HHS awards $191.7M for Quality Improvement and Evaluation System to General Dynamics IT

Contract Overview

Contract Amount: $191,715,849 ($191.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2009-08-17

End Date: 2019-02-16

Contract Duration: 3,470 days

Daily Burn Rate: $55.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: QUALITY IMPROVEMENT AND EVALUATION SYSTEM

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $191.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: QUALITY IMPROVEMENT AND EVALUATION SYSTEM Key points: 1. Contract awarded through a competitive process, suggesting potential for price discovery. 2. Long duration of the contract (over 9 years) may indicate a need for sustained services. 3. The contract type (Cost Plus Fixed Fee) can present cost control challenges. 4. Services provided are in Computer Systems Design, a critical area for federal IT infrastructure. 5. The awardee, General Dynamics Information Technology, is a large, established federal contractor. 6. The contract is a Delivery Order under a larger IDIQ, typical for IT services.

Value Assessment

Rating: fair

The total award amount of $191.7 million over nearly a decade for IT systems design services appears within a reasonable range for large-scale federal projects. However, without specific benchmarks for similar Quality Improvement and Evaluation Systems or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can sometimes lead to higher costs if not managed diligently, as the contractor is reimbursed for allowable costs plus a fixed fee. Benchmarking against other CPFF contracts for comparable IT services would be necessary for a more definitive evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a Delivery Order under a competitive process, indicating that multiple vendors likely had the opportunity to bid. The specific details of the competition, such as the number of bidders and the evaluation criteria, are not provided in the summary data. However, a competitive award generally suggests that the government sought to obtain the best value through a structured bidding process, which can lead to more favorable pricing and service offerings compared to non-competitive awards.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering price discovery and encouraging vendors to offer competitive terms.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and potentially healthcare providers and beneficiaries who rely on improved quality of care systems. Services delivered involve the design and development of IT systems crucial for quality improvement and evaluation within the healthcare sector. The geographic impact is national, supporting federal healthcare initiatives across the United States. Workforce implications include employment for IT professionals and subject matter experts involved in system design and implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may lead to cost overruns if not managed closely.
Long contract duration could lead to vendor lock-in or outdated technology if not actively managed.
Reliance on a single large contractor for a critical system could pose risks if performance falters.

Positive Signals

Awarded through a full and open competition, indicating a robust selection process.
General Dynamics Information Technology is an experienced federal contractor with a significant presence.
The contract supports a critical function for CMS, aiming to improve healthcare quality.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design services. The federal IT market is vast, with agencies consistently investing in systems to manage complex operations, improve efficiency, and enhance service delivery. Comparable spending benchmarks for large-scale IT system development and support contracts within federal health agencies often run into hundreds of millions of dollars over several years, reflecting the complexity and criticality of these systems.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major IT provider, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified in the contract's statement of work or through the prime contractor's own subcontracting plan. The focus is on a large prime contractor, suggesting limited direct impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the Centers for Medicare and Medicaid Services (CMS). The Cost Plus Fixed Fee structure necessitates close monitoring of costs and performance to ensure adherence to the contract terms and prevent overspending. Transparency is generally maintained through contract reporting mechanisms, and potential issues could be addressed by the agency's contracting office or potentially referred to an Inspector General if significant fraud, waste, or abuse is suspected.

Related Government Programs

Healthcare IT Modernization Programs
Federal Health Data Systems
CMS Quality Initiatives
IT Services for Federal Agencies
Computer Systems Design Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration may pose risks related to technology obsolescence or vendor lock-in.
Dependence on a single large contractor for a critical system.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $191.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. QUALITY IMPROVEMENT AND EVALUATION SYSTEM

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, 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 $191.7 million.

What is the period of performance?

Start: 2009-08-17. End: 2019-02-16.

What is the track record of General Dynamics Information Technology (GDIT) in delivering similar quality improvement and evaluation systems for federal health agencies?

General Dynamics Information Technology (GDIT) has a substantial track record in providing IT services to federal agencies, including the Department of Health and Human Services (HHS) and its sub-agencies like CMS. They have been involved in numerous large-scale IT projects, encompassing system development, integration, and maintenance. While specific details on their performance for 'Quality Improvement and Evaluation Systems' are not detailed here, GDIT's history suggests they possess the technical capabilities and experience to manage complex federal IT contracts. Past performance reviews and contract databases would offer more granular insights into their specific successes and challenges in delivering comparable systems, including adherence to schedules, budgets, and technical requirements.

How does the $191.7 million award compare to other federal spending on similar quality improvement systems?

The $191.7 million awarded to General Dynamics Information Technology for the Quality Improvement and Evaluation System over its nearly 10-year duration represents a significant investment. Federal spending on IT systems for healthcare quality improvement can vary widely depending on scope, complexity, and duration. Large-scale systems designed to manage vast amounts of healthcare data, track provider performance, and inform policy decisions often require substantial funding. Comparing this award requires looking at similar contracts within CMS or other health-focused agencies (like the VA or DoD) for systems with comparable functionalities, such as data analytics platforms, performance monitoring tools, or patient outcome tracking systems. Without specific comparable contract data, it's difficult to definitively state if this represents high or low spending, but it is indicative of a major, long-term federal IT undertaking.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for a system of this nature?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for a Quality Improvement and Evaluation System revolve around cost control and potential for scope creep. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to complete the work efficiently to maximize their profit margin on the fixed fee. However, it places a significant burden on the government to meticulously monitor and audit the contractor's costs to ensure they are reasonable and allowable. If the government's oversight is insufficient, or if the project encounters unforeseen complexities, costs can escalate beyond initial projections. Furthermore, the flexibility inherent in CPFF contracts can sometimes lead to scope creep, where additional features or requirements are added without adequate adjustments to the fee or schedule, potentially increasing the overall cost.

What is the expected impact of this system on healthcare quality and patient outcomes?

The intended impact of the Quality Improvement and Evaluation System is to enhance the quality of healthcare services delivered under Medicare and Medicaid. By providing robust tools for data collection, analysis, and reporting, the system is expected to enable CMS to better monitor healthcare provider performance, identify areas for improvement, and implement evidence-based interventions. This could lead to better patient outcomes through more effective care coordination, reduced medical errors, and improved adherence to best practices. The system's evaluation capabilities are crucial for assessing the effectiveness of various quality initiatives and ensuring that federal healthcare programs are achieving their intended goals of promoting health and well-being for beneficiaries.

How has federal spending on IT systems for healthcare quality measurement evolved over the contract's lifespan (2009-2019)?

Over the lifespan of this contract (2009-2019), federal spending on IT systems for healthcare quality measurement saw significant evolution, driven by legislative mandates and technological advancements. Early in this period, the focus was often on establishing foundational data collection and reporting mechanisms. As the Affordable Care Act (ACA) was implemented, there was a marked increase in spending on systems designed to support value-based purchasing, pay-for-performance initiatives, and comparative effectiveness research. Technological shifts, such as the rise of big data analytics, cloud computing, and interoperability standards, also influenced spending, encouraging investments in more sophisticated and integrated systems. This contract likely adapted to these trends, incorporating new functionalities to meet evolving quality measurement and evaluation needs throughout its duration.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $191,715,849

Exercised Options: $191,715,849

Current Obligation: $191,715,849

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSM500200700022I

IDV Type: IDC

Timeline