HHS Awards $426M for HCQIS Phase II Infrastructure Support to General Dynamics IT
Contract Overview
Contract Amount: $426,462,565 ($426.5M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2009-06-04
End Date: 2015-12-14
Contract Duration: 2,384 days
Daily Burn Rate: $178.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: TAS::75 0119 000::TAS HCQIS PHASE II: INFRASTRUCTURE SUPPORT
Place of Performance
Location: WARRENTON, FAUQUIER County, VIRGINIA, 20187
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $426.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TAS::75 0119 000::TAS HCQIS PHASE II: INFRASTRUCTURE SUPPORT Key points: 1. Significant contract value of $426.5 million over its duration. 2. General Dynamics Information Technology, Inc. is the sole awardee. 3. The contract type is Cost Plus Award Fee, indicating performance-based incentives. 4. The sector is IT services, specifically 'Other Computer Related Services'.
Value Assessment
Rating: fair
The Cost Plus Award Fee structure allows for flexibility but requires careful monitoring to ensure value for money. Benchmarking against similar IT infrastructure support contracts is challenging without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may impact price discovery and potentially lead to higher costs compared to broader competition.
Taxpayer Impact: Taxpayer funds are being utilized for extensive IT infrastructure support, necessitating robust oversight to ensure efficient and effective use of resources.
Public Impact
Impacts the Centers for Medicare and Medicaid Services (CMS) operations. Supports critical healthcare information infrastructure. Potential for long-term IT system development and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may reduce cost savings.
- Cost Plus Award Fee requires diligent performance management.
- Contract duration is substantial (2009-2015).
Positive Signals
- Supports a vital government function (healthcare IT).
- Awarded to a known entity in the federal IT space.
Sector Analysis
This contract falls within the Information Technology sector, specifically IT services. Spending benchmarks for similar large-scale IT infrastructure support contracts can vary widely based on scope and complexity.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
Oversight is crucial for Cost Plus Award Fee contracts to ensure performance targets are met and costs are controlled. The duration of the contract suggests ongoing monitoring mechanisms were in place.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Limited competition
- Cost Plus Award Fee structure
- Long contract duration
- No small business set-aside indicated
Tags
other-computer-related-services, department-of-health-and-human-services, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $426.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TAS::75 0119 000::TAS HCQIS PHASE II: INFRASTRUCTURE SUPPORT
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, 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 $426.5 million.
What is the period of performance?
Start: 2009-06-04. End: 2015-12-14.
What was the specific justification for excluding other sources in the competition?
The justification for excluding other sources is not detailed in the provided data. Typically, such exclusions are based on factors like unique capabilities, urgent needs, or prior successful performance that makes rebidding impractical. A thorough review would be needed to assess if these criteria were met and if they truly limited competition unnecessarily.
How did the award fee structure influence General Dynamics IT's performance and cost management?
The Cost Plus Award Fee (CPA) structure incentivizes contractors to meet or exceed performance objectives by offering additional profit. While this can drive high performance, it also requires careful government oversight to ensure the award fees are justified by actual performance and that the contractor is not overly incentivized to increase costs to achieve higher award fees.
What was the overall effectiveness of this contract in supporting CMS's mission objectives?
The effectiveness of this contract in supporting CMS's mission objectives is not directly quantifiable from the provided data. However, the contract's substantial value and duration suggest it played a significant role in maintaining and developing critical healthcare IT infrastructure. Assessing effectiveness would require examining CMS performance metrics and system uptime during the contract period.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 6799 KENNEDY RD STE J, WARRENTON, VA, 20187
Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Woman Owned Business
Financial Breakdown
Contract Ceiling: $426,462,565
Exercised Options: $426,462,565
Current Obligation: $426,462,565
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2009-06-04
Current End Date: 2015-12-14
Potential End Date: 2020-04-02 00:00:00
Last Modified: 2023-04-17
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