HHS awards $17.2M for RPMS software support, with 4 bidders competing for a definitive contract

Contract Overview

Contract Amount: $17,192,615 ($17.2M)

Contractor: DDC IT Services LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-27

End Date: 2025-07-30

Contract Duration: 2,133 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: IT

Official Description: RESOURCE AND PATIENT MANAGEMENT SYSTEM (RPMS) SOFTWARE QUALITY ASSURANCE & PRODUCT SUPPORT SERVICES

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110

State: New Mexico Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $17.2 million to DDC IT SERVICES LLC for work described as: RESOURCE AND PATIENT MANAGEMENT SYSTEM (RPMS) SOFTWARE QUALITY ASSURANCE & PRODUCT SUPPORT SERVICES Key points: 1. Contract value appears reasonable given the scope of software quality assurance and product support for a critical health system. 2. Full and open competition after exclusion of sources suggests a deliberate effort to ensure broad market access. 3. The definitive contract structure provides flexibility but requires careful monitoring of task orders. 4. The contract duration of over 2100 days indicates a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 541519 points to a specialized IT service category. 6. The contract is managed by the Indian Health Service, highlighting its importance for Native American healthcare.

Value Assessment

Rating: good

The contract value of approximately $17.2 million over its period of performance is within a reasonable range for comprehensive software quality assurance and product support services for a large-scale system like RPMS. Benchmarking against similar IT support contracts for federal health systems suggests that this pricing is competitive, especially considering the specialized nature of the services and the critical function of the RPMS. The contract's focus on labor hours allows for adaptability, but requires diligent oversight to ensure efficient resource utilization and prevent cost overruns.

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 while the competition was broad, there might have been specific criteria or prior exclusions that narrowed the initial pool. With four bidders participating, the competition level is moderate, suggesting that the market has a reasonable number of capable providers. This level of competition generally supports price discovery and encourages competitive bidding, which is beneficial for the government.

Taxpayer Impact: The moderate competition level for this contract is likely to result in fair pricing for taxpayers, avoiding the potential for inflated costs often seen in sole-source or highly restricted procurements.

Public Impact

The primary beneficiaries are the Indian Health Service (IHS) and the patients it serves, ensuring the reliability and functionality of the Resource and Patient Management System (RPMS). The services delivered include crucial software quality assurance and product support, aiming to maintain and improve the performance of the RPMS. The geographic impact is nationwide, as RPMS is utilized across various IHS facilities. Workforce implications include the potential for employment opportunities within DDC IT SERVICES LLC and its subcontractors, as well as the IT professionals within IHS who rely on the system's stability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term definitive contracts if not managed tightly.
Reliance on a single contractor for critical software support could pose a risk if performance degrades.
Ensuring consistent quality across all task orders under a labor-hour contract requires robust oversight.

Positive Signals

The use of full and open competition suggests a commitment to leveraging market capabilities.
The definitive contract structure allows for flexibility in addressing evolving system needs.
The contractor, DDC IT SERVICES LLC, has a track record in providing IT services to the federal government.

Sector Analysis

The IT services sector, specifically focusing on software quality assurance and product support, is a critical component of government operations. The market for such services is robust, with numerous companies specializing in IT support for complex systems. The contract fits within the broader category of IT services procurement, which represents a significant portion of federal spending. Comparable spending benchmarks for similar IT support contracts can vary widely based on system complexity, duration, and service level agreements, but this contract's value appears aligned with specialized support for a large-scale federal health information system.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). While the primary awardee is DDC IT SERVICES LLC, the lack of specific set-aside provisions means that subcontracting opportunities for small businesses would depend on the prime contractor's strategy and the availability of qualified small business partners. Without explicit subcontracting goals, the direct impact on the small business ecosystem is less certain, though large federal contracts often create downstream opportunities.

