CMS awards $39.3M for Medicare enrollment system CI/CD, enhancing premium billing operations
Contract Overview
Contract Amount: $39,319,845 ($39.3M)
Contractor: Peraton Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2024-11-01
End Date: 2026-10-31
Contract Duration: 729 days
Daily Burn Rate: $53.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: PROVIDE CONTINUOUS INTEGRATION AND CONTINUOUS DELIVERY (CI/CD) TO FURTHER ENHANCE THE MEDICARE ENROLLMENT AND PREMIUM BILLING SYSTEMS (MEPBS) AND TO OPERATE AND MAINTAIN ALL ASSOCIATED SERVICES OF MEPBS. MEPBS CONTAINS THE ENROLLMENT DATABASE SUITE O
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $39.3 million to PERATON INC. for work described as: PROVIDE CONTINUOUS INTEGRATION AND CONTINUOUS DELIVERY (CI/CD) TO FURTHER ENHANCE THE MEDICARE ENROLLMENT AND PREMIUM BILLING SYSTEMS (MEPBS) AND TO OPERATE AND MAINTAIN ALL ASSOCIATED SERVICES OF MEPBS. MEPBS CONTAINS THE ENROLLMENT DATABASE SUITE O Key points: 1. Focus on enhancing critical Medicare enrollment and premium billing systems. 2. Contract aims to improve operational efficiency and service delivery. 3. Peraton Inc. selected for this key health IT infrastructure role. 4. Contract duration of 729 days indicates a medium-term operational focus. 5. Firm Fixed Price contract type suggests defined cost expectations. 6. This award represents a significant investment in maintaining essential healthcare IT.
Value Assessment
Rating: good
The contract value of $39.3 million over two years for CI/CD services on the Medicare Enrollment and Premium Billing Systems (MEPBS) appears reasonable given the critical nature of the systems. Benchmarking against similar large-scale health IT modernization contracts suggests this is within a typical range for specialized development and maintenance. The firm fixed-price structure provides cost certainty for the government, although it places more risk on the contractor to manage scope and efficiency.
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 competitive process is expected to drive better pricing and service quality. The number of bidders is not specified, but the full and open nature suggests a robust selection process was likely employed.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.
Public Impact
Beneficiaries: Medicare enrollees and beneficiaries who rely on accurate enrollment and billing. Services Delivered: Continuous Integration/Continuous Delivery (CI/CD) to enhance MEPBS, operational support, and maintenance. Geographic Impact: National impact, as MEPBS serves all Medicare beneficiaries across the United States. Workforce Implications: Supports IT professionals involved in maintaining and enhancing critical federal healthcare infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if CI/CD requirements are not tightly managed.
- Reliance on a single contractor for critical system enhancements could pose a risk if performance falters.
Positive Signals
- Focus on CI/CD aligns with modern software development best practices, potentially leading to more stable and efficient systems.
- Contract awarded through full and open competition suggests a competitive price was likely achieved.
- Firm Fixed Price contract provides cost predictability for the government.
Sector Analysis
This contract falls within the Custom Computer Programming Services sector, specifically focusing on IT infrastructure for healthcare. The Centers for Medicare and Medicaid Services (CMS) is a major government spender in this area, with significant investments in maintaining and modernizing its vast IT systems. Comparable spending benchmarks for large-scale federal IT operations and maintenance contracts often run into tens or hundreds of millions of dollars annually, making this award a notable but not extraordinary investment for its scope.
Small Business Impact
The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While Peraton Inc. is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Peraton's strategy and the specific requirements outlined in the contract.
Oversight & Accountability
Oversight for this contract will likely be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Transparency is generally maintained through federal procurement databases and reporting requirements. The Department of Health and Human Services (HHS) Office of Inspector General (OIG) may also conduct audits or investigations related to the performance and financial aspects of the contract.
Related Government Programs
- Medicare Enrollment Systems
- Premium Billing Systems
- Health Insurance IT Modernization
- Federal Health IT Services
- Continuous Integration/Continuous Delivery (CI/CD) Services
Risk Flags
- Critical System Dependency
- Potential for Operational Disruption
- Cybersecurity Risks in CI/CD Pipeline
Tags
healthcare, cms, medicare, it-services, custom-computer-programming, full-and-open-competition, firm-fixed-price, ci-cd, system-enhancement, operational-maintenance, virginia, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $39.3 million to PERATON INC.. PROVIDE CONTINUOUS INTEGRATION AND CONTINUOUS DELIVERY (CI/CD) TO FURTHER ENHANCE THE MEDICARE ENROLLMENT AND PREMIUM BILLING SYSTEMS (MEPBS) AND TO OPERATE AND MAINTAIN ALL ASSOCIATED SERVICES OF MEPBS. MEPBS CONTAINS THE ENROLLMENT DATABASE SUITE O
Who is the contractor on this award?
