HHS awards $20.6M contract to Lewis & Ellis, LLC for accounting services

Contract Overview

Contract Amount: $20,660,925 ($20.7M)

Contractor: Lewis & Ellis, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-30

End Date: 2025-09-15

Contract Duration: 1,811 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: RATE REVIEW CONTRACTOR #1

Place of Performance

Location: ALLEN, COLLIN County, TEXAS, 75013

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20.7 million to LEWIS & ELLIS, LLC for work described as: RATE REVIEW CONTRACTOR #1 Key points: 1. Contract value of $20.6 million over its period of performance. 2. Services procured through full and open competition. 3. Contract type is Time and Materials, which can pose cost control risks. 4. Delivery Order awarded under a larger contract vehicle. 5. Contract duration is approximately 5 years. 6. Contractor is based in Texas.

Value Assessment

Rating: fair

The contract value of $20.6 million for accounting services over nearly five years appears reasonable given the scope. However, the Time and Materials pricing structure warrants close monitoring to ensure cost efficiency. Benchmarking against similar accounting service contracts for federal agencies would provide a clearer picture of value for money. Without specific deliverables or performance metrics, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that it was a delivery order suggests it was placed against an existing indefinite-delivery/indefinite-quantity (IDIQ) contract, which itself was likely competed. The presence of two bidders (as indicated by 'no': 2) suggests a moderate level of competition for this specific delivery order.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) benefits from these accounting services. Services likely include financial auditing, accounting, and potentially consulting related to financial management. The geographic impact is primarily within the agency, with potential implications for federal financial reporting. Workforce implications are related to the contractor's personnel performing these specialized accounting functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed carefully.
Limited competition (2 bidders) may not represent the best possible pricing.
Lack of specific performance metrics makes value assessment difficult.

Positive Signals

Awarded through full and open competition, ensuring a fair process.
Contractor is a specialized firm (NAICS 541211 - Offices of Certified Public Accountants).
Contract duration of nearly 5 years allows for continuity of services.

Sector Analysis

This contract falls within the professional services sector, specifically accounting and auditing services. The federal government is a significant consumer of such services to manage its complex financial operations. Comparable spending benchmarks would involve looking at other large federal agencies' expenditures on similar accounting and auditing support contracts, which often run into tens or hundreds of millions of dollars annually.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, it likely did not involve direct subcontracting opportunities for small businesses unless the prime contractor voluntarily includes them. The focus appears to be on specialized accounting expertise rather than small business development.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and program officials within CMS. Accountability measures are tied to the performance requirements outlined in the contract and the Time and Materials pricing structure, which requires detailed tracking of labor hours and costs. Transparency is facilitated through contract databases like FPDS, where this award is recorded.

Related Government Programs

Federal Financial Management Services
Government Auditing Services
Centers for Medicare and Medicaid Services (CMS) Operations

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition (2 bidders) may impact price discovery.
Lack of detailed performance metrics hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.7 million to LEWIS & ELLIS, LLC. RATE REVIEW CONTRACTOR #1

Who is the contractor on this award?

The obligated recipient is LEWIS & ELLIS, 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 $20.7 million.

What is the period of performance?

Start: 2020-09-30. End: 2025-09-15.

What is the track record of Lewis & Ellis, LLC in performing federal contracts?

Information on Lewis & Ellis, LLC's track record with federal contracts is limited in the provided data. However, the NAICS code 541211 indicates they specialize in Offices of Certified Public Accountants. To assess their track record thoroughly, one would need to examine their past performance on similar government contracts, including client satisfaction, adherence to deadlines, and quality of deliverables. Reviewing contract award histories and any available past performance evaluations in systems like the Contractor Performance Assessment Reporting System (CPARS) would be crucial for a comprehensive understanding of their capabilities and reliability in the federal space.

How does the $20.6 million contract value compare to similar federal accounting service contracts?

The $20.6 million contract value for approximately 5 years of accounting services from Lewis & Ellis, LLC is within a typical range for large federal agencies like HHS, which manage substantial budgets and complex financial operations. For instance, other agencies often award contracts in the tens of millions for similar comprehensive accounting, auditing, and financial advisory services. However, without knowing the specific scope of work, deliverables, and the level of expertise required, a direct comparison is difficult. Factors such as the number of personnel, the complexity of financial systems supported, and the specific regulatory compliance needs can significantly influence contract value. A detailed benchmark analysis against contracts with similar objectives and durations would be necessary for a precise comparison.

What are the primary risks associated with this Time and Materials contract?

The primary risk associated with this Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used. If the scope of work is not clearly defined, or if project management is weak, the contractor could incur significant labor hours and material costs, leading to a higher final price than initially anticipated. This necessitates robust oversight from the government to monitor labor hours, ensure efficiency, and validate the necessity of all expenditures. Without stringent controls, T&M contracts can be less cost-effective for the government compared to other contract types.

How effective are the competition dynamics for this specific delivery order?

The competition dynamics for this specific delivery order appear moderate. It was awarded under 'full and open competition,' which is a positive indicator for the overall procurement process. However, the data indicates only two bidders participated ('no': 2). While two bidders represent some level of competition, it is on the lower end and may not fully leverage the benefits of a broader competitive landscape. A higher number of bidders typically drives more competitive pricing and potentially better service offerings. The effectiveness is further influenced by whether the underlying IDIQ contract vehicle itself had robust competition and if the specific requirements of this delivery order were particularly niche, potentially limiting the number of capable bidders.

What are the historical spending patterns for accounting services at CMS or HHS?

Historical spending patterns for accounting services at CMS or HHS are not detailed in the provided data. However, it is reasonable to infer that agencies of this size and complexity consistently require significant investment in accounting and financial management services. Annual spending on such services can fluctuate based on specific projects, audits, system modernizations, and regulatory changes. To understand historical patterns, one would need to analyze multi-year spending data for relevant NAICS codes (like 541211) or contract descriptions within HHS and CMS, looking for trends in contract values, types of services procured, and the number and types of contractors utilized over time.

What are the implications of this contract for the small business ecosystem?

This contract has limited direct implications for the small business ecosystem, as it was not awarded as a small business set-aside. The data indicates 'ss' (small business set-aside) is false and 'sb' (small business) is false, suggesting the prime contractor, Lewis & Ellis, LLC, is not classified as a small business for this award. Consequently, there is no mandated subcontracting goal for small businesses under this specific contract. While the prime contractor might voluntarily engage small businesses for certain tasks, the primary benefit is not directed towards fostering small business participation in federal contracting through this particular award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lewis & Ellis, Inc.

Address: 6600 CHASE OAKS BLVD, PLANO, TX, 75023

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

Financial Breakdown

Contract Ceiling: $20,660,925

Exercised Options: $20,660,925

Current Obligation: $20,660,925

Actual Outlays: $14,568,586

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS23F0083N

IDV Type: FSS

Timeline