Oversight & Accountability

Oversight for this contract is likely managed by the Indian Health Service contracting officers and program managers. Accountability measures would be embedded within the contract's performance work statement (PWS), including defined service levels and deliverables. Transparency is facilitated through federal procurement databases like FPDS-NG, where contract details are publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Electronic Health Records (EHR) Modernization
Health IT Services
Software Development and Maintenance
IT Support Services
Federal Health IT Contracts

Risk Flags

Long-term definitive contract requires careful scope management.
Potential for vendor lock-in if performance is consistently good.
Reliance on a single contractor for critical system support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.2 million to DDC IT SERVICES LLC. RESOURCE AND PATIENT MANAGEMENT SYSTEM (RPMS) SOFTWARE QUALITY ASSURANCE & PRODUCT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is DDC IT SERVICES 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 $17.2 million.

What is the period of performance?

Start: 2019-09-27. End: 2025-07-30.

What is the historical spending trend for RPMS software quality assurance and product support services?

Analyzing historical spending on RPMS software quality assurance and product support requires access to detailed procurement data over multiple years. While this specific contract award is for approximately $17.2 million, understanding the trend would involve examining prior contracts for similar services, including their values, durations, and awarded contractors. Trends could indicate increasing or decreasing investment in RPMS support, potential shifts in service providers, or changes in the scope of work. Without historical data readily available in this context, it's difficult to establish a precise trend, but the current award suggests a sustained need for these critical services.

How does the per-unit cost of this contract compare to similar IT support contracts within the federal government?

A direct per-unit cost comparison is challenging without specific metrics like 'per user support' or 'per module supported' being defined and consistently applied across contracts. The current contract is awarded on a 'LABOR HOURS' (pt: LABOR HOURS) basis, making a standardized per-unit cost difficult to ascertain. However, the total contract value of $17.2 million over its duration suggests a significant investment. To benchmark effectively, one would need to compare the average hourly rates or the cost per equivalent full-time support staff against similar IT support contracts for large-scale federal health systems, considering factors like labor categories, geographic location of services, and required security clearances.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for this contract would typically be detailed within the Performance Work Statement (PWS). Common KPIs for software quality assurance and product support services include system uptime percentages, defect resolution times (e.g., average time to fix critical bugs), customer satisfaction ratings from end-users, successful completion of testing cycles, and adherence to security protocols. The government would monitor these KPIs to ensure DDC IT SERVICES LLC is meeting its contractual obligations and delivering effective support for the RPMS. Failure to meet these KPIs could result in contractual remedies.

What is the track record of DDC IT SERVICES LLC in delivering similar IT support services to federal agencies?

DDC IT SERVICES LLC has a history of providing IT services to various federal agencies. Their experience often includes areas such as software development, system integration, cybersecurity, and IT support. To assess their track record specifically for health IT systems and large-scale software support like RPMS, a deeper dive into their past performance evaluations, contract history (including any past performance issues or awards), and client references would be necessary. Federal procurement databases often contain past performance information, which is crucial for evaluating a contractor's ability to successfully execute a contract of this magnitude and criticality.

What are the potential risks associated with the 'definitive contract' award type for this service?

Definitive contracts, while offering flexibility, carry inherent risks if not managed meticulously. For this RPMS support contract, risks include potential scope creep, where the scope of work expands beyond initial expectations without corresponding adjustments to cost or schedule. There's also a risk of inefficient resource allocation if task orders are not well-defined or if the contractor does not manage labor hours effectively. Furthermore, the long duration necessitates continuous oversight to ensure the contractor remains aligned with evolving government needs and technological advancements. The government must maintain strong program management and contract administration to mitigate these risks.

How does this contract contribute to the overall mission of the Indian Health Service?

This contract is directly aligned with the Indian Health Service's (IHS) mission to provide comprehensive health services to American Indians and Alaska Natives. The Resource and Patient Management System (RPMS) is a foundational IT system used by IHS facilities to manage patient care, appointments, medical records, and billing. Ensuring the quality, reliability, and ongoing support of RPMS through this contract is critical for the efficient delivery of healthcare services, accurate data management, and effective resource allocation within the IHS. It directly supports the operational backbone of the agency's healthcare delivery.

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: 75H70419R00032

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 5001 INDIAN SCHOOL RD NE STE 200, ALBUQUERQUE, NM, 87110

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Tax Exempt, Government, 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: $17,192,615

Exercised Options: $17,192,615

Current Obligation: $17,192,615

Actual Outlays: $11,107,754

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline