HHS awards $26.2M for Health IT Systems Interoperability Platform, software engineering, and development support

Contract Overview

Contract Amount: $26,209,620 ($26.2M)

Contractor: Chickasaw Strategic Pointe, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2019-07-05

End Date: 2025-01-14

Contract Duration: 2,020 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: HEALTH INFORMATION TECHNOLOGY SYSTEMS&SUPPORT (HITSS) INTEROPERABILITY PLATFORM&APPLICATION SUITE SOFTWARE ENGINEERING&DEVELOPMENT LIFE CYCLE SUPPORT SERVICES

Place of Performance

Location: NORMAN, CLEVELAND County, OKLAHOMA, 73071

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $26.2 million to CHICKASAW STRATEGIC POINTE, LLC for work described as: HEALTH INFORMATION TECHNOLOGY SYSTEMS&SUPPORT (HITSS) INTEROPERABILITY PLATFORM&APPLICATION SUITE SOFTWARE ENGINEERING&DEVELOPMENT LIFE CYCLE SUPPORT SERVICES Key points: 1. Contract value appears reasonable given the scope of software engineering and lifecycle support. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Contract duration extends into 2025, indicating a need for sustained support. 4. The contract is for IT services, specifically focusing on interoperability and application suite development. 5. The awardee, Chickasaw Strategic Pointe, LLC, is a key player in this specialized IT domain. 6. The contract type is a definitive contract, suggesting a clear scope of work and pricing structure.

Value Assessment

Rating: good

The contract's value of $26.2 million over its period of performance appears to be within a reasonable range for comprehensive software engineering and lifecycle support for a health information technology system. Benchmarking against similar large-scale IT development contracts within federal agencies suggests that this award is competitive. The pricing structure, likely based on labor hours, allows for flexibility while managing costs. Further detailed cost analysis would be needed to confirm precise value-for-money, but initial indicators are positive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely invited to bid. The presence of four bidders suggests a healthy level of competition for this specialized IT service. A competitive bidding process generally leads to better price discovery and ensures that the government receives proposals from a range of qualified contractors, potentially driving down costs and improving the quality of services offered.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that encourages lower bids and better service offerings from contractors.

Public Impact

The primary beneficiaries are the Indian Health Service (IHS) and its patients, who will receive improved health information technology systems. Services delivered include software engineering, development, and lifecycle support for the HITSS Interoperability Platform & Application Suite. The geographic impact is primarily within the IHS operational areas, supporting healthcare delivery nationwide. Workforce implications include the need for skilled IT professionals to develop and maintain these critical systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance issues arise.
Ensuring continuous alignment with evolving healthcare IT standards and regulations will be crucial.

Positive Signals

The use of full and open competition suggests a robust selection process, likely favoring technically capable and cost-effective solutions.
The contract's duration indicates a commitment to long-term system stability and support, which is beneficial for critical health IT.
The award to Chickasaw Strategic Pointe, LLC, may leverage specialized expertise in health IT interoperability.

Sector Analysis

The Health Information Technology Systems & Support (HITSS) sector is a critical component of federal healthcare delivery, focusing on modernizing IT infrastructure to improve patient care and operational efficiency. This contract fits within the broader market for IT services, specifically targeting the niche of healthcare interoperability and software development. Comparable spending benchmarks in this area often involve multi-million dollar awards for system development, integration, and ongoing maintenance, reflecting the complexity and importance of these systems.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, Chickasaw Strategic Pointe, LLC, may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the small business ecosystem. Further analysis of subcontracting plans would be needed to assess the full impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Health and Human Services, specifically the Indian Health Service, through contract officers and technical representatives. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Health Information Technology Services
Software Development and Engineering
Interoperability Platforms
Federal Health IT Modernization Programs
Indian Health Service IT Support

Risk Flags

Potential for vendor lock-in if not managed carefully.
Risk of cybersecurity breaches due to sensitive health data.
Challenges in achieving seamless interoperability across diverse systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.2 million to CHICKASAW STRATEGIC POINTE, LLC. HEALTH INFORMATION TECHNOLOGY SYSTEMS&SUPPORT (HITSS) INTEROPERABILITY PLATFORM&APPLICATION SUITE SOFTWARE ENGINEERING&DEVELOPMENT LIFE CYCLE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CHICKASAW STRATEGIC POINTE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $26.2 million.

