HHS awards $28.4M contract to RELI GROUP INC for administrative management consulting services

Contract Overview

Contract Amount: $28,440,588 ($28.4M)

Contractor: Reli Group Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2018-09-19

End Date: 2024-09-20

Contract Duration: 2,193 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMPARATIVE BILLING REPORTS/PROGRAMS TO EVALUATE PAYMENT PATTERNS ELECTRONIC CONTRACTOR

Place of Performance

Location: CATONSVILLE, BALTIMORE County, MARYLAND, 21228

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.4 million to RELI GROUP INC for work described as: COMPARATIVE BILLING REPORTS/PROGRAMS TO EVALUATE PAYMENT PATTERNS ELECTRONIC CONTRACTOR Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2193 days indicates a long-term need for these services. 3. Firm Fixed Price contract type helps manage cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 5. The contract was awarded to a single vendor, RELI GROUP INC. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery contract vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The total award amount of $28.4 million over approximately six years suggests a significant investment in administrative management consulting. Comparing this to similar contracts for management consulting services within HHS or other agencies would provide better context for value for money. The firm fixed price structure offers some cost control, but the overall effectiveness and efficiency of the services rendered are not immediately apparent from the provided data.

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 data does not specify the number of bids received, which is crucial for assessing the level of competition. A robust competition typically leads to better pricing and service offerings for the government. Without knowing the number of bidders, it's difficult to definitively state the impact on price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where contractors are incentivized to offer competitive pricing and high-quality services to win awards.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) is the primary beneficiary, receiving administrative management consulting services. The services are expected to support the operational efficiency and management of CMS programs. The contract is geographically located in Maryland (MD), suggesting a concentration of work or contractor presence in that state. The contract likely supports a workforce involved in administrative and management consulting roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value and impact of the consulting services.
The long contract duration could lead to vendor lock-in or reduced flexibility if needs change.
Limited information on the number of bidders in the full and open competition hinders a complete assessment of price discovery.

Positive Signals

Awarded through full and open competition, indicating a commitment to a fair and transparent procurement process.
Firm Fixed Price contract type provides cost certainty for the government.
The contract is a delivery order, suggesting it leverages an existing contract vehicle which may have undergone prior scrutiny.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, supporting a wide range of government functions from policy analysis to operational efficiency improvements. Comparable spending benchmarks for management consulting services within federal agencies often vary widely based on the complexity and scope of the services required. The total award amount of $28.4 million over six years places this contract in the mid-to-large range for individual consulting engagements.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The primary focus of this award is on larger, established firms capable of handling comprehensive administrative management consulting services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures would be defined within the contract's statement of work and performance standards. Transparency is facilitated through federal procurement databases like FPDS, where contract awards are reported. While specific Inspector General (IG) jurisdiction is not detailed here, the HHS OIG would have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

Administrative Management and General Management Consulting Services
Professional, Scientific, and Technical Services
Centers for Medicare and Medicaid Services Contracts
Department of Health and Human Services Contracts

Risk Flags

Lack of specific performance metrics
Limited detail on number of bidders
Potential for vendor lock-in due to long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.4 million to RELI GROUP INC. COMPARATIVE BILLING REPORTS/PROGRAMS TO EVALUATE PAYMENT PATTERNS ELECTRONIC CONTRACTOR

Who is the contractor on this award?

The obligated recipient is RELI GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $28.4 million.

What is the period of performance?

Start: 2018-09-19. End: 2024-09-20.

What specific administrative management and general management consulting services are being provided under this contract?

The provided data identifies the NAICS code as 541611, which covers Administrative Management and General Management Consulting Services. However, the specific nature of these services is not detailed. Typically, such services can encompass a broad range of activities including strategic planning, organizational assessment, process improvement, policy development support, program management assistance, and operational efficiency analysis. For this contract with CMS, the services likely aim to enhance the effectiveness and efficiency of healthcare program administration, regulatory compliance, or internal operational processes. A detailed statement of work (SOW) within the contract documents would specify the exact deliverables, tasks, and objectives.

How does the $28.4 million award compare to typical spending on similar consulting services by CMS or HHS?

Comparing the $28.4 million award to typical spending requires access to historical spending data for similar consulting services at CMS and HHS. Without that specific benchmark data, it's difficult to definitively state if this is high, low, or average. However, given the contract duration of approximately six years (2193 days), the annual average spending is roughly $4.7 million ($28.4M / 6 years). This figure is substantial and suggests a significant, ongoing need for consulting expertise. Federal agencies frequently engage consulting firms for complex challenges, and the cost can vary greatly depending on the scope, duration, and expertise required. Further analysis would involve examining the agency's budget for consulting services and the number and value of other similar contracts awarded.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of RELI GROUP INC's services?

The provided data does not include specific Key Performance Indicators (KPIs) or metrics for evaluating the success of RELI GROUP INC's services. In a typical federal contract, these would be outlined in the Statement of Work (SOW) or Performance Work Statement (PWS). KPIs are crucial for assessing contractor performance and ensuring the government receives the intended value. For administrative management consulting, KPIs might include metrics related to process efficiency improvements (e.g., reduced processing times, cost savings achieved), successful implementation of new strategies, stakeholder satisfaction, or adherence to project timelines and budgets. Without these defined metrics, assessing the contractor's performance and the overall value for money is challenging.

What is the track record of RELI GROUP INC in performing similar federal contracts?

Information regarding RELI GROUP INC's specific track record in performing similar federal contracts is not detailed in the provided data snippet. To assess their track record, one would typically examine past performance evaluations, contract history, and any reported issues or successes on previous government awards. Federal procurement systems often contain past performance information, which contracting officers use during source selection. A review of publicly available contract databases (like FPDS) could reveal other contracts awarded to RELI GROUP INC, their value, duration, and the agencies they served. This would help determine their experience level and success in delivering administrative management consulting services to the federal government.

What is the potential risk associated with a single delivery order being awarded to one contractor for such a long duration?

The primary risks associated with a single delivery order to one contractor for a long duration (2193 days) include potential vendor lock-in, reduced flexibility to adapt to changing government needs, and the possibility of complacency leading to decreased service quality or innovation over time. If the contractor's performance falters, or if the government's requirements evolve significantly, switching providers mid-contract can be costly and disruptive. However, the firm fixed price structure can mitigate some financial risk. The long duration also implies a stable, ongoing requirement that the agency deemed best met by a single, long-term engagement, potentially leveraging specialized expertise or established working relationships.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5520 RESEARCH PARK DR, CATONSVILLE, MD, 21228

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,440,588

Exercised Options: $28,440,588

Current Obligation: $28,440,588

Actual Outlays: $14,216,883

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F213GA

IDV Type: FSS

Timeline