HHS Awards $51M Task Order to Qlarant for Medicare Integrity Services Over 10 Years

Contract Overview

Contract Amount: $50,959,669 ($51.0M)

Contractor: Qlarant Integrity Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2008-09-30

End Date: 2018-03-31

Contract Duration: 3,469 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ZONE 4 - MEDI-MEDI TASK ORDER

Place of Performance

Location: EASTON, TALBOT County, MARYLAND, 21601

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $51.0 million to QLARANT INTEGRITY SOLUTIONS LLC for work described as: ZONE 4 - MEDI-MEDI TASK ORDER Key points: 1. Significant 10-year contract duration suggests long-term need for services. 2. Competition was full and open, indicating a potentially competitive pricing environment. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 4. Services fall under 'All Other Professional, Scientific, and Technical Services', a broad category.

Value Assessment

Rating: fair

The contract is Cost Plus Fixed Fee, which can be less predictable than fixed-price contracts. Benchmarking against similar 'All Other Professional, Scientific, and Technical Services' contracts is difficult due to the broad NAICS code.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, suggesting a robust process for selecting the contractor. This method generally promotes competitive pricing, but the Cost Plus Fixed Fee structure requires careful oversight to ensure value.

Taxpayer Impact: Taxpayer funds are being used for this task order. The long duration and cost-plus structure necessitate vigilant oversight to ensure efficiency and prevent unnecessary costs.

Public Impact

Ensures continued integrity and oversight of Medicare programs. Supports the operational efficiency of the Centers for Medicare and Medicaid Services. Impacts beneficiaries through improved program administration and fraud prevention. Provides employment opportunities within the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type
Long contract duration (10 years)
Broad NAICS code limits specific benchmarking

Positive Signals

Full and open competition
Established agency (HHS/CMS)
Long-term service provision

Sector Analysis

This contract falls under professional, scientific, and technical services, a sector crucial for government operations. Spending benchmarks for this broad category are difficult to establish, but the duration and value indicate a significant commitment.

Small Business Impact

The data indicates the awardee is QLARANT INTEGRITY SOLUTIONS LLC, a single entity. There is no explicit information on small business participation or subcontracting within this task order.

Oversight & Accountability

The long duration and cost-plus nature of this contract necessitate strong oversight from CMS to ensure cost control, performance, and adherence to the fixed fee. Regular performance reviews and audits are critical.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Potential for cost overruns due to Cost Plus Fixed Fee structure.
Long contract duration may reduce flexibility to adapt to future needs.
Broad NAICS code hinders precise cost benchmarking.
Lack of explicit small business participation data.
Reliance on a single contractor for a decade could pose a risk if performance degrades.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $51.0 million to QLARANT INTEGRITY SOLUTIONS LLC. ZONE 4 - MEDI-MEDI TASK ORDER

Who is the contractor on this award?

The obligated recipient is QLARANT INTEGRITY SOLUTIONS 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 $51.0 million.

What is the period of performance?

Start: 2008-09-30. End: 2018-03-31.

What specific metrics are used to evaluate Qlarant's performance under this Cost Plus Fixed Fee contract to ensure value for money?

Performance evaluation likely relies on key performance indicators (KPIs) related to Medicare integrity, such as fraud detection rates, audit efficiency, and compliance adherence. CMS would monitor these KPIs against pre-defined targets. The fixed fee component is separate from the cost reimbursement, so value is assessed by achieving program goals within the overall budget, while ensuring the fixed fee remains justified by the scope and quality of work.

How does the 'All Other Professional, Scientific, and Technical Services' NAICS code impact the ability to assess cost-effectiveness compared to more specialized service contracts?

The broadness of NAICS 541990 makes direct cost-effectiveness comparisons challenging. Unlike specialized codes (e.g., IT security, specific engineering), this category encompasses diverse activities, making it difficult to find directly comparable contracts for benchmarking. This necessitates a reliance on internal cost analysis, contractor performance history, and potentially broader market research to gauge reasonableness, rather than precise peer comparisons.

Given the 10-year duration, what mechanisms are in place to ensure the services remain relevant and effective as Medicare program needs evolve?

Mechanisms likely include contract clauses for periodic reviews, scope adjustments, and potential re-competition or modifications. CMS would typically have provisions to adapt the contract to changing regulations, technological advancements, and emerging program integrity challenges. Regular performance management and strategic discussions with Qlarant would ensure the services align with evolving Medicare requirements over the decade.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Qlarant Inc

Address: 28464 MARLBORO AVE, EASTON, MD, 21601

Business Categories: Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $53,850,084

Exercised Options: $53,850,084

Current Obligation: $50,959,669

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSM500200800027I

IDV Type: IDC

Timeline