CMS Spends $142.9M on Booz Allen Hamilton for PERM Error Rate Reporting Services
Contract Overview
Contract Amount: $142,868,316 ($142.9M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2019-03-07
End Date: 2028-02-28
Contract Duration: 3,280 days
Daily Burn Rate: $43.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: THE PERM PROGRAM FOR ERROR RATE REPORTING YEARS 2018, 2019, AND 2020.
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $142.9 million to BOOZ ALLEN HAMILTON INC for work described as: THE PERM PROGRAM FOR ERROR RATE REPORTING YEARS 2018, 2019, AND 2020. Key points: 1. Contract awarded to Booz Allen Hamilton for critical error rate reporting. 2. The contract spans multiple years, indicating a long-term need for these services. 3. The value suggests a significant investment in data integrity and program compliance. 4. The sector is healthcare IT, focusing on regulatory compliance and data management.
Value Assessment
Rating: good
The contract value of $142.9M over approximately 9 years appears reasonable given the scope of error rate reporting for multiple years. Benchmarking against similar large-scale IT and consulting contracts for government agencies suggests this pricing is within expected ranges.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to more competitive pricing. The use of a delivery order under a larger contract structure suggests a structured procurement process that likely facilitated price discovery.
Taxpayer Impact: Taxpayers are likely benefiting from a competitive process that aims to secure cost-effective services for essential program integrity functions.
Public Impact
Ensures accuracy in Medicare and Medicaid error rate reporting, impacting program integrity. Supports CMS's compliance with federal regulations and financial accountability. The services provided are crucial for identifying and rectifying payment errors, potentially saving taxpayer money.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or evolving needs not fully captured.
- Reliance on a single contractor for critical reporting functions poses a risk if performance falters.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type provides cost certainty.
- Long-term contract ensures continuity of essential services.
Sector Analysis
This contract falls within the Healthcare IT sector, specifically focusing on program integrity and compliance for Medicare and Medicaid. Spending in this area is critical for government healthcare operations and often involves significant investments in data analysis and reporting systems.
Small Business Impact
The data indicates this contract was awarded to Booz Allen Hamilton, a large business. There is no explicit indication of small business participation in this specific award, which is common for large, complex IT and consulting services.
Oversight & Accountability
The Centers for Medicare and Medicaid Services (CMS) is responsible for overseeing this contract. The use of a firm fixed-price contract and full and open competition suggests a degree of oversight in the procurement process. Ongoing performance monitoring will be key.
Related Government Programs
- Engineering Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Long contract duration
- Sole large business awardee
- Critical function reliance
- Potential for evolving requirements
Tags
engineering-services, department-of-health-and-human-services, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $142.9 million to BOOZ ALLEN HAMILTON INC. THE PERM PROGRAM FOR ERROR RATE REPORTING YEARS 2018, 2019, AND 2020.
Who is the contractor on this award?
The obligated recipient is BOOZ ALLEN HAMILTON 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 $142.9 million.
What is the period of performance?
Start: 2019-03-07. End: 2028-02-28.
What is the specific methodology used by Booz Allen Hamilton to ensure the accuracy and completeness of the error rate reporting?
The specific methodology is not detailed in the provided data. However, for such critical reporting, it typically involves rigorous data validation, statistical sampling, analysis of claims data, and adherence to established federal guidelines and CMS requirements. Booz Allen Hamilton likely employs a team of data analysts and subject matter experts to execute these complex tasks.
What are the potential risks associated with a long-term contract for error rate reporting, and how are they mitigated?
Risks include potential for outdated methodologies, vendor lock-in, and changing regulatory landscapes. Mitigation strategies often involve performance-based contract clauses, regular reviews and audits, opportunities for contract modifications to adapt to new requirements, and clear exit strategies to ensure smooth transition if needed.
How does the accuracy of this error rate reporting directly contribute to the overall effectiveness of the PERM program?
Accurate error rate reporting is fundamental to the PERM program's effectiveness. It identifies the extent and nature of improper payments, allowing CMS to implement targeted corrective actions. This directly improves program integrity, reduces financial losses, and ensures taxpayer funds are used appropriately, thereby enhancing the overall efficiency and trustworthiness of Medicare and Medicaid.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation
Address: 8283 GREENSBORO DR, MC LEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $144,180,893
Exercised Options: $142,868,316
Current Obligation: $142,868,316
Actual Outlays: $87,685,405
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $63,445,552
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU108
IDV Type: IDC
Timeline
Start Date: 2019-03-07
Current End Date: 2028-02-28
Potential End Date: 2028-02-28 00:00:00
Last Modified: 2025-08-26
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