HHS Awards $21.3M for Management Operations and Plan Analytics to LMI Consulting, LLC

Contract Overview

Contract Amount: $21,345,673 ($21.3M)

Contractor: LMI Consulting, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-30

End Date: 2026-09-29

Contract Duration: 729 days

Daily Burn Rate: $29.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ISSUER MANAGEMENT OPERATIONS AND PLAN ANALYTICS & REVIEW PROGRAM

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.3 million to LMI CONSULTING, LLC for work described as: ISSUER MANAGEMENT OPERATIONS AND PLAN ANALYTICS & REVIEW PROGRAM Key points: 1. Contract awarded to LMI Consulting, LLC for management operations and analytics. 2. The contract value is $21.3 million over approximately two years. 3. Competition method was full and open, suggesting potential for competitive pricing. 4. The sector is administrative management and general management consulting services.

Value Assessment

Rating: fair

The contract is a delivery order under an existing contract. Pricing assessment is difficult without specific task order details, but the overall value suggests a significant investment in consulting services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically allows for a broad range of bidders and can lead to competitive pricing. The use of a delivery order suggests it's part of a larger, pre-competed vehicle.

Taxpayer Impact: Taxpayer funds are being used for management consulting services. The full and open competition aims to ensure value for money, but the ultimate impact depends on the effectiveness of the services rendered.

Public Impact

Supports critical operations within the Centers for Medicare and Medicaid Services. Aims to improve plan analytics and review processes. Potential for enhanced efficiency in healthcare program management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Duration of 729 days (approx. 2 years) requires ongoing performance monitoring.

Positive Signals

Full and open competition promotes market-driven pricing.
Delivery order structure may indicate a pre-vetted and cost-effective approach.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector. Spending in this area often supports government efficiency and program effectiveness, with benchmarks varying widely based on the specific services provided.

Small Business Impact

The provided data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses had an opportunity to participate in this contract.

Oversight & Accountability

Oversight will be crucial to ensure LMI Consulting, LLC delivers on the objectives of the plan analytics and review program. The Centers for Medicare and Medicaid Services will need to actively manage performance and costs throughout the contract duration.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Time and Materials contract type.
Potential for scope creep without clear task definitions.
Reliance on contractor performance for critical operational analytics.
Need for robust government oversight to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.3 million to LMI CONSULTING, LLC. ISSUER MANAGEMENT OPERATIONS AND PLAN ANALYTICS & REVIEW PROGRAM

Who is the contractor on this award?

The obligated recipient is LMI CONSULTING, 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 $21.3 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-29.

What specific improvements in plan analytics and review processes are expected from this contract, and how will success be measured?

The contract aims to enhance the effectiveness of Issuer Management Operations and Plan Analytics & Review Program. Success will likely be measured through key performance indicators (KPIs) related to improved data analysis, more efficient review cycles, better identification of program risks or opportunities, and potentially cost savings or improved program outcomes within CMS. Specific metrics should be detailed in the task order statements of work.

What are the potential risks associated with a Time and Materials contract for consulting services, and how are they being mitigated?

Time and Materials (T&M) contracts carry a risk of cost escalation if not managed diligently, as costs are based on actual labor hours and material costs. Mitigation strategies include establishing clear labor categories with defined rates, setting strong ceiling prices, implementing rigorous oversight of hours worked, and defining specific deliverables or milestones that must be met. The government contracting officer must actively monitor expenditures and performance.

How does the $21.3 million award compare to typical spending for similar management consulting services within federal health agencies?

The $21.3 million award over approximately two years for management operations and plan analytics is a substantial investment. Benchmarking requires comparing it against contracts for similar scope and complexity within HHS or other federal health agencies. Factors like the specific expertise required, the criticality of the program supported, and the duration influence cost. Without more granular data on task order specifics, a precise comparison is challenging, but it appears to be within the range for significant federal consulting engagements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: 7940 JONES BRANCH DR, TYSONS CORNER, VA, 22102

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

Financial Breakdown

Contract Ceiling: $47,458,362

Exercised Options: $21,345,673

Current Obligation: $21,345,673

Actual Outlays: $13,730,192

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F041GA

IDV Type: FSS

Timeline