HHS awards $26.6M for Medicare Advantage audit support, with 6 bidders indicating strong competition

Contract Overview

Contract Amount: $26,575,899 ($26.6M)

Contractor: Cliftonlarsonallen LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2010-09-30

End Date: 2016-09-30

Contract Duration: 2,192 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TAS::75 8393::TAS AUDITS AND TECHNICAL/OPERATIONS SUPPORT OF MEDICARE ADVANTAGE AND/OR PRESCRIPTION DRUG PLAN

Place of Performance

Location: BELTSVILLE, PRINCE GEORGES County, MARYLAND, 20705

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $26.6 million to CLIFTONLARSONALLEN LLP for work described as: TAS::75 8393::TAS AUDITS AND TECHNICAL/OPERATIONS SUPPORT OF MEDICARE ADVANTAGE AND/OR PRESCRIPTION DRUG PLAN Key points: 1. Value for money appears reasonable given the specialized nature of Medicare Advantage audits. 2. Strong competition with 6 bidders suggests a healthy market for these services. 3. Risk indicators are low due to the established nature of the service and contractor. 4. Performance context shows a multi-year engagement for critical program oversight. 5. Sector positioning is within government accounting and auditing services for healthcare. 6. The contract type (Firm Fixed Price) provides cost certainty for the government.

Value Assessment

Rating: good

The contract value of $26.6 million over approximately six years for audit and technical support of Medicare Advantage and Prescription Drug Plans appears reasonable. Benchmarking against similar contracts for specialized government auditing services suggests this is within expected ranges. The firm fixed-price structure further enhances value by providing predictable costs. While specific per-unit cost data is not available, the overall award amount reflects the complexity and critical nature of ensuring program integrity for Medicare.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six bidders vying for the opportunity. This level of competition is a positive signal, suggesting that the marketplace has multiple capable providers for these specialized accounting and auditing services. A robust bidding process generally leads to more competitive pricing and better service offerings as contractors strive to win the award.

Taxpayer Impact: The strong competition indicates that taxpayer dollars were likely used efficiently, as multiple firms competed to offer their best pricing and capabilities, driving down costs.

Public Impact

Beneficiaries of this contract include the Centers for Medicare and Medicaid Services (CMS) and ultimately Medicare beneficiaries, through improved program integrity. The services delivered are crucial for auditing and providing technical operations support for Medicare Advantage and Prescription Drug Plans. The geographic impact is national, as CMS operates nationwide, though the contractor's physical location is Maryland. Workforce implications include employment for skilled accountants and auditors within the contracting firm.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in if performance is consistently good, though competition mitigates this.
Reliance on a single firm for critical audit functions requires robust oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm Fixed Price contract provides cost predictability.
Long-term engagement suggests contractor stability and expertise.
Contractor is a well-established accounting firm.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically accounting and auditing services. The market for government auditing, particularly for large-scale healthcare programs like Medicare, is specialized and requires firms with deep expertise and security clearances. Comparable spending benchmarks would involve other large federal contracts for audit and compliance support within agencies like HHS, DOD, or Treasury.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. As a large contract awarded to a major accounting firm, the primary focus is likely on the prime contractor's capabilities. Further investigation would be needed to determine if any subcontracting opportunities were extended to small businesses.

Oversight & Accountability

Oversight is primarily managed by the Centers for Medicare and Medicaid Services (CMS), the contracting agency. As a contract supporting critical healthcare programs, it likely falls under the jurisdiction of the HHS Office of Inspector General (OIG) for audits and investigations. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not be publicly detailed.

Related Government Programs

Medicare Audit and Oversight Contracts
Federal Accounting Services
Healthcare Program Integrity Support
CMS Technical Support Contracts

Risk Flags

Contract Performance Risk
Data Security Risk
Reliance on Key Personnel

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.6 million to CLIFTONLARSONALLEN LLP. TAS::75 8393::TAS AUDITS AND TECHNICAL/OPERATIONS SUPPORT OF MEDICARE ADVANTAGE AND/OR PRESCRIPTION DRUG PLAN

Who is the contractor on this award?

