Department of Health and Human Services 

OFFICE OF 

INSPECTOR GENERAL 

AN OVERVIEW OF 

60 CONTRACTS THAT 

CONTRIBUTED TO THE 

DEVELOPMENT AND 

OPERATION OF THE 

FEDERAL MARKETPLACE 

Daniel R. Levinson 

 Inspector General 

August 2014 

OEI-03-14-00231 
                     

                           

           

                             

                           

                                

                             

                       

                                

                             

                               

                           

                      

          

           

                        

                             

                       

                           

                               

                         

                         

                             

                          

                      

                            

                           

 

                                         

                   

                                        

                                        

                         

        

                               

               

                                     

                                     

                             

                                       

   

PURPOSE 

To provide descriptive and financial data regarding 60 contracts related to the development and

operation of the Federal Marketplace at HealthCare.gov.

BACKGROUND 

The Patient Protection and Affordable Care Act (ACA) required the establishment of a health insurance

exchange (marketplace) in each State.1, 2 For States that elect not to establish their own marketplaces,

the Federal Government is required to operate a marketplace on behalf of the State. A marketplace is

designed to serve as a one‐stop shop where individuals can obtain information about their health

insurance options, determine eligibility for Qualified Health Plans (QHPs) and insurance affordability

programs, and select the QHP of their choice. QHPs are private health insurance plans that each

marketplace recognizes and certifies as meeting certain standards and covering a core set of benefits.

As of October 1, 2013, the Centers for Medicare & Medicaid Services (CMS) operated the Federally

Facilitated Marketplace (Federal Marketplace) for 36 States, consisting of 29 States that use the Federal

Marketplace and 7 State‐partnership marketplaces.3 Fifteen States (including the District of Columbia)

operated their own State‐based marketplaces.

Use of Contracts for the Federal Marketplace

CMS relied—and continues to rely extensively—on contractors to operate the Federal Marketplace. The

troubled launch of the Federal Marketplace on October 1, 2013, raised serious concerns about the

Department’s management and oversight of the project, including the selection and oversight of the

many contractors that played a role in the development and operation of the Federal Marketplace.4

The Office of Inspector General (OIG) is reviewing the Department’s efforts to develop and operate the

Federal Marketplace. This body of work will include reviews of the planning, acquisition, management,

and performance oversight of Federal Marketplace contracts, as well as various aspects of Federal

Marketplace operations. This report is the first in a series regarding contracting for the Federal

Marketplace. This report provides basic, descriptive information about the contracts that contributed to

the development and operation of the Federal Marketplace. Additional reviews regarding contract

procurement and oversight are ongoing and several reports are expected in 2014 and 2015. These

reviews will provide more indepth analyses and, when appropriate, findings and recommendations.

1 P.L. 111‐148, §§ 1311(b), 1321(c) (March 23, 2010), as amended by the Health Care and Education Reconciliation Act of 2010,

P.L. 111‐152 (March 30, 2010), collectively known as ACA. 2 The ACA uses the term “exchanges” to refer to Federal and State competitive marketplaces for insurance. However, CMS now

uses the term “marketplaces.” There were a number of additional terms used to refer to the Federal Marketplace during the

contracting process, including Federally Funded Exchange, Federally Facilitated Marketplace, Health Insurance Exchange, and

Federal Exchange Program System. 3 A State may establish a State‐partnership marketplace, in which the Department of Health and Human Services (Department)

and the State share responsibilities for core functions. 4 In this report, we refer to the Department to acknowledge activities related to the Federal Marketplace that were undertaken

by the Office of Consumer Information and Insurance Oversight (OCIIO), which was originally established in the Office of the

Secretary; the Center for Consumer Information and Insurance Oversight (CCIIO) within CMS, to which OCIIO’s responsibilities

were transferred in early 2011; and other offices within the Department that were part of the development and operation of

the Federal Marketplace.

Contracts That Contributed to the Development and Operation of the Federal Marketplace (OEI-03-14-00231) 1 
                     

     

                             

                      

                           

                       

                                 

                              

                        

                             

                                 

               

                                   

                            

                       

                                     

                                

                             

                           

                                 

                                    

               

                       

                              

                                  

                             

              

                             

                     

   

 

                                       

                     

Types of Contracts

Federal agencies can choose from many different contract types depending on the specificity of the

need, the circumstances at hand, and whether incentives would be warranted.5

For the development of the Federal Marketplace, the Department chose primarily from two broad

categories of contract types: fixed‐price and cost‐reimbursement. For fixed‐price contracts, the

contractor generally is required to deliver the product specified for a fixed price, with a fixed, maximum

amount of money that the Federal Government must pay. The contractor assumes the risk for cost

overruns. Cost‐reimbursement contracts provide for payment of allowable costs to the extent

prescribed in the contract, and the Federal Government assumes the risk for cost overruns.

Within these two broad categories are a number of specific contract types, which include, but are not

limited to, firm‐fixed‐price, cost‐plus‐fixed‐fee, and cost‐plus‐award‐fee. A firm‐fixed‐price contract

provides for a price that is not subject to any adjustment on the basis of the contractor’s costs in

performing the contract. This contract type provides the maximum incentive for the contractor to

control costs and perform effectively. A cost‐plus‐fixed‐fee contract is a cost‐reimbursement contract

that provides for payment to the contractor of a negotiated fee that is fixed at the beginning of the

contract. This contract type supports contracting efforts that might otherwise present too great a risk to

contractors, but it provides the contractor only a minimum incentive to control costs. A

cost‐plus‐award‐fee contract is a cost‐reimbursement contract that provides for a fee consisting of a

base amount which is fixed at the beginning of the contract and an award amount that the contractor

may earn in whole or in part during the contract. This contract type provides the contractor with an

incentive to provide excellent performance under the contract.

There are other types of contracts used under certain circumstances; these include time‐and‐materials

contracts and letter contracts. A time‐and‐materials contract may be used when it is not possible to

estimate accurately the extent, duration, or cost of the work being contracted. A letter contract is used

when the Federal Government’s interests demand that the work start immediately and there is not

sufficient time to negotiate a definitive contract.

Standards

This study was conducted in accordance with the Quality Standards for Inspection and Evaluation issued

by the Council of the Inspectors General on Integrity and Efficiency.

5 In the Federal Acquisition Regulations, Part 16 describes the types of contracts that may be used in acquisitions, prescribes

policies and procedures, and provides guidance for selecting a contract type.

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METHODOLOGY 

As of February 7, 2014, CMS identified 60 contracts (“the contracts”) related to the development and

operation of the Federal Marketplace. Not all of these contracts were awarded solely for the purpose of

the Federal Marketplace. Some also provided services for the State marketplaces and other CMS

systems and programs.6 To determine the estimated value of the contracts’ base and option years

(estimated at the time of award) and the amount obligated7 for the contracts (base year, option years,

and modifications), OIG analyzed contract, order, and modification documentation provided by CMS for

the 60 contracts.8 CMS provided contract modification documents through February 19, 2014 for the

contracts.9

We calculated the total obligation and expenditure amounts related to the Federal Marketplace

portions of each contract by summarizing the financial accounting transactions that CMS identified as

related to the Federal Marketplace for each contract. These financial accounting transactions

(obligations and expenditures) include all transactions that CMS processed through its Healthcare

Integrated General Ledger Accounting System (HIGLAS) as of February 28, 2014, that CMS had provided

to the OIG as of June 18, 2014.

We provided CMS with an opportunity to comment on the report and have made revisions based on its

technical comments.

SUMMARY 

The 60 contracts related to the development and operation of the Federal Marketplace started between

January 2009 and January 2014. Twenty contracts started before 2012, 22 started in 2012, 17 in 2013,

and 1 in 2014. The purpose of the 60 contracts ranged from health benefit data collection and

consumer research to cloud computing and Web site development.

