Deltek Pulse: Health and Human Services Q4 2021 in Review

Solicitation activity in the State, Local and Education (SLED) Health and Human Services (HHS) market in Q4 2021 (October – December) experienced a large increase in activity from the previous quarter, nearly 34%. Bid activity had been steadily increasing each quarter, yet Q3 saw a slight dip in the trajectory of growth. However, Q4 saw a total release of 8,989 bids, 2,248 more than the previous 6,741 bids released in Q3. The total number of buying organizations also experienced an increase between the two quarters by 1,426 entities, and vendors had an average number of 46 days to respond to released bids, far less than the previous 473 day average in Q3. The top primary requirements also changed, with the top three being Architecture, Engineering & Construction, Health Services, IT Services, Information Technology, and Medical & Scientific Equipment. Bid activity is expected to steadily increase in 2022 as governments navigate through current needs to address pressing issues at hand.

Notable Solicitation Releases

Between October and December, 18 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 $22 million, while their total value amounts to $397 million.

• Unemployment Insurance (UI) Benefits System – The Tennessee Department of Labor and Workforce Development is soliciting proposals for an Unemployment Insurance (UI) Benefits System. The estimated value of this project as based on projects of similar size and scope is $40 million. As for the duration of the contract, the Contractor shall complete all design, development, and implementation work within an initial twenty-four (24) month period. After the system has been implemented and is considered operational, the Contractor shall provide for a post-implementation period of an additional twelve (12) months, focusing on error correction, stabilization, and additional training and support while the State prepares to take over long-term maintenance and operations. The State reserves the right to execute up to four (4) renewal options for maintenance under the same terms and conditions for a period not to exceed twelve (12) months each. The total Contract Term shall not exceed eighty-four (84) months. Proposals are due on February 28, 2022.
• Ohana Conferencing Services – The Hawaii Department of Human Services (DHS), Child Welfare Services (CWS) Branch, released a Request for Proposals (RFP) for Ohana Conferencing Services. Total contract funding for this project is anticipated to be $3,726,344.00 per fiscal year. Should the full term of the contract be used, the contract total can go up to $22,358,064.00. The contracts shall be awarded for an initial term of two (2) years with the possibility of two (2) extensions for two (2) years each thereafter, subject to the availability of State and federal funds and the satisfactory performance of services by the Provider as determined by the DHS. The maximum contract term shall not exceed six (6) years, July 1, 2022 through June 30, 2028. Proposals remain due on March 2, 2022.
• Medicaid Managed Care Services – The Rhode Island Department of Administration, on behalf of the Executive Office of Health and Human Services, has a requirement for Medicaid Managed Care Services. The estimated value of this project as based on projects of similar size and scope is between $20 million and $25 million. This contract is expected to have a five year base term with three additional one-year renewal options. Proposals are due on January 28, 2022.
• Integrated Eligibility System (IES) – The Illinois Departments of Healthcare and Family Services (HFS), Human Services (DHS), and Innovation and Technology (DoIT) are soliciting a proposal for an Integrated Eligibility System (IES). The estimated value of this project as based on the current contract is $145 million, and has an anticipated contract term of three years with seven additional one-year renewal options. Proposals remain due on January 25, 2022.

Q4 Notable Awards

During Q4, 13 contracts were awarded related to HHS core technologies and services. These awards have an average value of $8 million and a total value of $104 million. Notable awards include:

• Connecticut Child Support Enforcement System (CCSES) Replacement Design, Development and Implementation Project – The Connecticut Department of Administrative Services (DAS), on behalf of the Department of Social Services (DSS) awarded a contract to Protech Solutions, Inc. to fulfill its requirement for the Connecticut Child Support Enforcement System (CCSES) Replacement Design, Development and Implementation Project. The contract is in effect from October 1, 2021 through March 31, 2026. DAS, in its sole discretion, may extend this Contract for additional terms beyond the Term, prior to Termination or expiration, one or more times for a combined total period not to exceed the complete length of the Term. The awarded contract is valued at $43 million.
• Document Processing Services - The Texas Health and Human Services Commission's (HHSC) requirement for Document Processing Services was awarded to Image API, LLC. The contract has a three year base term with two additional one-year renewal options, and has a total value of $12,714,539.25.
• Women, Infants, and Children (WIC) Management Information System (MIS) Transfer and Implementation (T&I) services – The Georgia Department of Public Health awarded a contract to GCOM Software, LLC for Women, Infants, and Children (WIC) Management Information System (MIS) Transfer and Implementation (T&I) services. The contract has a five year base term with five additional one-year renewal options, and is valued at $13.8 million.