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  5. ›CalHEERS SDMO RFP #73040873

Awarded contract·California Health and Human Services Agency·California

CalHEERS SDMO RFP #73040873

$1600MAwarded 8/24/2026Single Award
Contract source

Description

The CalHEERS SDMO contract calls for a single prime contractor to provide comprehensive system development, maintenance, and operations services for the California Healthcare Eligibility, Enrollment, and Retention System (CalHEERS). The work includes cloud‑hosted infrastructure on AWS, 24 × 7 service‑center and help‑desk support for over 1,000 concurrent users, ongoing application enhancements, data‑warehouse and analytics support, and future generative‑AI capabilities. The contract is a five‑year base term with five optional one‑year extensions, and it requires extensive staffing both on‑shore and off‑shore, totaling roughly 13.7 million labor hours over the life of the agreement. Key deliverables span system change requests, release management, security and compliance (MARS‑E, FIPS 140‑2, IRS Pub 1075), and transition‑in/out planning.

Attached files

Key dates

Questions due
11/17/2025
Pre-bid meeting
10/15/2025Mandatory
Bids closed
10/31/2026
Intent to award
8/24/2026
Awarded
8/24/2026
Contract modified
12/11/2025
Starts
8/25/2026
Ends
9/1/2029Renews
Duration
5 years

Last updated

Details

Award type
Single Award
Procurement
Full and Open Competition
Solicitation
Request for Proposal
Industry
Information Technology and Software Development
NAICS
541511
Solicitation №
CalHEERS SDMO RFP #73040873

Contract value

$1,600,000,000

No explicit contract value is provided. The Cost Workbook estimates roughly 13.7 million labor hours (≈ 8.9 M on‑shore + 4.8 M off‑shore) for system‑change work. Assuming an average blended labor rate of $100 / hour (typical for a mix of senior developers, architects, and support staff) yields a labor cost of about $1.37 billion. Adding cloud‑hosting, hardware, software licensing, and transition costs (which can easily run $100‑200 million) suggests a total contract value in the range of $1.5 billion to $1.8 billion. Given the scale of the platform (statewide eligibility and enrollment for millions of residents) and the 5‑year term, a ball‑park figure of roughly $1.6 billion is reasonable.

AI estimate from the award documents

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