HHS awarded $79.7M for ADP Systems Analysis Services to CSRA Systems & Solutions LLC over 2 years

Contract Overview

Contract Amount: $79,701,224 ($79.7M)

Contractor: Csra Systems & Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2007-05-01

End Date: 2009-08-31

Contract Duration: 853 days

Daily Burn Rate: $93.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ADP SYSTEMS ANALYSIS 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 $79.7 million to CSRA SYSTEMS & SOLUTIONS LLC for work described as: ADP SYSTEMS ANALYSIS SERVICES Key points: 1. The contract's value of $79.7M over two years suggests a significant investment in IT systems analysis. 2. The sole-source award raises questions about potential missed opportunities for competitive pricing and innovation. 3. The duration of the contract (853 days) indicates a long-term need for these specialized services. 4. The 'Custom Computer Programming Services' NAICS code points to a focus on tailored IT solutions. 5. The contract was awarded under a Cost Plus Fixed Fee (CPFF) pricing structure, which can shift risk to the government. 6. The geographic location of the awardee in Maryland may indicate a concentration of federal IT support in that region.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source awards for similar services. The CPFF structure, while common for complex IT projects, can lead to higher costs if not managed carefully, as the contractor is reimbursed for all allowable costs plus a fixed fee. The total award amount of $79.7M over approximately two years averages to about $39.85M annually, which appears substantial for IT systems analysis services. Further analysis would require understanding the specific scope of work and deliverables to assess true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or resources required for the specific task, or in cases of urgent need. The lack of competition means that the government did not benefit from the price discovery and innovation that typically arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other qualified businesses to secure federal contracts.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and potentially the broader healthcare system through improved IT infrastructure. Services delivered likely involve analysis, design, development, and maintenance of complex ADP (Automated Data Processing) systems critical for healthcare administration. The geographic impact is primarily within Maryland, where the contractor is located, but the services support national healthcare programs. Workforce implications include employment for IT professionals specializing in systems analysis and programming at CSRA Systems & Solutions LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and innovation.
Cost Plus Fixed Fee structure can increase government financial risk.
Lack of transparency in the justification for sole-source award.

Positive Signals

Contract awarded to an established entity (CSRA Systems & Solutions LLC) suggesting potential for reliable service delivery.
Long-term contract duration indicates a sustained need and potential for stable IT support.
Focus on critical healthcare IT systems suggests alignment with government priorities.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on custom computer programming and IT systems analysis. The federal IT market is vast, with agencies constantly seeking to modernize and maintain complex systems. Spending in this area is driven by the need for efficient data processing, cybersecurity, and the development of new digital services. Comparable spending benchmarks would involve looking at other large IT services contracts awarded by HHS or similar agencies for system development and analysis.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a single, likely larger, entity suggests that the scope of work was deemed to require specialized capabilities not readily available or fulfilled by small businesses through a competitive process. This may limit opportunities for small businesses to participate in this specific contract's value chain.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve contract officers, program managers within CMS, and potentially the HHS Office of Inspector General (OIG). The CPFF structure necessitates close monitoring of costs and performance to ensure value for money. Transparency is often limited in sole-source awards, but contract details and performance reports should be accessible through federal procurement databases.

Related Government Programs

Healthcare IT Modernization Programs
Federal Civilian IT Services
Custom Software Development Contracts
Medicare and Medicaid IT Systems

Risk Flags

Sole Source Justification
Cost Plus Fixed Fee Pricing
Potential for Overpricing due to Lack of Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $79.7 million to CSRA SYSTEMS & SOLUTIONS LLC. ADP SYSTEMS ANALYSIS SERVICES

Who is the contractor on this award?

The obligated recipient is CSRA SYSTEMS & SOLUTIONS 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 $79.7 million.

What is the period of performance?

Start: 2007-05-01. End: 2009-08-31.

What specific systems or programs does this contract support within CMS?

While the provided data does not specify the exact systems, 'ADP Systems Analysis Services' for CMS typically relates to the vast array of IT infrastructure supporting Medicare and Medicaid operations. This could include systems for beneficiary enrollment, claims processing, provider management, data analytics for program integrity, and health information exchange initiatives. The 'Custom Computer Programming Services' NAICS code suggests that the work involves tailoring or developing software solutions to meet the unique operational needs of these critical healthcare programs. Understanding the precise systems would require delving into the contract's statement of work.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar IT services?

The CPFF structure is often used for research and development or complex IT projects where the scope is not fully defined at the outset, allowing for flexibility. However, it places a significant portion of the cost risk on the government, as the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. In contrast, Firm-Fixed-Price (FFP) contracts offer greater cost certainty to the government but can be less suitable for evolving IT needs. Other structures like Time and Materials (T&M) can be used but often have caps to control costs. For IT systems analysis, FFP might be preferred if requirements are stable, while CPFF allows for adaptation but requires robust oversight to manage costs effectively.

What is the typical track record of CSRA Systems & Solutions LLC with federal IT contracts, particularly with HHS?

CSRA Systems & Solutions LLC (now part of General Dynamics Information Technology) has a substantial history of performing IT services for various federal agencies, including HHS. Their track record generally involves large-scale IT modernization, system integration, cybersecurity, and cloud services. While specific performance details for this particular contract (awarded in 2007) are not detailed here, CSRA has been a significant player in the federal IT contracting space, often handling complex and mission-critical systems. Past performance reviews and contract award data would provide a more granular understanding of their reliability and quality of service.

What are the potential risks associated with a sole-source award for critical IT systems analysis?

The primary risks of a sole-source award include a lack of competitive pressure, which can lead to inflated prices and reduced innovation. Without multiple bidders, the government may not achieve the best possible value for its investment. There's also a risk that the chosen contractor may not be the most capable or cost-effective option available in the market. Furthermore, sole-source justifications can sometimes be less transparent, potentially masking underlying issues or a lack of proactive market research by the agency. This can also create a barrier for new or smaller companies seeking to enter the federal IT market.

How has federal spending on IT systems analysis services evolved since this contract was awarded in 2007?

Federal spending on IT systems analysis has significantly evolved since 2007, driven by technological advancements, increasing cybersecurity threats, and a push towards digital transformation. Spending has shifted towards cloud computing, data analytics, artificial intelligence, and agile development methodologies. While traditional systems analysis remains crucial, the tools and approaches have become more sophisticated. Agencies increasingly focus on IT modernization, legacy system modernization, and ensuring IT investments align with strategic goals. The overall federal IT budget has remained substantial, reflecting the critical role of technology across all government functions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: PO BOX 8500-S-4610, PHILADELPHIA, PA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $79,701,224

Exercised Options: $79,701,224

Current Obligation: $79,701,224

Parent Contract

Parent Award PIID: 00500200209D500020037

IDV Type: IDC

Timeline