HHS Awards $347.8M Computer Systems Design Contract to HEALTHAPT, LLC
Contract Overview
Contract Amount: $347,850,955 ($347.9M)
Contractor: Healthapt, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2015-04-30
End Date: 2025-04-29
Contract Duration: 3,652 days
Daily Burn Rate: $95.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF
Place of Performance
Location: ELKRIDGE, HOWARD County, MARYLAND, 21075
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $347.9 million to HEALTHAPT, LLC for work described as: IGF::OT::IGF Key points: 1. Contract awarded to HEALTHAPT, LLC for computer systems design services. 2. Significant value of $347.8 million over its potential duration. 3. Competition method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. 4. Contract type is 'COST PLUS FIXED FEE', indicating potential for cost overruns. 5. The contract spans a long duration, ending in 2025.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure can lead to higher costs compared to fixed-price contracts. Benchmarking against similar computer systems design services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting some initial limitations or specific requirements that narrowed the field. This method may not have yielded the most competitive pricing.
Taxpayer Impact: The cost-plus-fixed-fee nature and limited competition raise concerns about maximizing taxpayer value.
Public Impact
Impacts the Centers for Medicare and Medicaid Services (CMS) operations. Potential for long-term IT infrastructure development and support. Ensures continued provision of essential computer systems design services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration
- Limited competition method
Positive Signals
- Full and open competition was utilized
- Contract awarded by a major agency (HHS)
Sector Analysis
This contract falls within the Information Technology sector, specifically computer systems design services. Spending in this area is critical for government operations, but cost controls are essential.
Small Business Impact
The data indicates the prime contractor is HEALTHAPT, LLC and that small business participation (sb) is false. This suggests no specific set-aside for small businesses in this award.
Oversight & Accountability
Oversight is crucial for cost-plus contracts to ensure funds are used efficiently and effectively. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method warrants scrutiny to ensure fairness and value.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Cost Plus Fixed Fee contract type
- Limited competition method
- Long contract duration
- No small business participation noted
Tags
computer-systems-design-services, department-of-health-and-human-services, md, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $347.9 million to HEALTHAPT, LLC. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is HEALTHAPT, LLC.
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 $347.9 million.
What is the period of performance?
Start: 2015-04-30. End: 2025-04-29.
What specific computer systems design services are being procured under this contract, and how do they align with CMS's strategic IT goals?
The contract is for 'Computer Systems Design Services' (NAICS 541512). While the specific services aren't detailed here, they likely encompass the design, development, integration, and maintenance of complex IT systems supporting CMS's mission. Understanding the alignment with strategic goals would require reviewing the Statement of Work (SOW) and CMS's IT modernization roadmap.
How does the 'COST PLUS FIXED FEE' structure impact the government's ability to control costs and ensure value for money compared to other contract types?
Cost-plus-fixed-fee (CPFF) contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. While offering flexibility for uncertain scopes, CPFF contracts inherently carry a higher risk of cost overruns for the government compared to fixed-price contracts. Robust oversight and detailed cost monitoring are essential to mitigate this risk and ensure value.
What were the specific reasons for excluding other sources, and did this exclusion limit the potential for competitive pricing?
The contract states 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This implies that while the competition was intended to be broad, certain factors or requirements led to the exclusion of some potential bidders. The specific reasons for exclusion are not provided but could relate to unique capabilities, past performance, or specific technical requirements, potentially limiting the competitive landscape and price discovery.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6518 MEADOWRIDGE RD STE 100, ELKRIDGE, MD, 21075
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $348,282,370
Exercised Options: $347,850,955
Current Obligation: $347,850,955
Actual Outlays: $142,574,296
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-04-30
Current End Date: 2025-04-29
Potential End Date: 2025-04-29 00:00:00
Last Modified: 2024-09-12
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