DHS awards $14.6M for Workers' Comp Nurse Case Management Services to Innovations Group Inc
Contract Overview
Contract Amount: $14,631,608 ($14.6M)
Contractor: Innovations Group Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2005-09-01
End Date: 2009-08-31
Contract Duration: 1,460 days
Daily Burn Rate: $10.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 14
Pricing Type: COST PLUS FIXED FEE
Sector: Healthcare
Official Description: WORKERS COMPENSATION NURSE CASE MANAGEMENT SERVICES
Place of Performance
Location: PEORIA, MARICOPA County, ARIZONA, 85381
State: Arizona Government Spending
Plain-Language Summary
Department of Homeland Security obligated $14.6 million to INNOVATIONS GROUP INC. for work described as: WORKERS COMPENSATION NURSE CASE MANAGEMENT SERVICES Key points: 1. Contract value of $14.6 million over 4 years. 2. Innovations Group Inc. is the sole awardee. 3. Services are critical for managing workers' compensation claims. 4. Sector: Healthcare/Administrative Services.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar case management contracts is difficult without more detailed service scope and performance data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may not have resulted in the most competitive pricing.
Taxpayer Impact: Taxpayer funds are used for managing workers' compensation claims, aiming for efficient resolution and cost control.
Public Impact
Ensures timely and appropriate medical care for injured federal employees. Aims to reduce the duration and cost of workers' compensation claims. Supports the operational readiness of the Transportation Security Administration by managing employee health.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type.
- Limited competition.
- Potential for cost overruns.
Positive Signals
- Essential service for employee well-being.
- Supports operational continuity.
Sector Analysis
This contract falls within the healthcare administrative services sector, specifically focusing on workers' compensation case management. Spending in this area is driven by the need to manage employee injuries and associated costs efficiently.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
Oversight would typically involve monitoring contract performance, cost controls, and adherence to service level agreements by the Transportation Security Administration to ensure taxpayer value.
Related Government Programs
- Claims Adjusting
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Fixed Fee structure.
- Limited competition may have reduced price competitiveness.
- Lack of transparency on specific performance metrics.
- Dependence on a single contractor for critical services.
Tags
claims-adjusting, department-of-homeland-security, az, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $14.6 million to INNOVATIONS GROUP INC.. WORKERS COMPENSATION NURSE CASE MANAGEMENT SERVICES
Who is the contractor on this award?
The obligated recipient is INNOVATIONS GROUP INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Transportation Security Administration).
What is the total obligated amount?
The obligated amount is $14.6 million.
What is the period of performance?
Start: 2005-09-01. End: 2009-08-31.
What was the rationale for excluding other sources during the competition phase?
The exclusion of sources suggests a specific justification, possibly related to unique capabilities, prior performance, or a determination that only certain vendors could meet the specialized requirements of the Transportation Security Administration's workers' compensation case management needs.
How does the fixed fee component compare to industry standards for similar case management services?
Without detailed service scope and performance metrics, it's challenging to benchmark the fixed fee. However, cost-plus contracts inherently carry a risk of higher overall costs compared to fixed-price agreements if not tightly managed.
What are the key performance indicators (KPIs) used to measure the effectiveness of these case management services?
Effective case management typically relies on KPIs such as claim resolution time, medical cost containment, return-to-work rates, and claimant satisfaction. The TSA would monitor these to ensure the contractor delivers value and supports injured employees.
Industry Classification
NAICS: Finance and Insurance › Agencies, Brokerages, and Other Insurance Related Activities › Claims Adjusting
Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 14
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1933 JADWIN AVE. STE., 210, RICHLAND, WA, 04
Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, Veteran Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $17,177,264
Exercised Options: $14,631,608
Current Obligation: $14,631,608
Timeline
Start Date: 2005-09-01
Current End Date: 2009-08-31
Potential End Date: 2010-08-31 00:00:00
Last Modified: 2008-06-19
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