HHS Awards $250M for Advanced Provider Screening IT Services to TISTA Science and Technology Corporation
Contract Overview
Contract Amount: $250,003,220 ($250.0M)
Contractor: Tista Science and Technology Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2016-09-29
End Date: 2024-09-28
Contract Duration: 2,921 days
Daily Burn Rate: $85.6K/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 PROCUREMENT FOR ADVANCED PROVIDER SCREENING (APS)
Place of Performance
Location: POTOMAC, MONTGOMERY County, MARYLAND, 20854
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $250.0 million to TISTA SCIENCE AND TECHNOLOGY CORPORATION for work described as: IGF::OT::IGF PROCUREMENT FOR ADVANCED PROVIDER SCREENING (APS) Key points: 1. Significant contract value of $250M over 8 years. 2. TISTA Science and Technology Corporation is the sole awardee. 3. Potential risks associated with sole-source awards and long durations. 4. IT services sector, specifically computer systems design.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 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
This was a limited competition after exclusion of sources, indicating a non-full and open process. This approach may limit price discovery and potentially lead to higher costs compared to a broader competition.
Taxpayer Impact: The limited competition raises concerns about maximizing taxpayer value. The fixed fee component aims to control profit, but the cost-plus nature requires diligent oversight.
Public Impact
Impacts healthcare providers through screening processes. Enhances the integrity of Medicare and Medicaid programs. Long-term contract may affect market innovation in provider screening technology.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Limited competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Focus on critical healthcare program integrity
- Established awardee with significant contract value
Sector Analysis
This contract falls within the IT services sector, specifically Computer Systems Design Services. Spending in this area is substantial across federal agencies, supporting critical infrastructure and program operations.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). There is no specific analysis of small business participation or subcontracting opportunities mentioned.
Oversight & Accountability
The long duration and cost-plus fixed fee nature necessitate robust oversight from CMS to ensure cost control and effective performance. Monitoring expenditures and deliverables will be crucial.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Fixed Fee structure.
- Limited competition may result in suboptimal pricing.
- Long contract duration increases risk of vendor lock-in and technological obsolescence.
- Lack of small business participation.
Tags
computer-systems-design-services, department-of-health-and-human-services, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $250.0 million to TISTA SCIENCE AND TECHNOLOGY CORPORATION. IGF::OT::IGF PROCUREMENT FOR ADVANCED PROVIDER SCREENING (APS)
Who is the contractor on this award?
The obligated recipient is TISTA SCIENCE AND TECHNOLOGY 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 $250.0 million.
What is the period of performance?
Start: 2016-09-29. End: 2024-09-28.
What specific factors led to the exclusion of other sources in this limited competition?
The exclusion of sources suggests a specific need or capability that TISTA Science and Technology Corporation uniquely possessed, or a justification based on urgency or prior performance. Without further documentation, the precise rationale remains unclear, potentially impacting the perceived fairness of the procurement process and the government's ability to secure the best possible price.
How will CMS ensure cost efficiency and prevent potential overruns with a Cost Plus Fixed Fee contract over an 8-year period?
CMS will likely employ rigorous monitoring of TISTA's actual costs, regular audits, and performance reviews. Establishing clear milestones and performance metrics tied to the fixed fee will incentivize efficiency. Proactive contract management and clear communication channels are essential to mitigate risks associated with cost-plus arrangements over extended periods.
What is the expected impact of this APS system on the efficiency and accuracy of provider screening within Medicare and Medicaid?
The Advanced Provider Screening system is expected to significantly enhance the efficiency and accuracy of identifying and vetting healthcare providers enrolling in Medicare and Medicaid. This aims to reduce fraud, waste, and abuse, ultimately protecting taxpayer funds and ensuring beneficiaries receive care from legitimate and qualified providers. The long-term contract suggests a strategic investment in program integrity.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: NIHJT2010002
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1201 SEVEN LOCKS RD, STE 350, ROCKVILLE, MD, 20854
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $252,001,761
Exercised Options: $250,003,220
Current Obligation: $250,003,220
Actual Outlays: $116,337,225
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200100W
IDV Type: GWAC
Timeline
Start Date: 2016-09-29
Current End Date: 2024-09-28
Potential End Date: 2024-09-28 00:00:00
Last Modified: 2025-08-27
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