HHS Awards $196.6M for IT Infrastructure to Companion Data Services LLC
Contract Overview
Contract Amount: $196,601,121 ($196.6M)
Contractor: Companion Data Services LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2013-04-18
End Date: 2018-06-18
Contract Duration: 1,887 days
Daily Burn Rate: $104.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF IT AND TELECOM - OTHER
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $196.6 million to COMPANION DATA SERVICES LLC for work described as: IGF::CT::IGF IT AND TELECOM - OTHER Key points: 1. Significant contract value of $196.6 million over 5 years. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract falls within the IT and Telecom sector, specifically computing infrastructure and hosting. 4. Fixed-price contract type may offer cost certainty but could limit flexibility.
Value Assessment
Rating: good
The contract value of $196.6 million for 5 years of IT infrastructure services appears reasonable given the scope. Benchmarking against similar large-scale IT service contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. This method allows multiple vendors to bid, potentially driving down costs and ensuring fair market pricing.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for value for money in essential IT services for Medicare and Medicaid.
Public Impact
Ensures continued operation of critical healthcare IT systems for millions of Americans. Supports the Centers for Medicare and Medicaid Services (CMS) in delivering healthcare services. Potential for innovation and improved service delivery through competitive IT solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 5 years may not keep pace with rapid IT advancements.
- Fixed-price contract could lead to scope creep issues if not managed tightly.
- Reliance on a single vendor for core infrastructure poses a risk.
Positive Signals
- Full and open competition likely secured competitive pricing.
- Contract supports vital healthcare infrastructure.
- Firm fixed price provides budget predictability.
Sector Analysis
This contract is within the IT and Telecommunications sector, specifically focusing on computing infrastructure, data processing, and web hosting. Spending in this area is substantial across government agencies to support digital services and operations.
Small Business Impact
The data does not indicate specific set-asides for small businesses. Further analysis would be needed to determine the extent of small business participation in this contract's performance.
Oversight & Accountability
The contract was awarded by the Centers for Medicare and Medicaid Services (CMS), a major agency within HHS. Oversight would typically involve contract management teams ensuring performance and adherence to terms.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for technology obsolescence over the 5-year term.
- Risk of vendor lock-in and difficulty switching providers.
- Scope creep could increase costs beyond the fixed price.
- Dependence on a single vendor for critical infrastructure.
Tags
computing-infrastructure-providers-data-, department-of-health-and-human-services, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $196.6 million to COMPANION DATA SERVICES LLC. IGF::CT::IGF IT AND TELECOM - OTHER
Who is the contractor on this award?
The obligated recipient is COMPANION DATA SERVICES 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 $196.6 million.
What is the period of performance?
Start: 2013-04-18. End: 2018-06-18.
What was the competitive landscape like for this full and open solicitation, and how did it influence the final price?
The full and open competition suggests multiple bidders vied for this contract. This competitive pressure is expected to drive the price towards market rates, ensuring the government receives value. The number of bids received and the range of proposed prices would offer further insight into the effectiveness of the price discovery.
What are the primary risks associated with a 5-year fixed-price contract for IT infrastructure, and how are they mitigated?
Risks include potential for outdated technology by contract end, scope creep leading to cost overruns, and vendor lock-in. Mitigation strategies involve clear performance metrics, change control processes, and regular performance reviews to ensure the vendor meets evolving needs within the fixed price.
How effectively does this contract support the ongoing mission of CMS in delivering healthcare services?
This contract is crucial for CMS's mission, providing the underlying IT infrastructure necessary for managing Medicare and Medicaid programs. Reliable computing, data processing, and web hosting are foundational to these services, directly impacting beneficiaries and healthcare providers.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related 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
Solicitation ID: RFPCMS20120007
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: INTERSTATE 20 AT ALPINE RD, COLUMBIA, SC, 29219
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $190,057,111
Exercised Options: $190,057,111
Current Obligation: $196,601,121
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSM500201300012I
IDV Type: IDC
Timeline
Start Date: 2013-04-18
Current End Date: 2018-06-18
Potential End Date: 2018-06-18 00:00:00
Last Modified: 2026-04-15
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