Deltek Pulse: Health and Human Services Q2 2020 in Review

Published: July 06, 2020

SLED Market AnalysisADMINISTRATION, DEPARTMENT OF (ALASKA)Architecture Engineering and ConstructionChild CareChild Support EnforcementChild WelfareContract AwardsContracting TrendsHEALTH BENEFIT EXCHANGE, CALIFORNIA (CALIFORNIA)Health CareHealth Insurance ExchangeHealth ITHealth ServicesHUMAN SERVICES, DEPARTMENT OF (GEORGIA)HUMAN SERVICES, DEPARTMENT OF (PENNSYLVANIA)Information TechnologyMedicaid Management Information SystemsMedical & Scientific EquipmentOperations & MaintenanceOpportunitiesProcurementProfessional ServicesSocial ServicesSOCIAL SERVICES, DEPARTMENT OF (MISSOURI)Spending TrendsSupplemental Nutrition Assistance ProgramTECHNOLOGY, DEPARTMENT OF (CALIFORNIA)TECHNOLOGY, MANAGEMENT AND BUDGET, DEPARTMENT OF (MICHIGAN)Temporary Assistance for Needy Families

A recap of procurement activity in the SLED Health and Human Services market in Q2 2020.

Solicitation activity in the State, Local and Education (SLED) Health and Human Services (HHS) market in Q2 2020 (April-June) experienced a significant decrease of 45% from the previous quarter. This drop can be attributed to slow and, in some places, nonexistent government procurement activity during the quarter as a result of the coronavirus pandemic. While over 12,000 bids were released in Q1 of this year, only about 5,500 bids came out in Q2. As a result, the number of different buying organizations also decreased dramatically, from 5,200 in Q1 to 2,100 in Q2. Prospective vendors had an average of 35 days to respond to the bids that did come out. Primary requirements also shifted between the two quarters. In Q2, Health Services became the top primary requirement and was linked to nearly 1,500 bids. Professional Services was a close second, as it was associated with just under 1,200 bids. These were followed by Social Services, Information Technology, Medical and Scientific Equipment, Architecture, Engineering and Construction, and Operations and Maintenance, all of which were linked to around 600 bids each.

Notable Solicitation Releases

Between April and June, 11 solicitations were released related to HHS core technologies and services. Based on Deltek’s contract value estimates, the average value of these solicitations was $54 million, which their total value was $599 million. 

Due to the ongoing coronavirus pandemic, many proposal due dates for solicitations have been extended. Interested vendors can still bid on the following solicitations:

  • Comprehensive Business Planning Services – The Pennsylvania Department of Human Services released a request for proposals (RFP) for business services to support several agency programs, including Medicaid, child care, child welfare, and SNAP. Based on the incumbent contract, this opportunity is expected to be worth over $400 million. Additionally, the RFP outlines a contract term of five base years, with four one-year renewal options. Proposals are due on July 16, 2020.
  • California Automated Response and Engagement System Data Infrastructure (DI) - The California Department of Technology is procuring the data infrastructure to support the state’s new child welfare system. The anticipated value of this project is $40 million, while the contract term is set to be four base years, with a one-year renewal option. This procurement is being conducted in four phases, with the Phase 1 deadline on July 16, 2020.
  • Electronic Benefit Transfer and Branded Debit Card Services (EBT) – The Georgia Department of Human Services is seeking proposals from vendors that can provide the state with EBT and branded debit card services for SNAP, TANF, and Refugee Cash Assistance (RCA). The expected value is over $30 million, based on the incumbent contract. In terms of contract duration, the base term will be approximately one year, with ten one-year renewal options. Questions are due on July 31, Proposals are due on September 18, and vendor demonstrations are projected to take place in November 2020.
  • Beneficiary Support and Premium Collections Solution and Services – The Missouri Department of Social Services has a requirement for a comprehensive solution for Medicaid collections. The opportunity’s value is estimated to be over $30 million, based on the incumbent contract, while the RFP maintains that the contract will have a four-year term. Proposals are due on July 17, 2020.  

Notable Awards

During Q2, 14 contracts were awarded related to HHS core technologies and services. These awards had an average value of $16 million and a total value of $218 million. Notable awards include:

  • Call Center Services – The California Health Benefit Exchange awarded a contract for these services to Faneuil. This contract is currently set to expire in March 2024, with four years’ worth of renewal options following that. The maximum amount of this agreement is $80 million.
  • State Disbursement Unit for Child Support Payment Processing – The Michigan Department of Technology, Management and Budget selected Conduent State & Local Solutions to provide a state disbursement unit for the child support program. This contract will initially expire in ten years – in April 2030 – with another five years of renewals after that. Conduent is receiving nearly $50 million to execute this project.
  • Integrated Pension and Health Benefits Solution – The Alaska Department of Administration awarded a contract to Sagitec Solutions for this solution, and this agreement is currently set to expire in October 2024.

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.