Types of Contracts

The contract types vary across the 60 contracts. The contract types for these 60 contracts consist of

26 firm‐fixed‐price contracts, 13 time‐and‐materials contracts, 9 cost‐plus‐fixed‐fee contracts,

6 cost‐plus‐award‐fee contracts, and 6 contracts that are a combination of the different types.

Appendix A provides financial data for the 60 contracts summarized by contract type.

6 For example, a task order was originally awarded to obtain Web site development and support services for CMS’s external and

internal Web sites and applications including MyMedicare.gov. The task order was later modified to support the Web design of

the Federal Marketplace. 7 Government Accountability Office, A Glossary of Terms Used in the Federal Budget Process, September 2005, GAO‐05‐734SP,

pp. 48, 70, and 73. An “obligation" is a definite commitment that creates a legal liability of the Federal government for the

payment of goods and services ordered or received. An obligation is incurred when a contract is awarded or an order is placed

for goods and/or services. An “expenditure” is an outlay or the actual payment made to liquidate a Federal obligation.

Accessed at http://www.gao.gov/products/GAO‐05‐734SP on June 25, 2014. 8 We use the term “contract” to collectively refer to procurement methods that were used. This includes contracts as well as

task, delivery, and call orders placed on previously awarded contracts. Of the 60 contracts identified by CMS, 55 were actually

orders placed on previously awarded contracts. For these 55 contracts, the descriptive and financial information is provided for

the specific order identified by CMS. 9 This was the latest date on any of the contract modification documents provided by CMS for 59 of the 60 contracts. For one

contract awarded in 2014, CMS provided updated modifications through February 21, 2014.

Contracts That Contributed to the Development and Operation of the Federal Marketplace (OEI-03-14-00231) 3 
                     

             

                             

                                

                                  

                            

                   

           

                           

                                  

                          

                               

                       

                                

                       

                     

   

 

                                          

                   

                                                   

                                            

                   

                                  

                             

Estimated Contract Values at Time of Award

The original estimated value of these contracts totaled $1.7 billion; the contract values ranged from

$69,195 to over $200 million.10, 11 For 20 of the 60 contracts, the amounts obligated through February

2014 already exceeded the estimated value of the contracts at award. For 7 of these contracts, the

obligated amounts exceeded the expected value by more than 100 percent. Appendix B provides

descriptive and financial data for each of the 60 contracts.

Obligation and Expenditures for the Federal Marketplace Contracts

Nearly $800 million has been obligated for the development and operation of the Federal Marketplace

as of February 2014. CMS had expended nearly $500 million for the development and operation of the

Federal Marketplace to the contractors awarded the 60 contracts as of February 2014.12

CONCLUSION 

This report provides an initial overview of key characteristics of the 60 contracts for the Federal

Marketplace, including basic financial information, and is intended to serve as an informational

resource. In the coming months, OIG will be issuing additional, indepth audits and evaluations that look

more closely at contracting for the Federal Marketplace and will include, when appropriate,

recommendations to resolve vulnerabilities we identify and/or build on promising approaches.

10 Not all of these contracts were awarded solely for the purpose of the Federal Marketplace. Some also provided services for

the State marketplaces and other CMS systems and programs. 11 This is the estimated value of the contract or order on the date it was awarded. It is only an expected value. This amount

may be less, for example, if option years are not exercised. This amount may be more, for example, if modifications are made

to the contract/order that increase the costs of the contract. 12 The obligation and expenditure amounts for the Federal Marketplace were based on financial transactions processed through

CMS’s HIGLAS as of February 28, 2014, and received from CMS as of June 18, 2014.

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APPENDIX A 

DATA BY CONTRACT TYPE FOR FEDERAL MARKETPLACE CONTRACTS 

Table A1 provides financial data for the 60 Federal Marketplace contracts, summarized by contract type.

The estimated value of a contract’s base and option years is established at the time of award. The

amount obligated for the contract, the specific amount obligated for the Federal Marketplace, and the

expenditure for the Federal Marketplace are through February 2014.

Table A1: Financial Data for Federal Marketplace Contractors by Contract Type (2009–2014)

Estimated Contract

Value for Base and

Option Years at Time

of Award1

Amount Obligated For

Base Year,

Option Years, and

Modifications2

Total Amount

Obligated for Federal

Marketplace2

Total Amount

Expended for Federal

Marketplace 2

Firm‐fixed‐price contracts (N=26)3

$225,081,865 $153,777,222 $122,447,025 $85,205,294

Time‐and‐materials contracts (N=13)4

$121,629,716 $82,626,207 $59,019,850 $38,560,753

Cost‐plus‐fixed‐fee contracts (N=9)

$298,129,557 $253,894,064 $79,470,726 $47,937,613

Cost‐plus‐award‐fee contracts (N=6)5

$463,868,927 $285,214,283 $155,699,946 $41,047,033

Combination contracts6 (N=6)

$623,441,761 $621,525,709 $382,525,249 $286,536,241

Totals

$1,732,151,826 $1,397,037,485 $799,162,796 $499,286,934

Source: OIG analysis of Federal Marketplace contract and financial transaction data provided by CMS in 2014. 1

This is the estimated value of the contract or order on the date it was awarded. It is only an expected value. This amount
 

may be less, for example, if option years are not exercised. This amount may be more, for example, if modifications are
 

made to the contract/order that increase the costs of the contract. 2

Obligation and expenditure amounts do not include interest, which totaled $4,267.58.
 3 One of these contracts was designated as fixed price.
 4 One of these contracts was designated as “time‐and‐materials—labor hour.”
 5

Includes one letter contract that was definitized as a cost‐plus‐award‐fee contract. Definitization is the agreement on, or
 

determination of, contract terms, specifications, and price, that converts the undefinitized contract action—e.g., a letter
 

contract—to a definitive contract.
 6

These contracts were awarded using a combination of contract types. For example, the contract’s base year may be
 

cost‐plus‐fixed‐fee, but option years may be cost‐plus‐award‐fee.
 

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APPENDIX B 

DESCRIPTIVE AND FINANCIAL DATA ON FEDERAL MARKETPLACE CONTRACTS 

Table B1 provides descriptive and financial data for each of the 60 Federal Marketplace contracts. For

each contract, the table provides the following descriptive information: contractor name (in

alphabetical order), contract number, order number (when applicable), contract type, start date of the

contract’s performance period, and a brief description of the contract’s purpose. The purpose

descriptions were abstracted from contract documentation, e.g., statements of work or objectives, that

were developed at the time the contract or order was awarded.

For each contract, the table provides financial data on the estimated value of the contract at the time of

award; the amount obligated for the contract’s base year, option years, and modifications through

February 2014; and the estimated amount obligated and expended for the Federal Marketplace through

February 2014.

Table B1: Descriptive and Financial Data on Federal Marketplace Contracts (2009–2014)

Contract Number/

Order Number

Contract

Type

Start of

Contract

Period

Estimated

Contract

Value at

Time of

Award1

Amount

Obligated For

Base Year,

Option Years,

and

Modifications2

Total Amount

Obligated for

Federal

Marketplace2

Total Amount

Expended for

Federal

Marketplace2

1. Accenture Federal Services LLC

HHSM‐500‐2014‐00191C

Letter contract

No task order

Cost plus

award fee 01/11/2014 $90,000,0003 $60,000,000 $45,000,000 $0

Purpose: To provide design, development, testing, implementation support, software licensing, and services to support the

Federally Facilitated Marketplace. To support CMS‐approved new and revised requirements and provide an iterative agile

approach to programming that provides the best opportunity to incrementally build and test software functionality.

2. Aquilent Inc.

HHSN‐316‐2012‐00005W

HHSM‐500‐2013‐00074U

Time and

materials 09/13/2013 $18,997,567 $8,296,740 $7,675,100 $1,975,760

Purpose: To support CMS’s Office of Communications’ Web and New Media Group to: perform general Web site development,

operations, and maintenance, especially with the new HealthCare.gov Web site; provide Help Desk support for multiple CMS

Web sites; provide continuous Section 508 compliance on all tasks; provide Web Content Management System support for

multiple CMS Web sites; and provide training to various users for Web site‐related components and tasks.

