HHS awards $28.2M for Exchange Health Plan Quality Activities to Booz Allen Hamilton

Contract Overview

Contract Amount: $28,185,948 ($28.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2012-08-31

End Date: 2017-12-31

Contract Duration: 1,948 days

Daily Burn Rate: $14.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF - DEVELOPMENT AND EVALUATION OF EXCHANGE HEALTH PLAN QUALITY ACTIVITIES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.2 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF - DEVELOPMENT AND EVALUATION OF EXCHANGE HEALTH PLAN QUALITY ACTIVITIES Key points: 1. Contract awarded to a single large business, Booz Allen Hamilton. 2. Spending spans 5 years, indicating a long-term need for these services. 3. The contract falls under Administrative Management and General Management Consulting Services. 4. The award value is substantial, requiring careful oversight.

Value Assessment

Rating: good

The contract value of $28.2 million over five years appears reasonable for comprehensive consulting services in health plan quality. Benchmarking against similar large-scale consulting contracts within HHS 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, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to limited or sole-source awards.

Taxpayer Impact: The use of full and open competition is positive for taxpayers, as it aims to secure the best value through market forces.

Public Impact

Impacts the quality and effectiveness of health insurance plans offered through exchanges. Influences the administrative and management strategies of healthcare services. Affects beneficiaries by potentially improving the quality of care and plan administration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in long-term Time and Materials contracts.
  • Reliance on a single contractor for critical quality evaluation activities.

Positive Signals

  • Awarded through full and open competition.
  • Addresses a critical area of healthcare policy: quality assessment.

Sector Analysis

This contract falls within the professional services sector, specifically management consulting for government agencies. Spending benchmarks for similar administrative and management consulting services for HHS are typically in the millions, aligning with this award.

Small Business Impact

The contract was awarded to a large business and does not indicate any specific set-asides or subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The Centers for Medicare and Medicaid Services (CMS) is responsible for overseeing this contract. Standard government oversight mechanisms for contract performance and financial management should be in place.

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
  • Contract duration
  • Reliance on a single vendor
  • Lack of small business participation noted

Tags

administrative-management-and-general-ma, 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 $28.2 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF - DEVELOPMENT AND EVALUATION OF EXCHANGE HEALTH PLAN QUALITY ACTIVITIES

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON 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 $28.2 million.

What is the period of performance?

Start: 2012-08-31. End: 2017-12-31.

What specific metrics are used to evaluate the success of the Exchange Health Plan Quality Activities?

The success of the Exchange Health Plan Quality Activities is likely evaluated based on the contractor's ability to develop and implement effective quality assessment frameworks, improve data collection on plan performance, and provide actionable recommendations to CMS. Key performance indicators would probably include the accuracy and comprehensiveness of quality reports, the impact of recommendations on actual plan improvements, and adherence to project timelines and budget.

What are the primary risks associated with a five-year Time and Materials contract for quality evaluation?

The primary risks with a five-year Time and Materials contract for quality evaluation include potential cost escalation due to undefined scope or inefficiencies, contractor performance drift over time, and a lack of strong incentive for cost control. CMS must actively monitor labor hours, rates, and project progress to mitigate these risks and ensure value for money throughout the contract's duration.

How does this contract contribute to the overall effectiveness of the Affordable Care Act's health insurance exchanges?

This contract is crucial for the effectiveness of the ACA's health insurance exchanges by ensuring that quality standards for health plans are established, monitored, and improved. By evaluating plan performance and providing insights into quality metrics, it helps consumers make informed choices and drives competition among insurers to offer higher quality care, thereby supporting the core objectives of the ACA.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative 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: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $28,185,948

Exercised Options: $28,185,948

Current Obligation: $28,185,948

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $5,406,552

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F9755H

IDV Type: FSS

Timeline

Start Date: 2012-08-31

Current End Date: 2017-12-31

Potential End Date: 2021-08-06 00:00:00

Last Modified: 2023-04-05

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