Sixteen companies, including three winners of a 2005 contract to develop a national healthcare information network as well as other federal contract veterans, have been awarded the right to compete over the next 10 years for up to $4 billion in federal IT contracts for Medicare and Medicaid programs, according to statements by several of the contract winners and published reports.
The contracts fall under a blanket contract vehicle for what the CMS is calling an Enterprise System Development, a program that includes planning, designing and developing IT systems for the CMS as well as system operation and maintenance contracts. Under the latest contracting authorization, dozens of other companies could potentially win subcontracts.
For example, Northrop Grumman Corp., McLean, Va., the giant defense and IT contractor that also was one of four firms to head a consortia of subcontractors in 2005 to develop a prototype of the national health information network under an $18.6 million contract with HHS, announced it had chosen 10 teammates in submitting its bid to be selected as a CMS vendor on the project. One Northrop Grumman teammate is BearingPoint, McLean, the lead contractor on the CoreFLS software development failure at the Veterans Affairs Department Bay Pines (Fla.) Medical Center. From 1999 through March 2004, BearingPoint was competitively awarded the CoreFLS project for $750,165, even though the budgeted project cost was $372 million, and was subsequently given 22 task orders on a noncompetitive basis totaling $116.5 million, according to a 189-page report by the VAs Inspector General's Office. BearingPoint developed the statements of work and cost estimates that were accepted by VA without any independent evaluation of need or reasonableness, which was tantamount to issuing BearingPoint a blank check, the report said.
According to published reports, other winners in the latest round of CMS contracts that also were winners of a piece of the NHIN contract were IBM Corp., Armonk, N.Y., and Computer Science Corp., El Segundo, Calif. Other principals accepted by the CMS under the contracting vehicle are CGI Federal, a subsidiary of CGI Group, Montreal; Electronic Data Systems Corp., Plano, Texas; Lockheed Martin, Calabasas, Calif.; Science Applications International Corp., San Diego; ViPS, a subsidiary of HLTH Corp., Elmwood Park, N.J.; Buccaneer Computer Systems, Warrenton, Va.; IDL Solutions, Vienna, Va.; Quality Software Services, Gaithersburg, Md.; Maricom Systems, Baltimore; 2020, Falls Church, Va.; iFed, Alta Systems, Fairfax, Va.; and Data Computer Corp. of America, Ellicott City, Md.