HHS Awards $71.6M for Next Generation Desktop Services to National Government Services
Contract Overview
Contract Amount: $71,652,249 ($71.7M)
Contractor: National Government Services, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2009-04-01
End Date: 2012-03-31
Contract Duration: 1,095 days
Daily Burn Rate: $65.4K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: NEXT GENERATION DESKTOP
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46250
State: Indiana Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $71.7 million to NATIONAL GOVERNMENT SERVICES, INC. for work described as: NEXT GENERATION DESKTOP Key points: 1. The contract value is $71.6 million over 3 years. 2. This was a non-competitive delivery order, raising questions about price discovery. 3. The sector is IT services, specifically computer systems design. 4. The award was made to National Government Services, Inc.
Value Assessment
Rating: questionable
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed tightly. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to similar IT service contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was a non-competitive delivery order, meaning there was no open competition. This limits price discovery and potentially leads to higher costs for taxpayers as the government did not explore alternative vendors or pricing structures.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these desktop services, impacting taxpayer funds.
Public Impact
Citizens rely on the Centers for Medicare and Medicaid Services (CMS) for essential healthcare services, and the underlying IT infrastructure is critical for their operations. The effectiveness of this desktop service contract directly impacts the efficiency and reliability of CMS's ability to serve the public. Transparency in government IT spending is crucial for public trust, especially when contracts are awarded non-competitively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award
- Cost Plus Award Fee contract type
- Lack of small business participation
Positive Signals
- Awarded to a known entity
- Specific IT service requirement
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Benchmarks for similar contracts are difficult to ascertain due to the non-competitive nature of this award.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests an opportunity was missed to engage small businesses in providing these critical IT services.
Oversight & Accountability
The non-competitive nature of this delivery order warrants scrutiny. Oversight should focus on ensuring the justification for sole-sourcing was robust and that costs are reasonable and well-documented.
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 overpayment due to non-competitive award
- Lack of transparency in pricing
- Limited opportunity for small business engagement
- Risk of vendor lock-in
- Cost overruns due to Cost Plus Award Fee structure
Tags
computer-systems-design-services, department-of-health-and-human-services, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $71.7 million to NATIONAL GOVERNMENT SERVICES, INC.. NEXT GENERATION DESKTOP
Who is the contractor on this award?
The obligated recipient is NATIONAL GOVERNMENT SERVICES, 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 $71.7 million.
What is the period of performance?
Start: 2009-04-01. End: 2012-03-31.
What was the specific justification for awarding this contract non-competitively?
The provided data does not specify the justification for the non-competitive award. Typically, sole-source contracts are justified by factors such as urgent need, unique capabilities of the vendor, or lack of adequate competition. Further investigation into the contract file would be required to determine the precise rationale.
How can the government ensure cost-effectiveness in Cost Plus Award Fee contracts awarded non-competitively?
To ensure cost-effectiveness, robust oversight is essential. This includes detailed monitoring of costs, clear performance metrics tied to award fees, and regular audits. The government should also conduct market research to establish independent cost estimates and benchmarks, even for sole-source awards.
What is the potential impact on CMS operations if these desktop services are not effectively managed?
Ineffective management of these desktop services could lead to significant disruptions in CMS operations. This could manifest as system downtime, data security breaches, or reduced employee productivity, ultimately hindering CMS's ability to process claims, manage healthcare programs, and serve beneficiaries efficiently.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NON-COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Elevance Health, Inc.
Address: 8115 KNUE RD, INDIANAPOLIS, IN, 46250
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $71,652,249
Exercised Options: $71,652,249
Current Obligation: $71,652,249
Actual Outlays: $-31,444
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSM500200600023I
IDV Type: IDC
Timeline
Start Date: 2009-04-01
Current End Date: 2012-03-31
Potential End Date: 2012-05-31 00:00:00
Last Modified: 2022-04-02
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