The obligated recipient is PERATON 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 $39.3 million.
What is the period of performance?
Start: 2024-11-01. End: 2026-10-31.
What is the track record of Peraton Inc. in managing large-scale federal health IT contracts, particularly those involving critical systems like MEPBS?
Peraton Inc. has a significant history of performing IT services for various U.S. government agencies, including defense and civilian sectors. While specific details on their performance with the Medicare Enrollment and Premium Billing Systems (MEPBS) are not provided in this data snippet, their broader portfolio includes complex system integration, cybersecurity, and IT operations and maintenance. Evaluating their past performance on similar contracts, especially those with stringent uptime and data integrity requirements within civilian agencies like HHS, would be crucial. Past performance reviews, contract award histories, and any reported issues or successes on comparable projects would offer insight into their capability to successfully execute this CI/CD enhancement and operational contract.
How does the awarded amount of $39.3 million compare to historical spending on MEPBS CI/CD and maintenance?
Without historical spending data specifically for MEPBS CI/CD and maintenance, a direct comparison is difficult. However, the $39.3 million awarded for a 729-day period (approximately two years) suggests an average annual spend of roughly $19.65 million. This figure should be evaluated against the complexity and criticality of the MEPBS. If previous maintenance and enhancement efforts for these systems were significantly higher or lower, it could indicate a change in scope, efficiency improvements, or potential under/over-funding. Analyzing historical contract awards for MEPBS operations and maintenance over the past 5-10 years would provide valuable context for assessing whether this award represents a cost increase, decrease, or stable investment.
What are the primary risks associated with implementing CI/CD for the MEPBS, and how are they mitigated by this contract?
Key risks in implementing CI/CD for a system as critical as MEPBS include potential disruptions to ongoing operations, introduction of new defects, security vulnerabilities during the automated deployment process, and resistance to change within the existing operational framework. This contract aims to mitigate these risks by specifying continuous integration and continuous delivery, which implies iterative development and testing, reducing the impact of individual changes. The firm fixed-price nature incentivizes Peraton to manage scope and efficiency effectively. However, robust testing protocols, phased rollouts, strong change management, and clear performance metrics defined within the contract are essential for successful mitigation. The government's oversight will be critical in ensuring these processes are followed rigorously.
What is the expected impact of these CI/CD enhancements on the overall effectiveness and reliability of the Medicare enrollment and premium billing processes?
The implementation of Continuous Integration and Continuous Delivery (CI/CD) is expected to significantly enhance the effectiveness and reliability of the Medicare Enrollment and Premium Billing Systems (MEPBS). CI/CD practices automate and streamline the software development lifecycle, leading to faster deployment of updates, bug fixes, and new features. This means that issues can be resolved more quickly, and system improvements can be rolled out more frequently, potentially reducing errors in enrollment data and premium calculations. Improved reliability translates to more accurate billing, fewer processing delays, and a better experience for Medicare beneficiaries and healthcare providers interacting with the system. Ultimately, this should lead to more efficient administration of the Medicare program.
How does the 'Custom Computer Programming Services' NAICS code (541511) inform our understanding of the work being performed under this contract?
The North American Industry Classification System (NAICS) code 541511, 'Custom Computer Programming Services,' indicates that the primary focus of this contract is on designing, developing, and implementing custom software solutions tailored to the specific needs of the Centers for Medicare and Medicaid Services (CMS) for the MEPBS. This goes beyond standard off-the-shelf software or basic IT support. It implies that Peraton Inc. will be engaged in activities such as writing, modifying, testing, and supporting software code to enhance the functionality, performance, and maintainability of the MEPBS. The 'custom' aspect highlights that the work is not generic but is intended to address the unique requirements of managing Medicare enrollment and premium billing, suggesting a deep level of technical expertise and system understanding is required.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12975 WORLDGATE DR, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $99,702,316
Exercised Options: $39,319,845
Current Obligation: $39,319,845
Actual Outlays: $24,351,975
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $47,066,548
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F694GA
IDV Type: FSS
Timeline
Start Date: 2024-11-01
Current End Date: 2026-10-31
Potential End Date: 2029-10-31 00:00:00
Last Modified: 2025-11-25
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