HHS awards $29.4M GSA MAS order to Corbalt, LLC for shared platform operations

Contract Overview

Contract Amount: $29,429,308 ($29.4M)

Contractor: Corbalt, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-04-26

End Date: 2027-04-25

Contract Duration: 1,094 days

Daily Burn Rate: $26.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GSA MAS ORDER FOR SHARED PLATFORM OPERATIONS CONTRACT (SPOC)

Place of Performance

Location: DOVER, KENT County, DELAWARE, 19901

State: Delaware Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $29.4 million to CORBALT, LLC for work described as: GSA MAS ORDER FOR SHARED PLATFORM OPERATIONS CONTRACT (SPOC) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a GSA Multiple Award Schedule (MAS), indicating pre-competed services. 3. The fixed-price contract type aims to control costs by establishing a set price for services. 4. The contract duration is approximately three years, aligning with typical IT service delivery cycles. 5. The specific NAICS code (541511) points to custom computer programming services, a critical IT function. 6. The award value of $29.4 million over three years suggests a significant investment in platform operations.

Value Assessment

Rating: good

The contract value of $29.4 million over 1094 days (approximately 3 years) translates to roughly $26,901 per day. Benchmarking against similar GSA MAS orders for custom computer programming services is challenging without specific task order details. However, the firm-fixed-price structure suggests that the government has negotiated a defined scope of work at a set price, which can be advantageous for cost control. The award appears to be within a reasonable range for complex IT platform operations, assuming the scope of services is substantial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, likely through the GSA Multiple Award Schedule (MAS) program. This indicates that multiple qualified vendors had the opportunity to bid on the requirement. The fact that it's a delivery order under an existing MAS contract means the initial competition for the schedule itself has already occurred, and this specific order was then competed among schedule holders. The number of bidders for this specific order is not provided, but the 'full and open' designation implies a robust competitive environment.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition contracts. It ensures that the government receives offers from a wide range of qualified vendors, driving down prices through market forces.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) benefits from enhanced shared platform operations, crucial for managing healthcare data and services. The contract supports the delivery of custom computer programming services, likely related to maintaining and improving critical IT infrastructure. The geographic impact is national, as CMS operates across the United States, supporting healthcare initiatives. Workforce implications include the potential for skilled IT professionals at Corbalt, LLC to be engaged in supporting federal healthcare IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'shared platform operations' is not tightly managed.
Reliance on a single contractor for critical platform operations could pose a risk if performance issues arise.
The firm-fixed-price nature requires clear and detailed performance metrics to ensure value for money.

Positive Signals

Awarded under GSA MAS, indicating pre-qualification of the contractor and streamlined procurement.
Full and open competition suggests a competitive process that should yield fair pricing.
The firm-fixed-price contract type provides cost certainty for the government.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on custom computer programming services (NAICS 541511). The IT services market is vast and highly competitive, with significant government spending allocated to software development, system integration, and IT support. Contracts like this are essential for agencies like HHS to maintain and modernize their complex IT infrastructure, which underpins critical public services. Benchmarks for similar IT services contracts vary widely based on complexity, duration, and specific skill sets required.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Corbalt, LLC's size is not specified, but the award value suggests it could be a mid-sized or larger entity. There is no explicit information on subcontracting plans for small businesses within this specific delivery order. Future analysis could explore Corbalt's historical subcontracting performance or if the prime contract under which this order was placed has small business subcontracting goals.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services, specifically the Centers for Medicare and Medicaid Services (CMS), which issued the delivery order. As a GSA MAS order, the underlying schedule contract has its own oversight mechanisms managed by GSA. The firm-fixed-price contract type implies performance will be monitored against defined deliverables and service level agreements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

GSA Multiple Award Schedule (MAS)
Custom Computer Programming Services
IT Platform Operations
Healthcare IT Services
Centers for Medicare and Medicaid Services IT Contracts

Risk Flags

Contract Type: Firm Fixed Price (FFP) requires careful scope management to avoid disputes.
Contract Duration: Three-year term necessitates planning for future needs and potential re-competition.
Sole Source Potential: While competed now, future renewals or modifications could face limited competition.
Performance Monitoring: Robust oversight is crucial to ensure Corbalt, LLC meets service level agreements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $29.4 million to CORBALT, LLC. GSA MAS ORDER FOR SHARED PLATFORM OPERATIONS CONTRACT (SPOC)

Who is the contractor on this award?

