HHS awards $26.4M to IBM for administrative management consulting services over 5 years
Contract Overview
Contract Amount: $26,403,884 ($26.4M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2014-09-30
End Date: 2019-09-29
Contract Duration: 1,825 days
Daily Burn Rate: $14.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: IGF::OT::IGF
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $26.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: IGF::OT::IGF Key points: 1. IBM secured a significant contract for management consulting, indicating strong demand for their expertise. 2. The contract value is substantial, suggesting a complex or long-term engagement. 3. Full and open competition was utilized, implying a competitive bidding process. 4. The services fall under administrative management, a broad category with potential for efficiency gains.
Value Assessment
Rating: fair
The contract was awarded on a Time and Materials basis, which can lead to cost overruns if not closely managed. Benchmarking against similar administrative management consulting contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the Time and Materials pricing structure introduces risk for cost control.
Taxpayer Impact: Taxpayer funds are being used for management consulting services. The effectiveness and efficiency of these services will determine the ultimate value for taxpayers.
Public Impact
Impacts healthcare administration efficiency through consulting services. Potential for improved operational processes within CMS. IBM's role in government contracting highlights the private sector's involvement in public services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing structure
- Lack of specific performance metrics in provided data
Positive Signals
- Full and open competition utilized
- Long-term engagement potential
Sector Analysis
Administrative Management and General Management Consulting Services are crucial for optimizing government operations. Benchmarks vary widely based on the specific services and agency needs.
Small Business Impact
The data indicates this contract was awarded to a large corporation (IBM) and does not provide information on small business participation.
Oversight & Accountability
Oversight would focus on ensuring the Time and Materials contract remains within budget and delivers the intended consulting outcomes effectively.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of specific performance metrics.
- Broad service category may obscure specific value delivered.
- Limited insight into small business subcontracting.
Tags
administrative-management-and-general-ma, 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 $26.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL BUSINESS MACHINES 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 $26.4 million.
What is the period of performance?
Start: 2014-09-30. End: 2019-09-29.
What specific administrative management challenges did CMS aim to address with this contract?
The provided data does not specify the exact administrative management challenges CMS sought to address. Typically, such contracts aim to improve operational efficiency, streamline processes, enhance data management, or implement new administrative systems. Further details on the Statement of Work would clarify the specific objectives and expected outcomes.
What are the primary risks associated with a Time and Materials contract for consulting services?
The primary risk with Time and Materials contracts is the potential for cost escalation, as the final price is not fixed. Without strict oversight and clear task definitions, the contractor may incur more hours than anticipated, leading to higher costs for the government. This structure can also disincentivize contractor efficiency if not managed properly.
How can the effectiveness of these consulting services be measured to ensure value for taxpayers?
Effectiveness can be measured through clearly defined Key Performance Indicators (KPIs) tied to the contract's objectives. This includes tracking improvements in operational efficiency, cost savings achieved, successful implementation of recommendations, and stakeholder satisfaction. Regular performance reviews and independent audits are also crucial for ensuring accountability and value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 6710 ROCKLEDGE DRIVE, BETHESDA, MD, 20817
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,403,884
Exercised Options: $26,403,884
Current Obligation: $26,403,884
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $747,541
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F7107H
IDV Type: FSS
Timeline
Start Date: 2014-09-30
Current End Date: 2019-09-29
Potential End Date: 2019-09-29 00:00:00
Last Modified: 2021-12-06
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