HHS Spends $12.25M on Medicare Database Testing with OptumServe
Contract Overview
Contract Amount: $12,251,143 ($12.3M)
Contractor: Optumserve Technology Services, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2008-06-01
End Date: 2013-05-31
Contract Duration: 1,825 days
Daily Burn Rate: $6.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: MEDICARE BENEFICIARY DATABASE TESTING
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20878
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $12.3 million to OPTUMSERVE TECHNOLOGY SERVICES, INC. for work described as: MEDICARE BENEFICIARY DATABASE TESTING Key points: 1. Contract awarded to OptumServe Technology Services, Inc. for computer systems design. 2. Full and open competition was utilized for this contract. 3. The contract duration was 1825 days, spanning from June 2008 to May 2013. 4. The primary sector appears to be IT services supporting healthcare operations.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar IT services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition suggests a robust price discovery process. However, the Cost Plus Fixed Fee structure may still allow for cost overruns.
Taxpayer Impact: Taxpayer funds were used for IT services to support Medicare operations, with the final cost influenced by the competition and contract type.
Public Impact
Ensures the integrity and functionality of the Medicare beneficiary database. Supports the operational efficiency of the Centers for Medicare and Medicaid Services. Potential impact on beneficiary services if database testing is inadequate.
Waste & Efficiency Indicators
Waste Risk Score: 67 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Lack of specific performance metrics makes value assessment difficult.
Positive Signals
- Full and open competition indicates a competitive bidding process.
- Contract supports critical healthcare infrastructure.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design, supporting the healthcare industry. Benchmarks for similar contracts are highly variable based on scope and complexity.
Small Business Impact
The data indicates this contract was not awarded to small businesses.
Oversight & Accountability
Oversight would typically be managed by the Centers for Medicare and Medicaid Services program managers to ensure contract deliverables are met and costs are controlled.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Lack of detailed performance metrics.
- Potential for cost overruns inherent in CPFF contracts.
- No indication of small business participation.
Tags
computer-systems-design-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $12.3 million to OPTUMSERVE TECHNOLOGY SERVICES, INC.. MEDICARE BENEFICIARY DATABASE TESTING
Who is the contractor on this award?
The obligated recipient is OPTUMSERVE TECHNOLOGY SERVICES, 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 $12.3 million.
What is the period of performance?
Start: 2008-06-01. End: 2013-05-31.
What was the specific scope of work for the Medicare Beneficiary Database testing?
The provided data does not detail the specific scope of work. It only indicates the contract was for 'Computer Systems Design Services' related to the Medicare Beneficiary Database. A detailed statement of work would be necessary to understand the testing methodologies, objectives, and expected outcomes.
How did the Cost Plus Fixed Fee structure impact the final cost compared to a fixed-price contract?
Cost Plus Fixed Fee contracts allow the contractor to recover costs plus a predetermined fee. This structure can lead to higher final costs than fixed-price contracts if costs escalate beyond initial estimates. Without a comparison to a fixed-price bid or detailed cost analysis, it's hard to quantify the exact impact.
Were there any performance issues or challenges reported during the contract period?
The provided data does not include information on performance issues or challenges. Such details would typically be found in contract performance reports, reviews, or award justifications, which are not included in this dataset.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Unitedhealth Group Incorporated
Address: 10480 LITTLE PATUXENT PKWY SUITE 310, COLUMBIA, MD, 21044
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business
Financial Breakdown
Contract Ceiling: $13,459,491
Exercised Options: $12,751,143
Current Obligation: $12,251,143
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSM500200700024I
IDV Type: IDC
Timeline
Start Date: 2008-06-01
Current End Date: 2013-05-31
Potential End Date: 2013-05-31 00:00:00
Last Modified: 2022-09-29
More Contracts from Optumserve Technology Services, Inc.
- Nitaac Cio-Sp3 Task Order for ONE PI — $175.8M (Department of Health and Human Services)
- Data Service HUB — $174.1M (Department of Health and Human Services)
- Claims Reimbursement to Health Care Providers and Facilities for Testing, Treatment and Vaccine Administration for the Uninsured — $169.1M (Department of Health and Human Services)
- Enterprise Identity Management Services — $150.1M (Department of Health and Human Services)
- Data Services HUB (DSH) Logical Follow-On — $103.6M (Department of Health and Human Services)
View all Optumserve Technology Services, Inc. federal contracts →
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →