HHS awards $100M+ for ADP Systems Development Services to CGI Federal Inc
Contract Overview
Contract Amount: $100,325,335 ($100.3M)
Contractor: CGI Federal Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2011-01-01
End Date: 2016-01-31
Contract Duration: 1,856 days
Daily Burn Rate: $54.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: ADP SYSTEMS DEVELOPMENT SERVICES
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $100.3 million to CGI FEDERAL INC. for work described as: ADP SYSTEMS DEVELOPMENT SERVICES Key points: 1. Significant contract value of over $100 million for IT services. 2. CGI Federal Inc. is the sole awardee for this delivery order. 3. The contract spans over 5 years, indicating a long-term need. 4. Services fall under Computer Systems Design, a critical IT sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar large-scale ADP system development contracts is necessary to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, this specific award is a delivery order, implying it might be part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract where initial competition occurred.
Taxpayer Impact: The full and open competition aims to ensure taxpayer funds are used efficiently by selecting the most cost-effective solution.
Public Impact
Impacts healthcare IT infrastructure managed by CMS. Ensures continued development and maintenance of critical ADP systems. Potential for improved efficiency in healthcare program administration. Affects beneficiaries through the systems that manage their care and benefits.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration may not adapt to rapidly changing technology.
- Lack of specific performance metrics in provided data.
Positive Signals
- Awarded under full and open competition.
- Supports critical healthcare functions for Medicare and Medicaid.
- Long-term engagement suggests a stable provider for essential services.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design. Spending in this area is substantial across government, supporting essential digital infrastructure and services. Benchmarks for similar large-scale system development contracts are typically in the tens to hundreds of millions of dollars.
Small Business Impact
The provided data does not indicate any specific set-aside for small businesses. The awardee, CGI Federal Inc., is a large corporation, suggesting that small businesses were likely not primary contractors for this specific delivery order.
Oversight & Accountability
Oversight would typically be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability for performance and cost would be tied to the Cost Plus Fixed Fee contract terms and delivery schedules.
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 potentially leading to technology obsolescence.
- Lack of specific system details.
- Potential for cost overruns if not managed stringently.
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 $100.3 million to CGI FEDERAL INC.. ADP SYSTEMS DEVELOPMENT SERVICES
Who is the contractor on this award?
The obligated recipient is CGI FEDERAL 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 $100.3 million.
What is the period of performance?
Start: 2011-01-01. End: 2016-01-31.
What specific ADP systems are being developed or maintained under this contract, and what is their criticality to CMS operations?
The provided data does not specify the exact ADP systems. However, given the agency (CMS) and the nature of the services (Computer Systems Design), these systems likely support critical functions such as beneficiary enrollment, claims processing, program management, and data analysis for Medicare and Medicaid. Their criticality is high, as disruptions could impact healthcare access and financial operations.
How does the Cost Plus Fixed Fee structure mitigate risks of cost overruns and ensure value for money compared to other contract types?
A Cost Plus Fixed Fee (CPFF) contract aims to provide a degree of cost certainty by fixing the contractor's fee, while allowing the government to reimburse actual costs. However, it can incentivize contractors to incur higher costs to increase the base for future contracts. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate overruns and ensure value.
What mechanisms are in place to ensure the developed systems remain current with technological advancements over the contract's duration?
The contract's duration is over five years. Mechanisms to ensure systems remain current could include contract modifications for technology upgrades, phased development approaches, or requirements for the contractor to propose innovative solutions. Without specific contract clauses detailing technology refresh cycles or innovation mandates, there's a risk of systems becoming outdated.
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 FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: CGI Inc
Address: 12601 FAIR LAKES CIR, FAIRFAX, VA, 22033
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $110,393,443
Exercised Options: $100,325,335
Current Obligation: $100,325,335
Actual Outlays: $139,309
Subaward Activity
Number of Subawards: 80
Total Subaward Amount: $43,881,572
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HHSM500200700015I
IDV Type: IDC
Timeline
Start Date: 2011-01-01
Current End Date: 2016-01-31
Potential End Date: 2016-06-30 00:00:00
Last Modified: 2023-05-18
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