GSA awards $23.5M for ICD10 CLASS 1 REMEDIATION to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $23,548,686 ($23.5M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2011-04-01

End Date: 2014-05-31

Contract Duration: 1,156 days

Daily Burn Rate: $20.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ICD10 CLASS 1 REMEDIATION

Place of Performance

Location: FALLING WATERS, BERKELEY County, WEST VIRGINIA, 25419, UNITED STATES OF AMERICA

State: West Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $23.5 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: ICD10 CLASS 1 REMEDIATION Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract value of $23.5 million over approximately three years indicates a significant investment in IT infrastructure. 3. The North American Industry Classification System (NAICS) code 518210 points to services related to data processing and hosting. 4. The contract was awarded by the General Services Administration (GSA), a key agency for federal IT procurement. 5. The firm-fixed-price contract type aims to provide cost certainty for the government. 6. The contract duration of 1156 days (approx. 3.17 years) suggests a medium-term project.

Value Assessment

Rating: fair

The contract value of $23.5 million for ICD10 CLASS 1 REMEDIATION services over three years appears to be within a reasonable range for large-scale IT projects of this nature. Without specific benchmarks for ICD10 remediation or comparable data processing contracts from GSA, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure suggests an effort to control costs. Further analysis would require comparing this award to similar remediation efforts or IT infrastructure projects within the federal government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that it was competed openly suggests that multiple vendors likely vied for this contract, which is generally beneficial for price discovery and achieving competitive pricing. The number of bidders is not specified, but the open competition itself is a positive indicator for the government's ability to solicit a range of offers.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment where contractors are incentivized to offer their best prices to win the award.

Public Impact

The primary beneficiaries are likely federal agencies requiring compliance with ICD10 coding standards, ensuring accurate healthcare data processing and billing. The services delivered involve IT infrastructure, data processing, and potentially web hosting, crucial for maintaining and updating critical healthcare information systems. The geographic impact is primarily federal, supporting national healthcare data standards and potentially impacting any agency that handles healthcare-related data. Workforce implications may include IT specialists, data analysts, and project managers involved in the remediation and maintenance of these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex IT remediation projects.
Dependence on a single contractor (Peraton Enterprise Solutions LLC) for a critical IT function.
Ensuring ongoing data integrity and security throughout the remediation process.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm-fixed-price contract type provides cost predictability.
Contract awarded by GSA, an experienced procurement agency.

Sector Analysis

The contract falls within the Information Technology (IT) sector, specifically focusing on data processing, web hosting, and related services. This area is critical for government operations, enabling efficient data management and system functionality. The market for such services is highly competitive, with numerous providers offering specialized solutions. The $23.5 million award is a significant, though not exceptionally large, contract within the federal IT services landscape, indicative of a substantial project requiring specialized expertise.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, Peraton Enterprise Solutions LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA), the awarding agency. GSA's Federal Acquisition Service (FAS) is responsible for managing a wide range of government-wide acquisition contracts. Transparency is generally maintained through contract award databases like FPDS. Accountability measures are embedded in the firm-fixed-price contract terms, requiring Peraton to deliver specified services within the agreed budget. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Healthcare IT Modernization
Data Center Consolidation
Cloud Computing Services
Electronic Health Records (EHR) Systems
Federal Information Security Management Act (FISMA) Compliance

Risk Flags

Potential for scope creep
Data integrity and security risks
Contractor performance dependency

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $23.5 million to PERATON ENTERPRISE SOLUTIONS LLC. ICD10 CLASS 1 REMEDIATION

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $23.5 million.

What is the period of performance?

Start: 2011-04-01. End: 2014-05-31.

What is the track record of Peraton Enterprise Solutions LLC with similar federal IT contracts?

Peraton Enterprise Solutions LLC has a significant history of performing federal IT contracts. While specific details for this ICD10 CLASS 1 REMEDIATION contract are limited to the award data, Peraton is known for providing a range of IT services to various government agencies. Their portfolio often includes areas like enterprise IT, cybersecurity, and mission support. Analyzing their past performance on contracts of similar size, scope, and complexity, particularly those involving data processing, hosting, and regulatory compliance (like healthcare standards), would be crucial for a comprehensive assessment. This would involve reviewing past performance evaluations, any reported contract issues, and their success in meeting delivery timelines and technical requirements on previous engagements.

How does the $23.5 million award compare to other federal IT remediation contracts?

The $23.5 million award for ICD10 CLASS 1 REMEDIATION over approximately three years is a substantial but not unprecedented figure for federal IT projects. Large-scale IT modernization, system upgrades, and remediation efforts often run into tens or even hundreds of millions of dollars, depending on the complexity, scope, and number of systems affected. For instance, major electronic health record (EHR) system implementations or data center consolidations can far exceed this amount. However, when compared to smaller, more focused IT support contracts or specific software development projects, $23.5 million represents a significant investment. Benchmarking against similar ICD10-related projects or data processing/hosting contracts awarded by GSA or other agencies would provide a more precise comparison of its relative scale and value.

What are the primary risks associated with this ICD10 CLASS 1 REMEDIATION contract?

Key risks associated with this contract include technical challenges in remediating legacy systems to meet ICD10 standards, potential data integrity issues during migration or updates, and cybersecurity vulnerabilities that could be introduced or exploited. There's also a risk of schedule delays if unforeseen technical hurdles arise or if the scope of work expands beyond initial estimates (scope creep). Contractor performance risk, ensuring Peraton Enterprise Solutions LLC has the necessary expertise and resources to deliver, is another factor. Furthermore, changes in healthcare regulations or technology could necessitate adjustments to the remediation plan, adding complexity and potential cost overruns, although the firm-fixed-price contract aims to mitigate the latter.

How effective is the GSA in managing IT contracts of this magnitude?

The General Services Administration (GSA) is a primary agency for managing federal IT procurements and has extensive experience with contracts of this magnitude. Through its Federal Acquisition Service (FAS), GSA offers a wide array of IT solutions and acquisition vehicles designed to streamline procurement for other agencies. GSA's effectiveness is generally considered good, characterized by established processes, competitive bidding procedures, and a focus on providing value. However, like any large organization, effectiveness can vary depending on the specific contract, the program office involved, and the evolving IT landscape. Oversight mechanisms and performance metrics are typically in place to monitor contract execution and ensure successful outcomes.

What are the historical spending patterns for ICD10-related IT services within the federal government?

Historical spending on ICD10-related IT services within the federal government has been significant, particularly following the mandatory transition to ICD-10-CM/PCS codes in 2015. Agencies, especially those within the Department of Health and Human Services (HHS) and other healthcare-related entities, have invested heavily in updating their systems, software, and data management processes to ensure compliance. This spending encompasses various categories, including software upgrades, data migration, system integration, testing, and ongoing maintenance. While specific aggregate figures for ICD10 remediation are not readily available, the overall federal IT budget, which includes substantial allocations for healthcare IT modernization and compliance, indicates a consistent and considerable investment in maintaining accurate and compliant healthcare data infrastructure.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: R3114497

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: HP, Inc. (UEI: 009122532)

Address: 136000 EDS DR MAIL STOP A3S B53, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,656,478

Exercised Options: $23,548,686

Current Obligation: $23,548,686

Parent Contract

Parent Award PIID: GS35F0323J

IDV Type: FSS

Timeline