The obligated recipient is CORBALT, 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 $29.4 million.

What is the period of performance?

Start: 2024-04-26. End: 2027-04-25.

What is Corbalt, LLC's track record with federal contracts, particularly within HHS or CMS?

A review of federal procurement data indicates that Corbalt, LLC has received multiple federal contracts. Prior to this $29.4 million GSA MAS order, the company has been awarded contracts across various agencies, including potentially other task orders under GSA schedules. Analyzing their past performance, especially on similar IT services contracts, would provide insight into their reliability, quality of service, and ability to manage complex projects. Specific details on past performance ratings, any contract disputes, or successful project completions would be valuable for a comprehensive assessment. Without access to detailed performance reviews or specific past contract values and scopes, it's difficult to definitively assess their track record beyond their presence in the federal contracting space.

How does the daily cost of this contract compare to industry benchmarks for similar IT platform operations?

The daily cost for this contract is approximately $26,901 ($29,429,307.58 / 1094 days). Benchmarking this against industry standards for IT platform operations is complex due to the wide variation in services, scale, and complexity. General IT managed services can range from a few hundred dollars per day for basic support to tens of thousands for highly specialized, mission-critical systems. Given that this is for CMS, a major federal health agency, the platform likely supports sensitive data and high transaction volumes, justifying a higher cost. However, without a precise definition of the 'shared platform operations' scope (e.g., number of users, systems supported, uptime requirements, security protocols), a direct comparison is difficult. Industry reports on IT outsourcing and managed services costs could provide a broader context, but specific contract details are needed for a precise benchmark.

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

Key risks include potential performance deficiencies by the contractor, Corbalt, LLC, in delivering critical platform operations, which could disrupt essential CMS functions. Another risk is the potential for cost overruns if the firm-fixed-price contract doesn't adequately account for unforeseen technical challenges or scope adjustments, though this is mitigated by the FFP structure itself. Vendor lock-in and the challenge of transitioning services if performance is unsatisfactory are also risks. Mitigation strategies likely involve robust performance monitoring by CMS, clearly defined Service Level Agreements (SLAs) within the contract, regular progress reviews, and contingency planning for service continuity. The use of a GSA MAS contract also implies Corbalt has met certain pre-qualification standards.

What is the historical spending pattern for similar IT platform operations contracts at CMS or HHS?

Historical spending data for IT platform operations at CMS and HHS reveals a consistent and significant investment in maintaining and modernizing critical IT infrastructure. Agencies like CMS manage vast amounts of sensitive health data and require robust, secure, and scalable platforms. Spending in this category typically fluctuates based on major system upgrades, new technology implementations, and ongoing operational support needs. Analyzing past contracts for similar services, potentially under different NAICS codes or contract vehicles, would show trends in contract values, durations, and the types of services procured. This specific $29.4 million award appears to be a substantial, multi-year investment, consistent with the scale of operations at CMS. Understanding historical spending helps contextualize the current award's size and importance.

How does the 'full and open competition' designation impact the value received by taxpayers?

The 'full and open competition' designation is a positive indicator for taxpayer value. It means that the government solicited bids from all responsible sources capable of meeting the requirement, rather than restricting the pool of potential contractors. This broad competition typically drives down prices as vendors vie for the contract, potentially leading to more favorable terms and lower overall costs. Furthermore, it increases the likelihood that the government selects the most capable and cost-effective solution available in the market. For taxpayers, this translates to a more efficient use of public funds, ensuring that the $29.4 million awarded is likely a result of market forces rather than a predetermined price or limited vendor pool.

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-2024-240388

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3500 S DUPONT HWY STE AH-101, DOVER, DE, 19901

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,661,033

Exercised Options: $29,429,308

Current Obligation: $29,429,308

Actual Outlays: $16,192,312

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA21D00AC

IDV Type: FSS

Timeline