HHS Awards $7.6M MOCA Contract to RELI GROUP INC for Medicare Drug Price Negotiation Oversight
Contract Overview
Contract Amount: $7,620,348 ($7.6M)
Contractor: Reli Group Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2025-05-02
End Date: 2026-05-01
Contract Duration: 364 days
Daily Burn Rate: $20.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: MEDICARE DRUG PRICE NEGOTIATION PROGRAM MONITORING, OVERSIGHT, COMPLIANCE, AND AUDITING (MOCA)
Place of Performance
Location: CATONSVILLE, BALTIMORE County, MARYLAND, 21228
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $7.6 million to RELI GROUP INC for work described as: MEDICARE DRUG PRICE NEGOTIATION PROGRAM MONITORING, OVERSIGHT, COMPLIANCE, AND AUDITING (MOCA) Key points: 1. Contract focuses on critical Medicare drug price negotiation program. 2. RELI GROUP INC selected via full and open competition. 3. Potential for significant taxpayer savings through effective program oversight. 4. IT services sector, specifically custom computer programming.
Value Assessment
Rating: good
The contract value of $7.6M for a 1-year period appears reasonable for specialized IT services supporting a complex government program. Benchmarking against similar IT support contracts for large federal programs would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for achieving fair pricing and selecting the best-value vendor. This method allows for a broad range of qualified contractors to bid, fostering a competitive environment.
Taxpayer Impact: Effective monitoring and auditing of the Medicare Drug Price Negotiation Program could lead to substantial taxpayer savings by ensuring program efficiency and preventing waste.
Public Impact
Ensures effective implementation and oversight of the Medicare Drug Price Negotiation Program. Supports efforts to control prescription drug costs for Medicare beneficiaries. Enhances compliance and auditing functions within CMS. Potential to identify cost-saving opportunities within the program.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is relatively short (1 year), potentially leading to follow-on costs.
- Small business participation is not explicitly mentioned as a requirement.
Positive Signals
- Full and open competition utilized.
- Supports a high-priority government initiative.
- Clear objectives for monitoring, oversight, and auditing.
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. The value is moderate for a federal IT contract supporting a program of this national significance.
Small Business Impact
The data indicates that small business participation was not a specific requirement or focus for this contract award. Further analysis would be needed to determine if any small businesses were involved as subcontractors.
Oversight & Accountability
The contract emphasizes monitoring, oversight, and auditing, which are key components of ensuring accountability and effective program management. CMS's role in overseeing this contract is crucial for its success.
Related Government Programs
- Custom Computer Programming Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for vendor lock-in if follow-on contracts are required.
- Effectiveness of oversight depends heavily on vendor expertise and agency collaboration.
- Lack of explicit small business participation goal.
- Time and Materials contract type can sometimes lead to cost overruns if not managed tightly.
Tags
custom-computer-programming-services, department-of-health-and-human-services, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $7.6 million to RELI GROUP INC. MEDICARE DRUG PRICE NEGOTIATION PROGRAM MONITORING, OVERSIGHT, COMPLIANCE, AND AUDITING (MOCA)
Who is the contractor on this award?
The obligated recipient is RELI GROUP 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 $7.6 million.
What is the period of performance?
Start: 2025-05-02. End: 2026-05-01.
What is the projected impact of this contract on the overall cost-effectiveness of the Medicare Drug Price Negotiation Program?
This contract aims to enhance the monitoring, oversight, and auditing of the Medicare Drug Price Negotiation Program. By ensuring compliance and identifying inefficiencies, it is expected to contribute to the program's cost-effectiveness. The ultimate impact will depend on the effectiveness of the implemented oversight mechanisms and the ability to translate findings into actionable improvements that reduce program expenditures or improve value.
What are the primary risks associated with the performance of this contract, and how are they being mitigated?
Key risks include potential vendor performance issues in delivering complex IT services, challenges in accurately monitoring and auditing the intricate drug negotiation process, and the possibility of scope creep. Mitigation strategies likely involve robust performance metrics, clear deliverable definitions, regular progress reviews between CMS and RELI GROUP INC, and strong contract management oversight from the agency.
How does this contract contribute to the government's broader goals of reducing healthcare costs and improving patient access to medications?
This contract directly supports the government's goal of reducing healthcare costs by ensuring the Medicare Drug Price Negotiation Program operates efficiently and effectively. By providing critical monitoring, oversight, and auditing capabilities, it helps to validate that negotiated prices are fair and that the program achieves its intended cost-saving objectives for beneficiaries and taxpayers.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 7
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 7125 AMBASSADOR RD STE 100, WINDSOR MILL, MD, 21244
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $59,868,386
Exercised Options: $7,620,348
Current Obligation: $7,620,348
Actual Outlays: $4,656,278
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F385CA
IDV Type: FSS
Timeline
Start Date: 2025-05-02
Current End Date: 2026-05-01
Potential End Date: 2030-05-01 00:00:00
Last Modified: 2026-03-11
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