Deltek Pulse: Health and Human Services Q1 2020 in Review

Solicitation activity in the State, Local and Education (SLED) Health and Human Services (HHS) market in Q1 2020 (January-March) experienced a significant increase of 141% compared to solicitations in Q4 2019 (October-December). Over 12,100 bids were released in Q1 of this year, while around 5,000 came out in the last quarter of 2019. Solicitations in Q1 were released by over 5,200 different buying organizations, which gave prospective vendors an average of 33 days to submit bids. The top primary requirement in Q1 by a long shot was Information Technology, which was associated with over 7,000 solicitations. This was followed by Professional Services, Health Services, Architecture, Engineering and Construction, Social Services, and Medical and Scientific Equipment, all of which were associated with around 1,000 solicitations. Similarly to last quarter, the smallest primary requirement in Q1 was Operations and Maintenance.

Notable Solicitation Releases

Between January and March, 38 solicitations were released related to HHS core technologies and services. Based on Deltek’s contract value estimates, the average value of these solicitations is $19 million, while their total value is $727 million.

Due to the ongoing coronavirus pandemic, many proposal due dates for solicitations released in Q1 have been extended. Interested vendors can still bid on the following solicitations:

• LINK IV Electronic Benefits Transfer System (LINK EBT) – The Illinois Department of Human Services released a request for proposals (RFP) for a new EBT solution that builds off of their current LINK III system. Based on the incumbent contract, this opportunity is expected to be worth nearly $120 million. According to the RFP, the resulting contract will have an initial term of five years, and can be extended for another five after that. Proposals are due on June 3, 2020.
• External Quality Review Organization (EQRO) – The California Department of Health Care Services is seeking proposals from vendors that can perform external quality review of the state’s Medicaid managed care program. The RFP outlines a total contract value of $31.4 million over an initial three-year term. There is also an option to renew for two additional years. Proposals are due on June 8, 2020. 
• Ohio Medicaid Enterprise System Financial Intermediary (OMES) – The Ohio Department of Medicaid has a requirement for fiscal intermediary services to support the state’s Medicaid enterprise system. The resulting contract has an anticipated value between $10 million and $20 million, and will last for three years. Proposals are due on May 22, 2020.
• Asset Verification System – The New York State Department of Health is soliciting proposals for an electronic system that verifies disclosed and undisclosed assets for purposes of determining and re-determining Medicaid eligibility. This opportunity has an estimated value between $4 million and $8 million and will have a five-year base term. Proposals are due on July 12, 2020.

Notable Awards

During Q1, eleven contracts were awarded related to HHS core technologies and services. These awards have an average value of $9 million and a total value of $99 million. Notable awards include:

• Technical Support for the Child Support Enforcement of Maine and Associated Applications System (CSEME) – The Maine Department of Health and Human Services awarded a contract to Protech Solutions to provide a technical support and maintenance team for the CSEME Core and/or Associated Applications system. This contract initially expires in December 2023, with options to renew for eight additional years after that, and is worth approximately $9.5 million.
• Independent Verification and Validation/Quality Assurance Services (IV&V/QA) – The New York State Department of Labor selected Public Consulting Group to provide these services in support of the New York Unemployment Insurance System Improvement Project. This contract expires in March 2025 and is valued at approximately $5.5 million.
• Electronic Visit Verification Solution (EVV) – The Nebraska Department of Administrative Services awarded a contract to 4Tellus for the state’s EVV module, which is a key component of the state’s Medicaid enterprise system. This contract expires in March 2025, with options to renew for six years after that, and is worth almost $5 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.