HHS CMS Contract with A+ Government Solutions Sees $18.2M in Payments, Raises Concerns Over Error Rates

Contract Overview

Contract Amount: $18,217,834 ($18.2M)

Contractor: A+ Government Solutions, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2010-02-05

End Date: 2014-10-23

Contract Duration: 1,721 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: PAYMENT ERROR RATE MEASUREMENTS

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $18.2 million to A+ GOVERNMENT SOLUTIONS, LLC for work described as: PAYMENT ERROR RATE MEASUREMENTS Key points: 1. The contract awarded to A+ Government Solutions, LLC for Computer Facilities Management Services by HHS CMS involved significant payment amounts. 2. The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a complex procurement history. 3. The presence of 'PAYMENT ERROR RATE MEASUREMENTS' as a data point indicates potential financial oversight issues. 4. The contract duration of 1721 days (approx. 4.7 years) represents a substantial commitment of federal funds.

Value Assessment

Rating: questionable

The contract value is substantial, but the explicit mention of 'PAYMENT ERROR RATE MEASUREMENTS' suggests potential inefficiencies or inaccuracies in billing and payment processes. Further investigation into the specific error rates and their impact is needed to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was intended, certain sources were excluded. This method can impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.

Taxpayer Impact: The potential for payment errors and the limited competition method raise concerns about the efficient use of taxpayer funds on this contract.

Public Impact

Taxpayers may be footing the bill for incorrect payments due to the reported error rates. The exclusion of certain sources in the competition process could limit the government's ability to secure the best possible pricing. The long duration of the contract means sustained scrutiny is necessary to ensure ongoing value and accuracy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Payment Error Rate
Limited Competition
Contract Type Complexity

Positive Signals

Contract Awarded
Defined Service Area

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer facilities management. Spending benchmarks in this area vary widely based on the scope and complexity of services required.

Small Business Impact

The data provided does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The explicit measurement of payment error rates suggests that some level of oversight is in place. However, the effectiveness of this oversight depends on the actions taken to address identified errors and prevent future occurrences.

Related Government Programs

Computer Facilities Management Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Potential for financial mismanagement due to payment errors.
Limited competition may have resulted in suboptimal pricing.
Lack of transparency regarding source exclusion.
Contract duration is substantial, requiring ongoing vigilance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.2 million to A+ GOVERNMENT SOLUTIONS, LLC. PAYMENT ERROR RATE MEASUREMENTS

Who is the contractor on this award?

The obligated recipient is A+ GOVERNMENT SOLUTIONS, 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 $18.2 million.

What is the period of performance?

Start: 2010-02-05. End: 2014-10-23.

What were the specific payment error rates and what actions were taken to rectify them?

The provided data only indicates that payment error rates were measured, not the actual rates or corrective actions. Understanding the magnitude of these errors and the agency's response is crucial for assessing financial stewardship. Without this information, it's difficult to determine if the contract represents good value or if funds were misspent.

What were the reasons for excluding certain sources in the competition process?

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' The specific reasons for excluding sources are not detailed in the provided data. Understanding these justifications is important to assess whether the exclusion was warranted and if it potentially limited competitive pricing for the government.

How does the cost of these Computer Facilities Management Services compare to industry benchmarks for similar government contracts?

The provided data does not include specific cost details beyond the total award amount, making a direct cost-per-unit or service benchmark comparison impossible. To assess value, one would need to analyze the specific services rendered against industry standards and other government contracts for similar IT support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1900 N BEAUREGARD ST STE 105, ALEXANDRIA, VA, 22311

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,217,834

Exercised Options: $18,217,834

Current Obligation: $18,217,834

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline