HHS awards $24.1M for National Data Warehouse hosting, with 3 bidders competing

Contract Overview

Contract Amount: $24,143,480 ($24.1M)

Contractor: Companion Data Services LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2007-01-23

End Date: 2013-01-21

Contract Duration: 2,190 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NATIONAL DATA WAREHOUSE (NDW) HOSTING SERVICES

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.1 million to COMPANION DATA SERVICES LLC for work described as: NATIONAL DATA WAREHOUSE (NDW) HOSTING SERVICES Key points: 1. Value for money appears reasonable given the 6-year contract duration and fixed-price nature. 2. Strong competition was present with three bidders, suggesting fair price discovery. 3. Risk indicators are low due to a fixed-price contract and established service provider. 4. Performance context is a long-term hosting service for critical health data. 5. Sector positioning is within IT services, specifically data management and facilities. 6. The contract was awarded via full and open competition, indicating broad market access.

Value Assessment

Rating: good

The contract's total value of $24.1 million over six years averages to approximately $4 million annually. This appears to be a competitive rate for comprehensive data warehouse hosting services, especially considering the critical nature of the data managed by CMS. Benchmarking against similar large-scale data hosting contracts would provide further insight, but the fixed-price structure and competitive award suggest a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. With three bidders participating, the level of competition was moderate. This suggests that while the market for such specialized services is not overly crowded, there was sufficient interest to drive a competitive pricing environment and ensure a fair selection process.

Taxpayer Impact: The full and open competition and multiple bidders indicate that taxpayer dollars were likely used efficiently, as the government had the opportunity to select the most cost-effective and technically sound offer from a range of qualified providers.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and ultimately, the millions of individuals who rely on these healthcare programs. Services delivered include essential hosting and management of the National Data Warehouse, crucial for healthcare data analysis and program administration. Geographic impact is national, supporting federal healthcare operations across the United States. Workforce implications are primarily within the IT sector, supporting specialized data management and infrastructure roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future contracts are not competitively re-awarded.
Dependence on a single contractor for critical data infrastructure poses a risk.
Ensuring data security and compliance with evolving regulations requires continuous oversight.

Positive Signals

Long-term contract provides stability for service delivery.
Fixed-price contract helps control costs.
Awarded through full and open competition, ensuring a fair process.
Experienced contractor likely familiar with CMS requirements.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on data management and IT infrastructure services. The market for cloud hosting and data warehousing is substantial and growing, driven by the increasing need for secure, scalable, and accessible data solutions across government and private industries. Comparable spending benchmarks for federal data hosting services vary widely based on data volume, security requirements, and service level agreements, but this contract's value appears aligned with medium-to-large scale federal IT infrastructure projects.

Small Business Impact

There is no indication that this contract included a small business set-aside. As a large-scale IT services contract, it is likely that the prime contractor is a large business. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on the extent to which the prime contractor engages small businesses for specialized support or components.

Oversight & Accountability

Oversight for this contract would typically be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures are embedded in the contract's performance work statement and service level agreements. Transparency is generally maintained through federal procurement databases like FPDS-NG, where contract awards are recorded. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Healthcare Data Analytics Services
Federal Cloud Computing Services
IT Infrastructure Management
Data Center Operations
Centers for Medicare and Medicaid Services IT Contracts

Risk Flags

Long-term contract duration may lead to technology obsolescence.
Dependence on a single vendor for critical infrastructure.
Need for continuous monitoring of performance and security compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.1 million to COMPANION DATA SERVICES LLC. NATIONAL DATA WAREHOUSE (NDW) HOSTING SERVICES

Who is the contractor on this award?

The obligated recipient is COMPANION DATA SERVICES 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 $24.1 million.

What is the period of performance?

Start: 2007-01-23. End: 2013-01-21.

What is the track record of Companion Data Services LLC with federal contracts, particularly within the Department of Health and Human Services?

Companion Data Services LLC (CDS) has a significant history of federal contracting, particularly with the Department of Health and Human Services (HHS) and its sub-agencies like the Centers for Medicare and Medicaid Services (CMS). Their contract portfolio often includes IT services, data management, and healthcare-related technology solutions. Reviewing their past performance on similar contracts, including any past performance evaluations or awards, would provide a clearer picture of their reliability and capability in delivering complex IT infrastructure services. Data from federal procurement databases often shows a pattern of awards for services related to data hosting, processing, and IT support, indicating a specialization in this area.

How does the $24.1 million contract value compare to similar federal data warehouse hosting contracts awarded around the same period?

Comparing the $24.1 million contract value for NDW hosting services requires context regarding the duration (6 years) and scope of services. Annually, the contract averages approximately $4 million. This figure needs to be benchmarked against contracts for similar data volumes, security requirements (e.g., HIPAA compliance), and service level agreements (SLAs) for federal agencies. Contracts for large-scale data warehousing and hosting can range significantly, from a few million to tens or even hundreds of millions of dollars over their lifecycle, depending on complexity and scale. Given that this contract supports critical CMS operations, the $4 million annual average appears to be within a reasonable range for robust, secure, and reliable data hosting, assuming the scope of services is comprehensive.

What are the primary risks associated with a long-term (6-year) contract for critical data hosting services?

The primary risks associated with a long-term contract for critical data hosting include technological obsolescence, vendor lock-in, and potential performance degradation over time. Technology evolves rapidly, and a 6-year contract might lock the government into older infrastructure or services if not managed carefully. Vendor lock-in is a concern because switching providers for critical systems can be complex, costly, and disruptive. Performance degradation is a risk if the contractor's capabilities or commitment wane, or if the government's needs evolve beyond the contract's original scope. Mitigating these risks involves robust contract management, regular performance reviews, incorporating flexibility clauses, and planning for future technology transitions.

How effective has Companion Data Services LLC been in delivering National Data Warehouse hosting services based on available performance data?

Assessing the effectiveness of Companion Data Services LLC (CDS) in delivering these specific NDW hosting services requires access to detailed performance metrics, past performance reviews, and any contract modifications or disputes. Without this granular data, a definitive judgment on effectiveness is difficult. However, the fact that the contract was awarded and presumably fulfilled over its duration suggests a baseline level of acceptable performance. Federal contracts typically include performance standards and evaluation criteria. If CDS consistently met or exceeded these, it indicates effectiveness. Conversely, any documented issues, penalties, or contract terminations would suggest performance challenges.

What has been the historical spending trend for National Data Warehouse hosting services by CMS over the past decade?

Analyzing the historical spending trend for NDW hosting services by CMS requires examining procurement data over multiple years. This specific contract, awarded in 2007 and ending in 2013, represents a snapshot of spending during that period. To understand the trend, one would need to look at subsequent contracts for NDW hosting or similar data management services awarded by CMS. Factors influencing spending trends include the growth in data volume, evolving technological requirements (e.g., migration to cloud), changes in federal IT policies, and budget allocations. A decade-long view would likely reveal an increase in overall spending due to data growth, potentially offset by efficiencies gained through technological advancements or competitive sourcing.

What are the implications of awarding this contract via 'Full and Open Competition' versus other methods like 'Sole Source'?

Awarding this contract via 'Full and Open Competition' has significant implications for both the government and taxpayers. It ensures that the government solicits offers from the widest possible range of qualified sources, fostering a competitive environment. This typically leads to better pricing, higher quality services, and innovative solutions as contractors vie for the award. In contrast, a 'Sole Source' award, where only one contractor is solicited, often results in higher prices and potentially less innovation, as competition is absent. For taxpayers, 'Full and Open Competition' is generally more advantageous as it maximizes the potential for achieving best value and efficient use of public funds.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management 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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Blue Cross & Blue Shield of South Carolina

Address: I-20 AT ALPINE RD, COLUMBIA, SC, 29219

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,143,480

Exercised Options: $24,143,480

Current Obligation: $24,143,480

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSM500200600003I

IDV Type: IDC

Timeline