HHS awards $27.8M for data administration support to OptumServe, highlighting IT infrastructure needs

Contract Overview

Contract Amount: $27,820,745 ($27.8M)

Contractor: Optumserve Technology Services, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-10-27

End Date: 2012-05-31

Contract Duration: 1,312 days

Daily Burn Rate: $21.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: DATA AND DATABASE ADMINISTRATION SUPPORT

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $27.8 million to OPTUMSERVE TECHNOLOGY SERVICES, INC. for work described as: DATA AND DATABASE ADMINISTRATION SUPPORT Key points: 1. Contract value of $27.8M over 4 years suggests significant investment in IT support. 2. The competitive nature of this award indicates potential for price discovery and value. 3. Performance period of over 3 years allows for sustained support and potential for contractor learning. 4. The contract's focus on data administration aligns with critical government functions. 5. The geographic location in Maryland may indicate a concentration of federal IT operations. 6. The fixed-fee pricing structure provides cost certainty for the government.

Value Assessment

Rating: good

The contract value of $27.8 million for data administration support over approximately 3.5 years appears reasonable given the scope of IT services. Benchmarking against similar contracts for IT infrastructure management and data services would provide a more precise value assessment. The fixed-fee pricing structure offers predictability, but the overall value is contingent on the quality and efficiency of the services delivered by OptumServe Technology Services, Inc.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 4 bidders suggests a healthy level of competition for this type of IT support service. This competitive environment is generally favorable for achieving competitive pricing and ensuring that the government receives a good value for its investment.

Taxpayer Impact: A competitive award means taxpayers benefit from potentially lower prices due to vendor rivalry and a wider selection of qualified providers.

Public Impact

Beneficiaries include federal agencies relying on robust data management for operations. Services delivered encompass critical IT infrastructure and data administration functions. Geographic impact is primarily within Maryland, a hub for federal IT activities. Workforce implications include potential job creation within the IT sector, both directly and indirectly.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single contractor for critical data infrastructure could pose a risk if performance falters.

Positive Signals

Competitive award process suggests a robust selection of capable vendors.
Fixed-fee structure provides cost control and predictability for the government.
Longer performance period allows for stability and continuity of essential IT services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on data administration and computer facilities management. The market for these services is substantial, driven by the increasing digitization of government operations and the need for secure, efficient data handling. Comparable spending benchmarks in this area often relate to IT infrastructure outsourcing, cloud services, and specialized data management solutions, with significant government investment across various agencies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless OptumServe actively engages small businesses as subcontractors. Further analysis of subcontracting plans would be needed to fully assess the impact.

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 contract's performance standards and deliverables. Transparency is generally facilitated through contract award databases and reporting requirements, though specific operational oversight details are not provided.

Related Government Programs

IT Infrastructure Support Services
Data Management Solutions
Computer Facilities Management
Information Technology Services

Risk Flags

Performance Risk
Cost Management Risk
Data Security Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $27.8 million to OPTUMSERVE TECHNOLOGY SERVICES, INC.. DATA AND DATABASE ADMINISTRATION SUPPORT

Who is the contractor on this award?

The obligated recipient is OPTUMSERVE TECHNOLOGY 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 $27.8 million.

What is the period of performance?

Start: 2008-10-27. End: 2012-05-31.

What is the track record of OptumServe Technology Services, Inc. with federal contracts, particularly in data administration?

OptumServe Technology Services, Inc. has a significant history of federal contracting, often supporting large-scale IT and healthcare-related programs. While specific details on their performance for this particular data administration contract (awarded in 2008 and ending in 2012) are not readily available in this summary, their broader federal portfolio suggests experience with complex IT environments. Analyzing past performance reviews, contract modifications, and any reported disputes or awards associated with their previous federal engagements would provide a more comprehensive understanding of their track record. Given the duration and nature of this contract, it implies a level of trust and capability demonstrated to the awarding agency at the time.

How does the $27.8 million contract value compare to similar data administration support contracts awarded by HHS or other agencies?

The $27.8 million contract value over approximately 3.5 years (from late 2008 to mid-2012) for data administration support is within a moderate range for federal IT services. To provide a precise comparison, one would need to benchmark against contracts with similar scopes (e.g., database management, IT infrastructure support, facilities management) awarded around the same period by agencies like HHS, or other large federal entities. Factors such as the specific services required, the complexity of the data environment, security requirements, and the geographic location can significantly influence pricing. Without access to a detailed database of comparable contracts, it's challenging to definitively state if this represents a premium or a discount, but it appears to be a substantial investment reflecting the critical nature of data administration.

What are the primary risks associated with this type of IT support contract, and how might they have been mitigated?

Key risks for this data administration support contract include potential performance failures (e.g., system downtime, data breaches, inefficient data processing), cost overruns if the fixed-fee structure is misaligned with actual effort, and vendor lock-in. Mitigation strategies likely employed by CMS would have included clearly defined performance metrics and service level agreements (SLAs), regular performance reviews, robust security protocols, and contingency planning for service disruptions. The competitive bidding process itself helps mitigate risks by selecting a vendor deemed capable and offering a fair price. Furthermore, the government's ability to monitor performance and enforce contract terms serves as a crucial oversight mechanism.

How effective was this contract in ensuring the continuity and integrity of critical data for the Centers for Medicare and Medicaid Services?

Assessing the effectiveness of this specific contract requires access to performance metrics, user feedback, and audit reports from the period of 2008-2012. However, the fact that the contract was awarded competitively and fulfilled its term suggests a baseline level of effectiveness. CMS relies heavily on accurate and accessible data for its operations, including program management, policy development, and financial oversight. The continuity and integrity of this data are paramount. Effective data administration support ensures systems are operational, data is secure, and processing is timely, all of which are critical for CMS's mission. Without specific performance data, we infer effectiveness from the contract's lifecycle and the agency's continued reliance on such support.

What were the historical spending patterns for data administration support at CMS prior to and during this contract's period?

Understanding historical spending patterns for data administration support at CMS prior to and during this contract (2008-2012) would provide valuable context. This contract, valued at $27.8 million, represents a significant investment. Analyzing prior contracts for similar services would reveal trends in spending, vendor choices, and contract types (e.g., fixed-price vs. cost-plus). It would also help determine if this award represented an increase or decrease in spending for these services. Such analysis is crucial for identifying potential efficiencies, understanding the evolution of IT needs, and forecasting future budgetary requirements for data administration at CMS.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Optumserve Technology Services Inc.

Address: 10025 GOVERNOR WARFIELD PKWY STE 401, COLUMBIA, MD, 21044

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $32,834,280

Exercised Options: $27,820,745

Current Obligation: $27,820,745

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSM500200700011I

IDV Type: IDC

Timeline