HHS Awards $24.6M for Health Exchange Oversight, CMS Centers for Medicare and Medicaid Services Contract

Contract Overview

Contract Amount: $24,641,626 ($24.6M)

Contractor: Cognosante MVH LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-05-10

End Date: 2026-06-10

Contract Duration: 1,492 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: STATE HEALTH INSURANCE EXCHANGE OPERATIONAL OVERSIGHT AND MONITORING SUPPORT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.6 million to COGNOSANTE MVH LLC for work described as: STATE HEALTH INSURANCE EXCHANGE OPERATIONAL OVERSIGHT AND MONITORING SUPPORT Key points: 1. Contract awarded to Cognosante MVH LLC for operational oversight and monitoring support. 2. The contract is a Time and Materials type, indicating potential for cost overruns if not managed closely. 3. Full and open competition was used, suggesting a competitive bidding process. 4. The duration of the contract is over four years, indicating a significant long-term commitment. 5. The contract is categorized under Custom Computer Programming Services (NAICS 541511).

Value Assessment

Rating: good

The award amount of $24.6M over approximately four years suggests a moderate investment for operational support. Benchmarking against similar IT support contracts for large government agencies would be necessary for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition indicates that multiple vendors had the opportunity to bid, which typically drives better pricing and service. The delivery order structure suggests this is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Taxpayer Impact: The competitive nature of the award is expected to yield fair market value for the services provided, minimizing unnecessary taxpayer expenditure.

Public Impact

Ensures continued operation and monitoring of state health insurance exchanges, impacting millions of Americans. Supports the Centers for Medicare and Medicaid Services (CMS) in managing complex healthcare marketplaces. Potential for improved efficiency and effectiveness in healthcare access through robust oversight. Contract duration of over four years provides stability for essential government functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Long contract duration requires ongoing performance evaluation.
Dependence on a single vendor for critical operational support.

Positive Signals

Full and open competition utilized.
Supports a critical government function in healthcare.
Awarded to a known entity with experience in the sector.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Government spending in this area is substantial, supporting a wide range of agency operations and digital transformation initiatives. Benchmarks for similar IT support contracts vary widely based on scope and complexity.

Small Business Impact

While the contract was awarded through full and open competition, there is no specific indication of small business participation or set-asides within the provided data. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The contract specifies 'Operational Oversight and Monitoring Support,' implying a direct role in ensuring the performance and compliance of health insurance exchanges. The Centers for Medicare and Medicaid Services (CMS) will be responsible for overseeing this contract's execution.

Related Government Programs

Custom Computer Programming Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Time and Materials contract type.
Long contract duration.
Potential for vendor lock-in.
Reliance on a single vendor for critical functions.
Need for continuous performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.6 million to COGNOSANTE MVH LLC. STATE HEALTH INSURANCE EXCHANGE OPERATIONAL OVERSIGHT AND MONITORING SUPPORT

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 $24.6 million.

What is the period of performance?

Start: 2022-05-10. End: 2026-06-10.

What specific metrics will be used to measure the success of the operational oversight and monitoring support provided by Cognosante MVH LLC?

Success metrics would likely focus on the reliability and uptime of the health insurance exchanges, the accuracy of data reporting, the identification and resolution of operational issues, and the overall effectiveness of the monitoring systems. Performance standards and key performance indicators (KPIs) should be clearly defined in the contract's statement of work to ensure accountability and measurable outcomes.

How will the government ensure that the Time and Materials pricing structure does not lead to excessive costs for the taxpayer?

The government will likely implement strict oversight mechanisms, including detailed review of timesheets, validation of labor categories and rates, and regular performance reviews. Establishing clear ceilings and requiring justification for all hours billed are crucial. Independent cost estimates and comparison with industry benchmarks will also help control costs.

What is the potential impact on the stability and accessibility of health insurance exchanges if this vendor's performance is suboptimal?

Suboptimal performance could lead to disruptions in exchange operations, affecting enrollment processes, data integrity, and user access for both consumers and insurers. This could indirectly impact healthcare access and affordability. Robust performance management and contingency plans are essential to mitigate such risks.

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: 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: $29,868,029

Exercised Options: $24,641,626

Current Obligation: $24,641,626

Actual Outlays: $21,816,009

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $8,883,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA19D00AJ

IDV Type: FSS

Timeline