HHS Awards $23.7M for TAS Risk Adjustment Data Validation to Deloitte

Contract Overview

Contract Amount: $23,717,350 ($23.7M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2010-09-30

End Date: 2012-12-13

Contract Duration: 805 days

Daily Burn Rate: $29.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: TAS::75 8393::TAS RISK ADJUSTMENT DATA VALIDATION CONTRACTOR LEAD ANALYTIC CONTRACTOR

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.7 million to DELOITTE CONSULTING LLP for work described as: TAS::75 8393::TAS RISK ADJUSTMENT DATA VALIDATION CONTRACTOR LEAD ANALYTIC CONTRACTOR Key points: 1. Contract awarded to a single, large business, potentially limiting small business participation. 2. The contract's value of $23.7M over approximately 2.7 years suggests a significant investment in data validation services. 3. The use of Time and Materials pricing could pose a risk if not carefully managed, potentially leading to cost overruns. 4. The sector is IT/Consulting, supporting healthcare administration.

Value Assessment

Rating: good

The contract value of $23.7M for approximately 805 days of performance appears reasonable for specialized data validation services. Benchmarking against similar large-scale consulting contracts for government agencies would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value is obtained.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential data validation services.

Public Impact

Ensures accuracy of risk adjustment data for Medicare and Medicaid, impacting program integrity. Supports the financial stability of healthcare programs by validating data used for payments. Enhances the reliability of healthcare data used for policy decisions and program management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing structure
Potential for cost overruns if not managed
Single awardee may limit future competition

Positive Signals

Awarded under full and open competition
Supports critical healthcare program functions
Experienced contractor selected

Sector Analysis

This contract falls within the IT and professional services sector, specifically supporting healthcare administration. Spending benchmarks for similar data validation and management consulting services for federal health agencies are typically in the millions of dollars.

Small Business Impact

The contract was awarded to a large business (Deloitte Consulting LLP) and there is no indication of small business subcontracting in the provided data. This suggests limited direct benefit to small businesses from this specific award.

Oversight & Accountability

The Centers for Medicare and Medicaid Services (CMS) is responsible for overseeing this contract. Standard government oversight mechanisms for contract performance, quality, and financial management would apply.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to T&M pricing
Limited visibility into small business participation
Dependence on a single contractor for critical validation
Complexity of risk adjustment data validation

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.7 million to DELOITTE CONSULTING LLP. TAS::75 8393::TAS RISK ADJUSTMENT DATA VALIDATION CONTRACTOR LEAD ANALYTIC CONTRACTOR

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

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 $23.7 million.

What is the period of performance?

Start: 2010-09-30. End: 2012-12-13.

What is the specific methodology used for risk adjustment data validation, and how does it ensure accuracy?

The contract likely involves detailed data analysis, comparison against established rules, and identification of discrepancies. The methodology would focus on validating patient diagnoses, demographic information, and encounter data to ensure accurate risk scores are calculated, thereby upholding the integrity of payment calculations within Medicare and Medicaid programs.

What are the key risks associated with the Time and Materials pricing model for this contract?

The primary risk with Time and Materials (T&M) is the potential for cost escalation if the scope of work expands or if labor hours are not efficiently managed. Without a fixed ceiling, the government is exposed to the actual cost of labor and materials, necessitating robust oversight to control expenditures and ensure value.

How effective is this contract in improving the overall accuracy and reliability of healthcare data for CMS?

The effectiveness hinges on the contractor's ability to rigorously validate data and identify errors. Successful execution should lead to more accurate risk scores, fairer payments to healthcare providers, and better data for policy analysis, ultimately improving the reliability of critical healthcare program information.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Touche Tohmatsu Limited

Address: 1919 N LYNN ST, ARLINGTON, VA, 22209

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,717,350

Exercised Options: $23,717,350

Current Obligation: $23,717,350

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $5,551,418

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0083L

IDV Type: FSS

Timeline