HHS Awards $56M for Computer Systems Design Services to CGI Federal Inc
Contract Overview
Contract Amount: $56,149,417 ($56.1M)
Contractor: CGI Federal Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2017-09-29
End Date: 2023-07-18
Contract Duration: 2,118 days
Daily Burn Rate: $26.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $56.1 million to CGI FEDERAL INC. for work described as: IGF::OT::IGF Key points: 1. Significant contract value of $56.15 million over its duration. 2. CGI Federal Inc. is the sole awardee, raising questions about competition. 3. The contract spans over 5 years, indicating a long-term need. 4. Services fall under Computer Systems Design, a critical IT sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar contracts for Computer Systems Design Services is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the award was a delivery order, and the specific details of the competition for this order are not provided.
Taxpayer Impact: The use of taxpayer funds for IT services is standard, but the efficiency and cost-effectiveness of this specific award require further scrutiny due to the contract type.
Public Impact
Impacts beneficiaries of Medicare and Medicaid services through IT infrastructure support. Supports the operational efficiency of the Centers for Medicare and Medicaid Services. Ensures continued availability of essential healthcare program IT systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration
- Lack of detailed cost breakdown for benchmarking
Positive Signals
- Awarded under full and open competition
- Supports critical healthcare IT infrastructure
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is substantial across federal agencies, supporting essential digital infrastructure and services.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The awardee, CGI Federal Inc., is a large corporation, suggesting limited direct benefit to small businesses from this specific contract.
Oversight & Accountability
Oversight would typically involve regular performance reviews and financial audits by HHS to ensure CGI Federal Inc. meets contract requirements and manages costs effectively. The duration and value warrant consistent monitoring.
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.
- Long contract duration may reduce flexibility for adopting newer technologies.
- Lack of transparency on specific competition details for the delivery order.
- Limited direct benefit to small businesses.
Tags
computer-systems-design-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 $56.1 million to CGI FEDERAL INC.. IGF::OT::IGF
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 $56.1 million.
What is the period of performance?
Start: 2017-09-29. End: 2023-07-18.
What specific IT systems and services are covered under this contract, and how do they directly benefit Medicare and Medicaid beneficiaries?
This contract likely supports the operational IT infrastructure and systems that underpin the Medicare and Medicaid programs. This could include data management, system maintenance, software development, and IT support services crucial for processing claims, managing beneficiary data, and facilitating program operations. The direct benefit to beneficiaries is the reliable and efficient functioning of these essential healthcare services.
Given the Cost Plus Fixed Fee structure, what mechanisms are in place to control costs and prevent potential overruns?
Effective oversight is critical for Cost Plus Fixed Fee contracts. This includes rigorous monitoring of contractor expenditures, regular performance reviews against defined milestones, and clear communication channels to address any deviations promptly. The agency should ensure that the fixed fee is justified and that the contractor demonstrates efficient cost management throughout the contract's lifecycle.
How does the agency ensure the long-term effectiveness and adaptability of the IT systems designed and maintained under this contract?
Ensuring long-term effectiveness involves setting clear performance metrics, requiring regular system updates and security patches, and incorporating flexibility for future technological advancements. The agency should conduct periodic reviews to assess system performance, user satisfaction, and alignment with evolving healthcare needs and regulatory requirements, potentially through contract modifications or future solicitations.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: NIHJT2010001
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: CGI Inc
Address: 12601 FAIR LAKES CIR, FAIRFAX, VA, 22033
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $56,149,417
Exercised Options: $56,149,417
Current Obligation: $56,149,417
Actual Outlays: $20,228,240
Subaward Activity
Number of Subawards: 54
Total Subaward Amount: $5,820,946
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200011W
IDV Type: GWAC
Timeline
Start Date: 2017-09-29
Current End Date: 2023-07-18
Potential End Date: 2023-07-18 00:00:00
Last Modified: 2023-09-18
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