HHS Spends $52.9M on Data Quality Services via CPAF Contract with HP Enterprise

Contract Overview

Contract Amount: $52,897,845 ($52.9M)

Contractor: HP Enterprise Services, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2012-06-15

End Date: 2017-10-14

Contract Duration: 1,947 days

Daily Burn Rate: $27.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: CPAF - NLR DATA QUALITY/INTEGRATED DATA REPOSITORY

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $52.9 million to HP ENTERPRISE SERVICES, LLC for work described as: CPAF - NLR DATA QUALITY/INTEGRATED DATA REPOSITORY Key points: 1. Contract awarded to HP Enterprise Services, LLC for data quality and repository services. 2. Significant spending of $52.9 million over nearly 5 years. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under Computer Systems Design Services (NAICS 541512).

Value Assessment

Rating: fair

The Cost Plus Award Fee (CPAF) structure allows for performance-based incentives. Without specific award fee data, it's difficult to definitively assess value, but the total award of $52.9M over 1947 days suggests a moderate daily spend.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders participated. This method generally promotes competitive pricing and allows the government to select the best value.

Taxpayer Impact: Taxpayer funds were used for this contract. The CPAF structure aims to ensure value for money through performance incentives, but the ultimate cost-effectiveness depends on the achieved data quality and system integration.

Public Impact

Enhances data quality and integration for critical health programs. Supports the Centers for Medicare and Medicaid Services (CMS) operations. Potential impact on the accuracy and accessibility of health data for beneficiaries and policymakers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics and award fee details.
Contract duration is substantial, requiring ongoing monitoring.
No indication of small business participation.

Positive Signals

Awarded through full and open competition.
Focus on critical data quality and integration.
Performance-based payment structure (CPAF).

Sector Analysis

This contract falls within the IT services sector, specifically focusing on data management and systems integration. Spending benchmarks for similar government IT contracts vary widely based on scope and complexity, but $52.9M over nearly 5 years represents a significant investment in data infrastructure.

Small Business Impact

The data indicates that small businesses were not involved in this contract (ss: false, sb: false). This suggests that the prime contractor, HP Enterprise Services, LLC, likely handled the entire scope of work or subcontracted to other large businesses.

Oversight & Accountability

The contract utilized a Cost Plus Award Fee structure, which includes provisions for oversight and accountability through performance evaluations tied to award fees. However, further details on the specific oversight mechanisms and performance reviews are not provided.

Related Government Programs

Computer Systems Design Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Lack of detailed performance metrics.
No small business participation.
Cost Plus Award Fee structure requires careful monitoring of award criteria.
Long contract duration necessitates sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $52.9 million to HP ENTERPRISE SERVICES, LLC. CPAF - NLR DATA QUALITY/INTEGRATED DATA REPOSITORY

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 $52.9 million.

What is the period of performance?

Start: 2012-06-15. End: 2017-10-14.

What were the key performance indicators (KPIs) used to determine the award fees for HP Enterprise Services, LLC under this CPAF contract?

The specific Key Performance Indicators (KPIs) for determining award fees are not detailed in the provided data. Typically, for data quality and repository contracts, KPIs might include data accuracy rates, system uptime, successful data integration metrics, and adherence to security protocols. The government would evaluate performance against these pre-defined metrics to determine the variable award fee.

How did the 'full and open competition' process ensure cost-effectiveness for this $52.9 million contract?

Full and open competition theoretically ensures cost-effectiveness by allowing multiple qualified vendors to bid, fostering a competitive environment. This pressure encourages bidders to offer their best pricing and technical solutions. The government then selects the offer that provides the best overall value, considering both cost and non-cost factors, thereby maximizing the return on taxpayer investment.

What is the long-term impact of this data quality and integrated data repository contract on CMS's operational effectiveness?

A well-executed data quality and integration contract can significantly enhance CMS's operational effectiveness by providing accurate, reliable, and accessible data. This supports better decision-making, improved program administration, more efficient claims processing, and enhanced fraud detection. Conversely, if data quality issues persist or integration is flawed, it could hinder CMS operations and impact beneficiary services.

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 AWARD FEE (R)

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: $58,865,372

Exercised Options: $52,897,845

Current Obligation: $52,897,845

Actual Outlays: $274,650

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSM500200700016I

IDV Type: IDC

Timeline