HHS Awards $34.8M for Next Generation Desktop Services to National Government Services
Contract Overview
Contract Amount: $34,864,513 ($34.9M)
Contractor: National Government Services, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2007-03-01
End Date: 2016-09-25
Contract Duration: 3,496 days
Daily Burn Rate: $10.0K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: NEXT GENERATION DESKTOP
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46250
State: Indiana Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $34.9 million to NATIONAL GOVERNMENT SERVICES, INC. for work described as: NEXT GENERATION DESKTOP Key points: 1. The contract value is $34.8 million over its period of performance. 2. National Government Services, Inc. is the awardee for these computer systems design services. 3. The contract was awarded as a competitive delivery order under an existing contract. 4. The sector is IT, specifically 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. Benchmarking against similar IT service contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
Awarded as a competitive delivery order, suggesting some level of competition existed, but the specific details of the competition are not provided. The 'limited' classification implies it might not have been a full and open competition.
Taxpayer Impact: The $34.8 million award represents taxpayer funds allocated for essential IT infrastructure and services within CMS.
Public Impact
Ensures continued operation and potential upgrades of desktop systems for CMS. Impacts federal employees and contractors relying on these desktop systems. Supports the IT infrastructure critical for Medicare and Medicaid operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contract type can incentivize higher spending.
- Limited competition details obscure true price discovery.
- Long performance period (2007-2016) may not reflect current market rates.
Positive Signals
- Awarded competitively, indicating some market vetting.
- Supports critical healthcare IT infrastructure.
Sector Analysis
This contract falls under IT services, specifically computer systems design. Spending in this area is substantial across government, supporting essential digital operations and infrastructure.
Small Business Impact
The data does not indicate any specific set-aside for small businesses, and the awardee is National Government Services, Inc., which is likely a large business.
Oversight & Accountability
The contract was awarded as a delivery order, implying it was part of a larger, pre-existing contract that likely underwent some level of oversight. Further oversight details are not provided.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Award Fee structure.
- Lack of detailed competition information raises questions about price discovery.
- Long contract duration may not reflect current market value.
- No clear indication of small business participation.
Tags
computer-systems-design-services, department-of-health-and-human-services, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $34.9 million to NATIONAL GOVERNMENT SERVICES, INC.. NEXT GENERATION DESKTOP
Who is the contractor on this award?
The obligated recipient is NATIONAL GOVERNMENT SERVICES, 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 $34.9 million.
What is the period of performance?
Start: 2007-03-01. End: 2016-09-25.
What was the specific competitive process for this delivery order, and how did it ensure fair pricing?
The data states 'COMPETITIVE DELIVERY ORDER' but lacks specifics on the number of bidders or the evaluation criteria. A competitive process aims to solicit multiple offers and select the best value, but without details, it's hard to confirm if fair price discovery was achieved. The Cost Plus Award Fee structure also means the final price is influenced by performance metrics.
What are the key performance indicators (KPIs) tied to the 'Award Fee' component, and how were they measured?
The 'Award Fee' component suggests that the contractor's performance was evaluated against specific metrics, and a portion of the contract value was contingent on meeting or exceeding these standards. Details on these KPIs, their weighting, and the actual awarded fee are not provided in the data, making it difficult to assess the effectiveness of incentivizing performance.
How does the $34.8 million cost compare to industry benchmarks for similar desktop support and design services over a 9-year period?
Benchmarking this cost is challenging without granular data on the specific services rendered, service levels, and the technological scope. However, $34.8 million over approximately 9 years averages around $3.87 million annually. This figure needs to be compared against IT service contracts of similar scale and complexity, considering inflation and technological advancements over the contract's lifespan.
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: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Elevance Health, Inc.
Address: 8115 KNUE RD, INDIANAPOLIS, IN, 46250
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,914,513
Exercised Options: $34,914,513
Current Obligation: $34,864,513
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSM500200600023I
IDV Type: IDC
Timeline
Start Date: 2007-03-01
Current End Date: 2016-09-25
Potential End Date: 2016-09-25 00:00:00
Last Modified: 2024-09-11
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