HHS Awards $212M for Desktop IT Services to National Government Services, Inc
Contract Overview
Contract Amount: $212,153,619 ($212.2M)
Contractor: National Government Services, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2012-04-01
End Date: 2017-03-31
Contract Duration: 1,825 days
Daily Burn Rate: $116.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: NEXT GENERATION DESKTOP IGF::OT::IGF FOR OTHER FUNCTIONS
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46250
State: Indiana Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $212.2 million to NATIONAL GOVERNMENT SERVICES, INC. for work described as: NEXT GENERATION DESKTOP IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. Significant contract value of $212M over 5 years. 2. National Government Services, Inc. is the sole awardee. 3. Potential risk associated with a single awardee for a large contract. 4. IT sector spending on computer systems design services.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The awarded amount of $212M over 5 years suggests a substantial investment in desktop IT services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, it was a delivery order, suggesting it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive bidding process.
Public Impact
Impacts IT infrastructure and support for Centers for Medicare and Medicaid Services (CMS) operations. Ensures continued availability of essential desktop computing services. Potential for improved or maintained service levels for end-users.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of specific performance metrics in provided data.
- Potential for vendor lock-in if not managed proactively.
Positive Signals
- Awarded under full and open competition.
- Long-term contract provides stability for service delivery.
- Significant investment in critical IT services.
Sector Analysis
This contract falls under the IT sector, specifically computer systems design services. The value of $212M is substantial for a 5-year IT services contract, indicating a significant need within CMS.
Small Business Impact
The data indicates the awardee is National Government Services, Inc., a large business. There is no explicit indication of small business participation in this specific award, which warrants further investigation.
Oversight & Accountability
Oversight would typically involve regular performance reviews, financial audits, and adherence to contract terms by CMS to ensure value for money and accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for scope creep.
- Reliance on a single awardee for critical services.
- Lack of specific performance data in the provided summary.
Tags
computer-systems-design-services, department-of-health-and-human-services, in, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $212.2 million to NATIONAL GOVERNMENT SERVICES, INC.. NEXT GENERATION DESKTOP IGF::OT::IGF FOR OTHER FUNCTIONS
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 $212.2 million.
What is the period of performance?
Start: 2012-04-01. End: 2017-03-31.
What specific IT services are included under this "Desktop IGF" contract, and how do they align with CMS's current and future needs?
The contract, "NEXT GENERATION DESKTOP IGF::OT::IGF FOR OTHER FUNCTIONS," likely encompasses a broad range of desktop IT support, including hardware/software maintenance, user support, network connectivity, and potentially cybersecurity measures. Its alignment with CMS needs would depend on detailed service level agreements and ongoing strategic IT planning within the agency to ensure it supports critical healthcare functions and data security.
Given the Cost Plus Fixed Fee structure, what mechanisms are in place to control costs and prevent overruns for this $212M contract?
Cost Plus Fixed Fee contracts require robust oversight. CMS would likely employ detailed cost tracking, regular audits of incurred costs, and strict adherence to the fixed fee component. Performance metrics tied to cost efficiency and regular reviews of the contractor's financial management are crucial to mitigate the risk of cost overruns and ensure value.
How effectively did the full and open competition process ensure the best possible value and technical solution for CMS's desktop IT needs?
While full and open competition theoretically maximizes value, its effectiveness depends on the clarity of the solicitation, the responsiveness of bidders, and the evaluation criteria used. A thorough review of the bidding process, including the number of bids received and the technical merits of the winning proposal relative to others, would be needed to assess if the best value was truly achieved for CMS.
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
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $212,153,619
Exercised Options: $212,153,619
Current Obligation: $212,153,619
Actual Outlays: $157,500
Subaward Activity
Number of Subawards: 183
Total Subaward Amount: $857,782,268
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSM500200600023I
IDV Type: IDC
Timeline
Start Date: 2012-04-01
Current End Date: 2017-03-31
Potential End Date: 2017-03-31 00:00:00
Last Modified: 2023-07-05
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