HHS Awards $25.1M Non-Competitive Contract to Maximus for Medicare Appeals
Contract Overview
Contract Amount: $25,107,948 ($25.1M)
Contractor: Maximus Federal Services, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2009-07-01
End Date: 2011-06-30
Contract Duration: 729 days
Daily Burn Rate: $34.4K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MEDICARE 2ND LEVEL OF APPEALS
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $25.1 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: MEDICARE 2ND LEVEL OF APPEALS Key points: 1. Contract awarded non-competitively, raising questions about price discovery. 2. Maximus Federal Services, Inc. is the sole awardee. 3. The contract covers administrative management and consulting services for Medicare appeals. 4. Spending of $25.1M over two years requires scrutiny for value. 5. Small business participation is not indicated.
Value Assessment
Rating: questionable
The contract's fixed price of $25.1M over two years lacks clear benchmarks for comparison due to its non-competitive nature. Without competitive bids, assessing if this price represents fair market value is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a non-competitive delivery order. This limits price discovery and potentially leads to higher costs for taxpayers as there was no opportunity for multiple vendors to bid.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these administrative services.
Public Impact
Impacts Medicare beneficiaries by affecting the appeals process. Potential for increased administrative costs affecting program efficiency. Lack of transparency in award process raises public trust concerns.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award
- Lack of clear value assessment
- Potential for cost overruns
Positive Signals
- Established contractor
- Fixed price contract
Sector Analysis
This contract falls under administrative management and general management consulting services, a sector that can vary widely in cost. Benchmarks are difficult to establish without competitive data for this specific service.
Small Business Impact
The data indicates that small business participation was not a factor in this award, as the contract was awarded to Maximus Federal Services, Inc. without a small business set-aside.
Oversight & Accountability
The non-competitive nature of this award warrants close oversight to ensure the government is receiving fair value and that the contractor is meeting all performance requirements.
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
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $25.1 million to MAXIMUS FEDERAL SERVICES, INC.. MEDICARE 2ND LEVEL OF APPEALS
Who is the contractor on this award?
The obligated recipient is MAXIMUS FEDERAL SERVICES, INC..
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 $25.1 million.
What is the period of performance?
Start: 2009-07-01. End: 2011-06-30.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, urgent needs, or specific government requirements that only a particular contractor can meet. Without further documentation, the specific rationale remains unclear.
How does the cost of this contract compare to similar services procured competitively?
Direct comparison is challenging due to the sole-source nature of this award. Typically, competitive procurements allow for price discovery and potentially lower costs. Without competitive bids for this specific Medicare appeals service, it's difficult to definitively state if $25.1M represents a fair market price or if taxpayers are overpaying.
What mechanisms are in place to ensure the effectiveness and efficiency of Medicare appeals under this contract?
Effectiveness and efficiency are typically ensured through performance standards, service level agreements, and regular monitoring by the contracting officer. The fixed-price nature of the contract incentivizes the contractor to manage costs, but oversight is crucial to verify that quality and timeliness of appeals processing meet program requirements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES
Competition & Pricing
Extent Competed: NON-COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Maximus Inc (UEI: 082347477)
Address: 11419 SUNSET HILLS ROAD, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $25,107,948
Exercised Options: $25,107,948
Current Obligation: $25,107,948
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSM500200400007I
IDV Type: IDC
Timeline
Start Date: 2009-07-01
Current End Date: 2011-06-30
Potential End Date: 2011-06-30 00:00:00
Last Modified: 2018-10-18
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