Deltek Pulse: Health and Human Services Q1 2021 in Review

Published: April 07, 2021

SLED Market AnalysisADMINISTRATION, DEPARTMENT OF (RHODE ISLAND)Architecture Engineering and ConstructionChild WelfareCHILDREN AND FAMILIES, DEPARTMENT OF (MASSACHUSETTS)Contract AwardsContracting TrendsGENERAL SERVICES, DEPARTMENT OF (TENNESSEE)HEALTH AND FAMILY SERVICES CABINET, KENTUCKY (KENTUCKY)Health CareHealth Information TechnologyHealth Insurance ExchangeHealth ITHealth ServicesHUMAN SERVICES, DEPARTMENT OF (HAWAII)Information TechnologyMedicaid Management Information SystemsMedical & Scientific EquipmentOperations & MaintenanceOpportunitiesProcurementProfessional ServicesPUBLIC EMPLOYEE BENEFIT AUTHORITY, SOUTH CAROLINA (SOUTH CAROLINA)Social ServicesSocial ServicesSpending TrendsTECHNOLOGY, DEPARTMENT OF (CALIFORNIA)Unemployment InsuranceWORKFORCE COMMISSION (TEXAS)

A recap of procurement activity in the SLED Health and Human Services market in Q1 2021.

Solicitation activity in the State, Local and Education (SLED) Health and Human Services (HHS) market in Q1 2021 (January-March) experienced a nearly 4% increase from the previous quarter. Last year, bid activity declined significantly in Q2 due to the COVID-19 pandemic, but picked back up in Q3 and has continued to do so steadily through Q1 2021. 7,013 bids were released in Q1, 229 more than the 6,784 released in Q4. The number of different buying organizations decreased between those two quarters by 431 entities, and vendors had an average of 86 days to respond to released bids. The top primary requirements remained the same between the two quarters, with the top three being Health Services, Professional Services, and Information Technology. Procurement activity has been experiencing consistent growth over the remainder of 2021 into the beginning of 2021, and vendors should expect this growth to continue through 2021.

Notable Solicitation Releases

Between January and March, 15 notable solicitations were released related to HHS core technologies and services. Based on Deltek’s contract value estimates, the average value of these solicitations was $21 million, while their total value was $317 million.

Interested vendors can still bid on the following solicitations:

  • Medicaid Enterprise System (MES) Planning Vendor and Project Management Office (PMO) – The Rhode Island Department of Administration on behalf of the Executive Office of Health and Human Services issued a Request for Proposals (RFP) to partner with a vendor to develop a user-centered, iterative, modular, outcomes-focused approach to the design, development, and implementation of system modules to replace, modernize, strengthen or supplement the existing legacy Medicaid Management Information System (MMIS). Based on the incumbent contract, the anticipated value of this project is around $136,470,000. The RFP outlines a contract term of three base years, with four years’ worth of renewal options. Proposals remain due on April 29, 2021.
  • TennCare Member Medical Appeals Independent Review Organization (IRO) – The Department of General Services, on behalf of the Division of TennCare intends to secure a contract with a URAC-accredited Independent Review Organization (IRO) for the provision of independent medical necessity reviews, and expert medical opinion testimony related to TennCare member benefit appeals. The estimated contract value is approximately $76 million, while the RFP outlines a term of three base years, with two one-year renewal options. Proposals are due on April 26, 2021.
  • Child Welfare Services-California Automated Response and Engagement System (CWS-CARES) Implementation Services - The California Department of Technology (CDT), Statewide Technology Procurement (STP), on behalf of the California Health and Human Services Agency (CHHSA), Office of Systems Integration (OSI) is replacing the State’s legacy child welfare systems, including the Child Welfare Services/Case Management System (CES/CMS), the Licensing Information System (LIS), and the Field Automation System (FAS), with the new CWS-CARES. The resulting contract has an estimated value of $40 million, and a three year base term with two, one-year renewal options. Responses are due on May 6, and vendor demonstrations will be held on Mary 26-28, 2021. The proposed contract start date is anticipated to be July 9, 2021.
  • Congregate Care Network – The Massachusetts Department of Children and Families  seeks to drive innovation in congregate care programming that will yield a congregate care network with capacity to meet the diverse and complex needs of children, adolescents, and young adults who require the 24/7 therapeutic milieu available in congregate care programs. The projected value of the project is between $10 million and $15 million with a base term of six years. The RFP outlines three addition two-year renewal options. Proposals are due on May 3, 2021.

Notable Awards

During Q1, 18 contracts were awarded related to HHS core technologies and services. These awards had an average value of $18 million and a total value of $324 million. Notable awards include:

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