3. Blast Design Studio Inc. dba Blast Advanced Media

HHSM‐500‐2012‐00080C

No task order

Firm fixed

price 09/28/2012 $197,625 $197,625 $197,625 $197,625

Purpose: To integrate the results of online marketing services for Exchange efforts’ Web properties with CMS's current Google

Analytics Premium service. Google Analytics Premium will be used to power Web statistics and analytics for all Exchange‐related

Web sites.

continued on next page

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Table B1: Descriptive and Financial Data on Federal Marketplace Contracts (2009–2014)

Contract Number/

Order Number

Contract

Type

Start of

Contract

Period

Estimated

Contract

Value at

Time of

Award1

Amount

Obligated For

Base Year,

Option Years,

and

Modifications2

Total Amount

Obligated for

Federal

Marketplace2

Total Amount

Expended for

Federal

Marketplace2

4. Blast Design Studio Inc. dba Blast Advanced Media

HHSM‐500‐2013‐00153C

No task order

Firm fixed

price 09/28/2013 $1,570,800 $392,700 $392,700 $163,625

Purpose: To purchase online marketing consulting services for the Federally Funded Exchange efforts for HealthCare.gov. The

online marketing consulting services will work in tandem and be dependent on custom functionality of CMS’s Google Analytics

Premium interface.

5. Blue Canopy Group LLC

HHSN‐316‐2012‐00120W

HHSM‐500‐2013‐00054U

Firm fixed

price;

training

and travel

by time

and

materials

07/15/2013 $1,000,000 $4,713,997 $686,886 $99,602

Purpose: For technical services to perform Security Certification (Controls) Assessment testing upon different CMS datacenters,

systems, and applications (objects under test), as tasked by CMS’s Office of Information Systems’ (OIS) Resource and Acquisition

Management Group.

6. Booz Allen Hamilton

GS‐23F‐9755H

HHSM‐500‐2011‐00011B4

HHSM‐500‐B0003

Firm fixed

price 09/17/2012 $25,969,949 $12,498,678 $12,498,678 $8,140,660

Purpose: To provide technical and operational guidance for standing up the Exchange datacenter, including the requisite

Infrastructure as a Service (IaaS), Software as a Service (SaaS), Platform as a Service (PaaS), Privacy, Compliance, and Security

solutions, as well as operational procedures. To support Exchange vendors in the ongoing development and propagation of

essential Exchange capabilities and traceability reporting. To develop Exchange security and privacy frameworks for CMS and

cross‐Government agencies.

7. Carahsoft Technology Corp.

GS‐35F‐0119Y

HHSM‐500‐2013‐00249G

Firm fixed

price 06/08/2013 $131,487 $39,951 $39,951 $39,951

Purpose: To procure an Application Code Analysis tool for static code testing. To provide Application Code software, licensing,

and support to disparate developers, testers, and quality assurance staff.

8. Carahsoft Technology Corp.

GS‐35F‐0119Y

HHSM‐500‐2012‐00066G

Firm fixed

price 06/08/2012 $238,349 $238,349 $238,349 $238,349

Purpose: To provide Application Code software, licensing, and installation services to support disparate developers, testers, and

quality assurance staff. To provide training to various user groups such as administrators, developers, testers, and management

through a combination of computer‐based training and an onsite training.

continued on next page

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Table B1: Descriptive and Financial Data on Federal Marketplace Contracts (2009–2014)

Contract Number/

Order Number

Contract

Type

Start of

Contract

Period

Estimated

Contract

Value at

Time of

Award1

Amount

Obligated For

Base Year,

Option Years,

and

Modifications2

Total Amount

Obligated for

Federal

Marketplace2

Total Amount

Expended for

Federal

Marketplace2

9. CGI Federal Inc.

GS‐35F‐4797H

HHSM‐500‐2010‐00157G

Time and

materials 04/15/2010 $7,250,000 $23,547,2105 $11,022,422 $11,009,575

Purpose: To provide the information system to support data collection for the Internet Web Portal and Health Benefit

Exchanges. To design, develop, test, implement, maintain, and enhance an Internet‐accessible information system to collect

data required for the population of the consumer‐facing Internet Web site portal.

10. CGI Federal Inc.

GS‐35F‐4797H

HHSM‐500‐2013‐00236G

Time and

materials 04/15/2013 $24,949,949 $13,447,178 $12,648,328 $10,365,371

Purpose: To provide IT development and data services in support of the CMS requirements for the Health Insurance Oversight

System. To maintain and support CMS’s Center for Consumer Information and Insurance Oversight’s (CCIIO) existing Health

Insurance Oversight System and for the design, development, test, and implementation of new functionality and required

enhancements. To continue the design, development, testing, implementation, maintenance, and enhancement of the Health

Insurance Oversight System to collect data required for the population of HealthCare.gov and the dissemination of information

to increase transparency of the health insurance marketplace.

11. CGI Federal Inc.

HHSM‐500‐2007‐00015I

HHSM‐500‐T0007

Cost plus

fixed fee 04/30/2010 $69,302,725 $118,582,436 $20,928,862 $15,928,862

Purpose: To obtain Web site development and support services for CMS’s external and internal Web sites and applications.

12. CGI Federal Inc.

HHSM‐500‐2007‐00015I

HHSM‐500‐T0011

Cost plus

fixed fee 06/07/2011 $8,867,066 $15,786,140 $7,922,182 $6,661,855

Purpose: To provide the Rate and Benefits Information System HealthCare.gov Plan Finder Application. To provide maintenance

and support of CCIIO's ongoing collection of pricing and benefits data from health insurance issuers. This includes any necessary

design, development, test, and implementation of new functionality and required enhancements to the existing system. To take

over the collection of health plan benefits and pricing data, stand up a new system, and transition issuers to that system.

continued on next page

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Table B1: Descriptive and Financial Data on Federal Marketplace Contracts (2009–2014)

Contract Number/

Order Number

Contract

Type

Start of

Contract

Period

Estimated

Contract

Value at

Time of

Award1

Amount

Obligated For

Base Year,

Option Years,

and

Modifications2

Total Amount

Obligated for

Federal

Marketplace2

Total Amount

Expended for

Federal

Marketplace2

13. CGI Federal Inc.

HHSM‐500‐2007‐00015I

HHSM‐500‐T0012

Cost plus

fixed fee

for base

period

and cost

plus

award fee

for the

optional

periods

09/30/2011 $93,735,469 $204,498,091 $198,588,332 $176,026,956

Purpose: To provide services for the Federal Exchange. To build the technical solution and support the operations of the

Federal Exchange that serves the needs as described within the ACA, enables consumers to obtain affordable health care

coverage, and allows employers to offer healthcare coverage to their employees. The Federal Exchange serves the needs of

individuals—including exchange insurance support and Medicaid support—within States where those States do not have their

own State‐run exchange. As such, the Federal Exchange may perform all the core functions as any State exchange would or

provide a subset of the services to augment the capabilities built by the State. The capability must exist to activate or enable

States within the Federal Exchange with varying degrees of notice. The key Exchange IT systems modules shall include, but not

be limited to eligibility and enrollment; health plan management to support qualified health plan certification; premium tax

credits administration; and cost‐sharing assistance administration.

14. Corporate Executive Board

GS‐35F‐0549W

HHSM‐500‐2012‐00186G

Firm fixed

price 09/24/2012 $746,949 $373,474 $373,474 $373,474

Purpose: To procure a professional research Web‐based subscription service for CMS’s Consumer Information and Insurance

Systems Group (CIISG). To provide Web site access to research briefs, tools, and diagnostics, as well as formal advisory services

including research and insights; proven Federal agency best practices; peer benchmarks; executive networking; advisory support;

and decision and diagnostic tools. To provide senior management with access to live and online learning events.

15. Creative Computing Solutions Inc.

GS‐06F‐0612Z

HHSM‐500‐2012‐00097G

Firm fixed

price 08/02/2012 $33,718,136 $10,992,321 $10,992,321 $8,812,681

Purpose: To provide security operations monitoring and management, system scans, configuration management, requirements

analysis, firewall support, incident handling, investigative rapid response, data breach and fraud support services, cyber threat

intelligence, audit support, actionable security risk report security documentation; to maintain security appliance; and to identify

capabilities and recommend solutions. CMS is required to implement a robust operational security management program for its

new virtual data center (eCloud), which hosts systems and applications that support the ACA. This system represents a

significant leap for CMS into cloud computing, but it also symbolizes the largest cloud‐based IT project underway in the Federal

Government. Ensuring this eCloud operates and is maintained in a way that protects against worldwide attacks requires a

blended solution that incorporates both near real‐time global threat intelligence along with a solid working knowledge of CMS's

eCloud.

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Table B1: Descriptive and Financial Data on Federal Marketplace Contracts (2009–2014)

Contract Number/

Order Number

Contract

Type

Start of

Contract

Period

Estimated

Contract

Value at

Time of

Award1

Amount

Obligated For

Base Year,

Option Years,

and

Modifications2

Total Amount

Obligated for

Federal

Marketplace2

Total Amount

Expended for

Federal

Marketplace2

16. DEDE Inc. dba Genova Technologies

GS‐35F‐0303M

HHSM‐500‐2005‐00001B4

HHSM‐500‐B0018

Time and

materials 05/20/2011 $2,828,148 $3,266,077 $3,266,077 $3,156,044

Purpose: To conduct full‐scale IT requirements elicitation, analysis, and documentation for CCIIO programs and projects that will

support both agile system lifecycle and traditional system development lifecycle; provide technical support for CCIIO and OIS

projects by developing solution architectures that include low‐fidelity mockups/designs; identify cross‐program IT synergies and

develop recommendations for cost‐effective solution architectures; and provide general strategic support to CCIIO and OIS.

17. DEDE Inc. dba Genova Technologies

GS‐35F‐0303M

HHSM‐500‐2012‐00021B4

HHSM‐500‐B0006

Firm fixed

price 06/11/2012 $1,110,327 $1,110,327 $1,110,327 $1,110,327

Purpose: To facilitate requirements workshop sessions, develop business and functional requirements documentation, provide

requirements development, provide requirements management, and provide other miscellaneous services, e.g., developing

high‐level technical design concept documents.

18. DEDE Inc. dba Genova Technologies

GS‐35F‐0303M

HHSM‐500‐2012‐00021B4

HHSM‐500‐B0019

Firm fixed

price 06/21/2013 $1,244,636 $1,979,580 $1,642,580 $907,636

Purpose: To develop a comprehensive testing strategy for the Health Insurance Exchange and related systems and data. The

testing strategy includes testing approach; test activities and deliverables; test resources; IT test environments, infrastructure,

and tools; test communication plan; testing schedule; assumptions, constraints, and dependencies; and issues and risks.

19. DEDE Inc. dba Genova Technologies

GS‐35F‐0303M

HHSM‐500‐2012‐00021B4

HHSM‐500‐B0008

Firm fixed

price 06/25/2012 $10,883,568 $7,148,053 $3,626,797 $2,115,632

Purpose: To review requirements produced across systems and projects, identify potential integration points and/or areas

requiring reconciliation between those requirements, and provide recommendations. To learn the fundamental functionality of

CIISG key systems in order to more easily identify these integration/reconciliation areas. These systems shall include, but are not

limited to, the Federally Facilitated Exchange (inclusive of the functional areas of plan management, enrollment and eligibility,

and financial management), Data Services Hub, Multidimensional Insurance Data Analytics System, Health Insurance Oversight

System, and Rate and Benefits Information System.

continued on next page

Contracts That Contributed to the Development and Operation of the Federal Marketplace (OEI-03-14-00231) 10 
                     

                  

   

   

       

   

   

   

   

   

   

   

   

         

   

                                     

                                     

                              

                                       

                                   

                                          

                               

                     

         

   

                                  

         

       

                              

                                   

         

       

                                  

                                      

                                         

                        

             

       

Table B1: Descriptive and Financial Data on Federal Marketplace Contracts (2009–2014)

Contract Number/

Order Number

Contract

Type

Start of

Contract

Period

Estimated

Contract

Value at

Time of

Award1

Amount

Obligated For

Base Year,

Option Years,

and

Modifications2

Total Amount

Obligated for

Federal

Marketplace2

Total Amount

Expended for

Federal

Marketplace2

20. DEDE Inc. dba Genova Technologies

GS‐35F‐0303M

HHSM‐500‐2012‐00021B4

HHSM‐500‐B0007

Firm fixed

price 06/21/2012 $1,749,947 $1,749,608 $674,192 $674,192

Purpose: To develop high‐level technical system designs for major OIS managed data systems. To develop an overview diagram

that shall bring all of the major data flows and components together along with a narrative that explains component

functionality, data exchange approaches, and other descriptive text needed to convey these high‐level architectures and designs.

To develop “transition” architectures that depict phasing of new system capabilities and interfaces as well as the phasing out of

retired systems. To develop data architectural options for a given project or program. To support the data architecture

implementation of the ACA as well as other legislation imposed upon CMS and to support new initiatives within OIS. To provide

general strategic and tactical support such as project scope agreements, impact analysis, data source agreements, system

concept and architecture diagrams, data source analysis, and data reference models.

21. DEDE Inc. dba Genova Technologies

GS‐35F‐0303M

HHSM‐500‐2012‐00021B4

HHSM‐500‐B0020

Firm fixed

price 08/01/2013 $1,573,039 $3,175,424 $1,302,384 $0

Purpose: To assist CMS in developing a set of enterprise standards and engineering approaches for services‐based technical

architecture.

22. DEDE Inc. dba Genova Technologies

GS‐35F‐0303M

HHSM‐500‐2012‐00021B4

HHSM‐500‐B0003

Firm fixed

price 05/20/2012 $10,878,848 $7,579,078 $7,579,078 $6,628,750

Purpose: To provide CMS’s CIISG with business requirements engineering support including support to produce business,

functional, and technical requirements that will enable both the Government and developers to implement aspects of the ACA.

23. DEDE Inc. dba Genova Technologies

GS‐35F‐0303M

HHSM‐500‐2012‐00021B4

HHSM‐500‐B0013

Firm fixed

price 09/28/2012 $6,381,500 $6,575,068 $6,390,545 $4,963,623

Purpose: To provide CMS’s CIISG with business and test data requirements integration engineering support to generate and

maintain test data and cases that are faithfully derived from the business requirements and inherent logic. To collaborate and

coordinate with other vendors to ensure the integrity of the test data; to collaborate and coordinate with the test execution and

application development contractors. To work across other Federal Exchange Program System development, testing, and

deployment contractor teams as directed by the Government.

continued on next page

Contracts That Contributed to the Development and Operation of the Federal Marketplace (OEI-03-14-00231) 11 
                     

                  

   

   

       

   

   

   

   

   

   

   

   

       

   

                                   

                                    

                        

                             

                   

      

   

                                

                                       

  

       

   

                                  

                             

                             

                                    

                               

                               

           

       

      

  

                                   

                             

  

       

      

                                

              

       

Table B1: Descriptive and Financial Data on Federal Marketplace Contracts (2009–2014)

Contract Number/

Order Number

Contract

Type

Start of

Contract

Period

Estimated

Contract

Value at

Time of

Award1

Amount

Obligated For

Base Year,

Option Years,

and

Modifications2

Total Amount

Obligated for

Federal

Marketplace2

Total Amount

Expended for

Federal

Marketplace2

24. Deloitte Consulting LLP

GS‐10F‐0083L

HHSM‐500‐2012‐00016G

Firm fixed

price 01/24/2012 $1,953,882 $2,129,716 $670,486 $670,486

Purpose: To assist with market report card and operational dashboard design and implementation. To develop metrics, in

collaboration with CMS, on the performance of Exchange marketplaces for the annual Exchange Market Report Cards. To define

an approach and implementation plan for collecting data surrounding identified Exchange marketplace performance metrics. To

develop operational performance metrics and an implementation plan for collecting data for an Exchange Operational

Dashboard covering those activities performed at the Federal level.

