HHS Awards $34.2M Audit Contract to Cotiviti Gov Services via Full and Open Competition
Contract Overview
Contract Amount: $34,252,395 ($34.3M)
Contractor: Cotiviti GOV Services, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2009-05-08
End Date: 2019-10-31
Contract Duration: 3,828 days
Daily Burn Rate: $8.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: COMPETITIVE IDIQ MIC AUDIT TASK ORDER
Place of Performance
Location: OMAHA, DOUGLAS County, NEBRASKA, 68164
State: Nebraska Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $34.3 million to COTIVITI GOV SERVICES, LLC for work described as: COMPETITIVE IDIQ MIC AUDIT TASK ORDER Key points: 1. Significant contract value of $34.2 million awarded. 2. Full and open competition indicates a robust market. 3. Potential risk associated with a long contract duration (10 years). 4. Spending falls within Administrative Management and General Management Consulting Services sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar audit and consulting contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive nature of the award suggests efforts to secure fair pricing, but the Cost Plus Award Fee structure warrants close monitoring to ensure taxpayer funds are used efficiently.
Public Impact
Enhances oversight of Medicare and Medicaid programs through audit services. Supports the Centers for Medicare and Medicaid Services' mission. Long-term contract provides stability for audit services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (10 years) may not reflect current needs.
- Cost Plus Award Fee structure can incentivize cost overruns.
- Lack of specific performance metrics makes value assessment difficult.
Positive Signals
- Awarded through full and open competition.
- Supports critical healthcare program integrity.
- Contractor has a long-term engagement, suggesting satisfaction.
Sector Analysis
This contract falls under Administrative Management and General Management Consulting Services. Spending in this sector can vary widely, but large, long-term contracts like this often support critical government functions.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the awardee is not listed as a small business. Therefore, there is no direct small business participation evident in this specific award.
Oversight & Accountability
The long duration of the contract and the Cost Plus Award Fee structure necessitate robust oversight from CMS to ensure performance standards are met and costs remain reasonable.
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 (10 years).
- Cost Plus Award Fee contract type.
- Lack of specific performance metrics in provided data.
- Potential for scope creep over the contract's life.
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, ne, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $34.3 million to COTIVITI GOV SERVICES, LLC. COMPETITIVE IDIQ MIC AUDIT TASK ORDER
Who is the contractor on this award?
The obligated recipient is COTIVITI GOV SERVICES, 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 $34.3 million.
What is the period of performance?
Start: 2009-05-08. End: 2019-10-31.
What specific audit functions are covered under this contract, and how do they align with current CMS priorities?
The contract is for audit task orders under a competitive IDIQ. Specific functions likely include financial audits, compliance audits, and potentially performance audits related to Medicare and Medicaid programs. Alignment with CMS priorities would depend on the specific task orders issued over the contract's lifespan, focusing on areas like fraud detection, program integrity, and operational efficiency.
How effectively has the Cost Plus Award Fee structure been managed to control costs and ensure value over the contract's duration?
Assessing the effectiveness of the Cost Plus Award Fee (CPAF) structure requires detailed analysis of award fees granted and the contractor's cost performance relative to targets. Without access to performance reports and fee determinations, it's difficult to ascertain if CPAF incentivized efficiency or led to inflated costs. Close monitoring by the agency is crucial for CPAF contracts.
Given the 10-year duration, what mechanisms are in place to ensure the services remain relevant and cost-effective as healthcare regulations and technologies evolve?
The contract's long duration suggests a need for flexibility through task orders and potentially contract modifications. Mechanisms like regular performance reviews, option periods, and the ability to adjust scope based on evolving needs are critical. However, a decade-long contract inherently carries a risk of becoming outdated if not actively managed and adapted.
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) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FILE TAB 8
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C.
Address: 2121 N 117TH AVE STE 200, OMAHA, NE, 68164
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,252,395
Exercised Options: $34,252,395
Current Obligation: $34,252,395
Actual Outlays: $16,595
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSM500200800006I
IDV Type: IDC
Timeline
Start Date: 2009-05-08
Current End Date: 2019-10-31
Potential End Date: 2019-10-31 00:00:00
Last Modified: 2023-01-27
More Contracts from Cotiviti GOV Services, LLC
- Health Coverage Verification (HCV), for Automated Verification of Critical Data Supplied by Consumers During Interactions With CMS on Various Exchange Programs — $42.6M (Department of Health and Human Services)
- MED & Surgical Instruments,EQ & SUP — $42.0M (Department of Health and Human Services)
- Audit and Overpayment Medicaid Integrity Contract — $17.8M (Department of Health and Human Services)
- Recovery Audit Contractor Region 3 — $10.6M (Department of Health and Human Services)
- SEE Attachment J.1 Statement of Work (SOW) — $10.3M (Department of Health and Human Services)
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →