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Deltek Pulse: Health and human services month in review, March 2015

In March, Deltek saw the release of 1,831 solicitations from the health and human services vertical – a 31 percent increase from February.

Notable RFP releases

  • The Alabama Department of Human Resources released a request for proposals (RFP) for electronic benefits and funds transfer (EBT/EFT) services on March 5. The incumbent contract with Xerox is set to expire in June 2017. Proposals are due on June 25, 2015.
  • The Pennsylvania Department of Health released an RFP for WIC EBT implementation and claims processing services on March 13. Proposals are due on June 11.
  • The National Association of State Workforce Agencies (NASWA), with its subsidiary Information Technology Support Center (ITSC), released an RFP for independent verification and validation (IV&V) services for the Mississippi, Rhode Island and Maine (MRM) Consortium for the joint UI modernization project on March 23. TCS was selected as the prime developer for the modernization project and is currently refactoring MDES UI system’s architecture to accommodate the implementation of a largely common set of functionalities among the MRM states. Proposals are due on May 1.
  • On March 25, the Virginia Department of Treasury released an RFP for electronic payment card services. Current users of electronic payment services include the Department of Accounts (DOA) for payroll, the Department of Social Services (DSS) for child support and TANF benefits, the Virginia Employment Commission (VEC) for unemployment benefits, and the Department of Taxation (TAX). Proposals are due on April 27.

You can learn more about current procurement opportunities in the GovWin IQ State and Local Opportunities database. Not a Deltek subscriber? Click here to learn more about Deltek's GovWin IQ service and gain access to a free trial.




Deltek Pulse: Health and human services month in review, February 2015

In February 2015, Deltek saw the release of nearly 1,400 solicitations from the health and human services vertical, on par with the 1,340 solicitations released in January.

Notable RFP releases:

  • The Maryland Department of Labor, Licensing & Regulation (DLLR) released an RFP for the Vermont, Maryland and West Virginia (VMW) consortium's unemployment insurance (UI) information technology modernization projectThe new system will consist of core UI benefit, tax, and appeals software common to all VMW states, while allowing each state to continue to address their own specific goals. Proposals are due by March 26. 
  • The Louisiana Division of Administration Office of Technology Services issued an RFP for the Medicaid enrollment and eligibility system. The Department of Health and Hospitals (DHH) is seeking to implement an automated solution that will support Medicaid eligibility and enrollment processes using modern and lasting technologies. Proposals are due by April 3.
  • The Oregon Health Authority (OHA) released an RFP for HIE/HIT technology consultancy services to support OHA’s efforts to plan, define, develop, implement, and operate a state-level health information technology/health information exchange (HIT/HIE) infrastructure. Proposals are due by March 16.
  • The Alaska Department of Health and Social Services released an RFP for Medicaid redesign and expansion technical assistance services. DHSS is interested in developing a larger strategy for meaningful Medicaid reform that will improve care and health outcomes for eligible Alaskans, streamline requirements of providers, and create a financially sustainable service delivery system.

You can learn more about current procurement opportunities in the GovWin IQ State and Local Opportunities database. Not a Deltek subscriber? Click here to learn more about Deltek's GovWin IQ service and gain access to a free trial.


Spotlight cast on child care in wake of block grant reauthorization

Congress brought new life to the federal child care subsidy program when it reauthorized the Child Care and Development Block Grant (CCDBG) late last year. States rely on CCDBG funding to help low-income families afford child care and improve statewide child care operations. On top of this long-awaited reauthorization, President Obama highlighted child care in his 2015 State of the Union address, calling for an increased child care tax credit and investments in the Child Care and Development Fund.

The CCDBG reauthorization has refocused national attention on child care and will prompt states to review their child care programs and invest in new technologies as well as quality improvement strategies to meet new requirements. This storm of activity will surely create new business opportunities for IT vendors.

Where will states invest?

1) Quality improvement - The CCDBG reauthorization calls for an increased investment in quality improvement and adherence to new health and safety requirements. States will be looking for vendors to provide child care licensing and other credentialing services, quality rating and improvement systems (QRIS), as well as provider training and education services. In 2014, Colorado awarded a contract to Berry, Dunn, McNeil and Parker for a next generation quality rating improvement system (Opp ID 79106) to improve the quality rating system and expand the availability and affordability of the QRIS. Other states may also seek to improve their systems in the coming year.

