HHS awarded $25.2M for administrative support, with a significant portion going to Qlarant Integrity Solutions

Contract Overview

Contract Amount: $25,197,745 ($25.2M)

Contractor: Qlarant Integrity Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2011-09-30

End Date: 2018-04-30

Contract Duration: 2,404 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: OTHER ADMINISTRATIVE SUPPORT SVCS

Place of Performance

Location: EASTON, TALBOT County, MARYLAND, 21601

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $25.2 million to QLARANT INTEGRITY SOLUTIONS LLC for work described as: OTHER ADMINISTRATIVE SUPPORT SVCS Key points: 1. The contract focused on administrative management and general management consulting services. 2. Awarded under full and open competition, suggesting a broad market engagement. 3. The contract duration was substantial, spanning over 2000 days. 4. The pricing structure was Cost Plus Award Fee, which can incentivize performance but requires careful oversight. 5. The primary agency was the Department of Health and Human Services, specifically CMS. 6. The contract was a delivery order, indicating it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services rendered and the performance outcomes. The Cost Plus Award Fee structure means the final cost could vary based on performance, making direct price comparisons difficult. However, the total award amount of $25.2 million over approximately six years suggests a significant investment in administrative support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the government sought proposals from all responsible sources. This approach generally promotes a competitive environment, potentially leading to better pricing and service quality. The presence of multiple bidders (implied by full and open competition) allows for a wider range of solutions to be considered.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings and ensures that the government receives the best value by considering a broad spectrum of providers.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and potentially the broader healthcare system through improved administrative efficiency. Services delivered likely encompassed administrative management and general management consulting, aimed at enhancing operational effectiveness. The geographic impact is primarily within the United States, supporting federal healthcare administration. Workforce implications could include the employment of consultants and administrative staff, both within the contractor organization and potentially within CMS if the services involved knowledge transfer or integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee structure requires robust oversight to ensure that award fees are justified and do not lead to excessive costs.
The long duration of the contract could present risks related to evolving needs and potential vendor lock-in if not managed proactively.

Positive Signals

Awarding under full and open competition suggests a commitment to leveraging market competition for best value.
The contract's focus on administrative support indicates an effort to streamline government operations.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is crucial for supporting government operations across various agencies. Comparable spending in this area can vary widely depending on the scope and duration of services, but significant federal investments are common for large agencies like HHS.

Small Business Impact

Information regarding small business set-asides or subcontracting is not explicitly provided in the data. As this was awarded under full and open competition, it does not appear to have been specifically set aside for small businesses. The extent of small business participation would depend on subcontracting plans, which are not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Centers for Medicare and Medicaid Services (CMS). The Cost Plus Award Fee structure necessitates detailed performance monitoring and justification for any award fees granted. Transparency would be enhanced through contract reporting mechanisms and potentially through Inspector General reviews if performance issues arise.

Related Government Programs

Administrative Support Services
Management and Consulting Services
Healthcare Administration Support
Federal IT and Administrative Contracts

Risk Flags

Cost Plus Award Fee structure requires diligent oversight.
Long contract duration may pose risks if needs evolve significantly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $25.2 million to QLARANT INTEGRITY SOLUTIONS LLC. OTHER ADMINISTRATIVE SUPPORT SVCS

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 $25.2 million.

What is the period of performance?

Start: 2011-09-30. End: 2018-04-30.

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

The provided data indicates the contract was for 'Administrative Management and General Management Consulting Services' (NAICS code 541611). However, the specific tasks performed are not detailed. Typically, such services can include strategic planning, organizational analysis, process improvement, program management support, policy development, and operational efficiency enhancements. For CMS, these services could have been directed towards improving the administration of Medicare, Medicaid, or other health programs, ensuring compliance, or optimizing internal operations.

How does the $25.2 million award compare to similar administrative support contracts at CMS or HHS?

Comparing this $25.2 million award requires context on the contract's duration and scope. Over its approximately six-year period (2011-2018), this averages to roughly $4.2 million per year. CMS and HHS manage vast and complex operations, and administrative support contracts can range significantly in value. Larger, more comprehensive contracts for enterprise-wide support or major program implementation could easily exceed this amount. Conversely, smaller, more focused consulting engagements would be less. Without knowing the specific deliverables and performance metrics, a precise benchmark is difficult, but the annual average suggests a substantial, ongoing support role rather than a short-term, high-intensity project.

What were the key performance indicators (KPIs) used to determine the 'Award Fee' in this Cost Plus Award Fee (CPAF) contract?

The specific Key Performance Indicators (KPIs) for this Cost Plus Award Fee (CPAF) contract are not detailed in the provided data. In a CPAF structure, the government typically establishes objective and subjective criteria related to the contractor's performance. These might include metrics such as timeliness of deliverables, quality of work, cost control, customer satisfaction, achievement of specific project milestones, or adherence to regulatory requirements. The 'Award Fee' portion is determined by the government's assessment of how well the contractor met or exceeded these predefined performance standards, allowing for flexibility in rewarding superior performance.

What is the significance of this contract being a 'Delivery Order' under a larger IDIQ vehicle?

This contract being a 'Delivery Order' signifies that it was placed against a pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract. IDIQ vehicles are often used to streamline the procurement process for services that are expected to be needed over time but with uncertain quantities or timing. A delivery order specifies the exact goods or services to be acquired, the quantity, and the delivery schedule. This approach allows agencies to have pre-vetted contractors and established terms, enabling faster acquisition of necessary services as needs arise, while still maintaining competition if the IDIQ itself was competed broadly.

What was the historical spending trend for administrative support services at CMS prior to and during this contract period?

The provided data focuses on a single contract award and does not offer historical spending trends for CMS administrative support services. To analyze historical spending, one would need to examine federal procurement databases (like USASpending.gov) for similar contracts awarded to CMS over multiple fiscal years. This would involve filtering by agency (HHS/CMS), NAICS codes related to administrative and management consulting (e.g., 541611), and contract type. Such an analysis would reveal whether spending in this category has been increasing, decreasing, or remaining stable, and identify major contractors and contract vehicles used over time.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

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: $25,197,745

Exercised Options: $25,197,745

Current Obligation: $25,197,745

Actual Outlays: $-20,098

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSM500200800002I

IDV Type: IDC

Timeline