HHS Awards $39.3M for QIES/IQIES IT Services to SemanticBits LLC
Contract Overview
Contract Amount: $39,297,316 ($39.3M)
Contractor: Semanticbits LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2025-06-13
End Date: 2026-06-12
Contract Duration: 364 days
Daily Burn Rate: $108.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE PURPOSE OF THE TASK ORDER IS TO OBTAIN IT SERVICES TO COMPLETE THE WORK THAT IS IN PROGRESS TO RE-PLATFORM QIES FUNCTIONALITY INTO IQIES AND SUPPORT AND MAINTAIN BOTH THE QIES AND IQIES SYSTEMS TO KEEP BOTH CURRENT WITH POLICY AND PROGRAMMATIC GO
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $39.3 million to SEMANTICBITS LLC for work described as: THE PURPOSE OF THE TASK ORDER IS TO OBTAIN IT SERVICES TO COMPLETE THE WORK THAT IS IN PROGRESS TO RE-PLATFORM QIES FUNCTIONALITY INTO IQIES AND SUPPORT AND MAINTAIN BOTH THE QIES AND IQIES SYSTEMS TO KEEP BOTH CURRENT WITH POLICY AND PROGRAMMATIC GO Key points: 1. The contract focuses on re-platforming and maintaining critical QIES/IQIES systems for CMS. 2. SemanticBits LLC, the awardee, will provide IT services for system support and updates. 3. The contract is a firm-fixed-price delivery order, indicating a defined scope and cost. 4. Competition was full and open, suggesting a competitive bidding process was utilized.
Value Assessment
Rating: good
The $39.3 million award for a 364-day duration appears reasonable given the scope of IT services for re-platforming and ongoing support of complex systems like QIES/IQIES. Benchmarking against similar large-scale IT modernization and maintenance contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to better price discovery and value for the government. This method allows all eligible contractors to bid, fostering a competitive environment.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential IT services.
Public Impact
Ensures continuity of critical healthcare data systems (QIES/IQIES) for CMS operations. Supports ongoing maintenance and updates to align with policy and programmatic changes. Leverages IT expertise for system re-platforming, potentially improving efficiency and security. Impacts healthcare providers and beneficiaries who rely on the data managed by these systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in IT projects of this nature.
- Reliance on a single vendor for critical system maintenance.
- Ensuring successful re-platforming without disrupting current operations.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Full and open competition suggests a competitive market.
- Clear delivery order for a defined period.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services' (NAICS 541519). Spending in this area is substantial across federal agencies for system modernization, maintenance, and support, with benchmarks varying widely based on complexity and scope.
Small Business Impact
While the contract was awarded under full and open competition, there is no specific indication of small business participation or subcontracting goals in the provided data. Further analysis would be needed to determine if small businesses were involved.
Oversight & Accountability
The contract is a delivery order under a larger vehicle, suggesting some level of pre-existing oversight. However, ongoing monitoring of performance, cost, and schedule will be crucial for accountability, especially during the re-platforming phase.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for technical challenges during re-platforming.
- Risk of vendor lock-in for ongoing maintenance.
- Dependency on a single contractor for critical system functionality.
- Ensuring seamless transition and minimal disruption to users.
- Adequacy of the firm-fixed-price model for evolving IT needs.
Tags
other-computer-related-services, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $39.3 million to SEMANTICBITS LLC. THE PURPOSE OF THE TASK ORDER IS TO OBTAIN IT SERVICES TO COMPLETE THE WORK THAT IS IN PROGRESS TO RE-PLATFORM QIES FUNCTIONALITY INTO IQIES AND SUPPORT AND MAINTAIN BOTH THE QIES AND IQIES SYSTEMS TO KEEP BOTH CURRENT WITH POLICY AND PROGRAMMATIC GO
Who is the contractor on this award?
The obligated recipient is SEMANTICBITS 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 $39.3 million.
What is the period of performance?
Start: 2025-06-13. End: 2026-06-12.
What is the estimated cost savings or efficiency gain expected from re-platforming QIES into IQIES?
The provided data does not specify the expected cost savings or efficiency gains from the re-platforming effort. A thorough analysis would require details on the project's objectives, projected operational improvements, and a cost-benefit analysis comparing the new system's lifecycle costs against the current systems.
What are the key performance indicators (KPIs) for SemanticBits LLC to ensure successful system support and maintenance?
Key performance indicators would likely include system uptime, response times for issue resolution, successful deployment of updates, adherence to security protocols, and user satisfaction. Specific KPIs should be detailed in the contract's performance work statement to ensure accountability and measure the contractor's effectiveness.
How will CMS ensure the security and integrity of sensitive healthcare data during the re-platforming process?
CMS will likely implement stringent security protocols, including data encryption, access controls, regular security audits, and compliance with HIPAA regulations. The contract should mandate specific security measures and require the contractor to demonstrate adherence through regular reporting and independent verification.
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: 75FCMC25QJ035
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: ICF International, Inc.
Address: 1902 RESTON METRO PLAZA, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $78,671,219
Exercised Options: $39,297,316
Current Obligation: $39,297,316
Actual Outlays: $21,582,833
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $560,605
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F192BA
IDV Type: FSS
Timeline
Start Date: 2025-06-13
Current End Date: 2026-06-12
Potential End Date: 2027-06-12 00:00:00
Last Modified: 2026-03-11
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