HHS awards $13M+ to Qlarant for Other Management Consulting Services, no competition

Contract Overview

Contract Amount: $12,986,237 ($13.0M)

Contractor: Qlarant Quality Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-08-01

End Date: 2012-09-12

Contract Duration: 1,503 days

Daily Burn Rate: $8.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

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 $13.0 million to QLARANT QUALITY SOLUTIONS, INC. for work described as: QIO Key points: 1. Contract awarded to Qlarant Quality Solutions, Inc. for over $13 million. 2. Services fall under 'Other Management Consulting Services' (NAICS 541618). 3. The contract was not competed, raising questions about price discovery. 4. This spending occurred within the Centers for Medicare and Medicaid Services (CMS).

Value Assessment

Rating: questionable

The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed carefully. Without competitive bidding, it's difficult to assess if the $13M+ price tag represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for a contract of this size means taxpayers may have paid a premium for the services rendered.

Public Impact

Taxpayers funded over $13 million for consulting services without competitive bidding. The specific nature of 'Other Management Consulting Services' is broad, making it hard to gauge direct public benefit. CMS relies on such contracts for operational support, impacting healthcare program efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Award Fee contract type
Broad service category

Positive Signals

Awarded to a single vendor, potentially indicating specialized expertise

Sector Analysis

This contract falls under management consulting services, a broad category often used by government agencies for various support functions. Benchmarks for this sector can vary widely based on the specific services provided.

Small Business Impact

The data indicates this contract was not awarded to a small business, as 'sb' is false. There is no information on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The 'NOT COMPETED' status suggests potential oversight gaps in ensuring maximum value for taxpayer dollars. Further review would be needed to confirm if justification for sole-sourcing was adequate.

Related Government Programs

Other Management Consulting Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Lack of competitive bidding
Potential for cost overruns due to CPAF structure
Broad and undefined service category
No clear indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.0 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 $13.0 million.

What is the period of performance?

Start: 2008-08-01. End: 2012-09-12.

What specific management consulting services were provided under this contract?

The contract description 'Other Management Consulting Services' is very broad. Without more detailed information on the Statement of Work, it's impossible to determine the exact services rendered. This could range from strategic planning and organizational analysis to process improvement and program management support within CMS.

What was the justification for awarding this contract on a sole-source basis?

The provided data does not include the justification for the sole-source award. Typically, agencies must demonstrate that only one responsible source can provide the required services for reasons like unique capabilities, urgent needs, or specific government-unique requirements. Without this documentation, the rationale remains unclear.

How was the 'Award Fee' component determined and what was its impact on the final cost?

The Cost Plus Award Fee (CPAF) structure means the contractor receives costs plus a fee that is based on meeting or exceeding performance objectives. The specific criteria for earning the award fee and the process for its determination are not detailed here. This fee structure can incentivize performance but also adds complexity and potential for higher overall costs if objectives are broadly defined or easily met.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

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: $12,986,237

Exercised Options: $12,986,237

Current Obligation: $12,986,237

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline