HHS Awards $19.2M for CMS Modernization Support to MITRE Corporation

Contract Overview

Contract Amount: $19,234,746 ($19.2M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2010-09-29

End Date: 2014-06-30

Contract Duration: 1,370 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: MODERNIZATION SUPPORT

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.2 million to THE MITRE CORPORATION for work described as: MODERNIZATION SUPPORT Key points: 1. The contract value of $19.2M for management consulting services is moderate. 2. MITRE Corporation, a federally funded research and development center (FFRDC), secured this contract. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The sector is primarily IT and management consulting, supporting healthcare operations.

Value Assessment

Rating: good

The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can be effective for complex projects where costs are uncertain. The total award value of $19.2M over approximately 4 years suggests a reasonable annual spend.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under full and open competition, this method typically ensures the government receives competitive pricing by allowing all responsible sources to submit offers. The use of a delivery order under a larger contract framework is common.

Taxpayer Impact: The competitive nature of the award is expected to yield fair market value for the services rendered, benefiting taxpayers.

Public Impact

Supports critical modernization efforts within the Centers for Medicare and Medicaid Services (CMS). Ensures continued operational support for vital healthcare programs. Leverages expertise from a well-established research and development organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts.
Reliance on a single FFRDC may limit alternative solutions.
Contract duration of over 3 years requires ongoing performance monitoring.

Positive Signals

Awarded through full and open competition.
MITRE's FFRDC status implies a focus on public interest.
Supports essential government healthcare functions.

Sector Analysis

This contract falls within the Other Management Consulting Services (NAICS 541618) sector, which is crucial for government agencies like CMS to improve operations and implement new technologies. Benchmarks for similar contracts vary widely based on scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the prime contractor, The MITRE Corporation, is a large organization. There is no direct indication of small business subcontracting in the provided data.

Oversight & Accountability

The use of a delivery order under a larger contract suggests that oversight mechanisms are likely in place through the parent contract. However, specific oversight details for this delivery order are not provided.

Related Government Programs

Other Management Consulting Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Contract awarded to an FFRDC.
Cost Plus Fixed Fee (CPFF) contract type.
No small business set-aside indicated.
Contract duration exceeds 3 years.
Specific modernization outcomes not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.2 million to THE MITRE CORPORATION. MODERNIZATION SUPPORT

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

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: 2010-09-29. End: 2014-06-30.

What specific modernization initiatives were supported by this contract, and what was the measurable impact on CMS operations?

The contract supported general modernization efforts for CMS. Without specific project details, it's difficult to quantify the exact impact. However, modernization in healthcare IT typically aims to improve data management, enhance user experience for beneficiaries and providers, and increase operational efficiency, ultimately contributing to better healthcare delivery and administration.

Given MITRE's FFRDC status, how was potential bias or conflict of interest managed during the procurement and execution of this contract?

FFRDCs like MITRE operate under specific government charters to ensure objectivity and avoid conflicts of interest. Their work is typically focused on the public interest, and they are managed by their sponsoring agency (in this case, likely HHS or a component thereof) to maintain impartiality. Procurement processes for FFRDCs often involve unique considerations to leverage their specialized capabilities while ensuring fair competition and appropriate oversight.

What was the rationale for using a Cost Plus Fixed Fee (CPFF) contract type for modernization support, and how did it align with achieving cost-effectiveness?

CPFF contracts are often used when the scope of work is not precisely defined, or when significant research and development is involved, making it difficult to estimate costs accurately upfront. While CPFF can incentivize innovation, it also carries a risk of cost overruns. The effectiveness in achieving cost-effectiveness depends heavily on robust government oversight, clear performance metrics, and effective negotiation of the fixed fee.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 7515 COLSHIRE DR, MC LEAN, VA, 22102

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,234,746

Exercised Options: $19,234,746

Current Obligation: $19,234,746

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TIRNO99D00005

IDV Type: IDC

Timeline