2) Improve core processes - States may seek more integrated technologies to improve intake, payment processing, case management, and time and attendance tracking in order to achieve operational efficiencies. For example, Virginia released an RFI in August 2014 for child care business application solutions, including an attendance tracking system that could interface with existing systems and banking networks, and create a provider Web portal (Opp ID 117252). Expect states to issue similar RFIs exploring how to best improve their child care administration processes.  

3) Coordination with other social services programs - The law requires child care providers to coordinate with early education and care programs. States may pursue efforts to exchange data and share information with programs like TANF, Head Start, and SNAP in order to aggregate data and improve child health and wellness programs. One such effort is being planned in Iowa, where the Early Childhood Office is pursuing an early childhood data system to house information about the operation, participation and outcomes of Iowa’s early childhood system, which includes early learning, family support, health/nutrition/mental health and early intervention for children with special needs (Opp ID 89854).

4) Increased consumer education and assistance - States will be required to provide electronic child care resources where parents can view provider inspection results, the number of injuries/deaths at each facility, licensing and monitoring requirements, and detailed information about the background check process. States may look for child care resource and referral systems to help match resources with individual family needs. In July 2014, Arizona awarded a contract for child care resource and referral services to the Association for Supportive Child Care (Opp ID 118194). 

Analyst’s Take

Quality improvement, business processes, integration and consumer assistance are just some of the areas states will target for investment over the next few years. State applications and plans are due to the U.S. Department of Health and Human Services in June 2015. States may solicit vendors to assist with the planning process and conduct needs assessments. States are not expected to comply with new regulations until FY 2016, but vendors can get a head start in preparing how to market their solutions to states. Vendors who can demonstrate solutions that seamlessly integrate with existing technologies and improve program efficiencies will be attractive to state governments.


Deltek Pulse: Health and human services month in review, January 2015

Deltek saw the release of 1,340 solicitations from the health care and human services vertical in January – a 13 percent increase from December.

Notable RFP releases in January include:

  • The commonwealth of Kentucky Cabinet for Health and Family Services (CHFS), Department for Medicaid Services (DMS), has a requirement for a vendor to provide a configurable Software-as-a-Service (SaaS) solution for the Kentucky MEMS claims processing and fiscal agent (FA) services, as well as a custom-built encounter processing solution and a decision-support system/data warehouse (DSS/DW) solution. Proposals are due April 6.
  • The Arkansas Department of Human Services released an RFP for information systems support. The incumbent contract with Northrop Grumman expires on June 30, 2015, and the department is seeking maintenance, support and modifications of its various mainframe and client-server computer applications, as well as maintenance, support and development of new Web-based applications. Proposals are due on April 21.
  • The Mississippi Division of Medicaid has a requirement for independent verification and validation Services (IV&V) for the eligibility modernization project to replace current legacy systems – the Medicaid eligibility determination system (MEDS) and Medicaid eligibility determination system expansion (MEDSX) systems. Proposals are due February 27.
  • The Texas HHSC Office of Social Services (OSS) Division would like to procure services to implement HHSC-established business process redesign (BPR) principles and procedures currently operating in a select number of HHSC pilot offices to all remaining offices, statewide. Proposals are due February 23. 

You can learn more about current procurement opportunities in the GovWin IQ State and Local Opportunities database. Not a Deltek subscriber? Click here to learn more about Deltek's GovWin IQ service and gain access to a free trial.


Medicaid eligibility and enrollment systems: Which states still need to modernize?

Modernized and fully integrated Medicaid eligibility systems have proven to be a catalyst for successful enrollment in state and federally facilitated health insurance exchanges. Kentucky, New York, and Washington state have stood out for their top-performing exchanges and high enrollment numbers. All three states rely on integrated Medicaid eligibility systems that facilitate the consumer application process, eligibility determination, and enrollment in Medicaid/CHIP or private health insurance plans.

On the other hand, states with outdated and isolated technologies struggled to enroll new customers, which led to significant Medicaid backlogs, most notably in California, New Jersey, and Tennessee. Now that the feds have finalized 90/10 funding and extended the OMB A-87 cost allocation exception, more states will invest in upgrading their Medicaid eligibility systems and building integrated eligibility systems that incorporate human services programs, including Supplemental Nutrition Assistance Programs (SNAP) and Temporary Assistance for Needy Families (TANF). This analyst perspective will help vendors identify which states have already completed upgrades, which states are currently modernizing, what contracts may be rebid, and where to find potential business opportunities.

