HHS awarded $36.8M in management consulting services to HEALTHCARE MANAGEMENT SOLUTIONS, LLC over 5 years

Contract Overview

Contract Amount: $36,854,640 ($36.9M)

Contractor: Healthcare Management Solutions, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2014-09-29

End Date: 2019-09-28

Contract Duration: 1,825 days

Daily Burn Rate: $20.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: IGF::OT::IGF

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $36.9 million to HEALTHCARE MANAGEMENT SOLUTIONS, LLC for work described as: IGF::OT::IGF Key points: 1. The contract was awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. The duration of 1825 days (5 years) indicates a long-term need for these services. 4. The contract was awarded to a single entity, HEALTHCARE MANAGEMENT SOLUTIONS, LLC. 5. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery contract vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services rendered and comparable contracts. The total award amount of $36.8 million over five years averages to approximately $7.36 million per year. Given the Time and Materials (T&M) contract type, the final cost is dependent on the hours worked and labor rates. Without knowing the specific labor categories and rates, it's difficult to assess if the pricing is competitive. However, T&M contracts inherently carry a higher risk of cost overruns compared to fixed-price contracts if not meticulously monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 3 bids suggests a moderate level of competition for this specific award. While competition is generally positive for price discovery, the fact that only three bids were received might suggest potential limitations in the market for these specialized services or specific requirements of the solicitation that narrowed the field.

Taxpayer Impact: A competitive award process generally benefits taxpayers by encouraging lower prices and better service offerings from contractors vying for the business.

Public Impact

The primary beneficiaries of this contract are likely the Centers for Medicare and Medicaid Services (CMS) within the Department of Health and Human Services (HHS). The services delivered are administrative management and general management consulting, aimed at improving the operations and efficiency of CMS programs. The geographic impact is primarily within the United States, supporting federal healthcare administration. Workforce implications could include the employment of consultants and administrative staff by HEALTHCARE MANAGEMENT SOLUTIONS, LLC, as well as potential impacts on internal HHS staffing and operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not closely managed and monitored.
Limited competition (3 bidders) may indicate a less robust market or specific solicitation requirements that restricted participation.
The long duration of 5 years requires sustained oversight to ensure continued value and performance.

Positive Signals

Awarded under 'Full and Open Competition,' which generally promotes a fair and transparent process.
The contract was awarded to a single entity, suggesting a clear point of accountability for performance.
The contract is a Delivery Order, which implies it was likely part of a pre-competed contract vehicle, potentially streamlining the acquisition process.

Sector Analysis

The healthcare administration and management consulting sector is a significant area of federal spending. Agencies like CMS require specialized expertise to manage complex programs such as Medicare and Medicaid. This contract fits within the broader market for professional services supporting government operations, where firms compete on expertise, past performance, and price. Comparable spending benchmarks would involve looking at other large-scale management consulting contracts awarded by HHS or other federal agencies for similar administrative support functions.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, HEALTHCARE MANAGEMENT SOLUTIONS, LLC, is not explicitly identified as a small business. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Without specific set-aside goals or subcontracting requirements, the direct impact on small businesses is unclear, though they may participate as subcontractors if such opportunities arise.

Oversight & Accountability

Oversight for this contract would primarily fall under the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures are typically embedded in the contract's performance work statement, requiring adherence to specific deliverables and service levels. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Medicare Program Administration
Medicaid Program Administration
Healthcare Consulting Services
Federal Management and Administrative Support Contracts
Department of Health and Human Services Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Moderate competition level (3 bidders) may limit price discovery.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $36.9 million to HEALTHCARE MANAGEMENT SOLUTIONS, LLC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is HEALTHCARE MANAGEMENT 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 $36.9 million.

What is the period of performance?

Start: 2014-09-29. End: 2019-09-28.

What specific management and administrative consulting services were provided under this contract?

The contract falls under NAICS code 541611, which covers Administrative Management and General Management Consulting Services. While the specific details are not provided in the abbreviated data, these services typically include areas such as organizational structure analysis, process improvement, strategic planning, operational efficiency, program management support, and policy development. For CMS, this could involve consulting on the administration of Medicare and Medicaid programs, improving beneficiary services, enhancing data management, or streamlining regulatory compliance. The Time and Materials (T&M) nature of the contract suggests that the scope might have been flexible, allowing for adjustments based on evolving needs within CMS.

How does the average annual cost of this contract compare to similar management consulting contracts within HHS?

The average annual cost for this contract is approximately $7.36 million ($36.8M / 5 years). To compare this to similar contracts within HHS, one would need to analyze a portfolio of management consulting awards for agencies of similar size and complexity, such as CMS itself or other large operating divisions. Key comparison points would include the specific services rendered, the duration of the contract, the contract type (T&M vs. fixed-price), and the number of bidders. Without access to a detailed database of comparable contracts with granular service descriptions and pricing, a precise benchmark is difficult. However, for large-scale, multi-year management consulting engagements supporting major federal programs, this annual spend is within a plausible range, though its value-for-money depends heavily on the outcomes achieved.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude and duration?

The primary risk with a T&M contract, especially one valued at $36.8 million over five years, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts do not have a ceiling on the total cost, which is determined by the actual labor hours expended and the agreed-upon material costs. This can lead to costs exceeding initial estimates if project scope creeps, inefficiencies arise, or labor rates are higher than anticipated. Effective oversight, detailed tracking of hours and expenses, and robust change management processes are crucial to mitigate these risks. The government must actively manage the contractor's performance and ensure that the work performed is necessary and efficient to control costs.

What is the track record of HEALTHCARE MANAGEMENT SOLUTIONS, LLC in performing federal contracts, particularly within HHS?

Information on the specific track record of HEALTHCARE MANAGEMENT SOLUTIONS, LLC is not fully detailed in the provided data. However, the fact that they were awarded a significant 5-year contract by CMS suggests they have demonstrated capabilities and past performance relevant to the agency's needs. To assess their track record thoroughly, one would typically review their contract history, including past performance evaluations, any past disputes or contract terminations, and their experience with similar types of services and contract vehicles. A deeper dive into federal procurement databases would reveal the number and value of previous contracts awarded to this entity, their performance ratings, and any awards or penalties received.

How does the level of competition (3 bidders) impact the potential for cost savings for taxpayers on this contract?

A competition level of three bidders suggests a moderate degree of market interest. While any competition is generally better than a sole-source award, three bidders might not represent the full spectrum of potential providers. If the market for these specialized services is limited, or if the solicitation requirements were very specific, the number of bidders could be constrained. This could potentially lead to less aggressive pricing than if there were, for example, five or more bidders actively competing. However, the 'Full and Open Competition' designation implies that the process was designed to attract as many qualified bidders as possible. The ultimate impact on taxpayer savings depends on the government's negotiation strategy and the specific pricing proposed by the three competing firms.

What are the implications of this contract being awarded as a Delivery Order?

This contract being a 'Delivery Order' means it was issued under a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar contract vehicle. IDIQ contracts establish terms and conditions, including labor rates and pricing structures, under which multiple delivery orders can be issued over a period. Awarding this as a delivery order suggests that the initial IDIQ contract likely underwent a competitive process itself, potentially involving multiple awardees. This method can streamline the acquisition process for specific task orders, as much of the foundational competition and negotiation has already occurred. However, it also means that the specific terms of this delivery order are governed by the overarching IDIQ contract.

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: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1000 TECHNOLOGY DRIVE, SUITE 1310, FAIRMONT, WV, 26554

Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $36,854,640

Exercised Options: $36,854,640

Current Obligation: $36,854,640

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS10F0232R

IDV Type: FSS

Timeline