HHS Spends $46.7M on IBM WebSphere via Mainline Information Systems, LLC
Contract Overview
Contract Amount: $46,752,807 ($46.8M)
Contractor: Mainline Information Systems, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2006-09-30
End Date: 2009-12-31
Contract Duration: 1,188 days
Daily Burn Rate: $39.4K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IBM WEBSPHERE
Place of Performance
Location: TALLAHASSEE, LEON County, FLORIDA, 32317
State: Florida Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $46.8 million to MAINLINE INFORMATION SYSTEMS, LLC for work described as: IBM WEBSPHERE Key points: 1. Significant spending on middleware software. 2. Competition was limited, impacting price discovery. 3. Risk of vendor lock-in and high maintenance costs. 4. IT sector spending benchmarked against similar contracts.
Value Assessment
Rating: fair
The $46.7M spent on IBM WebSphere appears high for a 3-year period, especially considering the contract type. Benchmarking against similar middleware procurements is crucial to assess if this represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded as a competitive delivery order, but the limited nature suggests potential restrictions or a narrow scope. This could have hindered robust price discovery and potentially led to higher costs.
Taxpayer Impact: Taxpayers may have overpaid due to limited competition and potential lack of aggressive pricing strategies.
Public Impact
Citizens rely on CMS for healthcare services, which are supported by this IT infrastructure. Government efficiency in IT procurement impacts the overall budget available for public services. Transparency in IT spending builds public trust in government operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- High contract value
- Potential for cost overruns
- Reliance on a single vendor's technology
Positive Signals
- Firm Fixed Price contract type
- Clear end date for the contract
Sector Analysis
This contract falls within the Information Technology sector, specifically software licensing and support. Spending benchmarks for enterprise middleware solutions vary widely based on features, support levels, and vendor.
Small Business Impact
The data does not indicate any specific participation or benefit for small businesses in this contract, suggesting a focus on larger, established vendors.
Oversight & Accountability
Oversight of this contract would involve monitoring vendor performance, ensuring compliance with contract terms, and validating that the software met the agency's evolving needs throughout its lifecycle.
Related Government Programs
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Limited competition
- High dollar value
- Potential for vendor lock-in
- Lack of small business participation
Tags
department-of-health-and-human-services, fl, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $46.8 million to MAINLINE INFORMATION SYSTEMS, LLC. IBM WEBSPHERE
Who is the contractor on this award?
The obligated recipient is MAINLINE INFORMATION SYSTEMS, 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 $46.8 million.
What is the period of performance?
Start: 2006-09-30. End: 2009-12-31.
What was the specific justification for limiting competition on this delivery order, and how did it affect the final price?
The justification for limited competition is not provided in the data. However, limited competition typically leads to less aggressive pricing as vendors face reduced pressure to offer the lowest possible cost. This can result in higher prices for the government compared to fully competitive scenarios.
What are the long-term risks associated with a significant investment in a specific middleware product like IBM WebSphere, especially concerning future interoperability and vendor lock-in?
Long-term risks include vendor lock-in, where switching to alternative solutions becomes prohibitively expensive and complex. Interoperability challenges may arise as newer technologies emerge. Additionally, ongoing maintenance and licensing costs can escalate, impacting the total cost of ownership over time.
How effectively did the Centers for Medicare and Medicaid Services leverage this $46.7M investment to improve its IT infrastructure and service delivery?
The provided data does not offer insights into the effectiveness of the investment. To assess this, one would need to examine performance metrics, system uptime, user satisfaction, and the achievement of specific IT modernization goals tied to the WebSphere implementation.
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1700 SUMMIT LAKE DR, TALLAHASSEE, FL, 02
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $46,752,807
Exercised Options: $46,752,807
Current Obligation: $46,752,807
Parent Contract
Parent Award PIID: GS35F0216L
IDV Type: FSS
Timeline
Start Date: 2006-09-30
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2012-02-08
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