CMS awards $2.9M contract for accessible format production and distribution of Medicare materials

Contract Overview

Contract Amount: $2,940,546 ($2.9M)

Contractor: Crawfordtech Government Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-15

End Date: 2026-09-14

Contract Duration: 1,460 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IN SUPPORT OF CMS' ACCESSIBLE FORMAT PRODUCTION AND DISTRIBUTION SOLUTION THE CONTRACTOR WILL ACCURATELY PROVIDE PRODUCTION AND DISTRIBUTION OF CMS MATERIALS SUCH AS MEDICARE SUMMARY NOTICES (MSNS), ON-DEMAND WRITTEN CORRESPONDENCE LETTERS AND

Place of Performance

Location: ARCHER LODGE, JOHNSTON County, NORTH CAROLINA, 27527

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.9 million to CRAWFORDTECH GOVERNMENT SOLUTIONS LLC for work described as: IN SUPPORT OF CMS' ACCESSIBLE FORMAT PRODUCTION AND DISTRIBUTION SOLUTION THE CONTRACTOR WILL ACCURATELY PROVIDE PRODUCTION AND DISTRIBUTION OF CMS MATERIALS SUCH AS MEDICARE SUMMARY NOTICES (MSNS), ON-DEMAND WRITTEN CORRESPONDENCE LETTERS AND Key points: 1. Contract focuses on ensuring accessibility of critical Medicare documents. 2. Value-for-money assessment pending detailed cost breakdown and performance metrics. 3. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 4. Risk indicators are low, with a firm-fixed-price structure and defined delivery period. 5. Performance context relies on timely and accurate production of sensitive health information. 6. Sector positioning within healthcare IT and document management services. 7. Geographic impact is national, serving Medicare beneficiaries across the US.

Value Assessment

Rating: fair

The contract value of $2.9 million over approximately four years for accessible format production and distribution of Medicare materials appears reasonable given the specialized nature of the services. Benchmarking against similar contracts for large-scale document production and distribution, especially those requiring strict adherence to accessibility standards (e.g., Section 508 compliance), would provide a clearer picture of value. Without specific per-unit cost data for items like Medicare Summary Notices (MSNs) or other correspondence, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure suggests that the contractor assumes the risk for cost overruns, which can be a positive indicator.

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 specific number of bidders is not provided, but a full and open competition generally suggests a healthy level of market interest and potential for competitive pricing. This approach allows the government to solicit proposals from a wide range of qualified contractors, fostering innovation and ensuring that the best value is obtained.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified vendors, ultimately driving down costs and improving service quality.

Public Impact

Medicare beneficiaries will benefit from receiving essential health information in accessible formats. Services include the production and distribution of Medicare Summary Notices (MSNs) and other written correspondence. The geographic impact is nationwide, serving beneficiaries across the United States. Workforce implications may involve specialized roles in document production, accessibility compliance, and distribution logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays in production or distribution impacting beneficiary access to critical information.
Ensuring consistent adherence to evolving accessibility standards across all produced materials.
Data security and privacy risks associated with handling sensitive Medicare beneficiary information.

Positive Signals

Contractor's established presence in government solutions suggests experience with federal requirements.
Firm-fixed-price contract structure aligns incentives for cost control and timely delivery.
Focus on accessible formats addresses a critical need for inclusivity in government communications.

Sector Analysis

This contract falls within the Healthcare and IT sectors, specifically focusing on document management, production, and distribution services for a federal health agency. The market for such services is competitive, with numerous companies offering solutions ranging from high-volume printing and mailing to specialized digital accessibility services. Comparable spending benchmarks would involve analyzing contracts for similar large-scale information dissemination efforts by government agencies, particularly those with strict compliance and accessibility mandates.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The award to a large business means that opportunities for small business participation would likely depend on the prime contractor's own subcontracting plan, if any, or if they choose to engage small businesses as vendors for specific components of the service.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Centers for Medicare and Medicaid Services (CMS) through contract officers and technical representatives. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services by a certain date. Transparency is facilitated through federal procurement databases where contract awards are published. The Inspector General for the Department of Health and Human Services may conduct audits or investigations if concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Medicare Modernization Act (MMA) related communications
Health Insurance Portability and Accountability Act (HIPAA) compliance
Section 508 of the Rehabilitation Act (Accessibility Standards)
CMS Beneficiary Communications Initiatives
Federal Document Management Services