25. FedResults Inc.

GS‐35F‐0256K

HHSM‐500‐2012‐00038G

Firm fixed

price 04/01/2012 $8,462,357 $6,107,855 $3,801,526 $3,801,526

Purpose: To provide CMS with the GovDelivery Digital Communication Suite that provides a more comprehensive digital

communication platform and a full suite of secure applications for CMS to use to improve communications and access to agency

information.

26. Global Tech Inc. dba eGlobalTech

GS‐06F‐1088Z

HHSM‐500‐2013‐00052U

Firm fixed

price 06/15/2013 $3,986,800 $2,405,205 $2,405,205 $997,616

Purpose: To provide system and application integration support for CMS. To provide CMS with technical integration support,

which includes identifying potential gaps in the technical architecture; managing development release cycles; managing all

phases of testing; coordinating and facilitating risk identification and resolution across development teams and vendors;

developing service operations processes and plans; and managing the integration of systems. The activities include, but are not

limited to, providing technical engineering support to document and coordinate the infrastructure and platform build and

configuration for each of the environments including development, test, pre‐production and production for the Data Services

Hub and Federally Facilitated Exchange systems.

27. Global Tech Inc. dba eGlobalTech

GS‐06F‐1088Z

HHSM‐500‐2013‐00046U

Time and

materials 05/03/2013 $3,603,027 $2,349,754 $2,349,754 $816,602

Purpose: To provide Hub verification support services. To act as the Hub Verification Contractor—this includes creation and

maintenance of a lightweight testing support and change management database, and various analyses examining software

engineering topics.

28. Global Tech Inc. dba eGlobalTech

GS‐06F‐1088Z

HHSM‐500‐2014‐00083U

Firm fixed

price 11/25/2013 $3,998,799 $1,975,916 $1,975,916 $740,968

Purpose: To support CMS’s Exchange Operations Center by providing monitoring, management, and coordination for the CMS

cloud infrastructure and applications hosted in the cloud.

continued on next page

Contracts That Contributed to the Development and Operation of the Federal Marketplace (OEI-03-14-00231) 12 
                     

                  

   

   

       

   

   

   

   

   

   

   

   

       

      

  

                           

                           

                                   

                                   

                               

   

       

                                 

   

      

  

                                   

                               

                                 

                   

   

       

  

                           

                                

                               

                                

                     

   

       

  

                        

                                    

                              

                                    

                       

                                  

                 

       

Table B1: Descriptive and Financial Data on Federal Marketplace Contracts (2009–2014)

Contract Number/

Order Number

Contract

Type

Start of

Contract

Period

Estimated

Contract

Value at

Time of

Award1

Amount

Obligated For

Base Year,

Option Years,

and

Modifications2

Total Amount

Obligated for

Federal

Marketplace2

Total Amount

Expended for

Federal

Marketplace2

29. Global Tech Inc. dba eGlobalTech

GS‐35F‐0183T

HHSM‐500‐2012‐00154G

Time and

materials 09/24/2012 $1,984,012 $1,307,022 $1,307,022 $908,530

Purpose: To develop a CMS cloud‐computing technical framework. To develop an overarching CMS cloud‐computing

portability/interoperability reference architecture to show how CMS applications/services and associated data can be ported

from one cloud service offering to another cloud service offering, and how different CMS clouds—e.g., enterprise cloud, Health

Insurance Exchanges clouds, and commercial clouds that may be dedicated to CMS—interface and interact with each other for

resource pooling and data synchronization to support the interoperability of similar categories of cloud services.

30. Government Acquisitions Inc.

HHSN263999900442I

HHSM‐500‐2012‐00014U

Firm fixed

price 08/02/2012 $14,269,378 $5,308,378 $3,442,756 $3,442,756

Purpose: To obtain an Informatica enterprise license agreement including access to one onsite technical architecture manager.

31. Heitech Services Inc.

GS‐06F‐0276Z

HHSM‐500‐2011‐00027U

Time and

materials 07/25/2011 $2,998,342 $2,998,342 $1,424,380 $1,396,872

Purpose: To provide design, development, testing, and deployment support for small to medium‐size IT projects. Solutions shall

include but are not limited to small‐scale database development (logical and physical modeling, database implementation, and

loading from provided datasets), user interface design and development, Web design and development, and basic report writing

as well as production support for bug fixes and small enhancements.

32. Heitech Services Inc.

GS‐06F‐0726Z

HHSM‐500‐2012‐00074G

Time and

materials 07/03/2012 $3,984,622 $3,966,308 $3,781,653 $2,653,226

Purpose: To provide programming support (inclusive of enhancements, configurations, revisions, and upgrades) for small to

medium‐size IT projects. Projects/solutions shall include, but are not limited to small‐scale databases (logical and physical

modeling, database implementation, and loading from provided datasets), user interface design and upgrade, Web design and

enhancement, and basic report writing. To also provide ongoing application operations and maintenance support for a number

of open‐source and commercial‐off‐the‐shelf applications hosted in the Government’s cloud environment.

33. Heitech Services Inc.

GS‐06F‐0726Z

HHSM‐500‐2013‐00275G

Time and

materials 08/02/2013 $22,575,815 $3,703,770 $3,655,525 $373,974

Purpose: To provide design, development, testing, deployment, and programming support (inclusive of enhancements,

configurations, revisions, and upgrades) for small to medium size IT projects. Projects/solutions shall include, but are not limited

to: small‐scale databases (logical and physical modeling, database implementation, and loading from provided datasets), user

interface design and upgrade, Web design and enhancement, and basic report writing. To also provide production support and

ongoing application operations and maintenance support for a number of open‐source and commercial‐off‐the‐shelf

applications hosted in the Government’s cloud environment. To be responsible for the upkeep (renewals and purchasing) of

maintenance packages and licensing for commercial‐off‐the‐shelf products used by CMS.

continued on next page

Contracts That Contributed to the Development and Operation of the Federal Marketplace (OEI-03-14-00231) 13 
                     

                  

   

   

       

   

   

   

   

   

   

   

   

     

   

   

   

   

   

                                 

                         

                      

                           

     

   

   

                                   

                            

                               

                            

                           

  

     

   

                                   

                                    

                                   

                                    

                                    

                                    

                             

                            

         

   

   

                                

                                   

                                 

     

       

Table B1: Descriptive and Financial Data on Federal Marketplace Contracts (2009–2014)

Contract Number/

Order Number

Contract

Type

Start of

Contract

Period

Estimated

Contract

Value at

Time of

Award1

Amount

Obligated For

Base Year,

Option Years,

and

Modifications2

Total Amount

Obligated for

Federal

Marketplace2

Total Amount

Expended for

Federal

Marketplace2

34. HP Enterprise Services LLC

HHSM‐500‐2013‐00014I

HHSM‐500‐T0003

Firm fixed

price, cost

plus fixed

fee, and

time and

materials

07/01/2013 $208,110,366 $77,561,786 $77,561,786 $19,199,838

Purpose: To provide all activities (end‐to‐end) necessary to deliver efficient, effective, and responsive services to support CMS's

Health Insurance Marketplace Infrastructure production hosting and disaster recovery requirements and Virtual Data Center

program‐related objectives. This includes all necessary aspects of planning, implementing, transitioning, operating, and

maintaining CMS's applications and all related hardware and software within the Virtual Data Center environment.

35. IDL Solutions Inc.

HHSM‐500‐2007‐00023I

HHSM‐500‐T0001

Cost plus

fixed fee 09/27/2011 $58,966,657 $46,529,214 $31,770,058 $11,829,563

Purpose: To evaluate, design, implement, and test the initial Multidimensional Insurance Data Analytics System, as well as all

enhancements stemming from new data and functional requirements over the period of the contract. The Multidimensional

Insurance Data Analytics System will serve as CCIIO’s central repository for capturing, organizing, aggregating, and analyzing

information related to CCIIO’s mission. To perform database development, data modeling, reporting, query, business

intelligence and analytics development, and operation and maintenance of the Multidimensional Insurance Data Analytics

System.

36. Innosoft Corporation

HHSM‐500‐2011‐00071C

No task order

Firm fixed

price 08/15/2011 $1,916,322 $2,804,742 $2,103,114 $1,464,777

Purpose: To provide professional services to support the cloud computing services initiatives. To provide services to configure

the Application Lifecycle Management tool that will be installed by the cloud computing services contractor. To collaborate with

the cloud computing services contractor and provide support in designing an infrastructure and services that will address specific

needs that will be required by CCIIO. This effort extends to supporting the growth, and contraction, of technology requirements

as programs are added, evolve, terminate, or change ownership. Key among these objectives is the integration between and

among partners within CCIIO's partner network. This partner network includes, but is not limited to Federal agencies, e.g.,

Internal Revenue Service (IRS); Social Security Administration; Department of Homeland Security; State Medicaid offices; State

Exchanges; vendor groups; internal Department of Health and Human Services centers and offices; etc.

37. L & M Policy Research LLC

HHSM‐500‐2010‐00015I

HHSM‐500‐T0002

Cost plus

fixed fee 01/23/2012 $1,353,969 $4,201,927 $1,494,238 $580,000

Purpose: To conduct appropriate qualitative and quantitative research to support the implementation of the Health Insurance

Exchanges with a focus on consumer experience of the Web portal, and inform the development of effective Web‐based

consumer tools for the individual and Small Business Health Options Program (SHOP) Exchange based on an environment scan

and consumer research.

continued on next page

Contracts That Contributed to the Development and Operation of the Federal Marketplace (OEI-03-14-00231) 14 
                     

                  

   

   

       

   

   

   

   

   

   

   

   

     

   

   

   

   

                          

                       

                                        

                                 

                                 

                                    

                         

       

      

   

                                  

                           

          

      

   

                                    

                               

                                

                

               

   

                                       

   

                                

       

       

Table B1: Descriptive and Financial Data on Federal Marketplace Contracts (2009–2014)

Contract Number/

Order Number

Contract

Type

Start of

Contract

Period

Estimated

Contract

Value at

Time of

Award1

Amount

Obligated For

Base Year,

Option Years,

and

Modifications2

Total Amount

Obligated for

Federal

Marketplace2

Total Amount

Expended for

Federal

Marketplace2

38. Lockheed Martin Services Inc.

263‐01‐D‐0054

HHSM‐500‐2009‐00002U

Firm fixed

price and

cost plus

fixed fee

01/01/2009 $248,388,340 $232,608,1446 $19,724,700 $17,273,184

Purpose: To provide an information technology and information systems and support vehicle for CMS. This Consolidated

Information Technology Infrastructure Contract (CITIC) covers maintenance; support; all hardware and software applications;

and security processes necessary for Tier I, II, and III mainframes, servers, and desktops. With the CITIC, the Government seeks

to obtain a business partner who can assume responsibility for day‐to‐day operations and maintenance functions, ensure that

the infrastructure functions efficiently and with a high availability, and assist the Government in planning for modernization of

the IT infrastructure. Also, to have the CITIC contractor configure Remedy for Change Management and procure licenses to

support the Federally Facilitated Exchange and Data Services Hub systems maintainers support teams.6

39. Maricom Systems Inc.

HHSM‐500‐2007‐00025I

HHSM‐500‐T0005

Cost plus

award fee 11/28/2011 $105,417,775 $48,887,062 $14,393,226 $4,138,486

Purpose: To award an enterprise data services contract to design, build, or acquire innovative, cost‐effective, and efficient

master data management, portal, and business rules management system governance, oversight, and engineering services.

40. Northrop Grumman Information Technology Inc.

HHSM‐500‐2007‐00014I

HHSM‐500‐T0006

Cost plus

award fee 11/28/2011 $85,695,482 $40,363,432 $2,911,783 $2,607,976

Purpose: To award a Patient Protection and Affordable Care Act integrated care data and applications (ICD&A) contract to

develop, test, implement, and maintain the Pioneer Fast Track Accountable Care Organizations (ACO) Demonstration and the

Medicare Shared Saving Program for ACOs. Optional tasks may include services to design, develop, test, implement, and

maintain additional programs in support of the ACA.

41. Onix Networking Corp.

GS‐35F‐5519H

HHSM‐500‐2012‐00103G

Firm fixed

price 09/19/2012 $113,625 $113,625 $44,340 $44,340

Purpose: To purchase Google Site Search licenses used to power Web search for the Exchange efforts’ public Web site.

42. ProTelecom LLC

HHSM‐500‐2009‐00005I

HHSM‐500‐T0014

Firm fixed

price 03/28/2013 $69,195 $69,195 $65,500 $65,500

Purpose: To enhance the infrastructure of the CMS video teleconferencing capabilities for senior management, in preparation

for health care reform realignment.

continued on next page

Contracts That Contributed to the Development and Operation of the Federal Marketplace (OEI-03-14-00231) 15 
                     

                  

   

   

       

   

   

   

   

   

   

   

   

   

                                        

             

         

       

                                   

                                  

                               

                             

                           

         

   

   

   

   

   

   

                                         

                               

                                  

                                  

                                  

                                     

                                   

                         

                               

       

Table B1: Descriptive and Financial Data on Federal Marketplace Contracts (2009–2014)

Contract Number/

Order Number

Contract

Type

Start of

Contract

Period

Estimated

Contract

Value at

Time of

Award1

Amount

Obligated For

Base Year,

Option Years,

and

Modifications2

Total Amount

Obligated for

Federal

Marketplace2

Total Amount

Expended for

Federal

Marketplace2

43. ProTelecom LLC

HHSM‐500‐2009‐00005I

HHSM‐500‐T0015

Firm fixed

price 09/12/2013 $685,260 $685,260 $53,490 $0

Purpose: To procure the services of a vendor who has the experience, knowledge, expertise, and skill required to accomplish the

infrastructure enhancement of the CMS video teleconferencing capabilities.

44. Quality Software Services Inc. (QSSI)

GS‐06F‐0148Z

HHSP‐233‐2010‐00588G

Time and

materials7 09/24/2010 $3,208,989 $3,236,399 $199,364 $35,848

Purpose: To support the Health Insurance Exchange information technology program. To support the IT function across Health

Insurance Exchange business process efforts. To support enterprise project life cycle tasks for the implementation of HHS’s

Office of Consumer Information and Insurance Oversight’s (OCIIO, currently CMS’s CCIIO) exchange program; to support the

establishment of OCIIO’s enterprise architecture program's structure and strategic direction; to support OCIIO’s IT strategic

planning process; and to support OCIIO’s IT role in the Capital Planning IT Investment Management Process.

