HHS awards $15.1M for healthcare data services, with 7 bids received

Contract Overview

Contract Amount: $15,138,094 ($15.1M)

Contractor: Nava PBC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-02-18

End Date: 2026-08-16

Contract Duration: 910 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: BLUE BUTTON 2.0 (BB2.0) & BENEFICIARY FAST HEALTHCARE INTEROPERABILITY RESOURCE (FHIR) DATA SERVER (BFD)

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 $15.1 million to NAVA PBC for work described as: BLUE BUTTON 2.0 (BB2.0) & BENEFICIARY FAST HEALTHCARE INTEROPERABILITY RESOURCE (FHIR) DATA SERVER (BFD) Key points: 1. Contract value appears reasonable given the scope of healthcare data interoperability services. 2. Full and open competition suggests a healthy market for these specialized IT services. 3. Potential risks include data security and the successful integration of complex healthcare systems. 4. Performance will be measured against delivery orders for custom computer programming. 5. This contract positions HHS to advance its goals in healthcare data standardization and access.

Value Assessment

Rating: good

The contract's value of $15.1 million for custom computer programming services in healthcare data interoperability seems aligned with industry standards for similar projects. Benchmarking against other federal contracts for health IT infrastructure and data management suggests a competitive pricing structure. The use of Time and Materials pricing, while requiring careful oversight, allows for flexibility in addressing evolving technical requirements. The number of bids received (7) indicates that the pricing was likely attractive to a range of qualified vendors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The solicitation attracted 7 bidders, suggesting a robust and competitive market for these specialized healthcare IT services. The presence of multiple bidders generally leads to better price discovery and encourages vendors to offer competitive terms and innovative solutions to secure the award.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down costs and ensured that the government received a fair price for the services rendered. It also signals that taxpayer funds are being used efficiently by selecting the most capable and cost-effective provider.

Public Impact

Beneficiaries of improved healthcare data access and interoperability, including patients and providers. Delivery of custom computer programming services focused on healthcare data standards (FHIR). Geographic impact is national, supporting the broader adoption of interoperable health data. Workforce implications include the need for specialized IT professionals skilled in healthcare data and programming.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ensuring robust data security and privacy compliance for sensitive health information.
Managing the complexity of integrating diverse healthcare data systems.
Monitoring performance under Time and Materials to prevent cost overruns.

Positive Signals

Awarded under full and open competition, indicating a healthy market.
Multiple bidders (7) suggest competitive pricing and vendor interest.
Focus on FHIR standards promotes interoperability, a key government health IT goal.

Sector Analysis

The healthcare IT sector is characterized by rapid technological advancement and a strong emphasis on data interoperability, driven by federal mandates like the 21st Century Cures Act. Contracts for custom computer programming services in this space are crucial for developing and maintaining the infrastructure that supports electronic health records (EHRs) and data exchange. Spending in this area is significant, with government agencies like HHS investing heavily to modernize health systems and improve patient care through data-driven insights. This contract fits within the broader trend of digitizing healthcare and leveraging data analytics.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. While the prime contractor, NAVA PBC, is a small business, the competition itself was open to all. There is no explicit information provided regarding subcontracting plans for small businesses. The impact on the broader small business ecosystem will depend on whether NAVA PBC utilizes small business subcontractors for specialized services.

Oversight & Accountability

Oversight for this contract will be managed by the Centers for Medicare and Medicaid Services (CMS), a division of HHS. Performance will be monitored through the issuance and completion of delivery orders under the base contract. The Time and Materials pricing structure necessitates diligent oversight to ensure that costs remain within budget and that work performed is necessary and reasonable. Transparency is expected through regular reporting and performance reviews as stipulated in the contract terms.

