General Dynamics Awarded $84 Million Contract by the Department of Health and Human Services’ Centers for Medicare and Medicaid Services

FAIRFAX, Va. – General Dynamics Information Technology’s VIPS business sector, a business unit of General Dynamics (NYSE: GD), has been awarded a task order to support the Department of Health and Human Services’ (HHS) Centers for Medicare and Medicaid Services (CMS). The task order has an initial value of $16 million with a maximum value of $84 million for five years if all options are exercised.

VIPS will support CMS’ Retiree Drug Subsidy (RDS) program by providing managed services support with both information technology and operational components. RDS operations include application processing, electronic data interchange support, payment and overpayment processing and appeals processing. VIPS also provides program management and internal controls, ensuring compliance with the federal government’s acquisition policies and the Medicare operations manual regarding CMS payments by overseeing all contract responsibilities and issuing quarterly reports to CMS leadership.

IT operations for the RDS program performed by VIPS include information technology system maintenance and data center services for CMS. Such IT operations include the maintenance, enhancement and ad-hoc projects for the components of the RDS information technology system and underlying infrastructure. VIPS operates a mid-tier data center for CMS that houses a public website, a secure web portal and a Business Intelligence sub-system with a mainframe back end. The websites and the underlying IT components are maintained and enhanced quarterly by VIPS staff and have been designed and accredited to meet the CMS Office of Information Systems’ Technical Reference Architecture and applicable federal security requirements.

“VIPS has partnered with CMS since 2005 to sustain a critical program that supports our country’s retirees with prescription health coverage,” said Marcus Collier, senior vice president of General Dynamics Information Technology’s Civilian/Homeland Security Solutions division. “Our proven track record for delivery and performance has assisted CMS in the overall success of the Retiree Drug Subsidy program.”

The Retiree Drug Subsidy was mandated as part of the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (MMA) to provide a subsidy to employer and union sponsors of high-quality prescription drug coverage for Medicare-eligible retirees.

As a trusted systems integrator for more than 50 years, General Dynamics Information Technology provides information technology (IT), systems engineering, professional services and simulation and training to customers in the defense, intelligence, homeland security, health, federal civilian government and commercial sectors. With approximately 17,000 professionals worldwide, the company manages large-scale, mission-critical IT programs delivering IT services and enterprise solutions. More information about General Dynamics Information Technology is available at www.gdit.com.

General Dynamics, headquartered in Falls Church, Va., employs approximately 91,700 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about General Dynamics is available online at www.gd.com.

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