Deltek Pulse: Health and Human Services Q3 2019 in Review

Solicitation activity in the State, Local and Education (SLED) Health and Human Services (HHS) market in Q3 2019 (July-September) experienced a 29% decrease compared to solicitations in Q2 (April-June). Around 5,300 bids were released in Q3, compared to a little over 7,500 bids during the previous quarter. Most solicitations in Q3 originated from state departments, followed closely by cities and counties. Additionally, given their size and population, New York, California, Texas, Florida, and Ohio were responsible for a significant amount of these bids.

In terms of primary requirements, Health Services and Professional Services were the two biggest ones in Q3. Following these, solicitations for Social Services, Architecture, Engineering and Construction, and Medical and Scientific Equipment were similar in numbers. The smallest primary requirements in Q3 were Information Technology, which experienced a notable decrease compared to Q2, and Operations and Maintenance.

Notable Solicitation Releases

Between July and September, almost 45 solicitations were released related to HHS core technologies. Over a third of these bids were associated with Medicaid Management Information Systems (MMIS), but other significant programs included child support and unemployment insurance. Hawaii, Kentucky, Rhode Island, and Texas in particular released more bids than other states.

Vendors can bid on the following solicitations:

• Virginia – The Department of Medical Assistance Services released a request for proposals (RFP) for Cover Virginia Operations. The agency is seeking a vendor to provide comprehensive call center and eligibility processing services to support the state’s Medicaid program. The anticipated value of this opportunity is between $2 and $6 million. According to the RFP, the resulting contract will have a five-year base term, with five one-year renewal options. Proposals are due on November 7, 2019.
• Kentucky – The Finance and Administration Cabinet, on behalf of the Cabinet for Health and Family Services, is seeking proposals for a Child Support State Disbursement Unit (SDU). The state is looking to obtain an SDU solution to assist with data collection and operations services. The projected term of this contract is two base years, with four one-year renewal options. Proposals are due on November 6, 2019.
• New Jersey – The Department of the Treasury, on behalf of the Department of Human Services, released an RFP a for Supplemental Nutrition Assistance Program (SNAP) Electronic Benefits Transfer (EBT). The agency is looking for a vendor to design, develop, implement, and convert the state’s existing Families First EBT system to a new and improved solution. Based on the incumbent contract, this opportunity could be worth between $30 and $35 million. Additionally, the RFP outlines a contract term of five base years, with two one-year renewal options. Proposals are due on January 14, 2020.
• New Mexico – The Department of Human Services has a requirement for Medicaid Enterprise Benefit Management Services (BMS) to support the state’s HHS 2020 initiative and MMIS replacement project. With this RFP, the state is seeking a vendor to configure, provide, and operate both the BMS module and a Care/Case Management Solution. As such, this solicitation will result in two contracts, but vendors may submit proposals for both components. This project has an estimated value of between $5 and $7 million, as well as an estimated contract term of four base years with four one-year renewals. Proposals are due on November 22, 2019.

Notable Awards

Over the course of Q3, 21 contracts were awarded related to HHS core technologies. The total value of these opportunities was $7 billion, while their average value was $330 million. Notable awards included:

• New York – The Workers’ Compensation Board (WCB) has awarded CapTech Ventures with a contract for WCB Systems Modernization. This contract expires in August 2022 and is worth just over $60 million.
• Pennsylvania – The Department of Human Services has selected Equifax as the successful vendor for Identity and Other Verification Services to support the agency’s main benefits programs. This contract expires in June 2022, with two one-year renewals after that, and is worth just over $20 million.
• Texas – The Department of State Health Services has awarded System13 with a contract for the Texas Health Care Information Collection (THCIC) Program. This contract was awarded in August 2019 and is valued at nearly $7 million.

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