HHS awards $258M for 1095-A data reporting to Cognosante MVH LLC

Contract Overview

Contract Amount: $258,095,717 ($258.1M)

Contractor: Cognosante MVH LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-11-30

End Date: 2026-11-29

Contract Duration: 1,825 days

Daily Burn Rate: $141.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ENROLLMENT RESOLUTION & RECONCILIATION, FORM 1095-A DATA REPORTING

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $258.1 million to COGNOSANTE MVH LLC for work described as: ENROLLMENT RESOLUTION & RECONCILIATION, FORM 1095-A DATA REPORTING Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. The contract's duration of 5 years indicates a long-term need for these services. 3. Time and Materials pricing structure may pose cost control challenges if not closely managed. 4. The award value suggests a significant investment in data integrity and reporting accuracy. 5. This contract supports critical functions within the Centers for Medicare and Medicaid Services (CMS). 6. The contractor, Cognosante MVH LLC, is positioned to deliver specialized IT services.

Value Assessment

Rating: good

The contract value of $258 million over five years for enrollment resolution and reconciliation data reporting appears to be within a reasonable range for complex IT services supporting a major federal agency like HHS. Benchmarking against similar large-scale data management and IT support contracts within CMS or other health-focused agencies would provide a more precise value-for-money assessment. The Time and Materials (T&M) pricing model, while common for IT services where scope can evolve, necessitates vigilant oversight to ensure costs remain aligned with the value delivered and do not escalate beyond initial projections.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a competitive environment, though a higher number of bidders would typically lead to more robust price discovery and potentially lower costs for the government. The fact that it was competed broadly is a positive sign for market engagement and potential for innovation.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage efficient service delivery. It ensures that the government is not limited to a single provider, potentially leading to better value and more innovative solutions.

Public Impact

Beneficiaries of accurate Form 1095-A data reporting include taxpayers who rely on this information for tax filing and potential subsidies. The services delivered are crucial for the operational integrity of the Affordable Care Act (ACA) marketplace. The geographic impact is national, as CMS serves beneficiaries across the United States. This contract supports IT professionals and data analysts, potentially creating or sustaining jobs in the tech sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) pricing structure can lead to cost overruns if not managed with strict oversight and defined task orders.
The long contract duration (5 years) may reduce flexibility to adapt to rapidly changing technological needs or market conditions.
Reliance on a single contractor for such a critical data reporting function could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a competitive process and broad market access.
The contract addresses a critical, ongoing need for data reporting and reconciliation within CMS.
The contractor, Cognosante MVH LLC, likely possesses specialized expertise required for this complex task.

Sector Analysis

This contract falls within the IT and professional services sector, specifically focusing on custom computer programming and data management. The market for such services is large and competitive, with numerous firms capable of supporting federal IT needs. The $258 million award is substantial, reflecting the complexity and scale of managing critical data for a program like the ACA. Comparable spending benchmarks would involve other large IT support contracts for federal health agencies, particularly those involving sensitive data and regulatory compliance.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). As a large contract awarded through full and open competition, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified in the contract's statement of work or through the prime contractor's voluntary initiatives. The focus is on a large prime contractor capable of handling the scale of the requirement.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Performance monitoring, adherence to the Time and Materials pricing, and delivery of required data reporting services would be key areas of focus. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for HHS may conduct audits or investigations if performance or financial irregularities are suspected.

Related Government Programs

Affordable Care Act (ACA) Marketplace Operations
Health Insurance Portability and Accountability Act (HIPAA) Compliance
CMS Data Management Systems
Taxpayer Data Security
Federal IT Modernization Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Risk of vendor lock-in given the long contract duration.
Dependence on contractor performance for critical data reporting accuracy.
Need for robust oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $258.1 million to COGNOSANTE MVH LLC. ENROLLMENT RESOLUTION & RECONCILIATION, FORM 1095-A DATA REPORTING

Who is the contractor on this award?

The obligated recipient is COGNOSANTE MVH 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 $258.1 million.

What is the period of performance?

Start: 2021-11-30. End: 2026-11-29.

What is the historical spending pattern for Form 1095-A data reporting services by HHS?

Analyzing historical spending for Form 1095-A data reporting by HHS requires accessing detailed federal procurement data over several fiscal years. While this specific contract is for $258 million over five years, previous contracts for similar functions might reveal trends in cost, duration, and contractor performance. Without access to historical contract databases specifically filtered for this service, it's difficult to provide precise figures. However, the consistent need for such reporting, driven by ACA regulations, suggests a sustained and potentially growing investment in data management and IT support within CMS. Fluctuations in spending could be influenced by legislative changes, enrollment numbers, or shifts in technology and reporting requirements.

How does Cognosante MVH LLC's track record compare for similar government IT contracts?

Cognosante MVH LLC has a history of performing IT and healthcare-related contracts for federal agencies, including HHS and the Department of Veterans Affairs (VA). Their portfolio often includes work related to health IT, data analytics, and program support. Assessing their track record for similar large-scale data reporting and reconciliation contracts involves reviewing past performance evaluations, contract awards, and any reported issues or successes. Generally, securing a contract of this magnitude from HHS suggests they have met the necessary qualifications and demonstrated capability. A deeper dive into their past performance ratings and any contract disputes or terminations would provide a more comprehensive view of their reliability and expertise in handling complex federal IT projects.

What are the primary risks associated with the Time and Materials (T&M) pricing structure in this contract?

The primary risk with a Time and Materials (T&M) pricing structure is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and material costs incurred. This can lead to higher-than-anticipated costs for the government if the project scope expands, timelines are extended, or contractor efficiency is low. Effective oversight, clear task definitions, and robust monitoring of labor hours and resource utilization are crucial to mitigate these risks. Without strong controls, the government may end up paying more than the actual value derived from the services.

How does the performance of this contract compare to industry benchmarks for custom computer programming services?

Benchmarking the performance of this specific contract against industry standards for custom computer programming services is challenging without detailed performance metrics. However, the contract's focus on 'ENROLLMENT RESOLUTION & RECONCILIATION, FORM 1095-A DATA REPORTING' implies a need for high accuracy, reliability, and adherence to strict regulatory requirements. Industry benchmarks for such services often emphasize data integrity, system uptime, security compliance, and timely delivery of reports. Given the critical nature of 1095-A data for tax purposes and ACA subsidies, performance failures could have significant consequences. The government's continued investment and the long contract duration suggest satisfactory performance to date, but ongoing monitoring against defined metrics is essential.

What is the potential impact of this contract on the broader federal IT services market?

This $258 million contract awarded to Cognosante MVH LLC for critical data reporting services signifies a substantial commitment by HHS to maintain and enhance its IT infrastructure supporting the ACA. For the federal IT services market, it highlights the ongoing demand for specialized expertise in health IT, data management, and regulatory compliance. Such large awards can influence market dynamics by validating the capabilities of the winning contractor and potentially setting benchmarks for future contracts in similar domains. It also underscores the importance of full and open competition in ensuring that government agencies can access a wide range of qualified vendors, fostering innovation and competitive pricing within the sector.

Industry Classification

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

Solicitation ID: RFQ 210499

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3110 FAIRVIEW PARK DR STE 800, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $258,601,284

Exercised Options: $258,095,717

Current Obligation: $258,095,717

Actual Outlays: $199,712,273

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $15,736,139

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA19D00AJ

IDV Type: FSS

Timeline