HHS awards $110.9M for Medicare FISS maintenance to Pinnacle Business Solutions Inc
Contract Overview
Contract Amount: $110,879,310 ($110.9M)
Contractor: Pinnacle Business Solutions Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2006-08-01
End Date: 2011-07-31
Contract Duration: 1,825 days
Daily Burn Rate: $60.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: MAINTENANCE OF MEDICARE FISCAL INTERMEDIARY SHARED SYSTEM (FISS)
Place of Performance
Location: NORTH LITTLE ROCK, PULASKI County, ARKANSAS, 72114
State: Arkansas Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $110.9 million to PINNACLE BUSINESS SOLUTIONS INC for work described as: MAINTENANCE OF MEDICARE FISCAL INTERMEDIARY SHARED SYSTEM (FISS) Key points: 1. The contract focuses on critical IT infrastructure for Medicare operations. 2. Pinnacle Business Solutions Inc. is the sole awardee. 3. The contract duration is 5 years, indicating a long-term need. 4. The award is under a full and open competition, suggesting a robust process.
Value Assessment
Rating: good
The contract value of $110.9 million over five years suggests a significant investment in maintaining a crucial system. Benchmarking against similar custom computer programming services contracts would be necessary for a precise value assessment, but the scale indicates substantial operational importance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and fosters competitive pricing. This method aims to ensure the government receives the best value by considering all qualified sources.
Taxpayer Impact: The competitive nature of the award process is intended to maximize taxpayer value by driving down costs and improving service quality for the Medicare system.
Public Impact
Ensures continued operation of the Medicare Fiscal Intermediary Shared System (FISS). Supports critical functions for Medicare beneficiaries and healthcare providers. Maintains the integrity and efficiency of Medicare's administrative processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for vendor lock-in with a single provider for critical IT.
Positive Signals
- Awarded through full and open competition.
- Long-term contract indicates sustained need and potential for stable service.
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is substantial across federal agencies, supporting everything from administrative systems to advanced research platforms. Benchmarks for similar IT maintenance contracts vary widely based on complexity and scope.
Small Business Impact
The data indicates this contract was not set aside for small businesses and does not specify any small business subcontracting goals. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The award was made by the Centers for Medicare and Medicaid Services (CMS), a major agency within HHS. Oversight would involve monitoring contract performance, ensuring adherence to terms, and managing the relationship with Pinnacle Business Solutions Inc. to guarantee system stability and security.
Related Government Programs
- Custom Computer Programming Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Critical IT system maintenance.
- Long contract duration (5 years).
- Cost Plus Award Fee contract type.
- No small business set-aside indicated.
Tags
custom-computer-programming-services, department-of-health-and-human-services, ar, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $110.9 million to PINNACLE BUSINESS SOLUTIONS INC. MAINTENANCE OF MEDICARE FISCAL INTERMEDIARY SHARED SYSTEM (FISS)
Who is the contractor on this award?
The obligated recipient is PINNACLE BUSINESS SOLUTIONS 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 $110.9 million.
What is the period of performance?
Start: 2006-08-01. End: 2011-07-31.
What specific performance metrics are in place to ensure the effectiveness and efficiency of the FISS maintenance provided by Pinnacle Business Solutions Inc.?
The provided data does not detail specific performance metrics. Effective oversight would require clearly defined Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) related to system uptime, response times for critical issues, security patch implementation, and overall system performance. Regular performance reviews by CMS would be crucial to assess contractor adherence to these metrics and ensure the continued reliability of the FISS.
What are the potential risks associated with a sole awardee maintaining a critical system like FISS for an extended period?
A primary risk is vendor lock-in, which can reduce leverage in future negotiations and potentially lead to price increases. Another risk is the potential for service degradation if the vendor faces financial difficulties or internal challenges. Dependency on a single vendor also heightens the impact of any security breaches or operational failures originating from the provider. Mitigation strategies include robust contract management and contingency planning.
How does the 'Cost Plus Award Fee' (CPAF) contract type influence the value and effectiveness of this FISS maintenance service?
The CPAF structure incentivizes the contractor to perform well by offering potential award fees based on achieving specific performance objectives defined by the government. This can drive higher quality service and innovation compared to fixed-price contracts. However, it also requires careful monitoring by the government to ensure that award fees are justified by actual performance, thereby maximizing taxpayer value and ensuring the effectiveness of the FISS maintenance.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Arkansas Blue Cross & Blue Shield, a Mutual Insurance Company (UEI: 065320038)
Address: 515 W PERSHING BLVD, NORTH LITTLE ROCK, AR, 02
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $178,828,493
Exercised Options: $110,879,310
Current Obligation: $110,879,310
Timeline
Start Date: 2006-08-01
Current End Date: 2011-07-31
Potential End Date: 2011-07-31 00:00:00
Last Modified: 2011-06-06
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