What is the period of performance?

Start: 2019-07-05. End: 2025-01-14.

What is the track record of Chickasaw Strategic Pointe, LLC in delivering similar health IT solutions to federal agencies?

Chickasaw Strategic Pointe, LLC has a history of providing IT services to federal agencies. While specific details on past performance for health IT interoperability platforms are not detailed here, their presence as an awardee suggests they possess the necessary qualifications and experience. A deeper dive into their contract history, past performance evaluations, and client testimonials would provide a more comprehensive understanding of their capabilities and reliability in delivering complex health IT solutions. Examining their success on previous, similar contracts would be crucial for assessing their suitability for this role.

How does the awarded amount of $26.2 million compare to similar health IT interoperability platform contracts?

The $26.2 million award for the HITSS Interoperability Platform & Application Suite software engineering and development life cycle support services appears to be within the typical range for large-scale federal IT projects of this nature. Contracts for developing and maintaining complex interoperability platforms, especially within healthcare, often span several years and involve significant investment due to the intricate requirements, security protocols, and integration needs. Benchmarking against other HHS or IHS IT modernization efforts, or similar projects within agencies like CMS or VA, would provide a more precise comparison. However, the value is consistent with the substantial effort required for such a critical system.

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

Key risks include potential technical challenges in achieving seamless interoperability between diverse health IT systems, the possibility of scope creep if requirements evolve rapidly, and ensuring data security and privacy compliance with HIPAA and other regulations. Mitigation strategies likely involve rigorous project management, phased development with clear milestones, robust testing and validation processes, and strong cybersecurity measures. The contract's duration and the full and open competition also suggest a focus on selecting a capable vendor with a plan to manage these inherent risks effectively throughout the performance period.

How effective is the Indian Health Service in managing and overseeing its IT contracts to ensure successful outcomes?

The effectiveness of the Indian Health Service (IHS) in managing and overseeing IT contracts can vary. As an agency within HHS, IHS is subject to federal procurement regulations and oversight mechanisms. The success of this specific contract will depend on the diligence of the contracting officers, technical representatives, and program managers in monitoring performance, managing changes, and ensuring compliance. Past performance reviews and IG reports related to IHS IT projects would offer more specific insights into their oversight capabilities. The presence of a definitive contract and full competition suggests a structured approach to management.

What is the historical spending pattern for Health Information Technology Systems & Support (HITSS) within the Indian Health Service?

Historical spending patterns for HITSS within the Indian Health Service are crucial for understanding the context of this $26.2 million award. While specific historical figures are not provided, agencies like IHS typically allocate significant resources to IT to support their mission of providing healthcare to American Indians and Alaska Natives. Spending in this area often fluctuates based on modernization initiatives, system upgrades, and evolving healthcare technology demands. Analyzing previous years' IT budgets and contract awards for HITSS would reveal trends in investment and identify areas of consistent focus or significant growth.

What are the implications of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contract type for price and innovation?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (FOCI) contract type implies that while the competition was broad, certain sources may have been excluded based on specific criteria, possibly related to security, capability, or prior performance. This approach aims to balance broad competition with ensuring that only qualified and suitable vendors participate. For price, FOCI can still drive competitive pricing as multiple bidders vie for the contract. However, the exclusion of certain sources might, in some theoretical scenarios, limit the absolute lowest price achievable compared to a truly unrestricted full and open competition. For innovation, the impact depends on the criteria for exclusion; if exclusions are based on highly specialized capabilities, it might foster innovation within that niche, but if overly restrictive, it could limit the influx of novel approaches from excluded entities.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 19236SOL00012

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2600 JOHN SAXON BLVD, NORMAN, OK, 73071

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Government, HUBZone Firm, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,814,006

Exercised Options: $28,814,006

Current Obligation: $26,209,620

Actual Outlays: $19,538,247

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline