HHS Spends $136M on Medicare Fiscal Intermediary System Maintenance with HP Enterprise Services
Contract Overview
Contract Amount: $136,167,724 ($136.2M)
Contractor: HP Enterprise Services, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2011-02-01
End Date: 2017-01-31
Contract Duration: 2,191 days
Daily Burn Rate: $62.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: MAINTENANCE OF MEDICARE FISCAL INTERMEDIARY SHARED 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 $136.2 million to HP ENTERPRISE SERVICES, LLC for work described as: MAINTENANCE OF MEDICARE FISCAL INTERMEDIARY SHARED SYSTEM Key points: 1. Significant contract value of $136.17M over 6 years. 2. HP Enterprise Services is the sole contractor. 3. Contract type is Cost Plus Incentive Fee, potentially leading to cost overruns. 4. Spending falls within the IT sector, specifically Computer Systems Design Services.
Value Assessment
Rating: fair
The contract's Cost Plus Incentive Fee structure suggests potential for costs to exceed initial estimates. Benchmarking against similar IT maintenance contracts is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, the specific delivery order structure and the long duration may limit future competition.
Taxpayer Impact: Taxpayer funds are utilized for maintaining a critical component of the Medicare system. The CPIF contract type warrants close monitoring to ensure cost efficiency.
Public Impact
Ensures continued operation of the Medicare Fiscal Intermediary Shared System. Supports the administration and processing of Medicare claims. Impacts the efficiency and accuracy of Medicare services for beneficiaries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contract type
- Long contract duration (6 years)
- Sole awardee for this specific delivery order
Positive Signals
- Full and open competition at initial award
- Critical system maintenance for Medicare operations
Sector Analysis
This contract falls under the Information Technology sector, specifically Computer Systems Design Services. IT maintenance contracts for large government programs can range widely in cost depending on complexity and scope.
Small Business Impact
The data indicates the prime contractor is HP Enterprise Services, LLC, a large business. There is no explicit information regarding small business participation in this specific contract.
Oversight & Accountability
Oversight would typically be managed by the Centers for Medicare and Medicaid Services (CMS). The CPIF contract type necessitates robust oversight to manage performance and costs effectively.
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 cost overruns due to CPIF structure.
- Lack of transparency on specific performance metrics for incentive fees.
- Long contract duration may limit agility and adoption of newer technologies.
- No clear indication of small business subcontracting.
Tags
computer-systems-design-services, 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 $136.2 million to HP ENTERPRISE SERVICES, LLC. MAINTENANCE OF MEDICARE FISCAL INTERMEDIARY SHARED SYSTEM
Who is the contractor on this award?
The obligated recipient is HP ENTERPRISE 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 $136.2 million.
What is the period of performance?
Start: 2011-02-01. End: 2017-01-31.
What was the competitive landscape during the initial full and open competition for the base contract?
While the award was under full and open competition, the provided data focuses on a specific delivery order. Understanding the number of bidders and the winning proposal's details for the base contract would offer more insight into the initial price discovery and value achieved.
How were the incentive fees structured and what performance metrics were used?
The Cost Plus Incentive Fee (CPIF) structure implies performance targets tied to cost savings or efficiency gains. Details on these specific metrics and how they influenced the final cost are crucial for assessing the contract's effectiveness in driving desired outcomes and controlling expenses.
What is the projected cost trend for this contract over its duration?
Given the CPIF structure and a 6-year duration, monitoring cost trends is vital. Without historical spending data beyond the award amount, it's difficult to project future costs accurately. Regular reviews of expenditure against performance metrics are necessary to ensure value for money.
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: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: HP, Inc.
Address: 5400 LEGACY DR, PLANO, TX, 75024
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $213,118,478
Exercised Options: $136,167,724
Current Obligation: $136,167,724
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSM500200700016I
IDV Type: IDC
Timeline
Start Date: 2011-02-01
Current End Date: 2017-01-31
Potential End Date: 2017-01-31 00:00:00
Last Modified: 2024-09-17
More Contracts from HP Enterprise Services, LLC
- Federal Contract — $134.6M (Department of Health and Human Services)
- Federal Contract — $122.0M (Department of Health and Human Services)
- Destroyers — $113.3M (Department of Health and Human Services)
- Program Safeguard Contract — $109.2M (Department of Health and Human Services)
- Federal Contract — $69.1M (Department of Health and Human Services)
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →