CMS awards $4B deal to streamline system development

By Mary Mosquera
01:00 AM
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The Centers for Medicare and Medicaid Services awarded its $4 billion Enterprise System Development (ESD) contract to a set of 16 contractors.

CMS will use the contract to acquire information technology over the next 10 years as the agency modernizes Medicare and Medicaid services and attempts to improve health care quality and reduce costs.

ESD is CMS' new approach for acquiring, delivering and managing IT. Services provided under the contract will include planning, business requirements, design, development, testing and maintenance.

Indefinite-delivery, indefinite-quantity contracts were awarded to 16 firms, with a minimum value of $1,000 in orders per contractor and a maximum of $4 billion in total. CMS announced the multiple awards on Federal Business Opportunities Monday.

The ESD Service Model covers systems development and integration, system and application engineering and technical support to improve the automated systems and agencywide applications of the Health and Human Services Department.

With the development of its Enterprise Data Centers and a Common Enterprise Infrastructure, CMS wants a common approach to system and software development and a contracting vehicle that provides for these services, the agency said in solicitation documents previously posted on FedBizOpps.

The contract supports CMS' Integrated IT Investment and System Life Cycle Framework, a uniform approach for IT systems development and the CMS IT Modernization Program and initiatives. Task orders will cover life cycle services within a system or application development program, relate with other task orders under the same program and have defined exit criteria for successful completion.

Compliance with the life cycle framework will ensure that current and future application development will meet enterprise architectures and support CMS' investment management process.

The 16 awardees are:
Northrop Grumman
CGI Federal
EDS
Computer Science Corp.
IBM
Lockheed Martin
Science Applications International Corp.
ViPS of Baltimore, Md.
Buccaneer Computer Systems of Baltimore, Md.
IDL Solutions of Vienna, Va.
Quality Software Services of Gaithersburg, Md.
Maricom Systems of Baltimore
2020 LLC of Falls Church, Va.
iFed LLC
Alta Systems Inc. of Fairfax, Va.
Data Computer Corp. of America (DCCA) of Ellicott City, Md.