CMS Awards Up-To-$15B Virtual Datacenter Contract

Mary Mosquera | Government Health IT | November 20, 2012

The Centers for Medicare and Medicaid Services has awarded a 10-year contract valued at up to $15 billion to eight vendors to compete to build various aspects of a virtual datacenter, which will provide the agency’s IT infrastructure and services that operate its business systems and better safeguard its healthcare information.

CMS needs to move to a virtual datacenter because of the growing data demand on the agency related to implementation of the health reform law, the Medicare and Medicaid Electronic Health Record Incentive Program and other quality reporting programs, the increasing Medicare beneficiary population, and the government-wide datacenter consolidation initiative.

Under the indefinite delivery/indefinite quantity (IDIQ) contracts, the vendors will vie for individual task orders in the development and implementation of the virtual datacenter, including fee-for-service claims processing and the national data warehouse application hosting services, according to a Nov. 15 award announcement  in Federal Business Opportunities...