HHS awards $43.9M contract for Remote Identity Proofing to Experian, raising competition concerns

Contract Overview

Contract Amount: $43,954,776 ($44.0M)

Contractor: Experian Information Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-02-04

End Date: 2026-04-18

Contract Duration: 1,899 days

Daily Burn Rate: $23.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: REMOTE IDENTITY PROOFING (RIDP)

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $44.0 million to EXPERIAN INFORMATION SOLUTIONS, INC. for work described as: REMOTE IDENTITY PROOFING (RIDP) Key points: 1. Contract Value: $43.9 million over 5 years. 2. Sole Source Award: Raises questions about price discovery and potential overpayment. 3. Risk: Limited competition could lead to suboptimal pricing and reduced innovation. 4. Sector: Health IT services, crucial for program integrity and beneficiary access.

Value Assessment

Rating: questionable

The $43.9 million contract value for Remote Identity Proofing services appears high given the lack of competition. Benchmarking against similar government or commercial contracts for identity verification services would be necessary to assess true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning it was not competed. This significantly limits price discovery and may prevent the government from obtaining the best possible price and innovative solutions available in the market.

Taxpayer Impact: The lack of competition raises concerns about taxpayer dollars being used efficiently. Without competitive pressure, the awarded price may not reflect the most cost-effective solution.

Public Impact

Impacts beneficiaries by potentially affecting the accuracy and security of their health information. Could delay or complicate access to essential healthcare services if identity proofing fails. Affects the integrity of Medicare and Medicaid programs by relying on a single vendor for critical identity verification.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of competition.
No indication of small business participation.

Positive Signals

Addresses a critical need for identity proofing in health programs.
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls within the Health IT sector, specifically focusing on identity verification services for the Centers for Medicare and Medicaid Services (CMS). Spending in this area is critical for program integrity and fraud prevention, but competitive procurement is key to ensuring value.

Small Business Impact

The data indicates no specific set-aside for small businesses, and the sole-source nature of the award further suggests limited opportunities for small business participation in this particular contract.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and adequate performance. The Centers for Medicare and Medicaid Services (CMS) should actively monitor contract performance and expenditures to mitigate risks associated with limited competition.

Related Government Programs

Other Computer Related Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation
No small business participation noted
High contract value over 5 years

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $44.0 million to EXPERIAN INFORMATION SOLUTIONS, INC.. REMOTE IDENTITY PROOFING (RIDP)

Who is the contractor on this award?

The obligated recipient is EXPERIAN INFORMATION SOLUTIONS, 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 $44.0 million.

What is the period of performance?

Start: 2021-02-04. End: 2026-04-18.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities or urgent needs. For this RIDP contract, understanding the specific rationale behind not competing it is essential. Agencies should explore all viable competitive avenues, including simplified acquisitions or other transaction authorities, before resorting to sole-source awards to ensure maximum value and innovation.

How will the government ensure fair pricing and prevent potential overcharges given the lack of competition?

Ensuring fair pricing on sole-source contracts requires robust government oversight, including detailed cost analysis, market research on comparable services, and negotiation of favorable terms. Regular performance reviews and benchmarking against industry standards are critical. The government should also consider incorporating price reduction incentives or options for future competition.

What are the potential risks to program effectiveness and beneficiary data security with a sole-source provider?

A sole-source provider may face less pressure to innovate or improve services, potentially impacting program effectiveness. Data security risks can increase if the vendor becomes a single point of failure or if oversight is insufficient. Diversifying critical services or ensuring strong contractual safeguards and performance metrics are vital to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vector Capital Management, L.P.

Address: 475 ANTON BLVD, COSTA MESA, CA, 92626

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $46,949,626

Exercised Options: $44,403,626

Current Obligation: $43,954,776

Actual Outlays: $32,164,936

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline