Department of Labor awards $61.6M contract for OWCP workers' compensation medical bill processing to ACENTRA HEALTH LLC
Contract Overview
Contract Amount: $61,563,985 ($61.6M)
Contractor: Acentra Health LLC
Awarding Agency: Department of Labor
Start Date: 2016-05-18
End Date: 2025-06-30
Contract Duration: 3,330 days
Daily Burn Rate: $18.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OWCP WORKERS' COMPENSATION MEDICAL BILL PROCESSING IGF::OT::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210
Plain-Language Summary
Department of Labor obligated $61.6 million to ACENTRA HEALTH LLC for work described as: OWCP WORKERS' COMPENSATION MEDICAL BILL PROCESSING IGF::OT::IGF Key points: 1. Contract awarded to ACENTRA HEALTH LLC for medical bill processing services. 2. The contract has a significant value of $61.6 million. 3. Services fall under 'All Other Insurance Related Activities'. 4. The contract duration extends to June 2025.
Value Assessment
Rating: fair
The contract's firm fixed price structure aims for cost control. Benchmarking against similar medical bill processing contracts is needed to fully assess value, as specific per-unit costs are not provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The firm fixed price contract aims to provide predictable costs for taxpayers over the contract's life.
Public Impact
Ensures timely processing of workers' compensation medical bills for injured federal employees. Supports the Department of Labor's mission in administering benefits. Impacts healthcare providers submitting bills for services rendered to federal workers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific per-unit cost data for benchmarking.
- Contract duration extends to mid-2025, requiring ongoing monitoring.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type.
Sector Analysis
This contract falls within the broader insurance and administrative services sector. Spending benchmarks for similar government contracts in medical bill processing would provide context for the $61.6 million award.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The contract is managed by the Office of the Assistant Secretary for Administration and Management within the Department of Labor. Oversight should focus on performance metrics and adherence to the firm fixed price.
Related Government Programs
- All Other Insurance Related Activities
- Department of Labor Contracting
- Office of the Assistant Secretary for Administration and Management Programs
Risk Flags
- Potential for cost overruns if not managed tightly.
- Dependence on a single vendor for critical administrative function.
- Lack of transparency on specific performance metrics.
- No indication of small business participation.
Tags
all-other-insurance-related-activities, department-of-labor, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $61.6 million to ACENTRA HEALTH LLC. OWCP WORKERS' COMPENSATION MEDICAL BILL PROCESSING IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is ACENTRA HEALTH LLC.
Which agency awarded this contract?
Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).
What is the total obligated amount?
The obligated amount is $61.6 million.
What is the period of performance?
Start: 2016-05-18. End: 2025-06-30.
What is the average cost per medical bill processed under this contract compared to industry benchmarks?
Without specific per-unit cost data, it's challenging to provide an exact benchmark. However, the contract's firm fixed price structure suggests an expectation of cost efficiency. A detailed review of the contract's performance metrics and comparison with similar government or private sector contracts for medical bill processing would be necessary to establish a reliable per-unit cost benchmark and assess value.
What are the key performance indicators (KPIs) used to measure the effectiveness of ACENTRA HEALTH LLC's bill processing?
The contract details do not explicitly list the KPIs. However, typical KPIs for such services include processing turnaround time, accuracy rates, claim denial rates, and compliance with relevant regulations. The Department of Labor's Office of the Assistant Secretary for Administration and Management should be monitoring these metrics to ensure effective service delivery and contractor performance.
Are there any identified risks associated with the long-term duration of this contract and the potential for vendor lock-in?
The contract duration extends to June 2025, which is a moderate term. Risks of vendor lock-in are generally mitigated by the initial full and open competition. However, the Department should periodically reassess the market for bill processing services to ensure continued competition and value, especially as the contract nears its end.
Industry Classification
NAICS: Finance and Insurance › Agencies, Brokerages, and Other Insurance Related Activities › All Other Insurance Related Activities
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DOL141RP21903
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2277 RESEARCH BLVD, ROCKVILLE, MD, 20850
Business Categories: 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: $193,087,464
Exercised Options: $191,858,046
Current Obligation: $61,563,985
Actual Outlays: $126,942,269
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2016-05-18
Current End Date: 2025-06-30
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2026-02-23
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