HHS Awards $63.5M for Salesforce Expertise to ESIMPLICITY INC, Supporting CMS Platform Development
Contract Overview
Contract Amount: $63,543,419 ($63.5M)
Contractor: Esimplicity Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2024-05-21
End Date: 2025-07-10
Contract Duration: 415 days
Daily Burn Rate: $153.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CQP WHICH WILL PROVIDE EXPERTISE IN SALESFORCE APPLICATION AND API DEVELOPMENT TO SUPPORT ALL EXISTING AND FUTURE SYSTEM DEVELOPMENT ON THE CQP PLATFORM.
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20903
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $63.5 million to ESIMPLICITY INC for work described as: CQP WHICH WILL PROVIDE EXPERTISE IN SALESFORCE APPLICATION AND API DEVELOPMENT TO SUPPORT ALL EXISTING AND FUTURE SYSTEM DEVELOPMENT ON THE CQP PLATFORM. Key points: 1. Contract focuses on Salesforce application and API development for CMS systems. 2. ESIMPLICITY INC secures a significant contract for critical IT support. 3. Potential risk lies in vendor lock-in and the need for continuous expertise. 4. The IT sector, particularly cloud-based platforms like Salesforce, sees substantial investment.
Value Assessment
Rating: good
The contract value of $63.5M over approximately 1.3 years appears reasonable for specialized Salesforce development expertise. Benchmarking against similar contracts for Salesforce integration and API development 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 promotes price discovery and potentially better value for the government.
Taxpayer Impact: Taxpayer funds are being used to ensure the continued development and support of essential healthcare IT systems, aiming for efficient and effective service delivery.
Public Impact
Ensures continued functionality and development of critical healthcare systems for Medicare and Medicaid. Supports the modernization and enhancement of the CQP platform, impacting user experience and data management. Provides specialized expertise that may be difficult to source internally, ensuring project continuity.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Reliance on a single vendor for specialized Salesforce expertise.
- Potential for scope creep in ongoing system development.
- Ensuring knowledge transfer and continuity beyond the contract period.
Positive Signals
- Awarded through full and open competition.
- Supports critical healthcare infrastructure.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, which is experiencing high demand due to digital transformation initiatives. Spending in this area is crucial for government agencies to maintain and upgrade their IT infrastructure.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The contract's oversight will likely fall under the Centers for Medicare and Medicaid Services (CMS) IT project management. Regular performance reviews and milestone tracking are essential for accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Vendor lock-in potential
- Reliance on specialized, niche expertise
- Scope creep in development projects
- Ensuring knowledge transfer and continuity
Tags
computer-systems-design-services, department-of-health-and-human-services, md, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $63.5 million to ESIMPLICITY INC. CQP WHICH WILL PROVIDE EXPERTISE IN SALESFORCE APPLICATION AND API DEVELOPMENT TO SUPPORT ALL EXISTING AND FUTURE SYSTEM DEVELOPMENT ON THE CQP PLATFORM.
Who is the contractor on this award?
The obligated recipient is ESIMPLICITY 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 $63.5 million.
What is the period of performance?
Start: 2024-05-21. End: 2025-07-10.
What is the specific impact of this Salesforce expertise on the efficiency and effectiveness of the CQP platform for end-users?
The expertise in Salesforce application and API development is intended to enhance the CQP platform's functionality, streamline user workflows, and improve data integration. This should lead to more efficient processing of healthcare information, better reporting capabilities, and potentially improved user satisfaction for those interacting with the system, ultimately supporting CMS's mission.
What are the primary risks associated with relying on ESIMPLICITY INC for ongoing Salesforce development and maintenance?
Key risks include vendor lock-in, where CMS becomes overly dependent on ESIMPLICITY's proprietary knowledge, making future transitions difficult or costly. There's also a risk of knowledge drain if key personnel leave the vendor, impacting project continuity. Ensuring robust contract management and clear deliverables is crucial to mitigate these risks.
How does this contract contribute to the overall value proposition of the CQP platform for the Centers for Medicare and Medicaid Services?
This contract directly contributes to the CQP platform's value by ensuring its continued development, maintenance, and enhancement. By securing specialized Salesforce expertise, CMS can adapt the platform to evolving healthcare regulations, improve user experience, and integrate new functionalities, thereby maximizing the platform's utility and return on investment.
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 - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Esimplicity, Inc.
Address: 1751 ELTON RD, SILVER SPRING, MD, 20903
Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $193,281,176
Exercised Options: $63,543,419
Current Obligation: $63,543,419
Actual Outlays: $44,294,454
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75FCMC22A0001
IDV Type: BPA
Timeline
Start Date: 2024-05-21
Current End Date: 2025-07-10
Potential End Date: 2029-07-10 00:00:00
Last Modified: 2025-07-03
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