The obligated recipient is CLIFTONLARSONALLEN 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 $26.6 million.

What is the period of performance?

Start: 2010-09-30. End: 2016-09-30.

What is the track record of CliftonLarsonAllen LLP with federal contracts, particularly within HHS?

CliftonLarsonAllen LLP (CLA) has a significant track record with federal contracts, including numerous awards from the Department of Health and Human Services (HHS). Their work often involves auditing, accounting, and consulting services for various government programs. For instance, prior to this specific award, CLA has been involved in audits of financial statements, compliance reviews, and support for healthcare initiatives. Their extensive experience in the public sector, particularly within the complex regulatory environment of healthcare, positions them as a capable contractor for services like those required for Medicare Advantage and Prescription Drug Plans. The longevity and value of their federal awards suggest a consistent ability to meet government requirements and performance expectations.

How does the $26.6 million award compare to other federal contracts for similar audit and technical support services?

The $26.6 million award for audit and technical support of Medicare Advantage and Prescription Drug Plans over approximately six years represents a substantial but not extraordinary investment for a program of this scale and complexity. When compared to other large federal contracts for specialized audit and compliance services within HHS or other agencies like the Department of Defense or Treasury, this figure falls within a reasonable range. For example, contracts supporting large-scale financial statement audits or complex program integrity initiatives can often reach tens of millions of dollars over their performance periods. The key differentiator here is the specific focus on Medicare Advantage and Prescription Drug Plans, which are intricate and highly regulated. The presence of six bidders further suggests that the market supports multiple firms capable of undertaking such work at this value point.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract revolve around potential performance deficiencies, cost overruns (though mitigated by FFP), and data security breaches. Performance deficiencies could arise from inadequate audit procedures, missed compliance issues, or delays in technical support, potentially impacting the integrity of Medicare programs. Cost overruns are largely mitigated by the Firm Fixed Price (FFP) contract type, which shifts the financial risk to the contractor. Data security is a critical risk given the sensitive health and financial information handled; mitigation involves stringent cybersecurity protocols, background checks for personnel, and adherence to HIPAA and other federal data protection regulations. The government's mitigation strategies include robust contract oversight, performance reviews, and clear deliverables, alongside the competitive nature of the award process.

How effective has CliftonLarsonAllen LLP been in delivering services for this specific contract (2010-2016)?

Assessing the effectiveness of CliftonLarsonAllen LLP for this specific contract (2010-2016) requires access to performance evaluations, contract close-out reports, or any formal feedback mechanisms CMS might have employed. Publicly available data typically focuses on award details rather than granular performance metrics. However, the fact that the contract was awarded and completed without widespread public controversy or immediate re-competition issues suggests a baseline level of satisfactory performance. Given CLA's established reputation and the nature of audit services, effectiveness would be measured by the accuracy and thoroughness of their audits, the timeliness of their technical support, and their adherence to all contractual requirements and regulatory standards. Without specific performance reports, a definitive judgment on 'effectiveness' is limited, but the contract's completion implies they met the government's needs.

What are the historical spending patterns for audit and technical support services related to Medicare Advantage and Prescription Drug Plans?

Historical spending patterns for audit and technical support services related to Medicare Advantage and Prescription Drug Plans have generally shown a consistent and significant investment by CMS. As these programs have grown in scope and complexity, so has the need for robust oversight, auditing, and technical support to ensure program integrity, compliance, and financial accountability. Spending in this area typically involves contracts for financial audits, risk assessments, data analysis, and operational support to manage the intricacies of these plans. The total federal spending on such services has likely trended upwards over the years, reflecting the expansion of Medicare Advantage enrollment and the increasing regulatory scrutiny on pharmaceutical pricing and plan operations. This specific $26.6 million award is part of that broader historical pattern of dedicated funding for program oversight.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11710 BELTSVILLE DR STE 300, BELTSVILLE, MD, 20705

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

Financial Breakdown

Contract Ceiling: $26,575,899

Exercised Options: $26,575,899

Current Obligation: $26,575,899

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F0135L

IDV Type: FSS

Timeline