HHS Awards $275M Task Order to Safeguard Services LLC for UPIC Southeastern Jurisdiction
Contract Overview
Contract Amount: $275,468,570 ($275.5M)
Contractor: Safeguard Services LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2017-08-04
End Date: 2027-02-17
Contract Duration: 3,484 days
Daily Burn Rate: $79.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: IGF::CT::IGF TASK ORDER AWARD FOR UPIC SOUTHEASTERN JURSIDICTION
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $275.5 million to SAFEGUARD SERVICES LLC for work described as: IGF::CT::IGF TASK ORDER AWARD FOR UPIC SOUTHEASTERN JURSIDICTION Key points: 1. Significant contract value of $275.5 million over its period of performance. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract type is Cost Plus Award Fee, which can incentivize performance but requires careful oversight. 4. The sector is Professional, Scientific, and Technical Services, a broad category with varying cost benchmarks.
Value Assessment
Rating: good
The contract's total value is substantial. Benchmarking against similar 'All Other Professional, Scientific, and Technical Services' contracts is challenging due to the category's breadth, but the award value appears within a reasonable range for a large-scale, long-term task order.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for the services procured.
Public Impact
Ensures continued operation of the UPIC Southeastern Jurisdiction, vital for healthcare program integrity. Supports a critical function within CMS for fraud, waste, and abuse detection. The long duration of the contract (over 9 years) provides stability for program operations. Potential impact on beneficiaries through improved program oversight and reduced improper payments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts require robust monitoring to ensure costs are reasonable and award fees are justified.
- The broad NAICS code makes direct cost comparisons difficult.
- Long contract duration may not always reflect the most current market pricing.
Positive Signals
- Awarded under full and open competition.
- Significant duration provides program stability.
- Supports a critical government function for healthcare integrity.
Sector Analysis
This contract falls under 'All Other Professional, Scientific, and Technical Services.' Spending in this sector can vary widely based on the specific services. Benchmarking is difficult without more granular service details, but the scale suggests a significant operational support role.
Small Business Impact
The data indicates the awardee is Safeguard Services LLC. There is no explicit information on small business participation or subcontracting in the provided data. Further investigation would be needed to assess small business involvement.
Oversight & Accountability
The Cost Plus Award Fee structure necessitates strong oversight from CMS to ensure contractor performance aligns with objectives and that costs are managed effectively. Regular performance reviews and audits are crucial for accountability.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Cost Plus Award Fee contract type requires diligent oversight.
- Broad NAICS code limits direct cost benchmarking.
- Long contract duration may not reflect current market efficiencies.
- Lack of explicit small business participation data.
Tags
all-other-professional-scientific-and-te, department-of-health-and-human-services, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $275.5 million to SAFEGUARD SERVICES LLC. IGF::CT::IGF TASK ORDER AWARD FOR UPIC SOUTHEASTERN JURSIDICTION
Who is the contractor on this award?
The obligated recipient is SAFEGUARD 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 $275.5 million.
What is the period of performance?
Start: 2017-08-04. End: 2027-02-17.
How does the awarded amount compare to the estimated value or budget for this task order, and what factors influenced the final price?
The awarded amount of $275.5 million represents the total ceiling value for the task order. Without knowing the initial estimate or budget, it's difficult to assess if it's high or low. The Cost Plus Award Fee structure means the final invoiced amount will depend on actual costs incurred plus an award fee based on performance, making the final price variable within the ceiling.
What are the specific performance metrics and award fee criteria used to evaluate Safeguard Services LLC, and how are they tied to taxpayer value?
The provided data does not detail the specific performance metrics or award fee criteria. However, for a UPIC contract, these would likely relate to the effectiveness of fraud detection, the accuracy of investigations, timeliness of reporting, and overall contribution to preventing healthcare waste and abuse, directly impacting taxpayer value by reducing improper payments.
Given the long contract duration, what mechanisms are in place to ensure the services remain relevant and cost-effective over time?
Mechanisms for long-term relevance and cost-effectiveness typically include periodic reviews, potential for contract modifications, and option periods that allow for re-evaluation. The Cost Plus Award Fee structure itself can incentivize efficiency. However, the agency must actively manage the contract to ensure it keeps pace with evolving threats and technologies in healthcare fraud.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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
Solicitation ID: HHSM5002017RFP0044
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 5400 LEGACY DR, PLANO, TX, 75024
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $319,750,563
Exercised Options: $275,468,570
Current Obligation: $275,468,570
Actual Outlays: $139,031,054
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $202,371,161
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HHSM500201600083I
IDV Type: IDC
Timeline
Start Date: 2017-08-04
Current End Date: 2027-02-17
Potential End Date: 2028-02-17 00:00:00
Last Modified: 2026-04-06
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