Current Landscape

While states have been working to integrate and modernize eligibility systems for more than a decade now, the vast majority of states took steps in recent years to upgrade their Medicaid eligibility systems in preparation for ACA enrollment. In fact, 19 states have issued contracts for upgrades to Medicaid eligibility and enrollment systems since 2012. Some states combined contracts for health insurance exchanges with eligibility upgrades (HIX/IES), including Connecticut, Maryland, Oregon, Rhode Island and Washington, D.C. Other states are still in the early planning stages for eligibility system modernization efforts, and a few states have indicated their intent to release a solicitation in the coming year. Below is a preview of a few of these upcoming opportunities.

Upcoming Solicitations

Louisiana – The Louisiana Department of Health and Hospitals anticipates releasing a Medicaid Eligibility Determination System (MEDS) request for proposals (RFP) this month. The department is designing new enterprise architecture to modernize the state’s Medicaid technologies. The previous contract with Deloitte was worth approximately $29 million (Opportunity ID 99187).

Massachusetts – The Massachusetts Executive Office of Health and Human Services plans to move forward with Phase II of the state health insurance exchange and integrated eligibility system (HIX/IES). The state expects to complete planning by the end of June 2015, and an RFP could be released sometime this fall, at the earliest. A $66 million contract with CGI was terminated in March 2014, and Optum and hCentive have worked to rebuild the system (Opportunity ID 89076).

New York – The New York Office of General Services is seeking a systems integrator for its integrated eligibility system to replace the statewide welfare management system (WMS) – a legacy system first implemented in 1977. An RFP was issued in May 2014 for a business advisory services contractor that will work during the first phase of the IES project; the systems integrator will conduct phase two. Deltek anticipates this legacy system modernization could approach $100 million (Opportunity ID 49905).

Possible Rebids

Tennessee – The Tennessee Department of Finance and Administration may have a requirement for the development and/or maintenance of the TennCare Eligibility Determination System (TEDS). The current contract with Northrop Grumman is behind schedule and the system remains unfinished, which has created months-long delays for Tennesseans who want to apply for Medicaid. Subsequently, three advocacy groups have filed a lawsuit against TennCare. The incumbent contract is valued at $35.7 million (Opportunity ID 117922).

New Jersey – The $83.5 million contract with Hewlett-Packard for maintenance of the Consolidated Assistance Support System (CASS) has been terminated, and a spokeswoman for the New Jersey Department of Human Services said the state and the vendor are still in talks regarding the contract termination (Opportunity ID 105816).

Early Planning Stages

California – The 2014-2015 Governor's Budget Highlights for the Department of Health Care Services requested expenditure authority for a multi-year IT project to modernize the Medi-Cal Eligibility Data System (MEDS). In 2012, a contract was awarded to PCG for IT project planning consulting services, including a feasibility study and advanced planning document (APD) for the MEDS Modernization Project. An RFP for the Medi-Cal Program integrity data analytics is currently in development (Opportunity ID 69871).

South Dakota – The state issued an invitation to discuss and demonstrate (IDD) to review and research existing Medical assistance eligibility systems that comply with the Affordable Care Act (ACA) and preferably have existing or planned capability to support other programs such as SNAP, TANF, Child Care, Low Income Energy Assistance (LIEAP), and Child Support. The Department of Social Services is now planning an RFP for an integrated eligibility system (Opportunity ID 83922).

Washington – In 2013, the Washington State Legislature passed Senate Bill 5034, directing a study of the state’s medical and public assistance eligibility systems and infrastructure with the goal of simplifying procedures and reducing state expenditures. PCG was awarded the contract to conduct the Medical and Public Assistance Eligibility Study, which was published in September 2014. The state may continue to make efforts to modernize the medical and public assistance eligibility systems (Opp ID 104365).

Analyst’s Take

Now that 90/10 funding has been made permanent and the A-87 waiver is extended until December 2018, states will continue to make upgrades to eligibility systems, which could yield significant business opportunities for vendors. Deloitte is the dominant vendor in this space, currently holding contracts in more than 15 states. Other vendors holding contracts in multiple states include Accenture, IBM, Northrop Grumman, KPMG, HP, and Maximus. Contract values for eligibility modernization projects vary significantly based on the size of the state and scope of the project. Contracts for Medicaid eligibility modernization average between $20-50 million, while IES projects that include major system overhauls can exceed $100 million.

