HHS Awards $67.9M FFE Oversight Contract to Booz Allen Hamilton
Contract Overview
Contract Amount: $67,889,293 ($67.9M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2021-07-28
End Date: 2026-09-24
Contract Duration: 1,884 days
Daily Burn Rate: $36.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: FEDERALLY FACILITATED EXCHANGE (FFE) OVERSIGHT
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $67.9 million to BOOZ ALLEN HAMILTON INC for work described as: FEDERALLY FACILITATED EXCHANGE (FFE) OVERSIGHT Key points: 1. Contract awarded to Booz Allen Hamilton for Federally Facilitated Exchange (FFE) oversight. 2. Full and open competition was utilized for this contract. 3. The contract has a duration of 1884 days, ending in September 2026. 4. This award falls under Administrative Management and General Management Consulting Services.
Value Assessment
Rating: good
The contract value of $67.9M over approximately 5 years suggests a reasonable annual spend for specialized consulting services. Benchmarking against similar large-scale government IT and management consulting contracts would provide a clearer picture of its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery and potentially achieving a competitive price. This method allows all eligible vendors to bid, fostering a market-driven approach to pricing.
Taxpayer Impact: Full and open competition aims to ensure taxpayer dollars are spent efficiently by encouraging competitive bidding and potentially lowering overall costs.
Public Impact
Ensures oversight of critical healthcare exchange platforms. Supports the Centers for Medicare and Medicaid Services (CMS) operations. Potential impact on the efficiency and security of healthcare marketplaces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not managed closely.
- No small business participation noted, potentially missing opportunities for economic inclusion.
Positive Signals
- Full and open competition utilized.
- Long-term contract provides stability for oversight functions.
Sector Analysis
This contract falls within the professional services sector, specifically management consulting. Government spending in this area is substantial, supporting a wide range of administrative and operational functions across agencies.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (ss: false, sb: false). This suggests a focus on large, established prime contractors for this specific requirement, potentially limiting opportunities for smaller firms to participate directly.
Oversight & Accountability
The contract is specifically for FFE oversight, implying a focus on monitoring and ensuring the proper functioning of Federally Facilitated Exchanges. The duration and value suggest a significant oversight role.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Time and Materials contract type.
- No small business participation.
- Potential for cost overruns without strict management.
- Reliance on a single large contractor for critical oversight.
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $67.9 million to BOOZ ALLEN HAMILTON INC. FEDERALLY FACILITATED EXCHANGE (FFE) OVERSIGHT
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 $67.9 million.
What is the period of performance?
Start: 2021-07-28. End: 2026-09-24.
What specific metrics are used to measure the success of the FFE oversight provided by Booz Allen Hamilton?
Success metrics likely include performance indicators related to the stability, security, and user experience of the FFE platforms. This could encompass uptime percentages, incident response times, compliance adherence, and user satisfaction scores. The contract's Statement of Work (SOW) would detail these specific KPIs and reporting requirements.
What are the potential risks associated with a Time and Materials contract for FFE oversight?
Time and Materials (T&M) contracts carry inherent risks of cost escalation if not meticulously managed. Without fixed price components, the contractor could incur higher labor hours or material costs than anticipated, leading to budget overruns. Robust oversight and detailed tracking of hours and resources are crucial to mitigate these risks.
How does this contract contribute to the overall effectiveness of the Centers for Medicare and Medicaid Services (CMS)?
This contract is vital for ensuring the effective operation and integrity of the Federally Facilitated Exchanges, which are central to CMS's mission of providing health insurance access. By overseeing these platforms, CMS can better manage enrollment, ensure compliance, and improve the user experience for millions of Americans.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation
Address: 8283 GREENSBORO DR, MCLEAN, 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: $67,962,347
Exercised Options: $67,889,293
Current Obligation: $67,889,293
Actual Outlays: $46,058,586
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $26,807
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS00F008DA
IDV Type: FSS
Timeline
Start Date: 2021-07-28
Current End Date: 2026-09-24
Potential End Date: 2026-09-24 00:00:00
Last Modified: 2026-01-28
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