EDS Awarded $92 Million Contract for CMS Enterprise Data Center

EDS, the largest provider of Medicare fee-for-service data center operations, has been awarded the third task order under the Centers for Medicare & Medicaid Services (CMS) Enterprise Data Center Indefinite Delivery/Indefinite Quantity contract vehicle. The task order contains a one-year base period with five additional one-year options with a potential value of $92 million if all of the options are exercised.

Under the new task order, EDS will host applications that process Medicare claims for services at doctors’ offices and hospitals in 12 states: California, Hawaii, Iowa, Kansas, Maine, Massachusetts, Missouri, Nebraska, Nevada, New Hampshire, Rhode Island and Vermont. EDS will provide 24×7 application hosting and production support services for approximately 180 million Medicare claims within these states.

"This represents a continuation of EDS’ work supporting the Medicare program for nearly four decades," said Jim Duffey, EDS general manager, U.S. Public Sector. "We are proud that CMS has selected EDS for three of the four EDC task orders it has awarded so far."

EDS is one of three companies competing for task orders under the 10-year, $1.9 billion Enterprise Data Center (EDC) contract awarded in March 2006. CMS is using the contract to consolidate data center operations supporting mainframe and client server applications. That work, currently performed at more than 20 different facilities, will be consolidated into four data centers, saving CMS hundreds of millions of dollars over the ten year contract period.

"The Enterprise Data Centers will be the hub of the CMS IT infrastructure for the next decade and is central to its modernization initiatives," said Don Picard, EDS vice president of Federal Civilian Healthcare. "With this latest task order, EDS will help CMS improve services to those filing Medicare claims and to apply more efficient business processes to drive cost savings."

In March 2006, CMS awarded EDS a task order to perform similar functions in six other states. In June 2006, CMS awarded EDS an EDC task order to provide web hosting services to support CMS’ outward facing websites.

EDS is the nation’s largest provider of Medicare process management services, administering $95 billion in benefits a year. EDS administers $8.9 billion in Medicare benefits annually and processes about 316 million Medicare fee-for-service claims each year. EDS maintains the Medicare Part B Standard System, used to process more than 800 million claims annually and is the largest CMS Program Safeguard Contractor providing fraud, waste and abuse detection services in a variety of states.