HHS Spends $31.8M on Health Insurance Oversight System Contract with CGI Federal

Contract Overview

Contract Amount: $31,847,127 ($31.8M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2013-04-15

End Date: 2015-06-14

Contract Duration: 790 days

Daily Burn Rate: $40.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF HEALTH INSURANCE OVERSIGHT SYSTEM (HIOS)

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $31.8 million to CGI FEDERAL INC. for work described as: IGF::OT::IGF HEALTH INSURANCE OVERSIGHT SYSTEM (HIOS) Key points: 1. Contract awarded to CGI Federal Inc. for IT services. 2. The contract value is $31.8 million over its period of performance. 3. Competition was full and open, suggesting potential for competitive pricing. 4. The sector is IT, specifically 'Other Computer Related Services'.

Value Assessment

Rating: fair

The contract was awarded using a Time and Materials pricing structure, which can lead to cost overruns if not managed carefully. The total award value of $31.8M for a 2-year period needs further analysis against similar IT service contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally allows for a broader range of bidders and can lead to better price discovery. The specific impact on pricing for this contract requires a deeper dive into the bidding process.

Taxpayer Impact: The $31.8M expenditure represents taxpayer funds allocated to maintaining critical health insurance oversight systems. Effective management of this contract is crucial to ensure value for money.

Public Impact

Ensures the functionality of the Health Insurance Oversight System (HIOS). Supports the Centers for Medicare and Medicaid Services (CMS) operations. Impacts the administration and regulation of health insurance in the US.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Spending benchmarks for similar IT services contracts with federal agencies can vary widely based on scope and complexity.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses had an opportunity to participate in this contract.

Oversight & Accountability

Oversight of this contract would typically be managed by the Centers for Medicare and Medicaid Services (CMS). Accountability for performance and cost would rest with the contracting officers and program managers.

Related Government Programs

Risk Flags

Tags

other-computer-related-services, department-of-health-and-human-services, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $31.8 million to CGI FEDERAL INC.. IGF::OT::IGF HEALTH INSURANCE OVERSIGHT SYSTEM (HIOS)

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL 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 $31.8 million.

What is the period of performance?

Start: 2013-04-15. End: 2015-06-14.

What was the competitive landscape during the bidding process for this contract?

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. While this suggests a broad competitive field, the specific number of bids received and the evaluation criteria used would provide a clearer picture of the competitive intensity and its potential impact on the final price.

What are the primary risks associated with the Time and Materials pricing structure for this contract?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours and materials used. Without robust oversight and clear task definitions, contractors may not have a strong incentive to control costs, leading to expenditures exceeding initial estimates.

How effectively does this contract support the long-term goals of the Health Insurance Oversight System?

The effectiveness of this contract in supporting long-term goals depends on the specific deliverables and the contractor's performance. While the contract ensures the system's operation, the T&M structure and a 2-year duration might not be ideal for significant system modernization or strategic development, potentially requiring future contracts for major enhancements.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: CGI Inc (UEI: 248513116)

Address: 12601 FAIR LAKES CIRCLE, FAIRFAX, VA, 22033

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $31,847,127

Exercised Options: $31,847,127

Current Obligation: $31,847,127

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $4,085,175

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F4797H

IDV Type: FSS

Timeline

Start Date: 2013-04-15

Current End Date: 2015-06-14

Potential End Date: 2015-06-14 00:00:00

Last Modified: 2020-06-16

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