HHS Awards $46.8M for ADP Systems Development Services to Telligen, Inc
Contract Overview
Contract Amount: $46,770,066 ($46.8M)
Contractor: Telligen, Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2007-05-18
End Date: 2009-06-30
Contract Duration: 774 days
Daily Burn Rate: $60.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: ADP SYSTEMS DEVELOPMENT SERVICES
Place of Performance
Location: WEST DES MOINES, POLK County, IOWA, 50266
State: Iowa Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $46.8 million to TELLIGEN, INC for work described as: ADP SYSTEMS DEVELOPMENT SERVICES Key points: 1. Contract awarded to Telligen, Inc. for ADP Systems Development Services. 2. Total contract value is $46,770,066.03. 3. The contract was not available for competition. 4. This falls under Administration of Public Health Programs within HHS. 5. The contract type is Cost Plus Fixed Fee.
Value Assessment
Rating: fair
The contract value of $46.8M over two years for ADP systems development is substantial. Without comparable contract data, it's difficult to definitively assess if the pricing is competitive. The Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited competition approach. This limits price discovery and potentially leads to higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if multiple vendors had bid on the contract.
Public Impact
Impacts the administration of public health programs within HHS. Affects the development and maintenance of critical ADP systems. Potential for increased costs due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost Plus Fixed Fee contract type
- Lack of detailed performance metrics in provided data
Positive Signals
- Definitive contract awarded
- Long-term engagement (2007-2009)
Sector Analysis
This contract falls within the Information Technology sector, specifically for the development of administrative and data processing systems. Spending benchmarks for such services vary widely based on complexity and scope, but $46.8M over two years suggests a significant project.
Small Business Impact
The provided data does not indicate any specific set-asides or participation goals for small businesses in this contract.
Oversight & Accountability
Oversight would typically be managed by the Centers for Medicare and Medicaid Services (CMS) to ensure contract performance and adherence to terms. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and deliverables.
Related Government Programs
- Administration of Public Health Programs
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Limited competition may lead to higher costs.
- Cost Plus Fixed Fee structure carries inherent risk of cost overruns.
- Lack of detailed performance metrics in the provided data.
- No indication of small business participation.
Tags
administration-of-public-health-programs, department-of-health-and-human-services, ia, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $46.8 million to TELLIGEN, INC. ADP SYSTEMS DEVELOPMENT SERVICES
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 $46.8 million.
What is the period of performance?
Start: 2007-05-18. End: 2009-06-30.
What specific ADP systems were developed or enhanced under this contract, and what was their impact on public health program efficiency?
The contract was for ADP Systems Development Services, crucial for the administration of public health programs. While the exact systems are not detailed, such services typically involve creating or improving software for data management, processing, and reporting. The impact on efficiency would depend on the successful implementation and adoption of these systems, aiming to streamline operations, improve data accuracy, and enhance program delivery.
Given the limited competition, how was the fixed fee determined to ensure a fair price for the government?
In a limited competition scenario, the government typically relies on historical pricing data, independent cost estimates, and negotiation strategies to determine a fair and reasonable fixed fee. Agencies may also use techniques like should-cost analysis. However, without full and open competition, the potential for a less optimal price remains a risk that requires diligent oversight and justification.
What mechanisms were in place to manage cost overruns inherent in a Cost Plus Fixed Fee contract for a project of this magnitude?
Cost Plus Fixed Fee contracts require robust government oversight to manage potential cost overruns. This includes detailed tracking of direct and indirect costs, regular audits, and performance reviews. The fixed fee component incentivizes the contractor to control costs to maximize profit. However, the government must actively monitor expenditures against the estimated cost to ensure the total price remains within acceptable limits.
Industry Classification
NAICS: Public Administration › Administration of Human Resource Programs › Administration of Public Health Programs
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6000 WESTOWN PKWY STE 350E, WEST DES MOINES, IA, 50266
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $46,770,066
Exercised Options: $46,770,066
Current Obligation: $46,770,066
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2007-05-18
Current End Date: 2009-06-30
Potential End Date: 2009-06-30 00:00:00
Last Modified: 2022-08-31
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