasingly seeking Agile and cloud-native solutions. Comparable spending benchmarks would involve analyzing other contracts for Agile development, benefits system modernization, and digital product ownership within HHS and other federal agencies. The focus on health and human services aligns with a growing trend of leveraging technology to improve citizen services and operational efficiency in this domain.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a small business set-aside. Therefore, there are no direct implications for small business set-asides. However, as NAVA PBC is a Public Benefit Corporation (PBC), it operates with a social mission, which may indirectly align with broader government goals of supporting socially responsible businesses. Subcontracting opportunities for small businesses would depend on NAVA PBC's procurement strategy and the specific needs of the project.

Oversight & Accountability

Oversight will likely be managed by the Centers for Medicare and Medicaid Services (CMS) through the designated Digital Product Owner. Accountability measures will be tied to the delivery of Agile services and the achievement of project milestones outlined in the contract. Transparency will be facilitated through standard government contracting reporting mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Health and Human Services IT Modernization
Centers for Medicare and Medicaid Services Digital Services
Agile Software Development Contracts
Benefits Delivery Modernization Programs
Custom Computer Programming Services

Risk Flags

Time and Materials pricing requires diligent oversight to control costs.
Scope creep potential in Agile projects.
Dependence on effective government product ownership.
Success hinges on successful integration with existing state systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.1 million to NAVA PBC. PROFESSIONAL COMMERCIAL AGILE SERVICES TO PURSUE TWO STRATEGIC AREAS OF FOCUS- AUTOMATING VERIFICATIONS FOR HEALTH AND HUMAN SERVICES BENEFITS ACCESS AND, SECOND, INCREASING STATE CAPACITY IN BENEFITS DELIVERY GUIDED BY A CMS DIGITAL PRODUCT OWNER TO

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 $12.1 million.

What is the period of performance?

Start: 2023-09-22. End: 2026-09-21.

What is NAVA PBC's track record with federal contracts, particularly in health and human services IT?

Information regarding NAVA PBC's specific track record with federal contracts, especially within the health and human services IT domain, is not detailed in the provided data. As a Public Benefit Corporation (PBC), its mission may extend beyond purely profit-driven objectives. A thorough assessment would require reviewing past performance evaluations (e.g., CPARS), contract history, and any publicly available project outcomes. Understanding their experience with similar government systems, Agile methodologies, and the specific challenges of benefits automation would be crucial for evaluating their capability to successfully execute this contract. Further research into their portfolio and client testimonials, if available, would provide additional context.

How does the $12.1 million contract value compare to similar government contracts for Agile IT services?

The $12.1 million contract value over three years, averaging $4.03 million annually, is a moderate amount for federal IT services, particularly those involving Agile development and system modernization. Comparable contracts can vary widely based on scope, complexity, agency, and specific technologies. For instance, larger-scale system overhauls or enterprise-wide implementations could easily reach tens or hundreds of millions of dollars. Conversely, smaller, more focused Agile projects might be valued in the low millions. To benchmark effectively, one would need to compare this contract against others for similar services (e.g., custom computer programming, IT project management, digital services) awarded by HHS or CMS, considering factors like the number of personnel, required expertise, and duration. The Time and Materials (T&M) pricing model also adds a layer of variability compared to fixed-price contracts.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk associated with the Time and Materials (T&M) pricing structure is the potential for cost overruns and a lack of definitive cost control. Unlike fixed-price contracts, T&M agreements pay the contractor for the actual time and materials used. This can lead to increased costs if the project scope expands (scope creep), if the contractor is inefficient, or if the duration extends beyond initial estimates. For the government, it necessitates robust oversight, detailed tracking of hours and resources, and strong project management to ensure that costs remain within budget and that the work performed is necessary and efficient. Without vigilant monitoring, T&M contracts can become significantly more expensive than initially anticipated, impacting the overall value for money.

How will the success of this contract be measured in terms of improving benefits access and state capacity?

The success of this contract will likely be measured through a combination of performance metrics and deliverables defined within the contract's Statement of Work (SOW) and monitored by the CMS Digital Product Owner. Key performance indicators (KPIs) could include metrics related to the reduction in time to verify benefits eligibility, the increase in the number of successful benefit applications processed, improvements in user satisfaction for both citizens and state administrators, and the successful implementation of automated verification processes. Measures of state capacity could include the number of states adopting the new systems or processes, the efficiency gains reported by state agencies, and the reduction in manual effort required for benefits delivery. Regular reviews, milestone achievements, and adherence to Agile development principles (e.g., sprint reviews, backlog refinement) will also contribute to assessing progress and success.

What is the historical spending pattern for custom computer programming services at CMS or HHS?

Historical spending patterns for custom computer programming services at CMS and HHS are substantial, reflecting the agencies' ongoing need to modernize complex healthcare and benefits systems. Both agencies consistently invest significant resources in IT modernization, custom software development, and digital transformation initiatives. Spending in this category often fluctuates based on specific program needs, legislative mandates, and the lifecycle of existing systems. Analyzing historical data from sources like USAspending.gov or agency budget reports would reveal trends in contract awards for custom programming, the average contract values, and the types of services most frequently procured. This context is essential for understanding whether the $12.1 million award to NAVA PBC aligns with historical investment levels for similar initiatives.

What are the potential implications of this contract for future federal investments in Agile and digital service delivery?

This contract signifies a continued federal investment in Agile methodologies and modern digital service delivery, particularly within the critical domain of health and human services. By awarding this contract through full and open competition, the government signals its commitment to leveraging private sector expertise in Agile development to tackle complex public sector challenges. The focus on automating verifications and increasing state capacity suggests a strategic push towards more efficient, user-centric, and technology-enabled government operations. Success in this initiative could encourage further adoption of similar Agile approaches and digital service models across other federal agencies and programs, potentially leading to increased opportunities for contractors skilled in these areas and a broader shift towards more responsive and effective government IT.

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: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 601 13TH ST NW FL 12, WASHINGTON, DC, 20005

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

Financial Breakdown

Contract Ceiling: $16,285,701

Exercised Options: $12,122,311

Current Obligation: $12,122,311

Actual Outlays: $9,344,587

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $45,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA18D008M

IDV Type: FSS

Timeline