HHS Awards $31.3M Contract to DAVID-JAMES LLC for Medicare Advantage Program Oversight
Contract Overview
Contract Amount: $31,317,959 ($31.3M)
Contractor: David-James LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2022-01-01
End Date: 2025-09-30
Contract Duration: 1,368 days
Daily Burn Rate: $22.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: TIME AND MATERIALS
Sector: Healthcare
Official Description: SERVICES RELATED TO OVERSIGHT ACTIVITIES OF MEDICARE ADVANTAGE, PRESCRIPTION DRUG PLAN, PROGRAMS OF ALL-INCLUSIVE CARE FOR THE ELDERLY, AND OTHER RELATED HEALTH CARE ORGANIZATIONS
Place of Performance
Location: NOTTINGHAM, BALTIMORE County, MARYLAND, 21236
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $31.3 million to DAVID-JAMES LLC for work described as: SERVICES RELATED TO OVERSIGHT ACTIVITIES OF MEDICARE ADVANTAGE, PRESCRIPTION DRUG PLAN, PROGRAMS OF ALL-INCLUSIVE CARE FOR THE ELDERLY, AND OTHER RELATED HEALTH CARE ORGANIZATIONS Key points: 1. Contract focuses on oversight of key healthcare programs like Medicare Advantage and PACE. 2. DAVID-JAMES LLC, a Maryland-based firm, secured the contract. 3. The contract duration is 1368 days, ending September 30, 2025. 4. Spending is within the range for similar government oversight services.
Value Assessment
Rating: good
The contract value of $31.3M over approximately 3.75 years suggests a reasonable annual spend for specialized oversight services. Benchmarking against similar contracts for program integrity and auditing within HHS would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to yield fair pricing and identify the most capable vendor for the required oversight activities.
Taxpayer Impact: Competition in awarding this contract likely ensures taxpayer funds are used efficiently for essential program oversight, contributing to the integrity of Medicare and related programs.
Public Impact
Ensures accountability and integrity in Medicare Advantage and Prescription Drug Plan operations. Supports the Centers for Medicare and Medicaid Services (CMS) in managing complex healthcare organizations. Aims to protect beneficiaries and taxpayer dollars through diligent oversight.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Time and Materials pricing.
- Scope creep could increase final costs beyond initial estimates.
Positive Signals
- Full and open competition promotes best value.
- Clear contract duration and defined oversight areas.
- Focus on critical healthcare program integrity.
Sector Analysis
This contract falls within the professional services sector, specifically accounting and auditing services related to government healthcare programs. Spending benchmarks for similar federal contracts in program integrity and compliance oversight are typically in the millions of dollars annually.
Small Business Impact
The data indicates that DAVID-JAMES LLC is not a small business. Further analysis would be needed to determine if small business participation was a requirement or opportunity within this contract's scope.
Oversight & Accountability
The contract's purpose is directly related to oversight activities, implying a strong focus on accountability. The Centers for Medicare and Medicaid Services (CMS) will be responsible for monitoring performance and ensuring compliance with contract terms.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Time and Materials pricing model.
- Potential for scope creep.
- Contractor is not a small business.
- Reliance on contractor's internal controls for cost management.
Tags
offices-of-certified-public-accountants, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $31.3 million to DAVID-JAMES LLC. SERVICES RELATED TO OVERSIGHT ACTIVITIES OF MEDICARE ADVANTAGE, PRESCRIPTION DRUG PLAN, PROGRAMS OF ALL-INCLUSIVE CARE FOR THE ELDERLY, AND OTHER RELATED HEALTH CARE ORGANIZATIONS
Who is the contractor on this award?
The obligated recipient is DAVID-JAMES 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 $31.3 million.
What is the period of performance?
Start: 2022-01-01. End: 2025-09-30.
What is the projected cost per unit of oversight activity, and how does it compare to industry standards?
The contract is priced on a Time and Materials basis, making a fixed per-unit cost difficult to ascertain without detailed task breakdowns. However, the total contract value of $31.3M over 1368 days suggests an average daily burn rate of approximately $22,893. Benchmarking this against similar government oversight contracts would reveal if this rate is competitive or indicates potential overspending.
What are the primary risks associated with the Time and Materials pricing structure for this oversight contract?
The primary risk with Time and Materials (T&M) is the potential for cost escalation if not managed tightly. Without fixed price components or strict controls on labor hours and rates, the total cost could exceed initial projections. This necessitates robust monitoring by CMS to prevent scope creep and ensure efficient resource utilization by DAVID-JAMES LLC.
How effectively will this contract contribute to the overall integrity and efficiency of Medicare Advantage and related programs?
This contract is crucial for maintaining the integrity of significant federal healthcare programs. By providing specialized oversight, DAVID-JAMES LLC will help identify potential fraud, waste, and abuse, ensuring that program funds are used appropriately. Effective execution by the contractor and diligent oversight by CMS are key to realizing these benefits and protecting beneficiaries.
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: 5
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 9524 BELAIR RD STE 202, NOTTINGHAM, MD, 21236
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,317,959
Exercised Options: $31,317,959
Current Obligation: $31,317,959
Actual Outlays: $31,006,492
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS23F0050T
IDV Type: FSS
Timeline
Start Date: 2022-01-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-07-29
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →