HHS awarded $19.2M for dependent Medicare services, with CSRA LLC as the contractor

Contract Overview

Contract Amount: $19,246,858 ($19.2M)

Contractor: Csra LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2006-02-16

End Date: 2009-05-31

Contract Duration: 1,200 days

Daily Burn Rate: $16.0K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DEPENDENT MEDICARE SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.2 million to CSRA LLC for work described as: DEPENDENT MEDICARE SERVICES Key points: 1. The contract value of $19.2 million over approximately three years suggests a moderate investment in IT services. 2. The 'Other Computer Related Services' NAICS code indicates a broad scope, potentially encompassing various IT support functions. 3. The contract was awarded as a competitive delivery order, implying some level of competition, though details are limited. 4. The Time and Materials pricing structure can pose risks if not closely managed, potentially leading to cost overruns. 5. The duration of the contract (1200 days) suggests a need for sustained support for Medicare services. 6. The small business set-aside flag is false, indicating this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

The contract value of $19.2 million for IT services over roughly three years appears within a reasonable range for government contracts of this nature. However, without specific benchmarks for 'Dependent Medicare Services' IT support, a precise value-for-money assessment is challenging. The Time and Materials (T&M) pricing structure, while common, can be less predictable than fixed-price contracts and requires diligent oversight to ensure costs remain aligned with the work performed. Comparing this to similar contracts for IT support within HHS or CMS would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' which suggests it was competed under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle. The presence of '2' under the 'no' field likely indicates two bids were received. While competitive, a low number of bidders can sometimes limit price discovery and potentially lead to higher prices than a more robust competition. Further details on the specific solicitation and the bidding process would be needed to fully assess the level of competition.

Taxpayer Impact: A competitive award, even with a limited number of bidders, is generally favorable for taxpayers as it introduces some market pressure on pricing. However, the ultimate benefit depends on the rigor of the competition and the effectiveness of the government's negotiation.

Public Impact

Beneficiaries of Medicare services likely benefit indirectly through the improved IT infrastructure supporting these services. The contract supports essential IT functions for the Centers for Medicare and Medicaid Services (CMS). The geographic impact is primarily national, given CMS's role in administering Medicare across the United States. Workforce implications may include IT professionals employed by CSRA LLC and potentially subcontractors, supporting the federal IT infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not managed effectively.
Limited number of bidders (2) may indicate reduced price competition.
The broad NAICS code (541519) could imply a wide range of services, making specific performance monitoring complex.

Positive Signals

Awarded as a competitive delivery order, suggesting some level of market vetting.
Contract duration indicates a sustained need and potential for stable IT support.
Contractor (CSRA LLC) is a known entity in the federal IT space, suggesting experience.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under 'Other Computer Related Services.' The federal IT services market is substantial, with agencies like HHS being major consumers. Contracts like this are crucial for maintaining the operational capabilities of critical government programs such as Medicare. Benchmarking this contract's value against other IT support services for large federal health programs would provide further context on its market positioning.

Small Business Impact

The 'sb' (small business) flag is false, indicating that this contract was not set aside for small businesses. This means large businesses were eligible to compete and potentially win. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal unless CSRA LLC voluntarily engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within CMS. The Time and Materials (T&M) nature of the contract necessitates close monitoring of labor hours and costs to ensure compliance with the contract terms and prevent overspending. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Medicare Modernization Act (MMA) IT Systems
CMS Health Information Technology Programs
Federal Health IT Services
Department of Health and Human Services IT Modernization

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition may result in suboptimal pricing.
Broad NAICS code could indicate scope ambiguity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.2 million to CSRA LLC. DEPENDENT MEDICARE SERVICES

Who is the contractor on this award?

The obligated recipient is CSRA 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 $19.2 million.

What is the period of performance?

Start: 2006-02-16. End: 2009-05-31.

What is CSRA LLC's track record with the federal government, particularly with HHS and CMS?

CSRA LLC, and its predecessor companies, have a significant history of contracting with the federal government, including extensive work with the Department of Health and Human Services (HHS) and the Centers for Medicare and Medicaid Services (CMS). They have been involved in various IT services, system modernization, and support contracts. Their track record generally indicates experience in managing large-scale federal IT projects. However, a detailed review of past performance evaluations, any contract disputes, or past performance issues specific to contracts similar to this one would be necessary for a comprehensive assessment. Their ability to successfully deliver on complex IT requirements for critical programs like Medicare is a key factor in evaluating their suitability.

How does the $19.2 million contract value compare to similar IT support contracts for Medicare services?

Comparing the $19.2 million contract value requires context regarding the specific services rendered and the contract duration. This contract spans approximately three years (1200 days). For IT support services related to large, complex federal programs like Medicare, this value is moderate. Similar contracts for comprehensive IT infrastructure management, software development, or system maintenance for programs of Medicare's scale can range from tens to hundreds of millions of dollars over similar or longer periods. The 'Other Computer Related Services' NAICS code is broad, so a direct comparison is difficult without knowing the exact scope. However, the value appears reasonable for sustained IT support, assuming the scope aligns with the funding.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours expended and the cost of materials used. If the contractor's efficiency is low, or if the scope of work expands without adequate controls, the total cost can escalate beyond initial estimates. For taxpayers, this means less budget certainty and potentially higher overall spending. Effective risk mitigation requires robust oversight from the government, including detailed tracking of hours, verification of work performed, and strong change management processes to control scope creep.

How effective are the oversight mechanisms for this contract, given its T&M structure?

The effectiveness of oversight for this T&M contract hinges on the diligence of the Contracting Officer's Representative (COR) and the program office. Key oversight activities include verifying timesheets, ensuring labor categories and rates are appropriate, monitoring progress against milestones (even in T&M), and managing any changes to the scope of work. The government must actively manage the contract to ensure the contractor is performing efficiently and that costs are reasonable and allocable to the contract. Without strong government oversight, T&M contracts are susceptible to inefficiencies and cost growth, diminishing the value for taxpayers.

What does the limited competition (2 bidders) imply for the government's ability to secure competitive pricing?

A competition with only two bidders, as indicated by the 'no' field value of 2, suggests a limited market response for this specific contract. While it is still a competitive award, fewer bidders generally translate to less pressure on pricing. The government may not have received the most advantageous pricing possible compared to a scenario with multiple, robust bids. This situation can sometimes arise due to the specialized nature of the services required, the complexity of the solicitation, or the existing contract vehicles available. It underscores the importance of strong negotiation skills by the government contracting team to ensure fair value is obtained even with limited competition.

What is the historical spending trend for 'Dependent Medicare Services' IT support within CMS?

Historical spending data for 'Dependent Medicare Services' IT support specifically is not directly available from the provided data snippet. However, overall IT spending by CMS and HHS has been substantial and generally increasing over the years, driven by the need to modernize systems, enhance data security, and support evolving healthcare policies and digital services. Contracts for IT support are a significant component of this spending. Analyzing broader CMS IT budgets and contract databases would reveal trends in spending on IT services, including those supporting critical functions like Medicare administration. This particular contract represents a portion of that larger IT investment.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › DEPENDENT MEDICARE SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 7700 HUBBLE DR, LANHAM SEABROOK, MD, 04

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,940,218

Exercised Options: $23,940,218

Current Obligation: $19,246,858

Parent Contract

Parent Award PIID: GS35F4381G

IDV Type: FSS

Timeline