Indian Health Service Spends $25.6M on Software Development via Full and Open Competition
Contract Overview
Contract Amount: $25,643,881 ($25.6M)
Contractor: CAS Severn, Inc
Awarding Agency: Department of the Interior
Start Date: 2010-09-07
End Date: 2016-03-06
Contract Duration: 2,007 days
Daily Burn Rate: $12.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: SOFTWARE DEVELOPMENT FOR THE INDIAN HEALTH SERVICE
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87102
Plain-Language Summary
Department of the Interior obligated $25.6 million to CAS SEVERN, INC for work described as: SOFTWARE DEVELOPMENT FOR THE INDIAN HEALTH SERVICE Key points: 1. Significant investment in software development for a critical health service. 2. Competition was utilized, suggesting potential for price discovery. 3. Contract duration spans several years, indicating a long-term need. 4. The contract was awarded by the Department of the Interior, not directly IHS.
Value Assessment
Rating: fair
The contract was awarded using a Time and Materials pricing structure, which can lead to cost overruns if not managed carefully. The total award value of $25.6M over approximately 5.5 years suggests an average annual spend of around $4.6M.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally a positive sign for achieving competitive pricing. However, the use of Time and Materials pricing can sometimes obscure true value and lead to higher costs than fixed-price contracts.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for value. The effectiveness of the spending depends on the quality and utility of the software developed.
Public Impact
Enhances critical health IT infrastructure for the Indian Health Service. Supports the operational needs of a vital government agency. Potential for improved healthcare delivery and data management for Native American communities. Long-term investment in technology infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can inflate costs.
- Awarding agency is not the direct beneficiary agency (DOI vs IHS).
- No indication of small business participation.
Positive Signals
- Full and open competition was used.
- Significant investment in a critical sector.
Sector Analysis
Software development is a crucial component of IT infrastructure, enabling modernization and efficiency. Spending benchmarks vary widely based on project complexity and agency needs. This contract represents a substantial investment in a specific area of IT for a government health service.
Small Business Impact
The data indicates that this contract did not involve small business participation (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed or if the nature of the work precluded small business involvement.
Oversight & Accountability
The contract was awarded by the Department of the Interior for the Indian Health Service. Oversight would ideally involve both agencies to ensure the software meets IHS requirements and that funds are used efficiently and effectively.
Related Government Programs
- Electronic Computer Manufacturing
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- Time and Materials pricing structure.
- Lack of small business participation.
- Awarding agency (DOI) is not the primary beneficiary (IHS).
- Contract duration is lengthy (approx. 5.5 years).
Tags
electronic-computer-manufacturing, department-of-the-interior, nm, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $25.6 million to CAS SEVERN, INC. SOFTWARE DEVELOPMENT FOR THE INDIAN HEALTH SERVICE
Who is the contractor on this award?
The obligated recipient is CAS SEVERN, INC.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $25.6 million.
What is the period of performance?
Start: 2010-09-07. End: 2016-03-06.
What was the specific software developed and how did it improve IHS operations?
The provided data does not specify the exact software developed. To assess value, one would need to examine project documentation, user feedback, and performance metrics to understand the impact on IHS operations, patient care, and administrative efficiency. Without this, the true value remains partially obscured.
What were the risks associated with the Time and Materials pricing structure for this contract?
Time and Materials (T&M) contracts carry inherent risks of cost escalation, as the final price is not fixed. For this $25.6M contract, risks include potential overspending if labor hours and material costs are not rigorously tracked and controlled, potentially leading to a higher-than-budgeted final cost and reduced value for taxpayer money.
How effective was the full and open competition in achieving a competitive price for this software development?
While full and open competition is a strong indicator of potential price competitiveness, the T&M structure complicates a definitive assessment. It suggests that multiple vendors were considered, which should drive down pricing. However, the ultimate effectiveness hinges on the government's ability to manage the T&M aspects to prevent cost creep and ensure the final price reflects true value.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
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: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 6201 CHEVY CHASE DR, LAUREL, MD, 20707
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,643,881
Exercised Options: $25,643,881
Current Obligation: $25,643,881
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F0380V
IDV Type: FSS
Timeline
Start Date: 2010-09-07
Current End Date: 2016-03-06
Potential End Date: 2016-03-06 00:00:00
Last Modified: 2017-07-27
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