HHS awards $4.16M for audit services to Cohnreznick LLP under a BPA call

Contract Overview

Contract Amount: $4,164,603 ($4.2M)

Contractor: Cohnreznick LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2024-08-22

End Date: 2026-04-30

Contract Duration: 616 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PERFORMANCE OF AUDIT SERVICES (PAS) FY24 CALL ORDER AWARD

Place of Performance

Location: GWYNN OAK, BALTIMORE County, MARYLAND, 21207

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.2 million to COHNREZNICK LLP for work described as: PERFORMANCE OF AUDIT SERVICES (PAS) FY24 CALL ORDER AWARD Key points: 1. Value for money assessed through competitive bidding. 2. Competition dynamics indicate a fair market approach. 3. Risk indicators appear low given the nature of audit services. 4. Performance context is a call order against an existing BPA. 5. Sector positioning within government financial oversight services.

Value Assessment

Rating: good

The contract value of $4.16 million for audit services appears reasonable for a two-year period. Benchmarking against similar audit contracts within the federal government for accounting firms of this size and scope would provide further validation. The firm fixed-price nature of the award suggests that cost overruns are the contractor's responsibility, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the competitive nature of the award suggests that pricing was likely driven by market forces, leading to a potentially more favorable outcome for the government.

Taxpayer Impact: Full and open competition generally leads to better price discovery and can result in cost savings for taxpayers by ensuring the government receives competitive offers.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) benefits from enhanced financial oversight. Services delivered include audit functions crucial for financial integrity. Geographic impact is primarily within Maryland, where the contractor is located. Workforce implications involve skilled accounting and auditing professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract type limits government cost risk.
Contract is a call order against an existing BPA, suggesting pre-vetted capabilities.

Sector Analysis

The federal government procures a wide range of professional services, including accounting and auditing, to ensure compliance and financial accountability. The market for these services is mature, with numerous established firms capable of meeting government requirements. This contract fits within the broader category of professional services spending, supporting the operational needs of agencies like CMS.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this particular BPA call order, as 'sb' is false. However, the prime contractor, Cohnreznick LLP, is a large firm. Analysis of subcontracting plans would be necessary to determine if small businesses are involved in fulfilling parts of this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and program managers within CMS. As a call order against a Blanket Purchase Agreement (BPA), the initial vetting and oversight were likely established during the BPA's creation. Transparency is generally maintained through contract award databases, and the Inspector General's office for HHS could investigate any potential issues.

Related Government Programs

Audit Services
Professional Services
Centers for Medicare and Medicaid Services Contracts
Department of Health and Human Services Contracts

Risk Flags

Potential for cost overruns if scope is not well-defined (mitigated by FFP).
Dependence on contractor's expertise and integrity for accurate audit findings.
Data security risks if sensitive financial information is handled.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.2 million to COHNREZNICK LLP. PERFORMANCE OF AUDIT SERVICES (PAS) FY24 CALL ORDER AWARD

Who is the contractor on this award?

The obligated recipient is COHNREZNICK LLP.

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 $4.2 million.

What is the period of performance?

Start: 2024-08-22. End: 2026-04-30.

What is Cohnreznick LLP's track record with federal government contracts, particularly with HHS?

Cohnreznick LLP has a history of performing federal contracts. While specific details for this particular award are limited to the provided data, a deeper dive into federal procurement databases would reveal the extent of their past performance, including awards, contract types, and agencies served. Their experience with HHS and CMS would be a key factor in assessing their suitability for this audit services contract. Past performance reviews and any past issues or commendations would be crucial for a comprehensive understanding of their reliability and capability in serving federal clients.

How does the $4.16 million value compare to similar audit service contracts awarded by HHS or CMS?

The $4.16 million award for audit services over approximately two years (from August 2024 to April 2026) needs to be benchmarked against comparable contracts. Factors such as the scope of work, complexity of the audits, and the size and experience of the contractor influence pricing. Without specific details on the audit requirements, a direct comparison is challenging. However, if similar-sized audit engagements for federal health agencies typically fall within a similar price range, this award would be considered fair. Conversely, significant deviations could indicate either exceptional value or potential overpricing, warranting further investigation into the contract's specifics.

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

The primary risks for an audit services contract typically revolve around the quality and timeliness of the deliverables, potential for scope creep, and data security if sensitive information is accessed. Given this is a firm fixed-price contract, the financial risk of cost overruns is borne by the contractor, Cohnreznick LLP. Mitigation strategies likely include clear performance standards outlined in the BPA call order, regular progress reviews by CMS, and adherence to strict data handling protocols. The contractor's established reputation and prior federal contracting experience also serve as risk mitigation factors.

How effective is the current BPA structure in ensuring efficient procurement of audit services for CMS?

The use of a Blanket Purchase Agreement (BPA) for audit services suggests that CMS has identified a recurring need for such services and has pre-negotiated terms and conditions with one or more vendors. This structure can streamline the procurement process, reduce administrative burden, and potentially achieve better pricing through volume. The effectiveness of this specific BPA hinges on how well the underlying agreement was structured, the competitiveness of the initial BPA solicitation, and the ongoing management of call orders issued against it. The fact that this is a 'call order' indicates the BPA mechanism is functioning as intended to fulfill specific needs.

What is the historical spending pattern for audit services by CMS, and how does this award fit in?

Analyzing historical spending patterns for audit services by CMS is crucial to contextualize this $4.16 million award. If CMS consistently spends millions annually on audit services through various contracts and BPAs, this award might represent a typical allocation. However, if this amount is significantly higher or lower than previous expenditures for similar services, it warrants closer examination. Understanding trends in spending, such as the number of contracts awarded, average contract values, and the primary contractors utilized, can reveal shifts in agency priorities, budget allocations, or market dynamics for audit services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1301 AVENUE OF THE AMERICAS FL 10, NEW YORK, NY, 10019

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,164,603

Exercised Options: $4,164,603

Current Obligation: $4,164,603

Actual Outlays: $3,292,538

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75FCMC19A0012

IDV Type: BPA

Timeline