Many states that have recently integrated health insurance program eligibility systems may now look to incorporate human services programs, starting the next wave of procurement activity. As Deltek continues to track upcoming eligibility projects, we encourage vendors to keep an eye on the above mentioned projects and expect to see more eligibility-related opportunities thanks to this funding extension.


Deltek Pulse: Health and human services, September 2014

In September 2014, Deltek saw the release of 796 solicitations from the health and human services vertical – an 11 percent decrease from August.

Notable RFP releases in September include:

You can learn more about current procurement opportunities in the GovWin IQ State and Local Opportunities database. Not a Deltek subscriber? Click here to learn more about Deltek's GovWin IQ service and gain access to a free trial.

Mobility a must for state social services programs

Over the last 2-3 years, state governments have seen an increase in mobile traffic to health and human services websites. A recent Government Technology article highlighted this trend, noting that half of all traffic to Georgia’s child support website in 2012 came from mobile phones. Similarly, one in three visits to the New Jersey child support website in 2013 came from a mobile device. In response, many state IT departments are adopting “mobile first” strategies to ensure that information and benefits are easily accessible via mobile technologies, which are oftentimes the sole source of Internet access for many state residents.
Several states have pioneered smartphone apps for social services programs, which participants can download to quickly get information about their benefits or to access additional resources. New Jersey and California have developed child support phone apps to help recipients manage child support accounts on the go. Georgia has developed Quickwic, an app for WIC participants who want instant access to their benefits and information about eligible purchases. The Connecticut Health Insurance Marketplace, Access Health CT, developed a smartphone app that makes it easier for residents to browse healthcare plans and submit applications, even allowing residents to take photos of their verification documents and upload them to their account.
Deltek predicts an increase in user-friendly, mobile-enabled Web applications that make it easier for both caseworkers and constituents to access the information and resources they need. Vendors who emphasize mobile-first strategies or the importance of mobile-friendly software applications will stand out to state governments looking for innovative health and social services solutions. Pennsylvania announced that it is considering a mobile app for WIC payments, and many other states are looking for ways to make their health and social services programs more mobile friendly. To learn more about upcoming health and human services IT business opportunities, be sure to visit the State & Local Vertical Profiles for Health Care and Social Services. Not a Deltek subscriber? Click here to learn more about Deltek's GovWin IQ service and gain access to a free trial.



Deltek Pulse: Health and human services month in review, May 2014

In May 2014, the health and human services team saw the release of approximately 1,170 solicitations with either heath care or social services as a primary vertical. The word cloud below represents the frequency of terms in those solicitations. 

As one can see from the below map, California and Texas and saw the largest number of health and human services-related opportunities, while the state of Wyoming had no related activity.

Notable Opportunities

·         The Wisconsin Department of Health released a request for information (RFI) on May 2 for a comprehensive electronic health records (EHR) system. The department is interested in receiving information on a comprehensive EHR system that meets the needs for health care delivery organizations located throughout the state in support of client, inpatient and resident long-term care services for those in need of behavioral health and acute and primary care treatment.

·         The Washington Department of Social and Health Services re-released a request for proposals (RFP) for Medicare connectivity replacement services on May 27. Proposals are due on July 3.

·         The Florida Agency for Health Care Administration released an RFI on May 9 for Medicaid recovery audit contractor (RAC) services to identify overpayments by Medicaid providers in the fee-for-service model. The Medicaid RAC would supplement existing audit programs.

·         The Oregon Health Authority (OHA) may release a rebid RFP for health information exchange services. The current contract is held by Harris Corporation and is set to expire in January 2015. OHA is currently procuring a consultant to provide technical expertise to support OHA’s efforts to plan, define, develop, implement, and operate a state-level health information technology (HIT)/health information exchange (HIE) infrastructure, and related HIT/HIE statewide efforts to support the transformation of health care in Oregon. 

Analyst’s Take

The month of May certainly brought several notable opportunities in the health care and human services space, and states will continue to enhance infrastructure within their departments to improve and streamline various eligibility and claims processes.

You can learn more about current procurement opportunities in the GovWin IQ State and Local Opportunities database. Not a Deltek subscriber? Click here to learn more about Deltek's GovWin IQ service and gain access to a free trial.



