HHS Awards $5.4M for Document Processing Services to ServiceSource Inc

Contract Overview

Contract Amount: $5,421,883 ($5.4M)

Contractor: Servicesource Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2023-04-01

End Date: 2027-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $3.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DOCUMENT PROCESSING UNIT (DPU)

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.4 million to SERVICESOURCE INC for work described as: DOCUMENT PROCESSING UNIT (DPU) Key points: 1. Contract awarded to ServiceSource Inc. for Document Processing Units. 2. The contract is valued at $5,421,883.06. 3. The contract is for Document Preparation Services. 4. The contract duration is 1460 days. 5. The contract is set to expire on March 31, 2027.

Value Assessment

Rating: fair

The contract's value of $5.4M over four years for document processing services appears reasonable given the scope. However, without specific performance metrics or benchmarks for document preparation services, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive bidding process.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these document processing services.

Public Impact

Ensures continued operation of critical document processing for Medicare and Medicaid. Potential for increased costs due to sole-source nature of the award. Impact on small businesses is unclear as no small business set-aside was noted.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition and price discovery.
  • Lack of clear performance metrics makes value assessment difficult.

Positive Signals

  • Ensures continuity of essential document processing services.
  • Firm fixed-price contract provides cost certainty.

Sector Analysis

This contract falls under administrative and support services, specifically document preparation. Spending in this sector can vary widely based on agency needs and the complexity of the documents handled. Benchmarks are difficult without more specific service details.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there is no direct analysis of small business participation or benefit from this specific award.

Oversight & Accountability

The contract is a definitive contract awarded by CMS, a major agency within HHS. Oversight would typically involve contract management by CMS officials to ensure service delivery and adherence to terms.

Related Government Programs

  • Document Preparation Services
  • Department of Health and Human Services Contracting
  • Centers for Medicare and Medicaid Services Programs

Risk Flags

  • Sole-source award
  • Lack of competition
  • Potential for overpricing
  • Limited transparency on performance metrics

Tags

document-preparation-services, department-of-health-and-human-services, md, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.4 million to SERVICESOURCE INC. DOCUMENT PROCESSING UNIT (DPU)

Who is the contractor on this award?

The obligated recipient is SERVICESOURCE INC.

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 $5.4 million.

What is the period of performance?

Start: 2023-04-01. End: 2027-03-31.

What is the specific volume and complexity of documents processed under this contract to justify the $5.4M award?

The provided data does not specify the volume or complexity of documents processed. To justify the $5.4M award, detailed metrics on document types, processing speed, accuracy rates, and any specialized handling requirements would be necessary. This information is crucial for a thorough value assessment and comparison against industry standards.

What are the risks associated with a sole-source award for essential document processing services?

The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated prices and reduced incentive for the contractor to innovate or improve efficiency. It also limits the government's ability to explore alternative solutions or providers that might offer better value or specialized capabilities.

How does the firm fixed-price contract structure ensure effectiveness and value for money in document preparation services?

A firm fixed-price contract provides cost certainty for the government, as the price is set regardless of the contractor's actual costs. This structure can drive effectiveness by incentivizing the contractor to manage costs efficiently to maximize profit. However, effectiveness in terms of quality and timeliness still relies on robust contract oversight and clearly defined performance standards.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesBusiness Support ServicesDocument Preparation Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10467 WHITE GRANITE DR, OAKTON, VA, 22124

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,792,810

Exercised Options: $5,421,883

Current Obligation: $5,421,883

Actual Outlays: $3,820,758

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2023-04-01

Current End Date: 2027-03-31

Potential End Date: 2028-03-31 00:00:00

Last Modified: 2026-03-27

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