HHS awards $20.9M for Telemarketing/Contact Centers to Anthem Health Plans of Kentucky, Inc
Contract Overview
Contract Amount: $20,938,348 ($20.9M)
Contractor: Anthem Health Plans of Kentucky, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2006-09-30
End Date: 2007-09-29
Contract Duration: 364 days
Daily Burn Rate: $57.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 11
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: PROGRAM MANAGEMENT/SUPPORT SERVICES
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46250
State: Indiana Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $20.9 million to ANTHEM HEALTH PLANS OF KENTUCKY, INC. for work described as: PROGRAM MANAGEMENT/SUPPORT SERVICES Key points: 1. Contract awarded to Anthem Health Plans of Kentucky, Inc. for program management/support services. 2. The contract value is $20,938,348. 3. The period of performance is from September 30, 2006, to September 29, 2007. 4. The contract was awarded under full and open competition. 5. The contract type is Cost Plus Award Fee.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar contracts for telemarketing and contact center services is difficult without more detailed scope of work.
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. However, the Cost Plus Award Fee structure may not always yield the lowest price.
Taxpayer Impact: Taxpayer funds are used for program management and support services, with the final cost influenced by performance incentives.
Public Impact
Ensures operational support for critical government programs. Supports telemarketing and contact center functions, potentially impacting public access to services. The use of a Cost Plus Award Fee contract requires careful monitoring to ensure cost-effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contract type can incentivize higher spending.
- Limited detail on performance metrics and award fee structure.
Positive Signals
- Awarded under full and open competition.
- Contract supports essential program management functions.
Sector Analysis
This contract falls under program management and support services, specifically within the contact center domain. Spending in this area is crucial for efficient government operations and public service delivery.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The Centers for Medicare and Medicaid Services (CMS) is responsible for oversight. The Cost Plus Award Fee structure necessitates robust performance monitoring and financial oversight to ensure value for money.
Related Government Programs
- Telemarketing Bureaus and Other Contact Centers
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Lack of detailed performance metrics and award fee breakdown.
- Limited insight into small business utilization.
- Short contract duration may indicate a specific, time-bound need or a stepping stone to a larger contract.
Tags
telemarketing-bureaus-and-other-contact-, department-of-health-and-human-services, in, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $20.9 million to ANTHEM HEALTH PLANS OF KENTUCKY, INC.. PROGRAM MANAGEMENT/SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is ANTHEM HEALTH PLANS OF KENTUCKY, 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 $20.9 million.
What is the period of performance?
Start: 2006-09-30. End: 2007-09-29.
What specific program management and support services were rendered under this contract?
The provided data indicates the contract was for 'PROGRAM MANAGEMENT/SUPPORT SERVICES' and the North American Industry Classification System (NAICS) code is 561422, 'Telemarketing Bureaus and Other Contact Centers'. This suggests services related to managing operations and providing customer contact through telemarketing or similar channels, likely supporting CMS initiatives.
How effectively did the Cost Plus Award Fee structure incentivize performance while controlling costs?
The effectiveness of a Cost Plus Award Fee (CPAF) contract hinges on well-defined performance metrics and a clear award fee structure. Without access to the specific performance evaluations and the resulting award fees paid, it's impossible to definitively assess if this structure successfully balanced incentivizing high performance with controlling costs for this particular contract.
What was the competitive landscape for these services at the time of award?
The contract was awarded under 'FULL AND OPEN COMPETITION', indicating that multiple vendors were likely solicited and submitted proposals. This suggests a competitive environment for telemarketing and contact center services, which generally supports better pricing and service quality compared to sole-source or limited competition scenarios.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telemarketing Bureaus and Other Contact Centers
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 11
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Elevance Health, Inc. (UEI: 037955940)
Address: 9901 LINN STATION RD, LOUISVILLE, KY, 03
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $20,938,348
Exercised Options: $20,938,348
Current Obligation: $20,938,348
Parent Contract
Parent Award PIID: 500010053
IDV Type: IDC
Timeline
Start Date: 2006-09-30
Current End Date: 2007-09-29
Potential End Date: 2007-09-29 00:00:00
Last Modified: 2008-06-27
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