HHS Awards $51.1M for Computer Systems Design Services to CGI Federal Inc
Contract Overview
Contract Amount: $51,130,099 ($51.1M)
Contractor: CGI Federal Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2014-07-31
End Date: 2021-04-30
Contract Duration: 2,465 days
Daily Burn Rate: $20.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::CL::IGF
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $51.1 million to CGI FEDERAL INC. for work described as: IGF::CL::IGF Key points: 1. The contract value of $51.1M over approximately 6.8 years suggests a significant investment in IT services. 2. CGI Federal Inc. is a major IT contractor, indicating a competitive landscape for such services. 3. The 'COST PLUS FIXED FEE' contract type carries inherent risk of cost overruns if not managed tightly. 4. The sector is IT services, specifically computer systems design, a critical area for government operations.
Value Assessment
Rating: good
The contract value of $51.1M over 2465 days (approx. 6.8 years) averages to roughly $1.7M per year. This seems reasonable for complex computer systems design services, though a direct per-unit cost is not available without more granular data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and ensures the government receives the best value. The use of a delivery order suggests it was part of a larger contract vehicle.
Taxpayer Impact: Full and open competition is designed to maximize taxpayer value by fostering a competitive environment that drives down costs and improves service quality.
Public Impact
Ensures continued operation and modernization of critical health IT systems managed by CMS. Supports the infrastructure necessary for healthcare data processing and patient services. Potential for improved efficiency and effectiveness in healthcare administration through advanced IT solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Long contract duration may not adapt well to rapidly changing technology.
- Lack of specific performance metrics makes it hard to assess effectiveness.
Positive Signals
- Awarded under full and open competition.
- Significant investment indicates importance of the services.
- Experienced contractor likely to deliver reliable services.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across federal agencies, supporting everything from infrastructure to specialized software development. Benchmarks vary widely based on complexity and duration.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. Large IT contracts are often awarded to major prime contractors, though they may utilize small businesses for subcontracting opportunities.
Oversight & Accountability
The contract was awarded by the Centers for Medicare and Medicaid Services (CMS), a major agency within HHS. Oversight would typically involve program managers and contracting officers ensuring performance and adherence to contract terms.
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.
- Potential for scope creep.
- Lack of specific performance metrics in summary data.
Tags
computer-systems-design-services, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $51.1 million to CGI FEDERAL INC.. IGF::CL::IGF
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 $51.1 million.
What is the period of performance?
Start: 2014-07-31. End: 2021-04-30.
What specific computer systems design services were rendered, and how did they contribute to CMS's mission?
The contract likely encompassed a range of services including system architecture, software development, integration, testing, and maintenance for CMS's complex IT infrastructure. These services are crucial for managing Medicare and Medicaid programs, processing claims, maintaining beneficiary data, and supporting healthcare policy initiatives, directly contributing to the agency's mission of improving health outcomes.
What are the primary risks associated with the 'Cost Plus Fixed Fee' contract type in this context?
The primary risk of a Cost Plus Fixed Fee (CPFF) contract is that the contractor is reimbursed for all allowable costs plus a fixed fee. If costs escalate beyond initial projections, the government pays more. This necessitates robust oversight to ensure costs are reasonable and allocable, and that the fixed fee remains appropriate for the scope of work performed.
How effectively has CGI Federal Inc. performed under this contract, and has it met CMS's objectives?
Assessing effectiveness requires access to performance reports, user feedback, and key performance indicators (KPIs) not provided in the data. While the contract was active for several years, its ultimate success hinges on whether the designed systems met CMS's evolving needs, improved operational efficiency, and supported program goals without significant issues or delays.
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: 4
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: $67,618,992
Exercised Options: $51,400,100
Current Obligation: $51,130,099
Actual Outlays: $-9,974
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $1,663,827
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: 2014-07-31
Current End Date: 2021-04-30
Potential End Date: 2021-04-30 00:00:00
Last Modified: 2023-05-11
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