HHS Awards $597M Contract for Beneficiary Protection Case Review Services to Livanta LLC
Contract Overview
Contract Amount: $596,827,551 ($596.8M)
Contractor: Livanta LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2019-05-01
End Date: 2029-04-30
Contract Duration: 3,652 days
Daily Burn Rate: $163.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: BENEFICIARY PROTECTION: CASE REVIEW SERVICES
Place of Performance
Location: ANNAPOLIS JUNCTION, HOWARD County, MARYLAND, 20701
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $596.8 million to LIVANTA LLC for work described as: BENEFICIARY PROTECTION: CASE REVIEW SERVICES Key points: 1. Contract value of $596.8M over 10 years indicates significant long-term investment. 2. Full and open competition suggests a competitive bidding process. 3. Risk of cost overruns exists with Cost Plus Fixed Fee (CPFF) pricing. 4. Services fall under 'Other Management Consulting Services', a broad category.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) structure allows for potential cost overruns if not managed tightly. Benchmarking against similar large-scale consulting contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bidders participated. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are being utilized for essential beneficiary protection services, with competition aiming to ensure value for money.
Public Impact
Ensures protection for Medicare and Medicaid beneficiaries through case reviews. Supports the integrity and quality of healthcare services provided. Long-term contract duration provides stability for service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF pricing can lead to cost overruns.
- Broad service category may obscure specific cost drivers.
- Long contract duration increases exposure to changing needs.
Positive Signals
- Full and open competition.
- Significant investment in beneficiary protection.
- Long-term stability for service provision.
Sector Analysis
This contract falls under management consulting services, crucial for government operations. Benchmarks for such large, long-term contracts are highly variable based on scope and complexity.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. The primary awardee is Livanta LLC.
Oversight & Accountability
The Centers for Medicare and Medicaid Services (CMS) is responsible for oversight. The contract's long duration necessitates robust monitoring to ensure performance and cost control.
Related Government Programs
- Other Management Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for cost overruns due to CPFF.
- Long contract duration increases risk of scope creep or obsolescence.
- Broad service category lacks specific performance indicators in summary.
- Dependence on a single contractor for critical beneficiary protection.
Tags
other-management-consulting-services, department-of-health-and-human-services, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $596.8 million to LIVANTA LLC. BENEFICIARY PROTECTION: CASE REVIEW SERVICES
Who is the contractor on this award?
The obligated recipient is LIVANTA LLC.
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 $596.8 million.
What is the period of performance?
Start: 2019-05-01. End: 2029-04-30.
What specific metrics are used to evaluate the effectiveness of Livanta LLC's case review services in protecting beneficiaries?
Effectiveness is likely measured by metrics such as the number of beneficiary complaints resolved, the accuracy of case reviews, adherence to regulatory timelines, and the impact on reducing improper payments or identifying quality of care issues. CMS would establish specific performance standards and Key Performance Indicators (KPIs) within the contract.
How does the CPFF structure mitigate risks associated with potential cost overruns for this extensive 10-year contract?
While CPFF inherently carries cost overrun risk, mitigation strategies include stringent oversight, detailed cost reporting requirements, and clearly defined fixed-fee components. The government must actively monitor expenditures against the estimated cost and the fixed fee, potentially exercising options to re-evaluate pricing or scope if costs escalate unreasonably.
What is the anticipated impact of these case review services on the overall efficiency and cost-effectiveness of Medicare and Medicaid programs?
These services are expected to improve program efficiency by identifying and rectifying issues that lead to improper payments or substandard care, thereby reducing long-term costs. Effective case reviews can enhance program integrity, ensure compliance, and ultimately lead to better health outcomes for beneficiaries, justifying the investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services
Product/Service Code: MEDICAL SERVICES › DEPENDENT MEDICARE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 75FCMC18R0034
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 10820 GUILFORD RD STE 202, ANNAPOLIS JUNCTION, MD, 20701
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $596,827,551
Exercised Options: $596,827,551
Current Obligation: $596,827,551
Actual Outlays: $283,074,282
Subaward Activity
Number of Subawards: 445
Total Subaward Amount: $383,610,365
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75FCMC19D0070
IDV Type: IDC
Timeline
Start Date: 2019-05-01
Current End Date: 2029-04-30
Potential End Date: 2029-04-30 00:00:00
Last Modified: 2025-09-17
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