Related Government Programs

BLUE BUTTON 2.0
BENEFICIARY FAST HEALTHCARE INTEROPERABILITY RESOURCE (FHIR) DATA SERVER (BFD)
Health Information Technology for Economic and Clinical Health (HITECH) Act initiatives
Centers for Medicare and Medicaid Services (CMS) IT Modernization efforts
Federal Health Architecture (FHA)

Risk Flags

Data Security and Privacy Risk
Technical Integration Complexity
Performance Monitoring for T&M Contracts
Vendor Lock-in Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.1 million to NAVA PBC. BLUE BUTTON 2.0 (BB2.0) & BENEFICIARY FAST HEALTHCARE INTEROPERABILITY RESOURCE (FHIR) DATA SERVER (BFD)

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 $15.1 million.

What is the period of performance?

Start: 2024-02-18. End: 2026-08-16.

What is the track record of NAVA PBC in delivering similar healthcare IT services to the federal government?

NAVA PBC, the contractor awarded this $15.1 million contract, has a background in providing technology solutions, including those related to healthcare data. While specific details on past federal contracts of identical scope are not provided in the summary data, their focus on areas like FHIR and data interoperability suggests alignment with the requirements of this award. Further investigation into their contract history with agencies like HHS or CMS would be necessary to fully assess their track record. However, winning a competitive bid for a project of this magnitude indicates a level of capability and trust from the awarding agency.

How does the $15.1 million contract value compare to similar federal investments in healthcare data interoperability?

The $15.1 million contract value for the BLUE BUTTON 2.0 & BENEFICIARY FHIR DATA SERVER (BFD) project appears to be within a reasonable range for federal investments in healthcare data interoperability and custom programming services. Similar projects, such as those focused on developing or enhancing health information exchanges (HIEs), implementing EHR systems, or building data analytics platforms for agencies like the Department of Veterans Affairs (VA) or the Department of Defense (DoD), often involve multi-million dollar awards. The specific scope, duration (910 days), and complexity of integrating FHIR standards contribute to the overall cost. Without direct comparable contract data for identical services, a precise benchmark is difficult, but the value seems commensurate with the technical demands and strategic importance of improving healthcare data access.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract revolve around data security and privacy, the successful technical implementation of complex healthcare data standards (FHIR), and potential cost overruns due to the Time and Materials (T&M) pricing model. Protecting sensitive patient health information (PHI) is paramount, requiring robust cybersecurity measures and strict adherence to HIPAA regulations. Technical risks include challenges in integrating the BFD system with existing healthcare infrastructure and ensuring seamless data flow. Mitigation strategies likely involve stringent security protocols, phased implementation, rigorous testing, and close monitoring of contractor performance and expenditures by CMS. The competitive nature of the award also incentivizes the contractor to perform well to maintain a positive performance record.

How effective is the 'full and open competition' strategy in ensuring value for money for this healthcare IT contract?

The 'full and open competition' strategy is generally highly effective in ensuring value for money, especially for specialized IT services like those required for the BLUE BUTTON 2.0 & BENEFICIARY FHIR DATA SERVER (BFD) project. By allowing all responsible sources to bid, the government maximizes the pool of potential offerors, fostering a competitive environment. This competition drives down prices as vendors vie for the contract, and it encourages innovation as they seek to differentiate their offerings. The fact that 7 bids were received indicates a healthy market and suggests that the government received competitive proposals. This approach increases the likelihood of selecting a contractor that offers the best combination of technical capability and cost-effectiveness, thereby maximizing the value of taxpayer dollars.

What are the historical spending patterns for similar custom computer programming services within HHS or CMS?

Historical spending patterns for custom computer programming services within HHS and CMS show a consistent and significant investment in modernizing health IT infrastructure and improving data management capabilities. Agencies within HHS frequently award contracts for developing, integrating, and maintaining systems that handle vast amounts of healthcare data, often leveraging standards like FHIR. Spending in this category can range from a few million to tens of millions of dollars per contract, depending on the scope, duration, and complexity. The $15.1 million awarded to NAVA PBC for the BB2.0/BFD project aligns with the typical investment levels for substantial IT development efforts aimed at enhancing data interoperability and beneficiary access to health information.

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-2024-240191

Offers Received: 7

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: $24,601,449

Exercised Options: $15,138,094

Current Obligation: $15,138,094

Actual Outlays: $10,046,826

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $6,411,578

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA18D008M

IDV Type: FSS

Timeline