45. Quality Software Services Inc. (QSSI)

HHSM‐500‐2007‐00024I

HHSM‐500‐T0007

Cost plus

fixed fee

for base

period

and cost

plus

award fee

for the

optional

periods

09/30/2011 $68,740,877 $84,527,128 $84,527,128 $73,252,566

Purpose: To develop IT systems to obtain the Data Services Hub. The IT systems will support a simple and seamless

identification of people who qualify for coverage through the Exchange, tax credits, cost‐sharing reductions, Medicaid, and

Children's Health Insurance Program. The Data Services Hub requirements support common services and provide an interface to

Federal agency information. These requirements drive a data services information hub structure that will act as a single

interface point for Exchanges to all Federal agency partners and provide common functional service support. This involves

architecting and developing of solutions for the Data Services Hub that include building of functional common services that can

be used by multiple Exchanges and Federal partners; designing a solution that is flexible, adaptable, and modular to

accommodate the implementation of additional functional requirements and services; and participating in a collaborative

environment and relationship to support the coordination between CMS and the primary partners, e.g., the IRS.

continued on next page

Contracts That Contributed to the Development and Operation of the Federal Marketplace (OEI-03-14-00231) 16 
                     

                  

   

   

       

   

   

   

   

   

   

   

   

         

  

   

   

                              

                           

                      

                      

                               

                               

         

   

   

                                  

                                 

   

      

       

   

                                  

                           

                            

                            

                                     

                           

                       

                    

     

      

                               

                                 

                         

                                 

                               

                

       

Table B1: Descriptive and Financial Data on Federal Marketplace Contracts (2009–2014)

Contract Number/

Order Number

Contract

Type

Start of

Contract

Period

Estimated

Contract

Value at

Time of

Award1

Amount

Obligated For

Base Year,

Option Years,

and

Modifications2

Total Amount

Obligated for

Federal

Marketplace2

Total Amount

Expended for

Federal

Marketplace2

46. Quality Software Services Inc. (QSSI)

HHSM‐500‐2007‐00024I

HHSM‐500‐T0010

Cost plus

award fee 06/18/2012 $109,926,956 $66,527,420 $38,510,666 $15,500,895

Purpose: To provide enterprise identity management (EIDM) services. To assist in designing, building, operating, and

maintaining an enterprise identity and access management infrastructure to include integration with third‐party online identity

proofing and multifactor authentication services. This activity includes the design, development, documentation, integration,

and deployment of services that satisfy applicable documented requirements. It also includes developing, documenting,

updating, and maintaining interfaces between and among the new EIDM system and existing legacy CMS identity management

systems that facilitate integrated data exchange of appropriate data in accordance with guidance provided by the Government.

47. Quality Software Services Inc. (QSSI)

HHSM‐500‐2007‐00024I

HHSM‐500‐T0008

Cost plus

award fee 01/17/2012 $49,599,494 $56,236,663 $41,684,565 $9,845,958

Purpose: To provide technical testing expertise and support to test components and services delivered by multiple component

contracts, including the integrated care data and applications contract, enterprise data services contract, Data Services Hub, and

Federal Exchange.

48. Quality Technology Inc.

GS‐06F‐0653Z

HHSM‐500‐2012‐00123G

Cost plus

award fee 09/25/2012 $23,229,220 $13,199,706 $13,199,706 $8,953,718

Purpose: To function as an Operational Support Center in assisting CIISG application users, Health Insurance Exchanges, State

agencies, insurance companies, third party administrators, and other healthcare stakeholders with the implementation and

operational issues of the ACA programs under CCIIO oversight. This support includes systems issue identification, classification,

diagnosis, resolution, and disposition, during which monitoring, tracking, and communication activities are taking place. The

contractor shall be responsible for handling and managing all CIISG systems user inquiries and support the resolution of CIISG

system‐related issues for the Federally Facilitated Exchange, Multidimensional Insurance Data Analytics System, Data Services

Hub, Collaborative Application Lifecycle Tool, Health Insurance Oversight System, Adobe LiveCycle, business intelligence

applications, Rate and Benefits Information System, and CMS’s cloud environment.

49. Science Applications International Corporation (SAIC)

HHSM‐500‐2007‐00020I

HHSM‐500‐T0001

Firm fixed

price 01/31/2012 $78,600,380 $16,193,145 $10,870,013 $5,289,646

Purpose: To implement enterprise remote Identity proofing services to CMS and State‐operated health insurance exchanges. To

increase security; accommodate a highly scalable user base of 30—100 million users; provide authentication services that support

multiple credential formats; implement remote identity proofing and multifactor authentication services for CMS applications;

increase confidence in legitimate users; mitigate use of false identities; reduce repetitive proofing burden to the consumer;

improve risk mitigation; reduce fraud; realize cost reduction; achieve compliance; and improve privacy sensitivity and reduce

data breaches. Responsible for testing services, including CCIIO Exchange.

continued on next page

Contracts That Contributed to the Development and Operation of the Federal Marketplace (OEI-03-14-00231) 17 
                     

                  

   

   

       

   

   

   

   

   

   

   

   

   

     

                                 

                                

       

   

  

             

     

   

   

                          

     

   

  

                                      

                               

                               

                               

                         

   

       

       

                               

                 

       

Table B1: Descriptive and Financial Data on Federal Marketplace Contracts (2009–2014)

Contract Number/

Order Number

Contract

Type

Start of

Contract

Period

Estimated

Contract

Value at

Time of

Award1

Amount

Obligated For

Base Year,

Option Years,

and

Modifications2

Total Amount

Obligated for

Federal

Marketplace2

Total Amount

Expended for

Federal

Marketplace2

50. Scope Infotech Inc.

HHSM‐500‐2013‐00109C

No task order

Fixed

price 4/15/2013 $3,796,914 $1,094,967 $1,094,967 $821,225

Purpose: To provide user support and system development for Exchange collaboration tools. To provide varying levels of

service for three systems: Collaborative Application Lifecycle Tool, zONE (Opportunity to Network and Engage), and Adobe

LiveCycle.

51. Spann & Associates Inc.

GS‐35F‐0235M

HHSM‐500‐2013‐00334G

Time and

materials 09/25/2013 $21,190,031 $6,796,868 $3,000,000 $0

Purpose: To provide information security support services.

52. SphereCom Enterprises Inc.

GS‐35F‐0437N

HHSM‐500‐2011‐00001B4

HHSM‐500‐B0001

Fixed

price and

time and

materials

03/01/2011 $3,466,709 $17,616,563 $1,436,417 $684,095

Purpose: To provide services in regard to CMS information security program support.

53. SphereCom Enterprises Inc.

GS‐35F‐0437N

HHSM‐500‐2011‐00001B4

HHSM‐500‐B0003

Time and

materials 07/15/2011 $3,136,717 $3,961,725 $2,941,411 $1,947,660

Purpose: To provide information security support. To perform tasks in the following areas: IT security and privacy support

(includes assistance with maintaining security and privacy documentation relative to CCIIO systems; research and report on

security discipline; review, revise, and enhance CCIIO's IT programs to support future changes; review, research, and prepare

content for service level agreements and data exchange agreements to support CCIIO), information security subject matter

expert/technical advisor, and project management support (support audit readiness activities and provide project management

administrative support).

54. Terremark Federal Group Inc.

GS‐35F‐0073U

HHSP233201100177G

Firm fixed

price 04/01/2011 $10,833,793 $60,838,982 $48,860,711 $33,499,929

Purpose: To provide cloud‐computing services to OCIIO (now CCIIO). To provide a Federal Information Security Management

Act‐compliant cloud‐based infrastructure that can dynamically scale as needed.

continued on next page

Contracts That Contributed to the Development and Operation of the Federal Marketplace (OEI-03-14-00231) 18 
                     

                  

   

   

       

   

   

   

   

   

   

   

   

     

      

   

                               

                       

                             

                               

     

   

   

                             

                               

                   

                       

       

     

       

   

                            

     

       

   

                                   

                           

                                   

                 

       

Table B1: Descriptive and Financial Data on Federal Marketplace Contracts (2009–2014)

Contract Number/

Order Number

Contract

Type

Start of

Contract

Period

Estimated

Contract

Value at

Time of

Award1

Amount

Obligated For

Base Year,

Option Years,

and

Modifications2

Total Amount

Obligated for

Federal

Marketplace2

Total Amount

Expended for

Federal

Marketplace2

55. The Mitre Corporation

HHSM‐500‐2012‐00008I

HHSM‐500‐T0015

Cost plus

fixed fee 09/27/2013 $22,526,712 $5,591,641 $5,591,641 $1,731,865

Purpose: To provide acquisition and systems engineering support services. These include providing CMS with technical,

acquisition, communication, governance, and process expertise to implement and manage effective Federally Facilitated

Marketplace program operations; assisting in the development and integration of security governance strategies and security

standards for the ACA marketplace entities; and assisting in creating and executing program monitoring and evaluation

methodologies.

