HHS awards $31.6M contract for NO SURPRISES HELP DESK services to Cognosante MVH LLC

Contract Overview

Contract Amount: $31,619,990 ($31.6M)

Contractor: Cognosante MVH LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-01-14

End Date: 2025-03-18

Contract Duration: 1,159 days

Daily Burn Rate: $27.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NO SURPRISES HELP DESK (NSHD)

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $31.6 million to COGNOSANTE MVH LLC for work described as: NO SURPRISES HELP DESK (NSHD) Key points: 1. The contract value represents a significant investment in supporting the No Surprises Act. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance period. 4. Performance context is provided by comparing this award to similar IT service contracts. 5. The contract positions the agency to manage patient billing disputes effectively. 6. The duration of the contract suggests a long-term need for these services.

Value Assessment

Rating: good

The contract value of $31.6 million over its period of performance appears reasonable for custom computer programming services supporting a critical healthcare initiative. Benchmarking against similar IT support contracts for federal agencies suggests that the pricing is within an expected range, especially considering the specialized nature of the No Surprises Help Desk. The Time and Materials pricing model, while requiring careful oversight, allows for flexibility in addressing evolving needs. Further analysis of the specific labor categories and rates would provide a more granular assessment of value for money.

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 presence of three bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and encourages vendors to offer their most competitive terms and innovative solutions. The agency's decision to pursue full and open competition is a positive indicator for achieving value.

Taxpayer Impact: Taxpayers benefit from a competitive process that is likely to result in a more cost-effective solution for the No Surprises Help Desk, ensuring funds are used efficiently.

Public Impact

Beneficiaries of the No Surprises Act, including patients and healthcare providers, will receive support through the help desk. The contract delivers essential IT services for managing inquiries and disputes related to surprise medical billing. The geographic impact is national, as the No Surprises Act applies across the United States. The contract supports a workforce of IT professionals and customer service representatives involved in help desk operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing model if not closely monitored.
Dependence on a single contractor for a critical help desk function could pose a risk if performance falters.
Ensuring consistent service quality across the contract duration requires robust performance management.

Positive Signals

Awarded through full and open competition, suggesting a competitive and potentially cost-effective outcome.
The contract duration of over three years indicates a stable and long-term commitment to supporting the No Surprises Act.
The contractor, Cognosante MVH LLC, has experience in government contracting, which may mitigate performance risks.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically custom computer programming. The market for IT services supporting government healthcare initiatives is substantial and highly competitive. This award is for a specialized help desk function crucial for implementing and enforcing the No Surprises Act, a significant piece of healthcare legislation aimed at protecting consumers from unexpected medical bills. Comparable spending benchmarks for similar federal IT support contracts often range from tens to hundreds of millions of dollars, depending on scope and duration.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is Cognosante MVH LLC, there is no explicit information provided regarding subcontracting plans for small businesses. Further review of the contract details would be necessary to determine if small business participation is a requirement or a voluntary goal, and to assess its potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Performance will be monitored through regular reporting, service level agreements, and potentially site visits. Transparency is expected through contract award databases and public reporting of federal spending. The Inspector General for the Department of Health and Human Services (HHS) may conduct audits or investigations into the contract's performance and financial integrity if concerns arise.

Related Government Programs

No Surprises Act Implementation
Healthcare Consumer Protection Programs
Federal IT Help Desk Services
Patient Billing and Dispute Resolution Systems

Risk Flags

Potential for scope creep with T&M contract
Ensuring consistent service quality over contract duration
Data security and privacy compliance for sensitive healthcare information

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $31.6 million to COGNOSANTE MVH LLC. NO SURPRISES HELP DESK (NSHD)

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 $31.6 million.

What is the period of performance?

Start: 2022-01-14. End: 2025-03-18.

What is the track record of Cognosante MVH LLC in performing similar federal IT contracts?

Cognosante MVH LLC has a history of performing IT and healthcare-related contracts for federal agencies, including the Department of Veterans Affairs and the Department of Health and Human Services. Their experience often involves health IT solutions, data analytics, and program support. While specific performance metrics for past contracts are not detailed here, their continued awards suggest a satisfactory performance history. A deeper dive into past performance evaluations and contract close-outs would provide a more comprehensive understanding of their capabilities and reliability in delivering complex IT services.

How does the awarded amount compare to the estimated cost or previous spending on similar help desk services?

The awarded amount of $31.6 million for the NO SURPRISES HELP DESK (NSHD) contract is a new investment specifically tied to the implementation and ongoing support of the No Surprises Act. Direct historical spending on this exact service is not applicable as it's a new requirement driven by recent legislation. However, comparing it to other large-scale IT help desk or customer support contracts within HHS or CMS can provide context. Such contracts can range from a few million to tens of millions of dollars annually, depending on the complexity, user base, and scope of services. The Time and Materials pricing structure means the final cost could fluctuate based on actual effort expended.

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

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This can lead to higher-than-expected costs if the scope of work expands, if labor hours are not efficiently utilized, or if the contractor's rates are not competitive. Effective oversight, including detailed monitoring of labor hours, task tracking, and clear definition of work requirements, is crucial to mitigate these risks and ensure the government receives good value for its investment.

How effective is the competition level in ensuring value for money for this contract?

The contract was awarded under full and open competition with three bidders, which is a positive indicator for value for money. A competitive environment encourages bidders to offer lower prices and more favorable terms to win the contract. The presence of multiple bidders suggests that the market has sufficient capacity and interest to support this requirement. This level of competition likely drove down the price compared to a sole-source or limited competition scenario. However, the ultimate value for money also depends on the contractor's performance and the efficiency of the T&M pricing structure, which requires ongoing monitoring.

What is the anticipated impact of this contract on the implementation of the No Surprises Act?

This contract is critical for the successful implementation and ongoing operation of the No Surprises Act. The NO SURPRISES HELP DESK (NSHD) will serve as a central point of contact for patients, providers, and other stakeholders seeking information, guidance, and assistance related to the act's provisions. By providing timely and accurate support, the help desk will facilitate compliance, help resolve disputes, and ensure that consumers are protected from unexpected medical costs. The IT services procured will enable the infrastructure and personnel necessary to manage a high volume of inquiries effectively.

Are there any specific performance metrics or service level agreements (SLAs) associated with this contract?

While the provided data does not detail specific performance metrics or Service Level Agreements (SLAs), it is standard practice for contracts of this nature, especially those involving critical public-facing services like the No Surprises Help Desk, to include robust performance standards. These typically encompass metrics such as response times, resolution rates, customer satisfaction scores, and availability of the help desk system. The contracting officer and program managers at CMS would be responsible for defining, monitoring, and enforcing these SLAs to ensure the contractor meets the required service levels and delivers value.

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

Offers Received: 3

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: $35,440,967

Exercised Options: $31,619,990

Current Obligation: $31,619,990

Actual Outlays: $27,802,704

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $677,477

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00AJ

IDV Type: FSS

Timeline