Risk Flags

Potential for delays impacting beneficiary access
Ensuring ongoing compliance with evolving accessibility standards
Data security and privacy of sensitive beneficiary information

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.9 million to CRAWFORDTECH GOVERNMENT SOLUTIONS LLC. IN SUPPORT OF CMS' ACCESSIBLE FORMAT PRODUCTION AND DISTRIBUTION SOLUTION THE CONTRACTOR WILL ACCURATELY PROVIDE PRODUCTION AND DISTRIBUTION OF CMS MATERIALS SUCH AS MEDICARE SUMMARY NOTICES (MSNS), ON-DEMAND WRITTEN CORRESPONDENCE LETTERS AND

Who is the contractor on this award?

The obligated recipient is CRAWFORDTECH GOVERNMENT SOLUTIONS 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 $2.9 million.

What is the period of performance?

Start: 2022-09-15. End: 2026-09-14.

What is the track record of CrawfordTech Government Solutions LLC in delivering similar accessible format production and distribution services for federal agencies?

CrawfordTech Government Solutions LLC has a history of providing IT and document management solutions to government agencies. While specific details on their past performance in accessible format production and distribution for CMS are not immediately available in this data snippet, their experience in government contracting suggests familiarity with federal requirements. A deeper dive into their contract history, past performance evaluations (e.g., CPARS), and client testimonials would be necessary to fully assess their track record for this specific type of service. Their longevity in the market (established 2014) and the fact they secured this contract under full and open competition are positive indicators, but detailed performance data is crucial for a comprehensive evaluation.

How does the awarded amount of $2.9 million compare to historical spending on similar CMS accessible document services?

Direct historical spending comparisons for this specific service are difficult without access to detailed historical contract data for CMS's accessible format production and distribution. However, the $2.9 million award over approximately four years ($735,000 annually) for nationwide distribution of critical health notices suggests a potentially cost-effective solution, especially considering the specialized nature of accessibility compliance. To provide a robust comparison, one would need to analyze prior contracts for similar services, factoring in inflation, changes in volume, and evolving accessibility standards. Benchmarking against other agencies' spending on large-scale document management and distribution, particularly those with similar compliance needs, would also offer valuable context.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential delays in production or distribution that could impact beneficiaries' timely access to essential Medicare information, ensuring consistent adherence to evolving accessibility standards (like WCAG or Section 508), and managing data security and privacy risks given the sensitive nature of Medicare beneficiary information. Mitigation strategies are embedded within the contract structure. The firm-fixed-price (FFP) nature shifts cost overrun risk to the contractor. Performance standards and delivery schedules outlined in the contract serve as mitigation for timeliness. Compliance with federal accessibility mandates and data security regulations (like HIPAA) are contractual requirements, with penalties for non-compliance. Regular oversight by CMS contract officers is also a key mitigation factor.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for this specific service?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and the risks are understood, as is likely the case for producing and distributing standardized Medicare materials. FFP incentivizes the contractor to control costs and deliver efficiently, as any savings achieved benefit their profit margin, while cost overruns are absorbed by the contractor. This structure provides cost certainty for the government. For services like accessible document production, where the requirements are relatively stable, FFP helps prevent scope creep and unexpected cost increases, thereby maximizing the value derived from the allocated funds. The government pays a set price, and the contractor is responsible for meeting the defined requirements within that price.

What is the significance of the contract being awarded to CrawfordTech Government Solutions LLC, a company established in 2014?

The significance of CrawfordTech Government Solutions LLC being established in 2014 suggests they are a relatively modern entity in the government contracting space, potentially bringing contemporary approaches to document management and IT solutions. Their existence since 2014 indicates a level of stability and experience navigating federal procurement processes. Securing a contract of this nature, especially under full and open competition, implies they have demonstrated the necessary capabilities, financial stability, and compliance adherence required by the Centers for Medicare and Medicaid Services (CMS). It suggests they are a capable player in the market, able to compete effectively against potentially more established firms.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 22 DEPOT ST, POTSDAM, NY, 13676

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,579,683

Exercised Options: $2,940,546

Current Obligation: $2,940,546

Actual Outlays: $942,436

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA20D0005

IDV Type: FSS

Timeline