Deltek Pulse: Health and Human Services Q4 2020 in Review
Published: January 08, 2021
SLED Market AnalysisADMINISTRATIVE SERVICES, DEPARTMENT OF (OHIO)Architecture Engineering and ConstructionChild CareChildren's Health Insurance ProgramContract AwardsContracting TrendsHEALTH AND HUMAN SERVICES (TEXAS)Health CareHEALTH CARE COST CONTAINMENT SYSTEM, ARIZONA (ARIZONA)Health ITHealth ServicesHUMAN SERVICES, DEPARTMENT OF (PENNSYLVANIA)HUMAN SERVICES, DEPARTMENT OF (HAWAII)Information TechnologyINFORMATION TECHNOLOGY SERVICES, OFFICE OF (NEW YORK)Medicaid Management Information SystemsMEDICAID, DEPARTMENT OF (OHIO)Medical & Scientific EquipmentMENTAL HEALTH, DEPARTMENT OF (ALABAMA)Operations & MaintenanceOpportunitiesProcurementProfessional ServicesSocial ServicesSpending TrendsSupplemental Nutrition Assistance ProgramTemporary Assistance for Needy Families
A recap of procurement activity in the SLED Health and Human Services market in Q4 2020.
Solicitation activity in the State, Local and Education (SLED) Health and Human Services (HHS) market in Q4 2020 (October-December) experienced a minor 8% 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 continued to do so in Q4. 6,700 bids were released in Q4, 500 more than the 6,200 released in Q3. The number of different buying organizations increased slightly between those two quarters, by only about 400 entities, and vendors had an average of 29 days to respond to released bids. The top primary requirements remained the same between the two quarters, with the top three being Information Technology, Health Services, and Professional Services. Overall, procurement activity experienced consistent growth over the second half of 2020. Vendors should expect this modest, yet consistent, growth to continue in 2021, barring any major lockdowns that may be put in place again.
Notable Solicitation Releases
Between October and December, 13 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 $7 million, while their total value was $92 million.
Interested vendors can still bid on the following solicitations:
- Electronic Benefits Transfer (EBT) and Related Services – The Pennsylvania Department of Human Services issued a request for proposals (RFP) for the ongoing operation of the state’s EBT system and supporting services. Based on the incumbent contract, the anticipated value of this project is around $20 million. The RFP outlines a contract term of five base years, with four years’ worth of renewal options. Because of a delay in responding to vendor inquiries, the agency has extended the due date for submitting proposals, but that date is yet to be determined.
- Vendor Drug Program (VDP) Pharmacy Benefit Services (PBS) Modernization (VPM) Solution – The Texas Health and Human Services Commission is seeking a qualified contractor to administer and modernize all aspects of the VDP by providing a flexible, integrated, and clinical evidence-based approach to managing drug utilization. The estimated contract value is between $5 million and $10 million, while the RFP outlines a term of five base years, with three one-year renewal options. Questions are due on January 18, while proposals are due on February 18, 2021. The agency also anticipates holding vendor demonstrations in May 2021.
- Information Management System – The Alabama Department of Mental Health has a requirement for the acquisition and implementation of a comprehensive IT system to support Alabamans with developmental disabilities. The resulting contract has an estimated value of up to $10 million and a maximum four-year term. Proposals are due on January 22, 2021.
- QUEST Integration (QI) Managed Care to Cover Medicaid and Other Eligible Individuals – The Hawaii Department of Human Services is looking to secure contracts with up to five health plans for the provision of covered services to eligible Medicaid and Children’s Health Insurance Program (CHIP) members for medical, behavioral health, and long term supports and services. The projected value of this project is around $10 million, while the projected contract term is around four years. Questions are due on January 11, Intents to Submit are due on January 25, and Proposals are due on February 15, 2021.
During Q4, 21 contracts were awarded related to HHS core technologies and services. These awards had an average value of $18 million and a total value of $383 million. Notable awards include:
- HEAplus Maintenance and Operations – The Arizona Health Care Cost Containment System awarded a contract to Accenture for the maintenance and operations of the state’s HEAplus eligibility system. The contract has a term of three base years, with two one-year renewals, and is worth $121,341,615.
- IES System Integrator Master Service Agreements – The New York State Office of Information Technology Services has awarded several contracts for master service agreements to support the state’s integrated eligibility system (IES). The awarded vendors are Accenture, CSRA, Deloitte, GCOM, Infosys, NTT Data, Optum, Spruce Technology, and Unisys. Each contract has a base term of five years, with three years’ worth of renewals. While each contract’s value is unknown, the total estimated value of this project is around $100 million.
- Electronic Data Interchange (EDI) Services – The Ohio Department of Administrative Services, on behalf of the Ohio Department of Medicaid, has selected Deloitte to fulfill its requirement for EDI services. The contract’s total term is 10 years, and its value over those 10 years is $31,995,830.36.
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.