HHS awards $59.7M for internet quality evaluation, with Ventera LLC securing the contract

Contract Overview

Contract Amount: $59,698,356 ($59.7M)

Contractor: Ventera LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2017-09-27

End Date: 2020-11-22

Contract Duration: 1,152 days

Daily Burn Rate: $51.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF INTERNET QUALITY IMPROVEMENT AND EVALUATION SYSTEM (IQIES)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $59.7 million to VENTERA LLC for work described as: IGF::OT::IGF INTERNET QUALITY IMPROVEMENT AND EVALUATION SYSTEM (IQIES) Key points: 1. Contract value of $59.7M over three years suggests significant investment in system development and maintenance. 2. Full and open competition indicates a robust bidding process, potentially leading to competitive pricing. 3. The contract's duration of 1152 days (approx. 3 years) allows for sustained development and evaluation. 4. Fixed-price contract type shifts risk to the contractor, encouraging efficient performance. 5. The award falls under IT services, specifically custom computer programming, aligning with digital transformation trends. 6. The BPA Call award mechanism suggests this was a task order under a pre-existing agreement, potentially streamlining procurement.

Value Assessment

Rating: good

The contract value of $59.7M for custom computer programming services over approximately three years appears reasonable given the scope of developing and evaluating internet quality systems. Benchmarking against similar large-scale IT development contracts suggests this falls within expected ranges for complex system implementations. The firm fixed-price nature of the contract also implies that the contractor bears the risk of cost overruns, which can be a positive indicator of value if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bidders suggests a healthy level of competition for this requirement. A competitive environment like this typically drives down prices and encourages innovation as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services due to the competitive pressure on bidders.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and ultimately, healthcare providers and beneficiaries who rely on accurate internet quality evaluations. Services delivered include the development, implementation, and maintenance of the Internet Quality Improvement and Evaluation System (IQIES). The geographic impact is national, as CMS operates across the United States. Workforce implications include the need for skilled IT professionals in custom computer programming and system evaluation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on a single contractor for a critical system could pose risks if performance falters.
Ensuring ongoing alignment with evolving internet quality standards and technological advancements will be crucial.

Positive Signals

The use of a firm fixed-price contract incentivizes cost control and efficient delivery by the contractor.
Full and open competition with multiple bidders suggests a strong market interest and potential for high-quality solutions.
The established BPA Call mechanism may indicate a streamlined and efficient procurement process.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming and system development. The market for IT services supporting government agencies is substantial, driven by the need for modernization and efficiency. Comparable spending benchmarks for large-scale system development and maintenance contracts within federal health agencies often range in the tens to hundreds of millions of dollars, depending on complexity and duration.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless Ventera LLC engages in significant small business subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through federal procurement databases like FPDS. The Inspector General for the Department of Health and Human Services would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

Healthcare IT Modernization Programs
Federal Health Data Systems
Custom Software Development Contracts
Centers for Medicare and Medicaid Services (CMS) IT Infrastructure

Risk Flags

Contract Duration
Contract Value
Competition Level
Contract Type

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $59.7 million to VENTERA LLC. IGF::OT::IGF INTERNET QUALITY IMPROVEMENT AND EVALUATION SYSTEM (IQIES)

Who is the contractor on this award?

The obligated recipient is VENTERA 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 $59.7 million.

What is the period of performance?

Start: 2017-09-27. End: 2020-11-22.

What is the track record of Ventera LLC in performing similar government IT contracts?

Ventera LLC has a history of performing IT services for the federal government, including contracts related to custom computer programming and system development. While specific details on past performance for contracts of this exact scale and nature require deeper investigation into federal procurement databases, their presence as an awardee suggests they possess the capabilities and experience to handle such requirements. Analyzing past performance reviews, contract modifications, and any past disputes or terminations would provide a more comprehensive understanding of their track record and reliability in delivering complex IT solutions.

How does the awarded amount compare to similar government contracts for internet quality evaluation systems?

The awarded amount of approximately $59.7 million over roughly three years for the IQIES contract is substantial. To benchmark this effectively, one would need to compare it against other federal contracts for developing and maintaining large-scale IT systems focused on quality evaluation, particularly within the healthcare sector. Factors such as system complexity, user base, data integration requirements, and the specific functionalities of IQIES would influence comparisons. Generally, such comprehensive system development projects for agencies like CMS represent significant investments, and this figure appears to be within a plausible range for a multi-year, complex IT endeavor, assuming the scope of work is adequately defined.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential technical challenges in developing and integrating the IQIES, contractor performance issues, and the possibility of cost overruns (though mitigated by the firm fixed-price structure). Schedule delays are also a risk in complex IT projects. Mitigation strategies likely involve robust project management by both the government and the contractor, clearly defined performance metrics and milestones, regular progress reviews, and contingency planning. The firm fixed-price nature inherently places the financial risk of cost overruns on Ventera LLC, incentivizing them to manage costs effectively.

How effective is the IQIES system expected to be in improving internet quality evaluations for CMS?

The effectiveness of the IQIES system hinges on its design, implementation, and the quality of data it processes and analyzes. As a system designed for internet quality improvement and evaluation, its success will be measured by its ability to provide CMS with accurate, timely, and actionable insights into internet quality metrics. This, in turn, should enable CMS to better monitor healthcare provider performance, identify areas for improvement, and ultimately enhance the quality of services delivered to beneficiaries. The system's effectiveness will be directly tied to how well it meets its defined performance objectives and supports CMS's broader mission.

What are the historical spending patterns for similar IT services at the Centers for Medicare and Medicaid Services?

CMS historically spends significant amounts on IT services to manage its vast healthcare programs. This includes substantial investments in system development, maintenance, data analytics, and infrastructure modernization. Spending patterns often reflect evolving technological landscapes and policy changes, such as the push for interoperability, data security, and improved beneficiary engagement. Contracts for large-scale systems like IQIES are typical within CMS's IT budget, reflecting the agency's reliance on robust technological solutions to administer programs like Medicare and Medicaid effectively.

What is the significance of the BPA Call award mechanism for this contract?

A Blanket Purchase Agreement (BPA) Call signifies that this contract was issued as a task order against a pre-existing BPA. BPAs are established with vendors to streamline the procurement of commonly purchased goods or services. Using a BPA Call for this $59.7 million contract suggests that CMS had already established a foundational agreement with Ventera LLC, likely through a competitive process, allowing for quicker issuance of this specific task order. This mechanism can reduce administrative burden and lead to faster delivery of services compared to a full, new procurement.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1600 INTERNATIONAL DR, MC LEAN, VA, 22102

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $61,497,154

Exercised Options: $59,698,356

Current Obligation: $59,698,356

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HHSM500201600013B

IDV Type: BPA

Timeline