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

Positive Signals

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

Risk Flags

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 TradeElectronics and Appliance StoresComputer and Software Stores

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP 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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