HHS awards $2.79M contract for BFCC audit and interrater reliability review services

Contract Overview

Contract Amount: $2,792,535 ($2.8M)

Contractor: Avar Consulting Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-18

End Date: 2025-02-27

Contract Duration: 162 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BFCC AUDIT AND INTERRATER RELIABILITY REVIEW (AIRR) THE BENEFICIARY AND FAMILY CENTERED CARE (BFCC) AUDIT AND INTERRATER RELIABILITY (AIRR) REVIEW CONTRACTOR WILL CONDUCT AUDITS IN SPECIFIC BFCC-QUALITY IMPROVEMENT ORGANIZATION (BFCC-QIO) SERVICE

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.8 million to AVAR CONSULTING INC for work described as: BFCC AUDIT AND INTERRATER RELIABILITY REVIEW (AIRR) THE BENEFICIARY AND FAMILY CENTERED CARE (BFCC) AUDIT AND INTERRATER RELIABILITY (AIRR) REVIEW CONTRACTOR WILL CONDUCT AUDITS IN SPECIFIC BFCC-QUALITY IMPROVEMENT ORGANIZATION (BFCC-QIO) SERVICE Key points: 1. Contract focuses on quality improvement within Medicare. 2. Services are critical for ensuring beneficiary care standards. 3. The contract duration is relatively short, indicating a focused scope. 4. Firm Fixed Price contract type suggests predictable costs. 5. The award was made under full and open competition. 6. AVAR CONSULTING INC is the selected contractor.

Value Assessment

Rating: good

The contract value of $2.79 million for a period of approximately 5 months appears reasonable for specialized audit and reliability review services. Benchmarking against similar contracts for quality improvement organization (QIO) oversight is necessary for a definitive assessment. However, the fixed-price nature of the contract helps manage cost predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a moderate level of competition for this specialized service. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

Beneficiaries of Medicare services will benefit from improved quality assurance. The contract supports the Centers for Medicare and Medicaid Services (CMS) in its oversight role. Services are likely to be performed remotely or at contractor facilities, with potential for on-site reviews. The contract supports specialized consulting and audit roles within the healthcare sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration may limit long-term impact assessment.
Reliance on a single contractor for critical audit functions requires robust performance monitoring.

Positive Signals

Awarded through full and open competition, suggesting a fair process.
Firm Fixed Price contract type provides cost certainty.
Focus on quality improvement aligns with agency mission.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, specifically tailored for healthcare quality improvement. The market for such specialized consulting is driven by regulatory requirements and the need for objective assessments of healthcare provider performance. Comparable spending in this niche would involve other government contracts focused on healthcare audits, compliance reviews, and quality assurance for programs like Medicare and Medicaid.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary focus was on securing the most qualified large business or specialized firm for the service, rather than specifically promoting small business participation.

Oversight & Accountability

Oversight will be managed by the Centers for Medicare and Medicaid Services (CMS). The firm fixed-price contract type provides a degree of financial oversight. Transparency will be maintained through standard government contracting reporting mechanisms. Specific Inspector General jurisdiction would typically cover fraud, waste, and abuse related to federal funds.

Related Government Programs

Medicare Quality Improvement Program
Beneficiary and Family Centered Care (BFCC)
Quality Improvement Organization (QIO) Program
Healthcare Auditing Services
CMS Oversight Contracts

Risk Flags

Short contract duration may limit thoroughness.
Reliance on a single awardee for critical services.
Need for robust performance monitoring due to specialized nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.8 million to AVAR CONSULTING INC. BFCC AUDIT AND INTERRATER RELIABILITY REVIEW (AIRR) THE BENEFICIARY AND FAMILY CENTERED CARE (BFCC) AUDIT AND INTERRATER RELIABILITY (AIRR) REVIEW CONTRACTOR WILL CONDUCT AUDITS IN SPECIFIC BFCC-QUALITY IMPROVEMENT ORGANIZATION (BFCC-QIO) SERVICE

Who is the contractor on this award?

The obligated recipient is AVAR CONSULTING 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 $2.8 million.

What is the period of performance?

Start: 2024-09-18. End: 2025-02-27.

What is the historical performance of AVAR CONSULTING INC with federal contracts, particularly within the Department of Health and Human Services?

A comprehensive review of AVAR CONSULTING INC's federal contract history would be necessary to assess their track record. This would involve examining past performance evaluations, any reported contract disputes or terminations, and their experience with similar healthcare audit and quality assurance services. Data from systems like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be crucial for this analysis. Understanding their past success in delivering services on time, within budget, and to the required quality standards is essential for evaluating their suitability for this current contract.

How does the awarded amount compare to similar BFCC audit and interrater reliability review contracts?

To benchmark the value for money, a comparison with similar contracts awarded by CMS or other federal agencies for BFCC audit and interrater reliability review services is needed. This would involve analyzing contract values, durations, scopes of work, and the number of bidders for comparable services over the past few years. If this contract's value per month or per deliverable is significantly higher or lower than similar contracts, it could indicate either exceptional value or potential overpricing. Without access to a database of comparable contracts, a precise benchmark is difficult, but the $2.79 million for approximately 5 months suggests a monthly expenditure of around $558,000.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured?

The provided data does not specify the key performance indicators (KPIs) for this contract. However, for an audit and interrater reliability review contract, typical KPIs would likely include the accuracy and consistency of audit findings, the timeliness of report submissions, adherence to established audit protocols, and the effectiveness of interrater reliability assessments. Performance measurement would likely involve regular reviews by the Contracting Officer's Representative (COR), review of submitted audit reports and reliability data, and potentially site visits or data validation exercises by CMS personnel.

What is the potential risk associated with the short duration of this contract (162 days)?

The short duration of this contract, approximately 162 days (about 5.4 months), presents several potential risks. Firstly, it may indicate a time-sensitive or narrowly focused task, which could lead to rushed work or insufficient time for thorough analysis and reporting if not managed effectively. Secondly, it might suggest that this is a bridge contract or a task order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, the details of which are not provided. The risk lies in whether the contractor can adequately complete the complex audit and reliability review processes within this compressed timeframe without compromising quality or thoroughness.

What is the significance of the 'Administrative Management and General Management Consulting Services' NAICS code (541611) in the context of this contract?

The North American Industry Classification System (NAICS) code 541611, 'Administrative Management and General Management Consulting Services,' signifies that the primary purpose of this contract is to provide expert advice and assistance to government agencies on management and administrative issues. In this specific case, it means AVAR CONSULTING INC is expected to offer consulting services related to improving the efficiency and effectiveness of the Beneficiary and Family Centered Care (BFCC) program's audit and interrater reliability processes. This code covers a broad range of consulting activities, and its application here highlights the focus on process improvement, operational efficiency, and strategic management advice within the BFCC framework.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amdex Corporation

Address: 297 HERNDON PKWY STE 103B, HERNDON, VA, 20170

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $13,962,675

Exercised Options: $2,792,535

Current Obligation: $2,792,535

Actual Outlays: $1,396,266

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS10F096CA

IDV Type: FSS

Timeline