HHS Spends $59.5M on Automated Information System Services with Telligen, Inc
Contract Overview
Contract Amount: $59,487,663 ($59.5M)
Contractor: Telligen, Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2005-08-31
End Date: 2010-12-31
Contract Duration: 1,948 days
Daily Burn Rate: $30.5K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: AUTOMATED INFORMATION SYSTEM SVCS
Place of Performance
Location: WEST DES MOINES, DALLAS County, IOWA, 50266
State: Iowa Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $59.5 million to TELLIGEN, INC for work described as: AUTOMATED INFORMATION SYSTEM SVCS Key points: 1. Significant contract value of $59.5 million over 5 years. 2. Competition method was a competitive delivery order, suggesting some market engagement. 3. Risk of vendor lock-in and potential cost overruns exist. 4. Sector is IT services, crucial for healthcare operations.
Value Assessment
Rating: fair
The contract was awarded via a competitive delivery order. Without specific benchmarks for similar IT services contracts within HHS, assessing the overall value for money is challenging. The duration and total value suggest a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded as a competitive delivery order, indicating that multiple vendors likely had an opportunity to bid. This method generally promotes price discovery and competition, potentially leading to better pricing than a sole-source award.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely benefited from a more efficient price discovery process compared to non-competitive methods.
Public Impact
Impacts the operational efficiency of the Centers for Medicare and Medicaid Services (CMS). Ensures the availability of critical automated information systems for healthcare administration. Potential for improved data management and service delivery through these IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long (5 years).
- Vendor lock-in potential.
- Reliance on a single vendor for critical IT services.
Positive Signals
- Competitive award process.
- Significant investment in IT infrastructure.
Sector Analysis
This contract falls within the Information Technology sector, specifically for automated information system services. Spending benchmarks for IT services can vary widely based on complexity and scope, but $59.5 million over five years represents a substantial commitment for a single vendor.
Small Business Impact
The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight would typically be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability for performance and cost would be tied to the contract terms and delivery order requirements.
Related Government Programs
- Computer and Software Stores
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Long contract duration.
- Potential for cost overruns with T&M pricing.
- Vendor lock-in.
- Reliance on a single vendor for critical systems.
Tags
computer-and-software-stores, department-of-health-and-human-services, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $59.5 million to TELLIGEN, INC. AUTOMATED INFORMATION SYSTEM SVCS
Who is the contractor on this award?
The obligated recipient is TELLIGEN, 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 $59.5 million.
What is the period of performance?
Start: 2005-08-31. End: 2010-12-31.
What specific automated information systems were supported by this contract, and how did their performance impact CMS operations?
The contract supported various automated information systems crucial for CMS operations, likely including those related to Medicare and Medicaid program management, data processing, and beneficiary services. Improved system performance could lead to more efficient claims processing, better data accuracy, and enhanced service delivery to beneficiaries, ultimately impacting the effectiveness of federal healthcare programs.
Were there any identified risks related to data security or privacy with these automated information systems?
Given the sensitive nature of healthcare data managed by CMS, data security and privacy risks are inherent. While not explicitly detailed in the provided data, contracts of this magnitude typically include stringent security requirements and compliance mandates (e.g., HIPAA). Effective oversight and adherence to these requirements are critical to mitigate potential breaches or privacy violations.
How did the pricing structure (Time and Materials) compare to fixed-price options for similar IT services, and what was the overall cost-effectiveness?
Time and Materials (T&M) contracts offer flexibility but can pose cost control challenges compared to fixed-price contracts. For IT services, T&M is often used when the scope is not well-defined. Assessing cost-effectiveness requires comparing the actual costs incurred against the value delivered and benchmarking against similar T&M or fixed-price contracts for comparable services.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1776 WESTLAKES PKWY, WEST DES MOINES, IA, 50266
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $59,487,663
Exercised Options: $59,487,663
Current Obligation: $59,487,663
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F5831H
IDV Type: FSS
Timeline
Start Date: 2005-08-31
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2021-12-06
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