56. The Mitre Corporation

TIRNO‐99‐D‐00005

HHSM‐500‐2011‐00014U

Cost plus

fixed fee 06/13/2011 $9,156,932 $7,343,197 $550,000 $535,997

Purpose: To obtain technical, operational, and management support for the implementation of the security operations

program. To provide support in the following areas: task management, security operation center architecture and engineering

support, security configuration management support, security penetration testing support, CMS enterprise vulnerability

management architecture and engineering support, identification of vulnerability management and best practices, enterprise

vulnerability management enhancement, and continuous monitoring.

57. The Mitre Corporation

TIRNO‐99‐D‐00005

HHSM‐500‐2009‐00021U

Cost plus

fixed fee 07/28/2009 $87,109,655 $22,167,085 $2,761,512 $2,616,402

Purpose: To provide services in support of security testing and evaluation of applications and infrastructure.

58. The Mitre Corporation

TIRNO‐99‐D‐00005

HHSM‐500‐2011‐00036U

Cost plus

fixed fee 09/26/2011 $36,747,056 $28,567,878 $6,477,209 $6,153,588

Purpose: To provide acquisition and technical systems engineering support services. Objectives include (but are not limited to):

support planning and development of performance measurement frameworks for standing up and operating the insurance

exchanges and Medicaid IT systems; and assistance with the expansion of the enterprise architecture activities to include, among

other things, development of a Federal Data Services Hub Supplement.

continued on next page

Contracts That Contributed to the Development and Operation of the Federal Marketplace (OEI-03-14-00231) 19 
                     

                  

   

   

       

   

   

   

   

   

   

   

   

     

       

   

                                 

                             

                         

                                   

                           

                               

                          

     

      

  

                               

                               

      

                                

                                                         

                                          

             

                     

                                          

                 

                                          

                   

                                        

                                         

                               

                                                   

                                          

                 

                 

Table B1: Descriptive and Financial Data on Federal Marketplace Contracts (2009–2014)

Contract Number/

Order Number

Contract

Type

Start of

Contract

Period

Estimated

Contract

Value at

Time of

Award1

Amount

Obligated For

Base Year,

Option Years,

and

Modifications2

Total Amount

Obligated for

Federal

Marketplace2

Total Amount

Expended for

Federal

Marketplace2

59. The Mitre Corporation

TIRNO‐99‐D‐00005

HHSP233201000138W

Cost plus

fixed fee 09/28/2010 $4,098,785 $5,124,546 $1,975,024 $1,899,481

Purpose: To provide acquisitions and technical systems engineering support services. The objectives for this effort include

continued reduction of administrative costs; continued increases in CCIIO's efficiency; improved economies of scale by

implementing enterprise applications; support the planning for, and development of, performance measurement framework for

standing up and operating the insurance exchanges; develop and provide a standard technical reference architecture for all of

CCIIO's production environments; strengthened security of CCIIO systems and data; develop and implement the process

necessary to coordinate the activities of the various CCIIO workgroups, contractors and staff to address the

many complex regulatory issues presented by ACA; and assist with business process modeling.

60. TurningPoint Global Solutions LLC

GS‐06F‐0672Z

HHSM‐500‐2012‐00008U

Time and

materials 05/15/2012 $4,922,497 $5,748,814 $5,748,814 $3,921,291

Purpose: To provide Federal Exchange independent verification and validation (IV&V) services. The Federal Exchange Program

System IV&V processes shall include activities such as assessment, analysis, measurement, inspection, and testing of select

system components and processes.

Source: OIG analysis of Federal Marketplace contract and financial transaction data provided by CMS in 2014. 1 This is the estimated value of the contract or order on the date it was awarded. It is only an expected value. This amount may be less,
 

for example, if option years are not exercised. This amount may be more, for example, if modifications are made to the contract/order
 

that increase the costs of the contract.
 2

Obligation and expenditure amounts do not include interest, which totaled $4,267.58.
 3

The letter contract was for $45 million but the expected value of the contract was $90 million. CMS also developed an Independent
 

Government Cost Estimate for the contract that totaled to $91,152,800.
 4 For this contract, there is both a contract number and a blanket purchase agreement number. CMS can utilize blanket purchase
 

agreements to fill anticipated repetitive needs for supplies and services. 5

This contract was transferred to CMS when OCIIO’s responsibilities were transferred to CCIIO in CMS. There were two modifications for
 

this contract designated as modification number 1––one from CMS and one from the prior contracting agency. Only the amount for
 

CMS’s modification number 1 is included in the total amount obligated for base year, option years, and modifications. 6 The obligations for this task order include only the base year and modification numbers 66, 68, 70, 72, 76, 77, 79‐81, 83‐86, 88, and 90,
 

as they were the only modifications provided by CMS as relevant to the Federal Marketplace. The purpose description for this contract
 

includes information from the task order and modifications.
 7 This contract was designated as “time‐and‐materials—labor hours.”
 

Contracts That Contributed to the Development and Operation of the Federal Marketplace (OEI-03-14-00231) 20 
 

Office of Inspector General

http://oig.hhs.gov 

The mission of the Office of Inspector General (OIG), as mandated by Public Law 95-452, as 

amended, is to protect the integrity of the Department of Health and Human Services 

(HHS) programs, as well as the health and welfare of beneficiaries served by those 

programs. This statutory mission is carried out through a nationwide network of audits, 

investigations, and inspections conducted by the following operating components: 

Office of Audit Services 

The Office of Audit Services (OAS) provides auditing services for HHS, either by conducting 

audits with its own audit resources or by overseeing audit work done by others. Audits 

examine the performance of HHS programs and/or its grantees and contractors in carrying 

out their respective responsibilities and are intended to provide independent assessments of 

HHS programs and operations. These assessments help reduce waste, abuse, and 

mismanagement and promote economy and efficiency throughout HHS. 

Office of Evaluation and Inspections 

The Office of Evaluation and Inspections (OEI) conducts national evaluations to provide 

HHS, Congress, and the public with timely, useful, and reliable information on significant 

issues. These evaluations focus on preventing fraud, waste, or abuse and promoting 

economy, efficiency, and effectiveness of departmental programs. To promote impact, OEI 

reports also present practical recommendations for improving program operations. 

Office of Investigations 

The Office of Investigations (OI) conducts criminal, civil, and administrative investigations 

of fraud and misconduct related to HHS programs, operations, and beneficiaries. With 

investigators working in all 50 States and the District of Columbia, OI utilizes its resources 

by actively coordinating with the Department of Justice and other Federal, State, and local 

law enforcement authorities. The investigative efforts of OI often lead to criminal 

convictions, administrative sanctions, and/or civil monetary penalties. 

Office of Counsel to the Inspector General 

The Office of Counsel to the Inspector General (OCIG) provides general legal services to 

OIG, rendering advice and opinions on HHS programs and operations and providing all 

legal support for OIG’s internal operations. OCIG represents OIG in all civil and 

administrative fraud and abuse cases involving HHS programs, including False Claims Act, 

program exclusion, and civil monetary penalty cases. In connection with these cases, OCIG 

also negotiates and monitors corporate integrity agreements. OCIG renders advisory 

opinions, issues compliance program guidance, publishes fraud alerts, and provides other 

guidance to the health care industry concerning the anti-kickback statute and other OIG 

enforcement authorities.