HHS awards $22.5M for language interpretation, with 8 bidders vying for firm-fixed-price contract

Contract Overview

Contract Amount: $22,478,650 ($22.5M)

Contractor: Globo Language Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2015-05-15

End Date: 2020-08-14

Contract Duration: 1,918 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF LANGUAGE LINE INTERPRETATION AND TRANSLATION SERVICES

Place of Performance

Location: FORT WASHINGTON, MONTGOMERY County, PENNSYLVANIA, 19034

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22.5 million to GLOBO LANGUAGE SOLUTIONS LLC for work described as: IGF::OT::IGF LANGUAGE LINE INTERPRETATION AND TRANSLATION SERVICES Key points: 1. Contract awarded to Globo Language Solutions LLC for interpretation and translation services. 2. The contract utilized full and open competition, indicating a robust bidding process. 3. Firm-fixed-price contract type suggests predictable costs for the government. 4. Services provided are critical for ensuring access to healthcare information for diverse populations. 5. The duration of the contract spans over five years, indicating a long-term need. 6. The contract was awarded by the Centers for Medicare and Medicaid Services (CMS).

Value Assessment

Rating: good

The contract value of $22.5 million over five years averages to $4.5 million annually. Benchmarking against similar contracts for translation and interpretation services is challenging without more specific service details. However, the presence of 8 bidders suggests a competitive market where pricing is likely scrutinized. The firm-fixed-price structure provides cost certainty, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' which implies that all responsible sources were permitted to submit a bid. The participation of 8 bidders suggests a healthy level of competition for these services. This broad competition is generally favorable for price discovery and ensures the government receives offers from a wide range of qualified providers.

Taxpayer Impact: A competitive bidding process like this helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging providers to offer their best value. The multiple bidders indicate that the government is not overly reliant on a single vendor, which can lead to better pricing and service quality.

Public Impact

Beneficiaries include Medicare and Medicaid recipients who require language assistance to understand healthcare services and navigate the system. Services delivered include interpretation and translation, crucial for effective communication between healthcare providers and patients with limited English proficiency. The geographic impact is national, as CMS serves beneficiaries across the United States. Workforce implications include potential opportunities for translators and interpreters, as well as support staff for the contracting company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services become highly specialized or integrated.
Ensuring consistent quality of interpretation and translation across all services and locations.
Managing contract performance and ensuring timely delivery of accurate translations.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a competitive market and potentially good pricing.
Long contract duration indicates a sustained need and potential for stable service delivery.

Sector Analysis

The market for translation and interpretation services is diverse, encompassing government agencies, legal firms, healthcare providers, and businesses operating internationally. The North American Industry Classification System (NAICS) code 541930, 'Translation and Interpretation Services,' represents this sector. Government contracts are a significant portion of this market, driven by the need to serve diverse populations and comply with accessibility regulations. This contract fits within the broader federal spending on professional services, aiming to enhance communication and accessibility for a critical government program.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting goals for this contract. As it was awarded under full and open competition, it is possible that small businesses participated in the bidding process. However, without further information on subcontracting plans, the direct impact on the small business ecosystem remains unclear. Further analysis would be needed to determine if small businesses were prime contractors or subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through federal contract databases where award details are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract performance.

Related Government Programs

Federal Language Services Contracts
Healthcare Access Programs
Medicare and Medicaid Administration
Government Translation Services

Risk Flags

Contract performance risk
Data security and privacy risk
Quality assurance risk for translation/interpretation

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.5 million to GLOBO LANGUAGE SOLUTIONS LLC. IGF::OT::IGF LANGUAGE LINE INTERPRETATION AND TRANSLATION SERVICES

Who is the contractor on this award?

The obligated recipient is GLOBO LANGUAGE 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 $22.5 million.

What is the period of performance?

Start: 2015-05-15. End: 2020-08-14.

What is the historical spending trend for language interpretation and translation services at CMS?

Analyzing historical spending trends for language interpretation and translation services at CMS is crucial for understanding the agency's commitment to linguistic accessibility and for budgeting future needs. While specific historical data for this particular contract is not provided, general trends in federal spending on such services have been increasing. This is driven by growing demographic diversity within the US population and a greater emphasis on ensuring equitable access to healthcare information and services for all individuals, regardless of their primary language. Agencies like CMS are mandated to provide accessible information, which necessitates robust language support. Examining past contract awards, their values, and durations for similar services within CMS would reveal patterns of investment and identify any significant shifts in resource allocation towards language services over time.

How does the awarded price compare to market rates for similar interpretation and translation services?

Determining if the awarded price of approximately $4.5 million annually for interpretation and translation services is competitive requires benchmarking against market rates. Factors influencing market rates include the type of service (e.g., over-the-phone, in-person, written translation), language pairs, complexity of subject matter (medical terminology), required turnaround times, and geographic location. Given that this contract involved 8 bidders under full and open competition, it suggests a competitive environment that likely drove the price towards market norms. However, without access to detailed service level agreements and specific performance metrics, a precise comparison is difficult. Industry reports and analyses of similar government or large-scale private sector contracts could provide a more accurate benchmark for assessing the value for money achieved in this award.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

Key Performance Indicators (KPIs) for language interpretation and translation services contracts are essential for ensuring the quality, accuracy, and timeliness of the services provided. For this contract, likely KPIs would include accuracy rates for translations and interpretations, adherence to deadlines for document translation and interpreter availability, customer satisfaction scores from end-users (e.g., CMS staff, beneficiaries), and compliance with relevant privacy and security regulations (like HIPAA). The firm-fixed-price nature of the contract implies that the contractor is responsible for meeting these performance standards within the agreed-upon budget. Regular performance reviews, potentially involving feedback mechanisms from beneficiaries and healthcare providers who utilize the services, would be part of the oversight process to monitor these KPIs.

What is the potential impact of this contract on healthcare access for non-English speaking populations?

This contract is poised to have a significant positive impact on healthcare access for non-English speaking populations served by Medicare and Medicaid. By ensuring the availability of professional interpretation and translation services, CMS facilitates effective communication between healthcare providers and beneficiaries with limited English proficiency. This is critical for accurate diagnosis, informed consent, understanding treatment plans, and navigating complex healthcare systems. Improved communication can lead to better health outcomes, increased patient satisfaction, and reduced health disparities. The contract's five-year duration suggests a sustained commitment to addressing these linguistic barriers, thereby promoting health equity and ensuring that all beneficiaries can fully participate in and benefit from the healthcare services available to them.

Were there any specific challenges or risks identified during the procurement process?

The procurement process for a contract of this magnitude, involving essential language services for a major federal agency, typically involves identifying and mitigating various risks. Potential challenges could include ensuring the availability of qualified linguists for a wide range of languages, maintaining consistent quality across diverse service delivery points, and managing the security of sensitive health information. Risks might also involve potential cost overruns if not managed tightly under the fixed-price structure, or performance issues if the contractor fails to meet service level agreements. The 'full and open competition after exclusion of sources' approach suggests that the agency aimed to mitigate risks associated with limited vendor pools and encourage robust competition to ensure best value and minimize potential issues related to contractor performance or pricing.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › Translation and Interpretation Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HHSM5002014RFP0081

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 OFFICE CENTER DR STE 400 # 4059 4061 4062 4063, FORT WASHINGTON, PA, 19034

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,478,650

Exercised Options: $22,478,650

Current Obligation: $22,478,650

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline