HHS awards $2.37M for QHP issuer help desk services, with LMI Consulting LLC to provide support

Contract Overview

Contract Amount: $2,368,819 ($2.4M)

Contractor: LMI Consulting, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-02-09

End Date: 2026-05-08

Contract Duration: 453 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: DEVELOP A TIER II POLICY HELP DESK SYSTEM AND PROVIDE OPERATIONAL SERVICES TO SUPPORT THE FULL CYCLE OF HELP DESK TICKETS RECEIVED FROM QUALIFIED HEALTH PLAN (QHP) ISSUERS, STAND ALONE DENTAL PLAN (SADP) ISSUERS, STATE AGENCIES AND OTHER STAKEHOLDERS

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.4 million to LMI CONSULTING, LLC for work described as: DEVELOP A TIER II POLICY HELP DESK SYSTEM AND PROVIDE OPERATIONAL SERVICES TO SUPPORT THE FULL CYCLE OF HELP DESK TICKETS RECEIVED FROM QUALIFIED HEALTH PLAN (QHP) ISSUERS, STAND ALONE DENTAL PLAN (SADP) ISSUERS, STATE AGENCIES AND OTHER STAKEHOLDERS Key points: 1. Contract focuses on essential support for Qualified Health Plan (QHP) issuers, ensuring smooth operations. 2. Full and open competition indicates a potentially competitive bidding process. 3. The contract duration of 453 days suggests a need for sustained operational support. 4. Services are critical for maintaining the integrity and accessibility of health insurance marketplaces. 5. The contract falls under administrative management and general management consulting services. 6. This award represents a specific investment in operational efficiency for health insurance oversight.

Value Assessment

Rating: good

The contract value of approximately $2.37 million for a 453-day period appears reasonable for specialized help desk and operational support services. Benchmarking against similar contracts for IT support and administrative consulting within the federal government would provide a more precise value-for-money assessment. However, the scope of supporting QHP issuers and state agencies suggests a complex and critical function that warrants this level of investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and ensure that the government receives competitive pricing. The number of bidders is not specified, but the method of competition implies a robust selection process.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at a fair market price through a competitive bidding environment.

Public Impact

Qualified Health Plan (QHP) issuers benefit from enhanced support for their operational challenges. State agencies involved in health insurance oversight receive crucial assistance. Stakeholders interacting with the health insurance marketplace will experience improved service. The contract supports the administrative infrastructure of the Centers for Medicare and Medicaid Services (CMS). Workforce implications include the provision of specialized help desk and operational support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined.
Reliance on a single contractor for critical help desk functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Clear definition of services for QHP issuers and state agencies.
Defined contract period with specific end dates.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, specifically supporting the healthcare industry's regulatory and operational framework. The market for such services is driven by government needs for specialized expertise in managing complex programs like the Affordable Care Act (ACA) marketplaces. Comparable spending benchmarks would involve analyzing other federal contracts for IT help desk support, program administration, and consulting services within health and human services agencies.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. Therefore, the direct impact on small business set-asides is minimal. However, LMI Consulting, LLC, as the prime contractor, may engage small businesses as subcontractors, contributing to the small business ecosystem. Further analysis would be needed to determine subcontracting plans and their impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the Centers for Medicare and Medicaid Services (CMS), a division of the Department of Health and Human Services (HHS). The contract's performance will be monitored through regular reporting, service level agreements, and potentially site visits. Transparency is facilitated by the public nature of federal contract awards, and any issues would fall under the purview of HHS's Inspector General.

Related Government Programs

Affordable Care Act (ACA) Marketplace Operations
Health Insurance Issuer Support Programs
Federal Health IT Support Services
CMS Program Management Support

Risk Flags

Performance Risk
Cost Control Risk (T&M Pricing)
Scope Creep Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.4 million to LMI CONSULTING, LLC. DEVELOP A TIER II POLICY HELP DESK SYSTEM AND PROVIDE OPERATIONAL SERVICES TO SUPPORT THE FULL CYCLE OF HELP DESK TICKETS RECEIVED FROM QUALIFIED HEALTH PLAN (QHP) ISSUERS, STAND ALONE DENTAL PLAN (SADP) ISSUERS, STATE AGENCIES AND OTHER STAKEHOLDERS

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 $2.4 million.

What is the period of performance?

Start: 2025-02-09. End: 2026-05-08.

What is the track record of LMI Consulting, LLC in providing similar help desk and operational support services to federal agencies, particularly within the healthcare sector?

LMI Consulting, LLC has a history of providing management consulting and technical support services to various government agencies. While specific details on their experience with QHP issuer help desk operations are not immediately available from the provided data, their classification under 'Administrative Management and General Management Consulting Services' suggests a broad capability. To assess their track record thoroughly, one would need to examine past performance evaluations, contract history with agencies like HHS or CMS, and any documented successes or challenges in delivering similar complex support systems. Their ability to manage the full cycle of help desk tickets for diverse stakeholders is a key indicator of their suitability for this contract.

How does the awarded amount of $2.37 million compare to the estimated cost or market rates for similar help desk and operational support services for health insurance issuers?

The awarded amount of approximately $2.37 million for a 453-day contract (roughly 15 months) translates to an average monthly cost of about $523,000. This figure needs to be benchmarked against market rates for comprehensive IT help desk, operational support, and consulting services tailored to the complex regulatory environment of health insurance issuers. Factors such as the number of users supported, the complexity of the systems, and the required service level agreements will influence the market rate. Without specific data on comparable federal or private sector contracts for similar services, it is challenging to definitively assess if this represents excellent, good, or fair value. However, given the critical nature of supporting QHP issuers and state agencies, the investment appears aligned with the scope of services.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks for this contract include potential performance issues with LMI Consulting, LLC, leading to delays or inadequate support for QHP issuers and state agencies. Another risk is the possibility of scope creep, where the demands of the help desk system exceed the initially defined parameters, potentially leading to cost overruns or schedule delays. Furthermore, a heavy reliance on a single contractor for critical operational support could pose a vulnerability if the contractor faces internal challenges. Mitigation strategies likely include robust performance monitoring by CMS, clearly defined service level agreements (SLAs), regular progress reviews, and contingency planning for service disruptions. The contract's time-and-materials (T&M) pricing structure, while offering flexibility, also necessitates careful oversight to control costs.

How effective is the 'full and open competition' approach in ensuring the best value for taxpayers in this specific contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring best value for taxpayers, as it maximizes the pool of potential bidders and encourages competitive pricing. For this contract, it means that multiple companies could vie for the opportunity to provide help desk services to QHP issuers and state agencies. This competition should theoretically drive down costs and improve the quality of services offered. The effectiveness is further realized if the evaluation criteria used by CMS prioritize not just price but also technical capability, past performance, and overall value. The success of this approach hinges on the thoroughness of the solicitation process and the rigor of the evaluation.

What are the historical spending patterns for similar help desk and operational support services within the Centers for Medicare and Medicaid Services (CMS)?

Analyzing historical spending patterns for similar services within CMS is crucial for context. While the provided data does not include historical spending, a comprehensive review would involve examining previous contracts awarded by CMS for help desk support, IT operational services, and program administration, particularly those related to the ACA marketplaces and health insurance issuers. Understanding the volume, duration, and cost of these past contracts would help establish a baseline for evaluating the current $2.37 million award. Significant deviations from historical spending levels, either higher or lower, would warrant further investigation into the underlying reasons, such as changes in program scope, market conditions, or technological advancements.

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: 1

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: $2,390,789

Exercised Options: $2,368,819

Current Obligation: $2,368,819

Actual Outlays: $1,678,348

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F041GA

IDV Type: FSS

Timeline