DOJ awards $11.7M contract for health care fraud analysis to Strativia LLC

Contract Overview

Contract Amount: $11,746 ($11.7K)

Contractor: Strativia LLC

Awarding Agency: Department of Justice

Start Date: 2025-03-20

End Date: 2025-09-25

Contract Duration: 189 days

Daily Burn Rate: $62/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: HEALTH CARE FRAUD ANALYST

Place of Performance

Location: UPPER MARLBORO, PRINCE GEORGES County, MARYLAND, 20774

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $11,745.8 to STRATIVIA LLC for work described as: HEALTH CARE FRAUD ANALYST Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration is 189 days, indicating a short-term need for services. 3. Award type is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The North American Industry Classification System (NAICS) code 561210 points to facilities support services, which may encompass analytical support. 5. The contract is a Time and Materials (T&M) type, which can pose cost control risks if not closely managed. 6. The contractor, Strativia LLC, is based in Maryland. 7. The contract is for health care fraud analyst services, a critical function for the Department of Justice.

Value Assessment

Rating: fair

Benchmarking the value of this $11.7 million contract is challenging without knowing the specific deliverables and the scope of work. As a Time and Materials contract, the final cost is dependent on the hours worked and the rates charged. Comparing it to similar contracts for health care fraud analysts would require access to a broader dataset of comparable services and their pricing structures. The relatively short duration of 189 days suggests a focused effort, but the overall value proposition hinges on the effectiveness and efficiency of the analysts provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bids suggests a moderate level of competition for this specific delivery order. While full and open competition is generally favorable for price discovery, the actual competitiveness can vary based on the number of bidders and the specific requirements of the solicitation.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The Department of Justice benefits from enhanced capabilities in analyzing health care fraud. Services delivered include specialized analytical support to combat fraudulent activities within health care systems. The geographic impact is primarily within Maryland, where the contractor is located, but the fraud analysis may have national implications. Workforce implications include the engagement of skilled health care fraud analysts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed diligently.
Short contract duration may indicate a need for rapid deployment, potentially increasing urgency and associated costs.
Limited competition (3 bidders) might suggest that the market for these specialized services is constrained or that the solicitation had specific requirements.

Positive Signals

Awarded under full and open competition, which generally promotes fair pricing.
Contractor is based in Maryland, potentially aligning with regional DOJ operational needs.
Focus on health care fraud analysis addresses a critical area of government concern.

Sector Analysis

The health care fraud analysis sector is a critical component of government efforts to combat waste, fraud, and abuse in public health programs. This contract fits within the broader professional services industry, specifically focusing on analytical and investigative support. The market for such services is driven by regulatory requirements and the ongoing need to protect taxpayer funds. Comparable spending benchmarks would typically involve analyzing the cost of similar analytical services provided to government agencies or large private sector entities.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Therefore, this award does not directly impact the small business ecosystem through set-asides or mandated subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's contracting and program management offices. Accountability measures would be tied to the performance standards outlined in the contract and the delivery order. Transparency is facilitated through contract award databases, though specific performance metrics and detailed oversight reports may not be publicly available. Inspector General jurisdiction would apply if any fraud or mismanagement related to this contract were suspected.

Related Government Programs

Department of Justice Fraud Section
Health Care Fraud and Abuse Control Program
Medicare Fraud Strike Force
False Claims Act Enforcement

Risk Flags

Time and Materials contract type requires close monitoring to prevent cost overruns.
Limited number of bidders may indicate potential market concentration or specific solicitation requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $11,745.8 to STRATIVIA LLC. HEALTH CARE FRAUD ANALYST

Who is the contractor on this award?

The obligated recipient is STRATIVIA LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $11,745.8.

What is the period of performance?

Start: 2025-03-20. End: 2025-09-25.

What is the specific scope of work for the health care fraud analyst services?

The provided data indicates the contract is for 'HEALTH CARE FRAUD ANALYST' services, with a NAICS code of 561210 (Facilities Support Services). While the NAICS code might seem broad, it can encompass a range of support functions, including analytical services. The specific scope of work would detail the types of analysis required, such as reviewing medical claims, identifying patterns of fraud, waste, and abuse, assisting in investigations, and preparing reports. Without the full contract statement of work, the precise deliverables and analytical methodologies remain unspecified. However, the context strongly suggests support for DOJ's efforts in combating health care fraud.

How does the Time and Materials (T&M) contract type affect cost predictability?

A Time and Materials (T&M) contract is a type of contract where the contractor is reimbursed for the actual cost of direct labor (at specified hourly rates) and indirect expenses, plus a fee representing profit. This structure makes cost predictability inherently lower compared to fixed-price contracts. The final cost is directly tied to the number of hours worked by the contractor's personnel and the agreed-upon rates. For the government, effective oversight and management are crucial to control costs. This includes monitoring labor hours, ensuring rates are reasonable, and verifying that work performed is necessary and efficient. Without stringent controls, T&M contracts can lead to cost overruns if the scope of work expands or if labor hours are not managed effectively.

What does the number of bidders (3) suggest about the competition for this contract?

Having three bidders for this delivery order suggests a moderate level of competition. While 'full and open competition' theoretically allows any qualified vendor to bid, the actual number of responsive bids can be influenced by several factors. These might include the specialized nature of the services required, the complexity of the solicitation, the contractor's past performance requirements, or the overall market size for such niche expertise. Three bidders indicate that the requirement was known and that at least a few companies were interested and capable of performing the work. However, it is not as robust as a competition with a larger number of bids, which might have driven prices down further.

What is the typical role of a health care fraud analyst within the Department of Justice?

Health care fraud analysts within the Department of Justice play a crucial role in supporting investigations and litigation aimed at combating fraud, waste, and abuse in federal health care programs (like Medicare and Medicaid) and other health-related sectors. Their responsibilities often include analyzing large datasets of claims and billing information to identify suspicious patterns, anomalies, and potential fraudulent schemes. They may also assist in developing investigative strategies, quantifying financial losses due to fraud, and preparing expert testimony. These analysts are vital in providing the data-driven insights necessary for prosecutors and agents to build strong cases against individuals and entities engaged in health care fraud.

How does this contract align with broader DOJ initiatives against health care fraud?

This contract directly aligns with the Department of Justice's ongoing and significant commitment to prosecuting individuals and entities involved in health care fraud. The DOJ, through its various divisions and task forces (such as the Health Care Fraud Strike Force), actively pursues cases involving false claims, kickbacks, and other fraudulent schemes that drain public resources and compromise patient care. By procuring specialized analytical services, the DOJ enhances its capacity to detect, investigate, and litigate these complex cases. This contract essentially provides the analytical horsepower needed to sift through vast amounts of data and identify the specific instances of fraud that warrant legal action, thereby supporting the DOJ's mission to uphold the rule of law and protect federal health care programs.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1401 MERCANTILE LANE, LARGO, MD, 20774

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,746

Exercised Options: $11,746

Current Obligation: $11,746

Actual Outlays: $11,746

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSMA19D08NT

IDV Type: FSS

Timeline