HHS Awards $116M Program Integrity Modeling Contract to Deloitte

Contract Overview

Contract Amount: $116,182,070 ($116.2M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-25

End Date: 2026-12-28

Contract Duration: 2,651 days

Daily Burn Rate: $43.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PROGRAM INTEGRITY MODELING AND ANALYTIC SUPPORT CONTRACT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $116.2 million to DELOITTE CONSULTING LLP for work described as: PROGRAM INTEGRITY MODELING AND ANALYTIC SUPPORT CONTRACT Key points: 1. Deloitte Consulting LLP secured a significant contract valued at $116,182,070. 2. The contract falls under Engineering Services (NAICS 541330). 3. Awarded by CMS, it aims to enhance program integrity through modeling and analytics. 4. The contract duration extends to December 2026, indicating a long-term need. 5. This award highlights the growing importance of data analytics in government operations.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. This can be effective for complex projects where costs are uncertain, but requires careful oversight to manage expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors can bid.

Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, ensuring taxpayer funds are used efficiently for essential program integrity support.

Public Impact

Enhances Medicare and Medicaid program integrity, potentially saving taxpayer money. Leverages advanced analytics to identify fraud, waste, and abuse. Supports critical healthcare operations within the Department of Health and Human Services. Long-term contract provides stability for program development and implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Cost Plus Fixed Fee contract type.
Reliance on a single contractor for critical program integrity functions.

Positive Signals

Awarded through full and open competition.
Long contract duration allows for sustained impact.
Focus on program integrity aligns with government efficiency goals.

Sector Analysis

This contract falls within the professional services sector, specifically engineering and management consulting. Spending in this area is often driven by the need for specialized expertise to manage complex government programs and improve operational efficiency.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to Deloitte Consulting LLP, a large business. There is no explicit mention of small business participation in this award.

Oversight & Accountability

The Centers for Medicare and Medicaid Services (CMS) is responsible for oversight. The Cost Plus Fixed Fee structure necessitates diligent monitoring of costs and performance to ensure accountability and value for money.

Related Government Programs

Engineering Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Potential for scope creep.
Reliance on contractor's proprietary models.
Data security and privacy concerns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $116.2 million to DELOITTE CONSULTING LLP. PROGRAM INTEGRITY MODELING AND ANALYTIC SUPPORT CONTRACT

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

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 $116.2 million.

What is the period of performance?

Start: 2019-09-25. End: 2026-12-28.

What specific analytical models will be developed and how will their effectiveness be measured?

The contract likely involves developing predictive models for fraud detection, risk stratification, and program performance analysis. Effectiveness will be measured through metrics such as reduction in improper payments, identification of fraudulent claims, and improved operational efficiency within CMS programs. Key Performance Indicators (KPIs) will be established to track model accuracy and impact.

What are the primary risks associated with implementing new program integrity modeling systems?

Key risks include data integration challenges from disparate systems, potential for model bias leading to incorrect identification of fraud or beneficiaries, resistance to adoption by internal staff, and the possibility of evolving fraud schemes outpacing model updates. Cybersecurity risks related to sensitive healthcare data are also a significant concern.

How will this contract contribute to the overall effectiveness of Medicare and Medicaid programs?

By providing advanced analytical support, the contract aims to significantly improve the effectiveness of Medicare and Medicaid by reducing fraud, waste, and abuse. This leads to more accurate payments, better resource allocation, and enhanced program integrity, ultimately ensuring that funds are used to provide quality healthcare services to beneficiaries.

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: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

Address: 1919 N LYNN ST, ARLINGTON, VA, 22209

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $136,312,449

Exercised Options: $116,182,070

Current Obligation: $116,182,070

Actual Outlays: $72,589,241

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $46,917,572

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU113

IDV Type: IDC

Timeline