HHS awarded $20.4M to Qlarant for public health program administration over 3 years

Contract Overview

Contract Amount: $20,405,231 ($20.4M)

Contractor: Qlarant Quality Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2005-11-01

End Date: 2009-03-31

Contract Duration: 1,246 days

Daily Burn Rate: $16.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Healthcare

Official Description: QIO

Place of Performance

Location: EASTON, TALBOT County, MARYLAND, 21601

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20.4 million to QLARANT QUALITY SOLUTIONS, INC. for work described as: QIO Key points: 1. Contract value appears reasonable given the duration and scope of public health program administration. 2. Sole-source award limits direct comparison of pricing and efficiency. 3. Performance risk is moderate, given the established nature of public health programs. 4. Contract duration of over 3 years suggests a need for stable program support. 5. This contract falls within the broader health IT and public health services sector. 6. The award was not competed, raising questions about potential cost savings through competition.

Value Assessment

Rating: fair

The contract value of $20.4 million over approximately 3.5 years averages to about $5.8 million annually. Without comparable contracts for similar public health program administration services, a precise value-for-money assessment is challenging. The 'Cost Plus Award Fee' (CPAF) structure allows for performance-based incentives, which can drive efficiency, but also carries the risk of higher costs if award fees are consistently met. Benchmarking against similar government-wide contracts for program administration would be necessary for a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or qualifications required for the specific service. The lack of competition means that the government did not benefit from the price discovery and potential cost reductions that a competitive bidding process could have provided. It is important to understand the justification for the sole-source award to ensure it was appropriate.

Taxpayer Impact: For taxpayers, a sole-source award means there is a higher risk of paying a premium compared to a competitively bid contract. Without multiple offers, the government may not have secured the most cost-effective solution available in the market.

Public Impact

Beneficiaries include citizens relying on public health programs administered by CMS. Services delivered encompass the administration and management of public health initiatives. Geographic impact is national, supporting federal public health programs. Workforce implications include support for federal employees and potentially contractor personnel involved in program oversight and execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Cost Plus Award Fee structure can lead to higher costs if performance targets are consistently met without strict cost controls.
Lack of transparency in the sole-source justification could mask inefficiencies.
Contract duration may not align with evolving public health needs, potentially requiring costly modifications or re-competition.

Positive Signals

Established relationship with contractor may ensure continuity of essential public health services.
Award fee mechanism incentivizes contractor performance and quality.
Focus on administration of public health programs addresses critical societal needs.

Sector Analysis

This contract falls within the Health Services and Public Health Administration sector. This sector involves managing and overseeing government health programs, often requiring specialized knowledge of regulations, data management, and stakeholder coordination. The market for such services includes a mix of large government contractors and specialized health consulting firms. Spending in this area is significant, driven by the federal government's role in public health.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The prime contractor, QLARANT QUALITY SOLUTIONS, INC., is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this data. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal unless the prime contractor voluntarily engages small businesses for support services.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. The 'Cost Plus Award Fee' structure implies performance monitoring to determine award fee payouts. Transparency regarding the specific oversight mechanisms, performance metrics, and any Inspector General involvement would require further investigation into contract documentation and agency reporting.

Related Government Programs

Public Health Program Management
Healthcare Administration Services
Federal Health IT Contracts
Centers for Medicare and Medicaid Services Contracts

Risk Flags

Sole-source award may limit competition and potentially increase costs.
Lack of detailed performance metrics in summary data hinders value assessment.
Contract duration could lead to vendor lock-in if not managed carefully.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.4 million to QLARANT QUALITY SOLUTIONS, INC.. QIO

Who is the contractor on this award?

The obligated recipient is QLARANT QUALITY SOLUTIONS, 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 $20.4 million.

What is the period of performance?

Start: 2005-11-01. End: 2009-03-31.

What specific public health programs were administered under this contract, and what were the key performance indicators (KPIs) used to determine award fees?

The provided data indicates the contract was for 'Administration of Public Health Programs' (nd: Administration of Public Health Programs). However, it does not specify which particular programs were covered or detail the Key Performance Indicators (KPIs) used for the Cost Plus Award Fee (CPAF) structure. To assess performance and value, a review of the contract's Statement of Work (SOW) and any associated performance work statements (PWS) would be necessary. These documents would outline the specific deliverables, objectives, and the metrics against which Qlarant's performance was measured to earn award fees. Without this information, it's difficult to ascertain the effectiveness of the administration provided.

What was the justification for awarding this contract on a sole-source basis, and were any market research efforts conducted to identify potential competitors?

The data explicitly states the contract type as 'NOT COMPETED' (ct: NOT COMPETED), indicating a sole-source award. The specific justification for this sole-source designation is not provided in the abbreviated data. Typically, sole-source awards require a formal justification, such as the unique capability of the contractor, urgency, or lack of other responsible sources. Federal procurement regulations (e.g., FAR Part 6) mandate that agencies conduct market research to determine if competition is feasible before resorting to a sole-source award. Understanding this justification and the extent of market research is crucial to evaluating whether the government obtained the best value and if competition was truly not possible.

How does the average annual cost of this contract ($5.8 million) compare to similar public health program administration contracts awarded by HHS or other federal agencies?

A direct comparison of the average annual cost of $5.8 million for this contract to similar public health program administration contracts is challenging without access to a broader dataset of comparable contracts. Factors such as the specific scope of work, complexity of programs managed, geographic reach, and contract type (e.g., fixed-price vs. cost-reimbursement) significantly influence pricing. While $5.8 million annually may seem substantial, its reasonableness depends heavily on the scale and criticality of the public health programs administered. Benchmarking against contracts with similar objectives and durations, ideally competitively procured, would provide a more accurate assessment of value for money.

What is Qlarant Quality Solutions, Inc.'s track record with federal contracts, particularly with the Department of Health and Human Services, prior to and during this contract period?

The provided data shows Qlarant Quality Solutions, Inc. (co: QLARANT QUALITY SOLUTIONS, INC.) was awarded this specific contract by the Department of Health and Human Services (ag: Department of Health and Human Services) through the Centers for Medicare and Medicaid Services (sa: Centers for Medicare and Medicaid Services). The contract duration was from November 1, 2005, to March 31, 2009. To assess their track record, one would need to examine other federal contract awards to Qlarant during and around this period, looking at contract performance reviews (e.g., Contractor Performance Assessment Reporting System - CPARS), any past performance issues, and their overall history with federal agencies. This contract itself, being a sole-source award, doesn't inherently speak to their competitive performance but rather their selection for a specific need.

Given the contract's end date in 2009, what has been the subsequent federal spending pattern for similar public health program administration services?

The contract ended on March 31, 2009. To understand subsequent spending patterns, one would need to analyze federal procurement data from 2009 onwards for contracts related to 'Administration of Public Health Programs' or similar services within HHS and other agencies. This analysis would involve identifying successor contracts, tracking spending trends, noting any shifts in procurement strategies (e.g., increased competition, different contract types), and observing changes in the market landscape, including the emergence of new contractors or consolidation among existing ones. Such an analysis would reveal whether federal investment in this area has increased, decreased, or remained stable, and how the procurement approach has evolved.

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 COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Qlarant Inc

Address: 9240 CENTREVILLE RD, EASTON, MD, 21601

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

Financial Breakdown

Contract Ceiling: $20,405,231

Exercised Options: $20,405,231

Current Obligation: $20,405,231

Actual Outlays: $44,581

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline