HHS CMS Awards $17.7M for Retroactive Payment Validation to Reed & Associates
Contract Overview
Contract Amount: $17,738,510 ($17.7M)
Contractor: Reed & Associates, Cpas, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2009-08-03
End Date: 2012-07-03
Contract Duration: 1,065 days
Daily Burn Rate: $16.7K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Healthcare
Official Description: RETROACTIVE PAYMENT VALIDATION
Place of Performance
Location: MANASSAS, MANASSAS CITY County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $17.7 million to REED & ASSOCIATES, CPAS, INC. for work described as: RETROACTIVE PAYMENT VALIDATION Key points: 1. Contract awarded for essential financial oversight and validation services. 2. Competition method indicates a potentially competitive process for this delivery order. 3. Risk is moderate, focusing on accuracy and timeliness of validation. 4. Sector is professional services, specifically accounting and auditing.
Value Assessment
Rating: good
The award amount of $17.7M over three years for retroactive payment validation appears reasonable given the complexity of Medicare and Medicaid payment systems. Benchmarking against similar large-scale audit and validation contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This was a competitive delivery order, suggesting multiple firms likely vied for the contract. The competitive nature should have driven price discovery and ensured a fair market price for the services rendered.
Taxpayer Impact: Ensuring accurate payment validation protects taxpayer funds by preventing improper payments within the Medicare and Medicaid programs.
Public Impact
Ensures integrity of Medicare and Medicaid payments. Supports financial accountability within a major federal health agency. Potential for identifying cost savings through validation of claims.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in validation efforts.
- Reliance on contractor's expertise for complex financial data.
- Timeliness of reporting critical for corrective actions.
Positive Signals
- Addresses a critical need for payment accuracy.
- Competitive award suggests potential for value.
- Contract duration allows for thorough validation.
Sector Analysis
The Centers for Medicare and Medicaid Services (CMS) operates within the healthcare sector, a significant area of federal spending. Contracts for financial auditing and validation are common to ensure program integrity and fiscal responsibility.
Small Business Impact
Information on small business participation is not provided in the data. Given the contract's nature and value, it's possible larger firms or joint ventures were involved, but specific analysis requires more data.
Oversight & Accountability
The Centers for Medicare and Medicaid Services (CMS) is responsible for overseeing this contract. Regular performance reviews and audits would be standard procedures to ensure the contractor meets performance expectations and financial reporting requirements.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for inaccurate validation findings.
- Contractor performance variability.
- Data security and privacy concerns.
- Timeliness of validation impacting corrective actions.
Tags
offices-of-certified-public-accountants, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $17.7 million to REED & ASSOCIATES, CPAS, INC.. RETROACTIVE PAYMENT VALIDATION
Who is the contractor on this award?
The obligated recipient is REED & ASSOCIATES, CPAS, 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 $17.7 million.
What is the period of performance?
Start: 2009-08-03. End: 2012-07-03.
What specific methodologies does Reed & Associates employ for retroactive payment validation, and how do these ensure accuracy and completeness?
Reed & Associates likely utilizes a combination of data analytics, statistical sampling, and detailed claim file reviews. Their methodology would involve identifying patterns of potential errors, outliers, and non-compliance with program rules. Ensuring accuracy requires robust data validation checks, cross-referencing with program guidelines, and independent verification processes to confirm findings before reporting.
What are the primary risks associated with this contract, and how are they mitigated by CMS or the contractor?
Key risks include the potential for inaccurate validation leading to improper payments or denials, contractor performance issues, and data security breaches. Mitigation strategies likely involve clear performance standards, regular progress reporting, independent quality assurance reviews by CMS, and strict adherence to data handling protocols and federal regulations.
How does this contract contribute to the overall effectiveness and efficiency of the Medicare and Medicaid payment systems?
This contract enhances effectiveness by ensuring that payments made are accurate and compliant with federal regulations, thereby reducing waste and fraud. It improves efficiency by identifying systemic issues that can be addressed to streamline payment processes and prevent future errors, ultimately safeguarding program integrity and taxpayer dollars.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 8700 CENTREVILLE RD STE 203, MANASSAS, VA, 20110
Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business
Financial Breakdown
Contract Ceiling: $17,738,510
Exercised Options: $17,738,510
Current Obligation: $17,738,510
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS23F0089P
IDV Type: FSS
Timeline
Start Date: 2009-08-03
Current End Date: 2012-07-03
Potential End Date: 2012-07-03 00:00:00
Last Modified: 2023-06-13
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