HHS Awards CGI Federal $34.3M for HPMS Maintenance and Enhancement Services
Contract Overview
Contract Amount: $34,335,429 ($34.3M)
Contractor: CGI Federal Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2008-09-26
End Date: 2013-09-25
Contract Duration: 1,825 days
Daily Burn Rate: $18.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: AWARD OF HEALTH PLAN MANAGEMENT SYSTEM (HPMS) MAINTENANCE AND ENHANCEMENT SERVICES
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $34.3 million to CGI FEDERAL INC. for work described as: AWARD OF HEALTH PLAN MANAGEMENT SYSTEM (HPMS) MAINTENANCE AND ENHANCEMENT SERVICES Key points: 1. Contract awarded for critical health plan management system. 2. CGI Federal Inc. is the sole awardee. 3. Spending spans five years, indicating long-term support needs. 4. The contract falls under Computer Systems Design Services.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed effectively. The total award amount of $34.3M over five years needs to be benchmarked against similar IT maintenance and enhancement contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing strategies and how they were evaluated to ensure fair market value are not detailed.
Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure supporting healthcare programs. The value for money depends on the effectiveness of the competition and the contractor's performance.
Public Impact
Ensures continued operation of the Health Plan Management System (HPMS). Supports Centers for Medicare and Medicaid Services (CMS) operations. Potential impact on beneficiaries through system reliability and enhancements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contract type
- No small business participation noted
Positive Signals
- Awarded under full and open competition
- Long-term contract for critical system
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Benchmarks for similar maintenance and enhancement contracts for large-scale government IT systems are crucial for assessing value.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or if opportunities were missed.
Oversight & Accountability
Oversight will be critical to ensure CGI Federal meets performance requirements and that the Cost Plus Award Fee structure incentivizes efficiency and cost control.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Cost Plus Award Fee contract type
- No small business participation
- Potential for vendor lock-in
- Risk of technological obsolescence
Tags
computer-systems-design-services, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $34.3 million to CGI FEDERAL INC.. AWARD OF HEALTH PLAN MANAGEMENT SYSTEM (HPMS) MAINTENANCE AND ENHANCEMENT SERVICES
Who is the contractor on this award?
The obligated recipient is CGI FEDERAL INC..
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 $34.3 million.
What is the period of performance?
Start: 2008-09-26. End: 2013-09-25.
What specific performance metrics are in place to evaluate CGI Federal's maintenance and enhancement services, and how do they ensure value for money?
The contract likely includes specific performance work statements (PWS) and metrics tied to system uptime, response times, and successful implementation of enhancements. The Cost Plus Award Fee structure suggests that contractor performance against these metrics directly influences the fee earned, providing an incentive for value delivery. However, the exact metrics and their weighting are not detailed in the provided data.
Given the five-year duration and the nature of IT systems, what is the risk of vendor lock-in or technological obsolescence?
A five-year contract for IT services inherently carries a risk of vendor lock-in, especially if proprietary technologies are used. Technological obsolescence is also a concern; continuous monitoring and planned upgrades are essential. The contract's flexibility for incorporating new technologies and the agency's strategy for managing potential lock-in will mitigate these risks.
How does the Cost Plus Award Fee structure balance contractor incentives with taxpayer protection against cost overruns?
The Cost Plus Award Fee (CPAF) structure aims to balance incentives by allowing the contractor to recover allowable costs plus a fixed fee, which is then adjusted based on performance. This means the contractor is motivated to perform well to earn a higher award fee, but the base fee is fixed. Effective oversight is crucial to ensure costs are reasonable and allocable, and that the award fee is justified by exceptional performance.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: CGI Inc
Address: 12601 FAIR LAKES CIR, FAIRFAX, VA, 22033
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $34,335,429
Exercised Options: $34,335,429
Current Obligation: $34,335,429
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HHSM500200700015I
IDV Type: IDC
Timeline
Start Date: 2008-09-26
Current End Date: 2013-09-25
Potential End Date: 2013-09-25 00:00:00
Last Modified: 2023-01-25
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