Deltek Pulse: Health and human services month in review, April 2014

As the nation thawed out from one of the most brutal winters in modern memory, Deltek’s Health and Human Services Team also felt a significant uptick in activity across the states in April. Even casual observers of national news heard that enrollment in health insurance through a government exchange ended in March, and the Obama Administration immediately claimed victory, touting enrollments above its 7 million people goal.

Most recently we saw the government release demographic data for enrollees, including age and race, but information key to understanding the law’s success or lack thereof has yet to be released. Specifically, we’re awaiting data on how many enrollees were previously uninsured, how many enrollees are paying their premiums, and what effect the new population will have on current insurance premiums.

However, this national preoccupation with the political and practical ramifications of the Affordable Care Act (ACA) did not distract states from making some progress with a number of health and human services projects. In April, state and local governments released more than 900 health and human services opportunities. The word cloud below represents the frequency of terms found in those solicitations.

As one can see from the map below, California accounts for 11 percent of the total opportunities released in April. Texas, Virginia and Maryland also released a large number of health and human services solicitations.

Notable Opportunities

  • The Maryland Health Benefit Exchange (HIX) released an RFP for independent verification and validation (IV&V) services for the state’s HIX. After a failed state-based exchange, Maryland is now transferring the Deloitte solution used by the state of Connecticut. The IV&V opportunity focuses on the transfer effort. Proposals are due by May 16.
  • The Massachusetts Executive Office of Labor and Workforce Development released an RFP for maintenance and support of its unemployment insurance online system. Proposals are due by May 23.
  • The New Hampshire Department of Health and Human Services awarded a contract to Scientific Technologies Corporation on April 23 for an immunization information system

Analyst’s Take

An uptick in procurements will likely continue until the end of the fiscal year, which is June for many states. As election season heats up in the coming months, we are looking for heightened polarization of rhetoric by candidates and officeholders alike. Nowhere will this polarization be more evident than in discussions regarding the future of health insurance exchanges, Medicaid expansion, and the success of the ACA. Though debate will heat up, it is unlikely that any major policy changes will occur until after the November midterm elections.

GovWin IQ subscribers can read further about these projects in the provided links. Not a Deltek subscriber? Click here to learn more about Deltek's GovWin IQ service and gain access to a free trial.  


Governors focusing on educational performance, corrections, and mental health

2014 finds the governors as committed as ever to their growth agendas launched over the previous two year. Continued budget surpluses open the door to state innovation and experimentation.

Each year Deltek compiles the forward-looking agenda items from each of the governors' state of the state addresses.  This year found some interesting shifts in the areas of emphasis.  States have been out of recession for more than two years now, and governors have been ambitious with their agendas.

Deltek classifies each of the governors' agenda items by vertical (as shown in Figure 1 below).  We also track the popularity of each vertical as compared to the recent trend.  For 2014, Education, Justice/Public Safety, and Social Services are the stand-out verticals.

Figure 1. 2014 Agenda Item Popularity vs. 2012-2014 Average, by Deltek Vertical

Source: Deltek

Deltek also subclassifies each agenda item below the vertical level (not shown above).  In the Education vertical, the governors were specifically interested in improved performance for Pre-K through 12 public education.  They are also keen to blend high school education into the two- and four-year higher educations systems to create a seamless pipeline of educational attainment for workforce development purposes.  Containment of higher education tuition costs is also a significant interest and a key part of performance measurement for these institutions.

Corrections continues to dominate the Justice/Public Safety vertical, where governors want to contain costs by moving non-violent offenders to community supervision.  They also want to develop better processes for reintroducing ex-cons back into society and the workforce.  This year marks the first time government have begun to look at the economic impacts of incarceration as well as the fiscal impacts.

Governor interest in Social Services increased for the first time since the recession.  With little federal direction in this area, the vertical has been adrift.  However, this year found governors interested in addressing public mental health concerns, driven in part by school shootings, veterans, and drug addiction.  Drug addiction and treatment, given recent upswings in crystal meth and heroine usage, has emerged a top level priority.

Learn more at our FREE upcoming webinar (May 8th).

More detailed information for all of the verticals covered in Deltek's recent report "State of the State, 2014." The report is available for immediate download by Deltek State & Local Industry Analysis subscribers.  It can be purchased online by those who are not subscribers.  The report comes with a spreadsheet that includes all of the governors agenda items categorized for easy sorting and reference by market strategists.


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