HHS awards $21M Quality Improvement contract to Telligen Illinois, LLC for public health programs

Contract Overview

Contract Amount: $20,958,802 ($21.0M)

Contractor: Telligen Illinois, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2008-02-12

End Date: 2009-11-09

Contract Duration: 636 days

Daily Burn Rate: $33.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Healthcare

Official Description: QUALITY IMPROVEMENT ORGANIZATION

Place of Performance

Location: OAK BROOK, DUPAGE County, ILLINOIS, 60523

State: Illinois Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.0 million to TELLIGEN ILLINOIS, LLC for work described as: QUALITY IMPROVEMENT ORGANIZATION Key points: 1. Contract awarded to a single entity, Telligen Illinois, LLC. 2. The contract is for Quality Improvement Organization services. 3. The total award value is over $20.9 million. 4. The contract duration is approximately 636 days.

Value Assessment

Rating: fair

The contract's Cost Plus Award Fee structure allows for performance-based incentives. Without comparable contract data, assessing the pricing against similar services is difficult, but the award value suggests a significant investment in quality improvement initiatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a sole-source or limited competition award. This limits price discovery and potentially reduces the incentive for the contractor to offer the most competitive pricing.

Taxpayer Impact: The lack of competition may lead to higher costs for taxpayers compared to a fully competitive procurement.

Public Impact

Enhances quality of care within the Medicare program. Supports public health initiatives through program administration. Impacts healthcare providers and beneficiaries in Illinois.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Cost-plus contract type

Positive Signals

Focus on quality improvement
Defined contract period

Sector Analysis

This contract falls within the healthcare sector, specifically focusing on quality improvement and public health program administration. Spending benchmarks for similar QIO contracts can vary widely based on scope and region.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award, as it was not available for competition and the awardee is a single entity.

Oversight & Accountability

Oversight would typically be managed by the Centers for Medicare and Medicaid Services (CMS) to ensure the contractor meets performance objectives and manages funds appropriately.

Related Government Programs

Administration of Public Health Programs
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Lack of competition
Cost-plus contract type
Potential for cost overruns
Performance metric clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.0 million to TELLIGEN ILLINOIS, LLC. QUALITY IMPROVEMENT ORGANIZATION

Who is the contractor on this award?

The obligated recipient is TELLIGEN ILLINOIS, 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 $21.0 million.

What is the period of performance?

Start: 2008-02-12. End: 2009-11-09.

What is the expected impact of this contract on healthcare quality metrics in Illinois?

The contract aims to improve healthcare quality by engaging healthcare providers in quality improvement activities, potentially leading to better patient outcomes, reduced errors, and more efficient care delivery. Specific metrics and targets would be detailed in the contract's statement of work.

What are the primary risks associated with a Cost Plus Award Fee contract for public health programs?

Risks include potential for cost overruns if performance targets are not clearly defined or achievable, and the possibility of the contractor focusing on maximizing award fees rather than true cost efficiency. Effective oversight is crucial to mitigate these risks.

How does the limited competition impact the overall effectiveness and value for money of this contract?

Limited competition can reduce the pressure on the contractor to innovate and offer the best value. While the awardee may have specialized expertise, the lack of competitive bidding makes it harder to ascertain if the government secured the most effective solution at the best possible price.

Industry Classification

NAICS: Public Administration › Administration of Human Resource Programs › Administration of Public Health Programs

Product/Service Code: MEDICAL SERVICES › DEPENDENT MEDICARE SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Telligen, Inc

Address: 2625 S BUTTERFIELD RD STE 102E, OAK BROOK, IL, 60523

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

Financial Breakdown

Contract Ceiling: $20,958,802

Exercised Options: $20,958,802

Current Obligation: $20,958,802

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline