HHS awards $24.6M for web experience and content management, with a 946-day duration

Contract Overview

Contract Amount: $24,601,094 ($24.6M)

Contractor: Civicactions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-08-14

End Date: 2027-03-18

Contract Duration: 946 days

Daily Burn Rate: $26.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: WEB EXPERIENCE AND CONTENT MANAGEMENT SERVICES

Place of Performance

Location: LAFAYETTE, CONTRA COSTA County, CALIFORNIA, 94549

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.6 million to CIVICACTIONS, INC. for work described as: WEB EXPERIENCE AND CONTENT MANAGEMENT SERVICES Key points: 1. Contract value appears reasonable given the scope of web experience and content management services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract duration of over two years indicates a need for sustained support in web services. 4. Fixed-price contract type may offer cost certainty for the government. 5. The North American Industry Classification System (NAICS) code 541519 covers a broad range of IT services. 6. The award to Civicactions, Inc. warrants a review of their past performance in similar contracts.

Value Assessment

Rating: good

The contract value of $24.6 million over approximately 2.5 years for web experience and content management services seems within a reasonable range for a federal contract of this nature. Benchmarking against similar contracts for comprehensive web development, maintenance, and content strategy would provide a more precise value assessment. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

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 a bid. The presence of 14 bids suggests a healthy level of competition for these services. A higher number of bidders generally leads to more competitive pricing and a wider range of innovative solutions being presented to the agency.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down costs and ensured the government received competitive proposals for essential web services.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) will benefit from enhanced web experiences and content management capabilities. The contract supports the delivery of critical information and services to the public through improved digital platforms. The geographic impact is primarily within the United States, supporting federal agency operations. Workforce implications may include roles for web developers, content strategists, project managers, and IT support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on contractor performance for critical web services.
Risk of outdated technology if the contractor does not stay current with web trends.

Positive Signals

Firm-fixed-price contract type provides cost predictability.
Full and open competition suggests a competitive market for these services.
Longer contract duration allows for sustained support and relationship building.

Sector Analysis

The IT services sector, particularly web experience and content management, is a significant area of federal spending. Agencies increasingly rely on robust online presences to serve the public and manage internal operations. This contract fits within the broader category of IT professional services, which includes custom software development, IT management consulting, and data processing. Comparable spending benchmarks for similar web development and content management contracts across federal agencies would provide further context.

Small Business Impact

While this contract was awarded under full and open competition and there is no explicit small business set-aside noted, the presence of 14 bidders suggests that small businesses may have participated in the bidding process. The prime contractor, Civicactions, Inc., will have the opportunity to engage small businesses as subcontractors, contributing to the small business ecosystem. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the program office within CMS. Performance will be monitored against the contract's deliverables and milestones. Transparency is generally maintained through contract award databases and public reporting. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal IT Modernization Programs
Digital Government Strategy
Healthcare.gov Platform Support
CMS Website Operations

Risk Flags

Contractor Performance Risk
Technical Integration Risk
Cybersecurity and Data Privacy Risk
Scope Creep Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.6 million to CIVICACTIONS, INC.. WEB EXPERIENCE AND CONTENT MANAGEMENT SERVICES

Who is the contractor on this award?

The obligated recipient is CIVICACTIONS, 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 $24.6 million.

What is the period of performance?

Start: 2024-08-14. End: 2027-03-18.

What is Civicactions, Inc.'s track record with similar federal contracts, particularly in web experience and content management?

A review of Civicactions, Inc.'s contract history would be necessary to assess their performance on similar federal contracts. Key indicators to examine include past performance evaluations, any contract disputes or terminations, and the successful delivery of projects with comparable scope and complexity. Understanding their experience with government agencies, especially within the health sector, would provide insight into their capability to meet the requirements of this new contract. Specific details on their previous work in web design, user experience (UX) optimization, content strategy, and content management systems (CMS) implementation would be crucial for a comprehensive assessment.

How does the awarded amount of $24.6 million compare to market rates for similar web experience and content management services?

To benchmark the $24.6 million award, one would compare it against industry data for similar web experience and content management services provided to large organizations, both public and private. This involves analyzing average hourly rates for various roles (e.g., project managers, UX designers, content strategists, developers), typical project durations, and overall project costs for comparable scopes of work. Factors such as the complexity of the websites, the volume of content, the required integrations, and the level of user engagement targeted would influence these market rates. A detailed cost analysis of the contractor's proposed labor mix and rates against industry benchmarks would be essential for a thorough value assessment.

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

Primary risks for this contract could include technical challenges in integrating new systems with existing infrastructure, potential delays in project delivery, and ensuring the contractor maintains high standards of cybersecurity and data privacy, especially given the sensitive nature of health information. Mitigation strategies typically involve clearly defined performance metrics, regular progress reviews, robust testing protocols, and stringent security requirements outlined in the contract. The firm-fixed-price nature of the contract also shifts some financial risk to the contractor. Furthermore, the agency's active oversight and the contractor's past performance record can serve as indicators of risk mitigation effectiveness.

How effective is the current web experience and content management strategy of CMS, and how will this contract enhance it?

Assessing the effectiveness of CMS's current web strategy would require analyzing metrics such as website traffic, user satisfaction surveys, task completion rates, and the accessibility of information. This contract aims to enhance that strategy by providing specialized services for improving user experience, modernizing content management systems, and ensuring content is accurate, up-to-date, and easily discoverable. The goal is likely to create a more intuitive, engaging, and informative online presence for beneficiaries, healthcare providers, and the general public, ultimately supporting CMS's mission.

What has been the historical spending trend for web experience and content management services at CMS or HHS?

Analyzing historical spending trends for web experience and content management services at CMS or HHS would involve examining contract data over several fiscal years. This would reveal whether spending in this area has been increasing, decreasing, or remaining stable, and identify major contracts or vendors. Understanding these patterns can help contextualize the current $24.6 million award, indicating if it represents a significant shift in investment or a continuation of established spending levels for these critical digital services. It also helps in identifying potential areas for consolidation or efficiency gains.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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-2023-231033

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3470 SHANGRI LA RD, LAFAYETTE, CA, 94549

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $63,334,824

Exercised Options: $24,601,094

Current Obligation: $24,601,094

Actual Outlays: $18,301,310

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F337BA

IDV Type: FSS

Timeline