HHS Spends $150M on Enterprise Identity Management Services with OptumServe
Contract Overview
Contract Amount: $150,116,563 ($150.1M)
Contractor: Optumserve Technology Services, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2012-06-14
End Date: 2017-09-07
Contract Duration: 1,911 days
Daily Burn Rate: $78.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: ENTERPRISE IDENTITY MANAGEMENT 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 $150.1 million to OPTUMSERVE TECHNOLOGY SERVICES, INC. for work described as: ENTERPRISE IDENTITY MANAGEMENT SERVICES Key points: 1. Total spending reached $150.1 million over 5 years. 2. OptumServe Technology Services, Inc. was the sole awardee. 3. The contract was awarded under full and open competition. 4. The NAICS code 541512 indicates computer systems design services. 5. The contract type was Cost Plus Award Fee.
Value Assessment
Rating: fair
The Cost Plus Award Fee structure can lead to higher costs if not managed effectively. Benchmarking against similar contracts for computer systems design services is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, suggesting a competitive bidding process. However, the single awardee indicates that only one entity was selected, potentially limiting price discovery.
Taxpayer Impact: Taxpayer funds were used for this contract. The effectiveness of the competition in securing the best value for taxpayers is not fully clear without further analysis.
Public Impact
Ensures secure and efficient management of citizen identities for healthcare services. Supports critical functions of the Centers for Medicare and Medicaid Services. Potential impact on access to and quality of healthcare services. Data privacy and security are paramount for this type of service.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure
- Single awardee despite full and open competition
Positive Signals
- Full and open competition utilized
- Long-term contract supporting critical agency functions
Sector Analysis
This contract falls under IT services, specifically computer systems design. Spending benchmarks for similar large-scale identity management systems can vary widely based on scope and complexity.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The contract was awarded to a large entity, OptumServe Technology Services, Inc.
Oversight & Accountability
Oversight would involve monitoring the performance metrics and cost controls associated with the Cost Plus Award Fee structure to ensure value for money.
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 with CPAF
- Lack of demonstrated small business participation
- Single awardee may limit future competition
- Complexity of identity management systems
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 $150.1 million to OPTUMSERVE TECHNOLOGY SERVICES, INC.. ENTERPRISE IDENTITY MANAGEMENT SERVICES
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 $150.1 million.
What is the period of performance?
Start: 2012-06-14. End: 2017-09-07.
What was the rationale for a single awardee under full and open competition for this significant contract?
The rationale for a single awardee under full and open competition could stem from highly specialized requirements, unique technical capabilities, or a perceived best value proposition from a single bidder. Further investigation into the solicitation documents and award justification would be needed to confirm the specific reasons.
How effectively did the Cost Plus Award Fee structure incentivize performance and control costs for this identity management service?
The effectiveness of a Cost Plus Award Fee (CPAF) structure hinges on well-defined performance metrics and objective award criteria. Without access to the specific award fee determinations and cost performance data, it's difficult to assess if CPAF successfully drove optimal performance and cost control for OptumServe's identity management services.
What is the long-term strategic value of this $150 million investment in enterprise identity management for CMS?
The long-term strategic value lies in establishing a robust, secure, and scalable foundation for managing user identities across CMS programs. This is crucial for enhancing data security, streamlining access to healthcare services, improving operational efficiency, and ensuring compliance with privacy regulations, ultimately supporting the agency's mission.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Optumserve Technology Services Inc.
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: $160,466,760
Exercised Options: $150,116,563
Current Obligation: $150,116,563
Actual Outlays: $-1,155,247
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSM500200700024I
IDV Type: IDC
Timeline
Start Date: 2012-06-14
Current End Date: 2017-09-07
Potential End Date: 2017-10-17 00:00:00
Last Modified: 2024-09-17
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