HHS awards $55M for Enrollment Assistance Program, with Cognosante MVH LLC as prime

Contract Overview

Contract Amount: $55,088,677 ($55.1M)

Contractor: Cognosante MVH LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-07-15

End Date: 2025-06-30

Contract Duration: 1,081 days

Daily Burn Rate: $51.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: ENROLLMENT ASSISTANCE PROGRAM (EAP)

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $55.1 million to COGNOSANTE MVH LLC for work described as: ENROLLMENT ASSISTANCE PROGRAM (EAP) Key points: 1. The contract value of $55.1 million over its period of performance suggests a significant investment in enrollment assistance services. 2. The use of Time and Materials pricing may introduce cost variability, requiring close monitoring to ensure value for money. 3. A single award for this delivery order indicates a specific need or a focused approach to fulfilling the EAP requirements. 4. The contract's duration of approximately 3 years positions it as a medium-term engagement for critical health program support. 5. The primary agency is the Department of Health and Human Services, specifically CMS, highlighting the focus on healthcare program administration. 6. The contract is categorized under Custom Computer Programming Services, suggesting a technology-centric component to the assistance program.

Value Assessment

Rating: fair

The contract value of $55.1 million for enrollment assistance services over roughly three years appears substantial. Benchmarking against similar IT services contracts for program support within HHS or CMS would be necessary for a definitive value assessment. The Time and Materials (T&M) pricing structure, while offering flexibility, can lead to cost overruns if not managed diligently. Without specific performance metrics or detailed cost breakdowns, it's challenging to definitively assess value for money, but the scale of the award warrants careful oversight.

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 fact that it resulted in a single delivery order suggests that Cognosante MVH LLC was selected as the most advantageous offer based on the evaluation criteria. The level of competition at the initial award stage is a positive sign for price discovery, though the specifics of the bidding process and the number of proposals received are not detailed here.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions.

Public Impact

Beneficiaries of the Enrollment Assistance Program (EAP) will receive support in navigating healthcare enrollment processes. The services delivered are crucial for ensuring individuals can access essential health coverage through federal programs. The geographic impact is likely nationwide, given the nature of federal health program enrollment assistance. The contract supports a workforce involved in providing direct assistance and potentially IT services related to enrollment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials pricing model introduces inherent risk of cost escalation if not closely managed and monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness and efficiency of the services.
The contract is a delivery order, implying it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which could have its own set of risks and complexities.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contract is with Cognosante MVH LLC, a known entity in the health IT and services sector, potentially indicating a track record of relevant experience.
The contract supports a critical function (Enrollment Assistance Program) for the Centers for Medicare and Medicaid Services, aligning with core agency missions.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive. This contract falls under Custom Computer Programming Services (NAICS 541511), a segment focused on developing and implementing software and IT solutions. The market for such services supporting federal health programs is substantial, driven by the ongoing need for technology to manage complex systems like Medicare and Medicaid. Comparable spending benchmarks would typically be found in analyses of IT support contracts for agencies like HHS and CMS, often involving significant dollar values for system development, maintenance, and user support.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this particular contract. Therefore, there are no direct subcontracting implications mandated by a small business set-aside. However, the prime contractor, Cognosante MVH LLC, may still engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing to the broader small business ecosystem. Analysis of subcontracting plans would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Centers for Medicare and Medicaid Services (CMS), a division of HHS. CMS typically employs contract officers, program managers, and potentially contracting officer's representatives (CORs) to monitor performance, ensure compliance, and manage payments. Transparency is often facilitated through contract databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected, with the HHS Office of Inspector General (OIG) being the relevant body.

Related Government Programs

Medicare Enrollment Assistance
Medicaid Enrollment Services
Affordable Care Act Marketplace Support
Health Insurance Portability and Accountability Act (HIPAA) Compliance Services
Healthcare IT Modernization Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Risk of inadequate performance impacting beneficiary access to healthcare.
Data security and privacy concerns related to handling sensitive beneficiary information.
Dependence on a single vendor for a critical program function.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $55.1 million to COGNOSANTE MVH LLC. ENROLLMENT ASSISTANCE PROGRAM (EAP)

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 $55.1 million.

