Deltek Pulse: Health and Human Services Q2 2021 in Review
Published: July 07, 2021
SLED Market AnalysisArchitecture Engineering and ConstructionCHILDREN AND FAMILIES, DEPARTMENT OF (FLORIDA)Contract AwardsContracting TrendsDEVELOPMENTAL SERVICES, DEPARTMENT OF (CALIFORNIA)EMPLOYMENT, DEPARTMENT OF (OREGON)FINANCE AND ADMINISTRATION CABINET, KENTUCKY (KENTUCKY)Forecasts and SpendingHEALTH AND SOCIAL SERVICES, DEPARTMENT OF (ALASKA)Health CareHealth CareHEALTH CARE COMMISSION (MARYLAND)Health Information TechnologyHealth ITHealth ServicesInformation TechnologyMedicaid Management Information SystemsMedical & Scientific EquipmentOperations & MaintenanceOpportunitiesProcurementProfessional ServicesSocial ServicesSocial ServicesSocial ServicesSpending TrendsSupplemental Nutrition Assistance ProgramUnemployment InsuranceWomen, Infants, and Children
A recap of procurement activity in the SLED Health and Human Services market in Q2 2021.
Solicitation activity in the State, Local and Education (SLED) Health and Human Services (HHS) market in Q2 2021 (April-June) experienced a nearly 8% increase from the previous quarter. Bid activity has been steadily increasing each quarter, coming back from a slight decline in activity in the previous year due to the COVID-19 pandemic. 7,579 bids were released in Q2, 566 more than the 7,013 bids that were released in Q1. The number of different buying organizations increased between the two quarters by 58 entities, and vendors had an average of 36 days to respond to released bids, a large decrease from the previous 86 day average in Q1. The top primary requirements changed slightly between the two quarters, with the top three being Health Services, Professional Services, and Social Services. Procurement activity has been experiencing consistent growth through the beginning of 2021, and vendors should expect this growth to continue through the year.
Notable Solicitation Releases
Between April and June, 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 are $27 million, while their total value amounted to $400 million.
- Electronic Benefits Transfer (EBT)/Electronic Funds Transfer (EFT) Services – The Florida Department of Children and Families’ Economic Self-Sufficiency (ESS) Program Office, in conjunction with the Department of Health’s Special Supplemental Nutrition Program for Women, Infants, and Children released an Invitation to Negotiate (ITN) to issue program benefits to eligible recipients in the State of Florida. Based on the incumbent contract, the anticipated value of this project is around $112,000,000. The ITN outlines a contract term of five base years, with five years’ worth of renewal options. Proposals are due on September 9, 2021.
- Medicaid Management Information System (MMIS) Fiscal Agent Services – The Alaska Department of Health and Social Services is soliciting proposals from qualified and experienced firms to provide statewide services to take over and operate the administrative and clinical aspects of the current Medicaid program, including fiscal agent services and related operations. The Department estimates a budget of between $90,000,000 and $135,000,000 for this project. The project has an anticipated duration of three years, with five one-year renewal options. Proposals are due on July 30, 2021.
- Data Management for the Maryland Medical Care Data Base (MCDB) – The MDCB is a large-scale database that collects and aggregates eligibility data, professional services claims, institutional services claims, pharmacy (prescription drug) claims, dental claims, and provider data for Maryland residents and non-residents whose health insurance contracts were written or sold in Maryland, enrolled in private insurance, Medicaid Fee-For-Service (FFS), Medicaid Managed Care Organizations, (MCO), and Medicare FFS plans. The estimated value of this project as based on the current contract is $10,500,000, and has an anticipated contract term of seven years. Proposals are due on July 12, 2021.
During Q2, 17 contracts were awarded related to HHS core technologies and services. These awards have an average value of $15 million and a total value of $247 million. Notable awards include:
- Systems Integrator (SI) Services – The Kentucky Finance and Administration Cabinet, on behalf of the Department for Medicaid Services, awarded a contract to Health Tech Solutions, LLC for Systems Integrator (SI) Services to support the Kentucky Medicaid Enterprise Management System (MEMS) replacement. The contract has a five year base term, with three additional one-year renewal options. The contract is valued at $47,320,906.
- Integrated Unemployment Insurance (UI) Solution – The Oregon Department of Administrative Services, on behalf of the Oregon Employment Department, awarded a contract to Fast Enterprises to fulfill their requirement for an Integrated Unemployment Insurance (UI) Solution that supports all function and processes of the Department’s UI program for tax and benefits. The contract has a value of $60,043,000.
- Reimbursement System – The California Department of Developmental Services awarded a contract to FEI.com, Inc. to modernize the current legacy, mainframe technology stack for a flexible, scalable, and modifiable system that permits the creation of new reimbursement programs and the modifications of existing reimbursement programs. The contract has a three year base term with four years’ of renewal options, and a value of $10,444,053.