CMS Picks 80 Companies for Potential $25B IT Services IDIQ

electronic-health-record-EHRThe Centers for Medicare and Medicaid Services has awarded 80 companies positions on a potential 10-year, $25 billion contract vehicle the agency intends to use as its primary mechanism for acquisitions of information technology services via task orders.

CMS released the list of awardees in a Wednesday FedBizOpps notice and said all operational divisions of its Cabinet parent Department of Health and Human Services will be able to award task orders for IT services through the Strategic Partners Acquisition Readiness Contract vehicle.

SPARC contains 120 contracts total across five pools with awards divided into 27 within the large business category, 54 in small business, 28 in woman-owned small business, seven in service-disabled veteran-owned and four for Hubzone.

Fifty companies hold positions in at least one pool and 30 were selected for spots across more than one category, while CMS will reserve all task orders less than $29 million with options for small businesses.

SPARC carries a base ordering term of five years with an additional optional ordering period to extend services for five more years.

The agency held the SPARC competition on a “best value” basis with technical evaluation factors such as experience in IT services, past performance, process maturity based on the CMMI Assessment standard and small business participation via subcontracts with large business pool awardees.

CMS added in its SPARC request for proposals that “non-price factors are significantly more important than price factors.”

SPARC the successor contract to CMS’ Enterprise System Development vehicle originally awarded in September 2007 to 16 companies, some of which have been acquired since and their positions subsequently transitioned to the parent.

EMD awardees and their predecessors with positions on the new SPARC vehicle include:

  • CACI International (NYSE: CACI) — predecessor IDL Solutions
  • CGI Federal (NYSE: GIB)
  • CSRA (NYSE: CSRA) — predecessors Maricom Systems and subsequently former CSRA parent Computer Sciences Corp. (NYSE: CSC)
  • Data Computer Corporation of America
  • Deloitte — predecessor iFed
  • General Dynamics (NYSE: GD) — predecessors Buccaneer Computer Systems and ViPS
  • Hewlett Packard Enterprise (NYSE: HPE) — predecessors EDS and subsequently the former HP
  • Lockheed Martin (NYSE: LMT)
  • ManTech International (NASDAQ: MANT) — predecessor Alta Systems
  • Maximus (NYSE: MMS) — predecessors 2020 and subsequently Acentia
  • Northrop Grumman (NYSE: NOC)

Original EMD contractors not selected for SPARC include Science Applications International Corp. (NYSE: SAIC) and UnitedHealth Group (NYSE: UNH), which purchased original EMD awardee Quality Software Systems in 2012.

CMS has obligated approximately $4.4 billion under EMD between fiscal years 2007 and 2016, according to Bloomberg Government.

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