CMS awards $12.5M contract for CALM system modernization to HumanIT Solutions LLC

Contract Overview

Contract Amount: $12,474,237 ($12.5M)

Contractor: Humanit Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-11-23

End Date: 2026-11-22

Contract Duration: 364 days

Daily Burn Rate: $34.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CALM IS DESIGNED TO MODERNIZE COLLABORATION WITH INTERNAL AND EXTERNAL STAKEHOLDERS, IMPROVE PROCUREMENT DECISION MAKING, AND CENTRALIZE PREVIOUSLY SILOED SYSTEMS AND PROCESSES INTO ONE MODERN AND EFFICIENT APPLICATION. CALM SERVES AS CMS'S PRIMARY T

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12.5 million to HUMANIT SOLUTIONS LLC for work described as: CALM IS DESIGNED TO MODERNIZE COLLABORATION WITH INTERNAL AND EXTERNAL STAKEHOLDERS, IMPROVE PROCUREMENT DECISION MAKING, AND CENTRALIZE PREVIOUSLY SILOED SYSTEMS AND PROCESSES INTO ONE MODERN AND EFFICIENT APPLICATION. CALM SERVES AS CMS'S PRIMARY T Key points: 1. The contract aims to centralize siloed systems and improve procurement decision-making. 2. Focus on modernizing collaboration with internal and external stakeholders. 3. The delivery order has a duration of 364 days. 4. The contract type is Firm Fixed Price, indicating predictable costs. 5. This award represents a significant investment in IT infrastructure for CMS. 6. The system is intended to enhance efficiency in procurement processes.

Value Assessment

Rating: good

The contract value of $12.5 million for a 364-day delivery order for custom computer programming services appears reasonable given the scope of modernizing a critical system like CALM. Benchmarking against similar IT modernization projects within HHS, this pricing falls within expected ranges. The firm fixed-price structure provides cost certainty for the agency, mitigating risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust bidding process. While the number of bidders is not explicitly stated, this approach generally fosters a competitive environment, leading to better pricing and service offerings. The agency's commitment to open competition indicates a desire to leverage the broadest possible market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and solutions, potentially leading to cost savings and higher quality services.

Public Impact

Internal CMS staff will benefit from improved collaboration and decision-making tools. External stakeholders, such as contractors and partners, will experience streamlined interactions. The modernization of the CALM system is expected to enhance procurement efficiency across the agency. This project supports the broader digital transformation goals within the Department of Health and Human Services. Improved IT infrastructure can indirectly benefit healthcare beneficiaries through more efficient agency operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if modernization requirements are not clearly defined and managed.
Dependency on HumanIT Solutions LLC for critical system functionality.
Integration challenges with existing legacy systems could impact timelines.
Cybersecurity risks associated with modernizing and centralizing data systems.

Positive Signals

Focus on modernizing collaboration tools can improve user experience and productivity.
Centralizing systems aims to reduce redundancies and operational inefficiencies.
Firm Fixed Price contract provides cost predictability.
Awarded under full and open competition, suggesting a competitive selection process.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector, a vital part of the IT industry. The market for IT modernization and custom software development is highly competitive, with significant government spending allocated to improving digital infrastructure. CMS's investment in CALM aligns with a broader trend of federal agencies seeking to upgrade legacy systems to enhance efficiency and security.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine the extent to which small businesses may participate in fulfilling the requirements of this 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 expected through regular reporting requirements outlined in the contract. The Department of Health and Human Services Office of Inspector General may conduct audits or investigations as deemed necessary to ensure proper use of funds and contract compliance.

Related Government Programs

CMS IT Modernization Initiatives
HHS Enterprise Resource Planning (ERP) Systems
Federal Procurement Modernization Programs
Custom Software Development Services

Risk Flags

Potential for integration issues with legacy systems.
Cybersecurity risks associated with system modernization.
Dependency on contractor performance for critical system functionality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.5 million to HUMANIT SOLUTIONS LLC. CALM IS DESIGNED TO MODERNIZE COLLABORATION WITH INTERNAL AND EXTERNAL STAKEHOLDERS, IMPROVE PROCUREMENT DECISION MAKING, AND CENTRALIZE PREVIOUSLY SILOED SYSTEMS AND PROCESSES INTO ONE MODERN AND EFFICIENT APPLICATION. CALM SERVES AS CMS'S PRIMARY T

Who is the contractor on this award?

The obligated recipient is HUMANIT SOLUTIONS 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 $12.5 million.

What is the period of performance?

Start: 2025-11-23. End: 2026-11-22.

What is the specific track record of HumanIT Solutions LLC with federal contracts, particularly within HHS or CMS?

HumanIT Solutions LLC has a history of performing federal IT services. While specific details on past performance metrics for this particular company require deeper database access, their ability to win a full and open competition contract with CMS suggests they meet the agency's technical and financial qualifications. Further investigation into their past performance ratings on similar contracts, especially those involving system modernization or custom programming, would provide a clearer picture of their reliability and success rate. Examining contract close-out data and any past performance reviews would be crucial for a comprehensive assessment.

How does the $12.5 million cost compare to similar IT modernization projects within HHS or other federal agencies?

The $12.5 million award for a 364-day delivery order for the CALM system modernization appears to be within a reasonable range for such projects, especially considering the complexity of modernizing and centralizing systems. Benchmarking against similar IT modernization efforts within HHS or other large federal agencies reveals that costs can vary significantly based on scope, duration, and specific technologies employed. However, for a project focused on enhancing collaboration, improving procurement decision-making, and integrating siloed systems, this figure suggests a targeted investment rather than an excessively high one. A detailed comparison would require identifying contracts with analogous objectives and technical requirements.

What are the primary risks associated with the modernization of the CALM system, and how are they being mitigated?

Key risks include potential integration challenges with existing legacy systems, cybersecurity vulnerabilities during the transition to a modernized platform, and the possibility of scope creep if requirements are not meticulously managed. Mitigation strategies likely involve phased implementation, rigorous testing protocols, robust cybersecurity measures, and strong project management oversight. The firm fixed-price nature of the contract also incentivizes the contractor to manage costs effectively. Continuous communication between CMS and HumanIT Solutions LLC, along with clear definition of deliverables, will be critical to addressing these risks proactively.

How effective is the CALM system expected to be in improving procurement decision-making and centralizing processes?

The CALM system is designed specifically to address these areas. By modernizing collaboration tools and centralizing previously siloed systems, it aims to provide a unified platform for procurement data and workflows. This centralization is expected to improve data accuracy, reduce duplication of effort, and enable more informed decision-making through better access to information. The success of the system will depend on effective implementation, user adoption, and the system's ability to seamlessly integrate with other relevant agency IT infrastructure. The stated goals suggest a significant potential for improved efficiency and effectiveness.

What has been the historical spending trend for similar IT modernization or custom programming services at CMS?

Historical spending on IT modernization and custom programming services at CMS has been substantial, reflecting the agency's ongoing need to update its complex technological infrastructure. CMS, being a large and critical agency within HHS, consistently invests in upgrading its systems to handle vast amounts of healthcare data and manage intricate program operations. While specific figures for 'CALM system modernization' are tied to this award, CMS has previously funded numerous projects related to data management, system integration, and application development. Analyzing past budgets and contract awards for IT services would reveal a pattern of significant and sustained investment in technological advancement.

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: 75FCMC25QJ067

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3182 RODENBECK DR STE A, BEAVERCREEK, OH, 45432

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $33,651,546

Exercised Options: $12,474,237

Current Obligation: $12,474,237

Actual Outlays: $2,222,347

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA18D001B

IDV Type: FSS

Timeline