HHS awards $26.1M for IGF Front End Support to Palmetto GBA, LLC under full and open competition
Contract Overview
Contract Amount: $26,149,321 ($26.1M)
Contractor: Palmetto GBA, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2017-09-13
End Date: 2019-09-29
Contract Duration: 746 days
Daily Burn Rate: $35.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF FRONT END SUPPORT
Place of Performance
Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29202
Plain-Language Summary
Department of Health and Human Services obligated $26.1 million to PALMETTO GBA, LLC for work described as: IGF::OT::IGF FRONT END SUPPORT Key points: 1. Contract value of $26.1M for IT support services. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate given the contract type and duration. 4. Sector is IT services, specifically Other Computer Related Services.
Value Assessment
Rating: good
The contract value of $26.1M for a 2-year period appears reasonable for IT support services. Benchmarking against similar contracts for 'Other Computer Related Services' would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can lead to better price discovery and value for the government.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair market value for the services rendered.
Public Impact
Ensures continued operation of critical health IT systems. Supports the Centers for Medicare and Medicaid Services (CMS) in delivering healthcare services. Potential impact on beneficiaries through reliable system performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across federal agencies, supporting a wide range of digital infrastructure and operations.
Small Business Impact
The data indicates this contract was not set aside for small businesses and does not specify small business participation. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
Awarded as a delivery order under a larger contract vehicle. Oversight would be managed by CMS to ensure performance and adherence to contract terms.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Lack of specific system criticality information.
- Potential for quality degradation under firm fixed price.
- Limited insight into small business participation.
Tags
other-computer-related-services, department-of-health-and-human-services, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $26.1 million to PALMETTO GBA, LLC. IGF::OT::IGF FRONT END SUPPORT
Who is the contractor on this award?
The obligated recipient is PALMETTO GBA, 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 $26.1 million.
What is the period of performance?
Start: 2017-09-13. End: 2019-09-29.
What specific IT systems does 'IGF FRONT END SUPPORT' refer to, and what is their criticality to CMS operations?
The 'IGF FRONT END SUPPORT' likely refers to the user interface and front-end components of the Integrated General Fund (IGF) system, which is crucial for managing financial operations and reporting within CMS. Its criticality stems from ensuring accurate financial data, timely processing of payments, and compliance with federal financial regulations, directly impacting the agency's ability to manage its budget and disburse funds effectively.
Given the firm fixed price, what are the potential risks to service quality or scope creep?
With a firm fixed price, the primary risk is that the contractor may cut corners on service quality to maintain profitability if costs exceed expectations. Scope creep is also a risk; if the government requires additional services not defined in the original scope, it could lead to disputes or require a new contract, potentially at a higher price if not managed carefully through contract modifications.
How does the $26.1M award compare to industry benchmarks for similar IT support services over a two-year period?
Without specific details on the scope of services, comparing the $26.1M award is challenging. However, for comprehensive IT front-end support for a large federal agency over two years, this value appears within a reasonable range, assuming it covers a significant scope of work. Industry benchmarks often vary widely based on complexity, required expertise, and service level agreements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Blue Cross & Blue Shield of South Carolina (UEI: 055914089)
Address: 17 TECHNOLOGY CIR, COLUMBIA, SC, 29203
Business Categories: Category Business, Limited Liability Corporation, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,149,321
Exercised Options: $26,149,321
Current Obligation: $26,149,321
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS35F0462V
IDV Type: FSS
Timeline
Start Date: 2017-09-13
Current End Date: 2019-09-29
Potential End Date: 2020-03-29 00:00:00
Last Modified: 2020-06-25
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