HHS Spends $18M on TAS Enterprise Systems Development with OptumServe
Contract Overview
Contract Amount: $18,042,151 ($18.0M)
Contractor: Optumserve Technology Services, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2010-08-10
End Date: 2015-12-09
Contract Duration: 1,947 days
Daily Burn Rate: $9.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: TAS::75 0511::TAS ENTERPRISE SYSTEMS DEVELOPMENT
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $18.0 million to OPTUMSERVE TECHNOLOGY SERVICES, INC. for work described as: TAS::75 0511::TAS ENTERPRISE SYSTEMS DEVELOPMENT Key points: 1. Significant investment in enterprise systems development for TAS. 2. OptumServe Technology Services, Inc. is the primary contractor. 3. Contract awarded under full and open competition. 4. Spending spans over 5 years, indicating a long-term project.
Value Assessment
Rating: fair
The contract value of $18 million over 5 years averages $3.6 million annually. Without specific benchmarks for TAS enterprise systems development, it's difficult to definitively assess value. However, the duration suggests a substantial project.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically aims to secure the best value for the government.
Taxpayer Impact: The $18 million expenditure represents taxpayer funds allocated to enhance critical government IT infrastructure.
Public Impact
Enhances the operational capabilities of the TAS program within HHS. Supports the development of essential IT systems for Medicare and Medicaid Services. Potential for improved efficiency and service delivery through upgraded systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics.
- Potential for cost overruns in Cost Plus Fixed Fee contracts.
- Dependency on a single vendor for system development.
Positive Signals
- Awarded through full and open competition.
- Long-term contract indicates strategic importance.
- Supports critical healthcare services.
Sector Analysis
The IT sector, particularly within government agencies like HHS, sees significant investment in systems development. Benchmarks vary widely based on project scope and complexity, but $18 million over five years for enterprise systems is a considerable sum.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, OptumServe Technology Services, Inc., is a large entity, suggesting limited direct participation for small businesses in this specific contract.
Oversight & Accountability
The contract was awarded as a delivery order under a larger contract vehicle. Oversight would typically involve program managers within CMS ensuring milestones are met and costs are controlled.
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.
- Long contract duration without clear performance metrics.
- Potential for vendor lock-in.
- Lack of small business participation noted.
Tags
computer-systems-design-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $18.0 million to OPTUMSERVE TECHNOLOGY SERVICES, INC.. TAS::75 0511::TAS ENTERPRISE SYSTEMS DEVELOPMENT
Who is the contractor on this award?
The obligated recipient is OPTUMSERVE TECHNOLOGY 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 $18.0 million.
What is the period of performance?
Start: 2010-08-10. End: 2015-12-09.
What specific functionalities or improvements did this $18 million investment aim to achieve for TAS?
The data provided focuses on the financial and contractual aspects of the award, not the specific technical objectives or expected outcomes. Further analysis would require access to the contract's statement of work and performance reports to understand the intended functionalities and the success in achieving them.
How does the Cost Plus Fixed Fee structure impact the risk of cost overruns for this project?
Cost Plus Fixed Fee contracts allow the contractor to recover all allowable costs plus a predetermined fixed fee. While the fee is fixed, the government bears the risk of cost overruns if the actual costs exceed projections. Robust oversight and clear scope definition are crucial to mitigate this risk.
What is the long-term strategic value of these TAS enterprise systems to CMS's mission?
The development of enterprise systems for TAS is crucial for supporting the core mission of CMS, which involves administering Medicare and Medicaid. Improved systems can lead to more efficient processing, better data management, enhanced fraud detection, and ultimately, improved healthcare services for beneficiaries.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Unitedhealth Group Incorporated
Address: 10480 LITTLE PATUXENT PKWY SUITE 310, COLUMBIA, MD, 21044
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business
Financial Breakdown
Contract Ceiling: $19,411,539
Exercised Options: $18,042,151
Current Obligation: $18,042,151
Actual Outlays: $-158,810
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSM500200700024I
IDV Type: IDC
Timeline
Start Date: 2010-08-10
Current End Date: 2015-12-09
Potential End Date: 2015-12-09 00:00:00
Last Modified: 2023-05-19
More Contracts from Optumserve Technology Services, Inc.
- Nitaac Cio-Sp3 Task Order for ONE PI — $175.8M (Department of Health and Human Services)
- Data Service HUB — $174.1M (Department of Health and Human Services)
- Claims Reimbursement to Health Care Providers and Facilities for Testing, Treatment and Vaccine Administration for the Uninsured — $169.1M (Department of Health and Human Services)
- Enterprise Identity Management Services — $150.1M (Department of Health and Human Services)
- Data Services HUB (DSH) Logical Follow-On — $103.6M (Department of Health and Human Services)
View all Optumserve Technology Services, Inc. federal contracts →
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 →