HHS Awards $80M for Health IT Operations & Maintenance to Accenture Federal Services
Contract Overview
Contract Amount: $79,820,689 ($79.8M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2016-08-08
End Date: 2020-10-07
Contract Duration: 1,521 days
Daily Burn Rate: $52.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF EHBS OPERATIONS AND MAINTENANCE (O M)
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $79.8 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::OT::IGF EHBS OPERATIONS AND MAINTENANCE (O M) Key points: 1. Significant contract value of $79.8M for IT operations and maintenance. 2. Accenture Federal Services is the sole awardee, raising questions about competition. 3. The contract spans over four years, indicating a long-term need. 4. The sector is IT services, specifically Computer Systems Design.
Value Assessment
Rating: fair
The contract value of $79.8M appears substantial for IT operations and maintenance. Benchmarking against similar contracts for comparable services would be necessary to definitively assess pricing fairness.
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 single awardee, Accenture Federal Services, warrants further examination to ensure robust price discovery and value for taxpayers.
Taxpayer Impact: The full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for service providers.
Public Impact
Impacts the Health Resources and Services Administration (HRSA) within HHS. Ensures continued operation and maintenance of critical health IT systems. Potential for improved healthcare delivery through reliable IT infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics in provided data.
- Potential for vendor lock-in with a single awardee.
- Reliance on a single contractor for critical IT infrastructure.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type can control costs.
- Long-term contract provides stability for operations.
Sector Analysis
This contract falls within the IT services sector, specifically Computer Systems Design Services. Spending in this area is crucial for government operations, with benchmarks varying widely based on service scope and complexity.
Small Business Impact
The provided data indicates that small businesses were not directly involved in this specific award, as it was awarded to Accenture Federal Services. Further analysis would be needed to determine if subcontracting opportunities were made available.
Oversight & Accountability
Oversight would typically involve regular performance reviews by HRSA to ensure Accenture Federal Services meets contractual obligations and service level agreements. The firm fixed price structure provides some cost control, but performance monitoring is key.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Health Resources and Services Administration Programs
Risk Flags
- Potential for cost overruns if scope creeps.
- Risk of service disruption if contractor performance degrades.
- Dependence on a single vendor for critical IT functions.
- Limited visibility into subcontractor performance.
Tags
computer-systems-design-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $79.8 million to ACCENTURE FEDERAL SERVICES LLC. IGF::OT::IGF EHBS OPERATIONS AND MAINTENANCE (O M)
Who is the contractor on this award?
The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Health Resources and Services Administration).
What is the total obligated amount?
The obligated amount is $79.8 million.
What is the period of performance?
Start: 2016-08-08. End: 2020-10-07.
What specific IT systems are covered under this Operations and Maintenance contract, and what is their criticality to HRSA's mission?
The contract covers the operational support and maintenance for various IT systems utilized by the Health Resources and Services Administration. While the exact systems are not detailed, their O&M is crucial for HRSA's mission of improving health outcomes and access to care, particularly for underserved populations. Ensuring the reliability and security of these systems is paramount.
How was the 'fair' value rating determined given the limited information on comparable contracts and specific performance metrics?
The 'fair' value rating is preliminary, based on the available data. While the contract was competitively awarded, the absence of detailed performance data and specific benchmarks for similar IT O&M contracts prevents a 'good' or 'excellent' rating. Further analysis of Accenture's performance and pricing against industry standards would be required for a more definitive assessment.
What mechanisms are in place to ensure ongoing competition and prevent potential vendor lock-in, despite this being a single award contract?
Mechanisms to ensure ongoing competition and mitigate vendor lock-in typically include contract clauses allowing for future competition at contract expiration, clear performance standards, and regular market research by the agency. While this is a single award, HRSA should be actively planning for future procurements to maintain competitive pressure and explore alternative solutions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: NIHJT2010001
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Accenture Inc.
Address: 800 NORTH GLEBE RD #300, ARLINGTON, VA, 22203
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $79,820,689
Exercised Options: $79,820,689
Current Obligation: $79,820,689
Subaward Activity
Number of Subawards: 60
Total Subaward Amount: $24,630,474
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200002W
IDV Type: GWAC
Timeline
Start Date: 2016-08-08
Current End Date: 2020-10-07
Potential End Date: 2020-10-07 00:00:00
Last Modified: 2023-01-27
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