What is the period of performance?

Start: 2022-07-15. End: 2025-06-30.

What is the specific nature of the 'Enrollment Assistance Program' supported by this contract?

The Enrollment Assistance Program (EAP) supported by this contract likely refers to services aimed at helping individuals understand and enroll in federal healthcare programs administered by the Centers for Medicare and Medicaid Services (CMS), such as Medicare and Medicaid. This can involve providing information, guiding applicants through the enrollment process, verifying eligibility, and resolving issues. The 'Custom Computer Programming Services' aspect suggests that technology solutions, such as software, databases, or online portals, are integral to delivering this assistance efficiently and effectively. The contract's value of $55.1 million indicates a significant scope, potentially covering nationwide support, call center operations, or the development and maintenance of enrollment-related IT systems.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to evolve, allowing for flexibility. However, they carry a higher risk for the government compared to fixed-price contracts, as costs can escalate if labor hours or material usage are not carefully controlled. For enrollment assistance and IT services, fixed-price contracts might be preferred for well-defined projects, while T&M could be suitable for ongoing support or development where requirements are fluid. Benchmarking against similar CMS or HHS contracts would reveal the prevalence of T&M versus other pricing models for comparable services. The government's ability to manage T&M contracts effectively through strong oversight and defined labor rates is crucial to mitigating cost risks and ensuring value.

What is Cognosante MVH LLC's track record with HHS or CMS for similar programs?

Cognosante MVH LLC has a history of working with the federal government, particularly within the health IT and services sector. While specific details of their past performance on EAP-like programs with HHS or CMS are not provided in the summary data, the company is known for providing solutions related to healthcare eligibility, enrollment, and administration. A deeper dive into their contract history within the Federal Procurement Data System (FPDS) would reveal the extent and nature of their previous work, including contract values, performance ratings, and the types of services rendered. This information is critical for assessing their capability and reliability in executing the current $55.1 million EAP contract.

What are the potential risks associated with a $55.1 million contract for enrollment assistance?

A contract of this magnitude for enrollment assistance carries several potential risks. Firstly, the Time and Materials (T&M) pricing structure, as indicated, poses a risk of cost overruns if not meticulously managed. Unforeseen technical challenges or scope creep could significantly inflate the final cost beyond initial projections. Secondly, ensuring the quality and accuracy of the enrollment assistance provided is paramount; errors could lead to individuals being improperly enrolled or denied essential benefits, causing significant hardship and potential program integrity issues. Thirdly, data security and privacy are critical concerns, as sensitive personal health information is handled. A breach could result in severe penalties and reputational damage. Finally, vendor performance is a key risk; if Cognosante MVH LLC fails to meet performance standards or deliver services effectively, it could disrupt access to healthcare for a large number of beneficiaries.

How does this contract's value compare to historical spending on similar enrollment assistance initiatives?

The $55.1 million award for the Enrollment Assistance Program (EAP) represents a significant investment. To contextualize this value, historical spending data on similar initiatives by CMS would be essential. For instance, comparing this figure to the total expenditure on Medicare or Medicaid outreach and enrollment support over previous years, or to the value of specific, large-scale EAP contracts awarded in the past, would provide a clearer picture. If this contract is part of a broader, ongoing effort to modernize or expand enrollment services, its value might be in line with strategic objectives. Conversely, if it represents a substantial increase over previous spending levels for comparable services, it could warrant further investigation into the drivers of this higher cost, such as expanded scope, new technological requirements, or inflationary pressures.

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: 1

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: $55,088,677

Exercised Options: $55,088,677

Current Obligation: $55,088,677

Actual Outlays: $54,030,431

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $942,780

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00AJ

IDV Type: FSS

Timeline