HHS awards $51.3M Medicare Integrity Audit Contract to Qlarant Integrity Solutions LLC
Contract Overview
Contract Amount: $51,331,231 ($51.3M)
Contractor: Qlarant Integrity Solutions LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2009-09-16
End Date: 2021-01-31
Contract Duration: 4,155 days
Daily Burn Rate: $12.4K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: MEDICARE INDEGRITY AUDIT CONTRACT
Place of Performance
Location: EASTON, TALBOT County, MARYLAND, 21601
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $51.3 million to QLARANT INTEGRITY SOLUTIONS LLC for work described as: MEDICARE INDEGRITY AUDIT CONTRACT Key points: 1. Contract awarded to Qlarant Integrity Solutions LLC for Medicare integrity audits. 2. The contract spans over 11 years, indicating a long-term need for these services. 3. The administrative management and general management consulting services sector is crucial for government operations. 4. The cost-plus award fee structure incentivizes performance but requires careful oversight.
Value Assessment
Rating: good
The contract's value of $51.3M over 11 years suggests a significant investment in Medicare integrity. Benchmarking against similar large-scale audit contracts would provide further context on its pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract type is 'COMPETITIVE DELIVERY ORDER', suggesting it was awarded through a competitive process. However, the specific competition details and how price discovery was achieved are not fully detailed.
Taxpayer Impact: The effective auditing of Medicare programs aims to prevent fraud and abuse, ultimately protecting taxpayer funds and ensuring the program's financial integrity.
Public Impact
Ensures the financial integrity of the Medicare program by auditing for fraud and abuse. Supports the Centers for Medicare and Medicaid Services (CMS) in maintaining program efficiency. Impacts beneficiaries through improved program reliability and resource allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific competition details
- Long contract duration may warrant review for potential efficiencies
Positive Signals
- Focus on Medicare integrity is critical for taxpayer protection
- Competitive award type suggests potential for good value
Sector Analysis
This contract falls under administrative management and general management consulting services, a broad category essential for government operations. Spending in this sector often reflects the complexity and scale of agency functions.
Small Business Impact
The provided data does not indicate any specific set-asides or participation from small businesses in this contract.
Oversight & Accountability
The long duration of the contract necessitates robust oversight from CMS to ensure performance standards are met and costs are managed effectively. Regular performance reviews are crucial.
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
- Long contract duration
- Cost-plus award fee structure requires diligent oversight
- Limited transparency on specific competition details
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $51.3 million to QLARANT INTEGRITY SOLUTIONS LLC. MEDICARE INDEGRITY AUDIT CONTRACT
Who is the contractor on this award?
The obligated recipient is QLARANT INTEGRITY 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 $51.3 million.
What is the period of performance?
Start: 2009-09-16. End: 2021-01-31.
What was the competitive landscape for this contract, and how did it influence pricing?
The data indicates a 'COMPETITIVE DELIVERY ORDER', suggesting multiple bids were considered. However, without details on the number of bidders or the evaluation criteria, it's difficult to fully assess the impact on price discovery. Further analysis of the solicitation documents would be needed to understand the competitive dynamics and their effect on the final award price.
What are the key performance indicators (KPIs) for this contract, and how are they measured?
The contract type is 'COST PLUS AWARD FEE', which implies performance-based incentives. Specific KPIs related to audit accuracy, fraud detection rates, and efficiency improvements would be essential for measuring success. CMS would need to have clear metrics and a robust system for tracking Qlarant's performance against these KPIs to ensure value for money.
How does the $51.3M expenditure align with industry benchmarks for similar Medicare integrity audit services?
Benchmarking this contract's value requires comparing it to similar long-term, large-scale audit and integrity services contracts within the healthcare sector, specifically for government programs. Factors like the scope of audits, complexity of Medicare regulations, and the specific services provided by Qlarant would need to be considered for a meaningful comparison.
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) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Qlarant Inc
Address: 9240 CENTERVILLE RD, EASTON, MD, 21601
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $51,331,231
Exercised Options: $51,331,231
Current Obligation: $51,331,231
Actual Outlays: $631,165
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSM500200800002I
IDV Type: IDC
Timeline
Start Date: 2009-09-16
Current End Date: 2021-01-31
Potential End Date: 2021-01-31 00:00:00
Last Modified: 2023-12-11
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