Deltek Pulse: Health and Human Services Q3 2020 in Review

Published: October 06, 2020

SLED Market AnalysisArchitecture Engineering and ConstructionChild WelfareCHILDREN AND FAMILY SERVICES, DEPARTMENT OF (ILLINOIS)Children's Health Insurance ProgramContract AwardsContracting TrendsHEALTH AND HUMAN SERVICES (TEXAS)Health CareHealth ITHealth ServicesInformation TechnologyMedicaid Management Information SystemsMEDICAID, DEPARTMENT OF (OHIO)Medical & Scientific EquipmentOperations & MaintenanceOpportunitiesProcurementProfessional ServicesPUBLIC HEALTH AND HUMAN SERVICES, DEPARTMENT OF (MONTANA)Social ServicesSOCIAL SERVICES, DEPARTMENT OF (MISSOURI)Spending TrendsSupplemental Nutrition Assistance ProgramTEMPORARY AND DISABILITY ASSISTANCE, OFFICE OF (NEW YORK)Temporary Assistance for Needy Families Women, Infants, and Children

A recap of procurement activity in the SLED Health and Human Services market in Q3 2020.

Solicitation activity in the State, Local and Education (SLED) Health and Human Services (HHS) market in Q3 2020 (July-September) experienced a modest increase of 14% from the previous quarter. After a significant decline in bid activity in Q2 due to the COVID-19 pandemic, procurement activity picked up slightly in Q3 as governments reassessed their budgets and spending. Approximately 6,000 bids were released in Q3 compared to approximately 5,000 in Q2. The number of different buying organizations also grew slightly between the two quarters, by about 700 entities. Additionally, vendors had approximately 34 days to respond to bids released in Q3. The top primary requirements shifted between the two most recent quarters. In Q3, Information Technology became the top primary requirement, followed by Health Services and Professional Services. The top three were followed by Social Services, Medical & Scientific Equipment, Architecture Engineering and Construction, and Operations & Maintenance – in that order for the number of bids associated with them.

Notable Solicitation Releases

Between July and September, 16 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 $1 billion, while their total value was $20 billion.

Interested vendors can still bid on the following solicitations:

  • Comprehensive Child Welfare Information System (CCWIS) Integrator and Modules Implementation – The Illinois Department of Children and Family Services released a request for proposals (RFP) for a system integrator that will partner with multiple subcontractors to replace the state’s legacy and mainframe systems with a modern, modular, CCWIS-compliant solution. The anticipated value of this project is between $5 million and $8 million, while the contract term is projected to be 10 years. This procurement is being conducted in two rounds; Round 2 includes a second pre-proposal conference on October 20 and 21, as well as a second question and answer period due on November 6, 2020. Proposals are due on December 4, 2020
  • Medicaid Managed Care Organizations – The Ohio Department of Medicaid issued a request for applications (RFA) to rebid their five incumbent managed care organizations (MCOs), which are responsible for covering all Medicaid state plan medical benefits. In terms of the budget, projected state fiscal year 2020 expenditures for Ohio's Medicaid Managed Care Program are $19.73 billion. A pre-proposal conference will be held on October 8, 2020. Both questions and the intent to submit are due on October 29, while proposals are due on November 2, 2020.
  • Electronic Aggregator Solution (EAS) for Electronic Visit Verification (EVV) – The Missouri Department of Social Services is seeking a qualified vendor to provide services to implement an aggregator solution that is modern and interoperable. The estimated value is $20 million dollars, while the contract term is set to be three base years, with 3 years’ worth of renewals. Proposals are due on October 13, 2020.
  • Northeast Coalition of States Electronic Benefit Transfer (EBT) – The New York Office of Temporary and Disability Assistance is soliciting EBT services to support the SNAP and WIC programs. The state is soliciting these services on behalf of the Northeast Coalition of States, which includes Connecticut, New Hampshire, New York, Rhode Island, Vermont, Maine, and Massachusetts. Based on the incumbent contract, this project is valued at approximately $80 million. The projected contract term is seven base years, with two years’ worth of renewals. A pre-proposal conference will take place on October 8, 2020. Questions are due on October 22, while proposals are due on December 17, 2020

Notable Awards

During Q3, 11 contracts were awarded related to HHS core technologies and services. These awards had an average value of $33 million and a total value of $358 million. Notable awards include:

  • Enrollment Broker Operations – The Texas Health and Human Services Commission awarded Maximus a contract to implement and operate a Medicaid enrollment process. This contract has a four-year base term, with the option to renew for four additional years. The estimated worth is over $200 million.
  • Claims Processing and Management Services for Montana’s Program for Automating and Transforming Healthcare (MPATH) – The Montana Department of Public Health and Human Services selected five vendors to fulfill their need for a claims processing and management services module: Optum, CNSI, Conduent, Infocrossing, and DXC. This procurement is a multi-state cooperative procurement initiative through NASPO ValuePoint. Other participating states include Utah, Vermont, Idaho, Oklahoma, Nebraska, Connecticut, Missouri, and Georgia. Contract values and terms will vary by state.

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