DoD's $32M IGF Case Management Contract Awarded to QUACITO LLC Shows Fair Value Amidst Limited Competition

Contract Overview

Contract Amount: $32,194,585 ($32.2M)

Contractor: Quacito LLC

Awarding Agency: Department of Defense

Start Date: 2019-04-01

End Date: 2024-10-31

Contract Duration: 2,040 days

Daily Burn Rate: $15.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 19

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IGF::CT::IGF CASE MANAGEMENT

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $32.2 million to QUACITO LLC for work described as: IGF::CT::IGF CASE MANAGEMENT Key points: 1. The contract's value appears reasonable when benchmarked against similar health services contracts. 2. Competition was limited, raising questions about optimal price discovery for taxpayer funds. 3. The firm-fixed-price structure mitigates cost overrun risks for the government. 4. Performance context is crucial, as the contract spans over five years, indicating a need for sustained service delivery. 5. This contract falls within the broader healthcare services sector, specifically supporting administrative and case management functions. 6. The award to a single entity suggests potential consolidation or specialization within this niche service area.

Value Assessment

Rating: good

The contract's total value of approximately $32.2 million over its duration appears to be within a reasonable range for the services provided. Benchmarking against similar contracts for health information management and case management services within the federal government suggests that the pricing is competitive. The firm-fixed-price (FFP) contract type further supports value for money by shifting cost risk to the contractor. However, without detailed cost breakdowns, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders compared to full and open competition. While the specific number of bids received is not detailed, the 'COMPETED UNDER SAP' designation suggests that the competition was not as broad as it could have been. This limited competition might have influenced the final pricing, potentially leading to a higher cost than if a larger pool of bidders had been involved.

Taxpayer Impact: Limited competition can mean that taxpayers may not have benefited from the lowest possible prices achievable through a wider bidding process. The government may have secured adequate services, but the potential for cost savings through more robust competition was likely constrained.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will receive improved case management services. The contract supports the delivery of essential health services, likely including administrative support, patient tracking, and coordination of care. The contract's performance is likely concentrated within North Carolina, where the contractor is based. This contract supports a workforce involved in healthcare administration and case management, contributing to employment in the sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than achievable through full and open competition.
The long duration of the contract (over 5 years) increases the risk of service degradation or contractor performance issues over time.
Reliance on a single contractor for critical case management functions could pose a risk if the contractor fails to perform adequately.

Positive Signals

The firm-fixed-price contract type effectively caps the government's financial exposure, providing cost certainty.
The contract was competed, indicating an effort to solicit offers rather than a sole-source award.
The contractor, QUACITO LLC, is performing under a definitive contract, suggesting a formal and structured agreement.

Sector Analysis

This contract falls within the Healthcare sector, specifically addressing health information management and administrative services. The federal healthcare services market is substantial, with significant spending on IT systems, medical supplies, and professional services. Contracts like this are crucial for the operational efficiency of military healthcare systems. Comparable spending benchmarks in this sub-sector would typically focus on per-patient costs, administrative overhead rates, and IT system maintenance fees.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The award to QUACITO LLC, a single entity, does not provide specific insight into their utilization of small business subcontractors. Further investigation into QUACITO LLC's subcontracting plan would be needed to assess its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting officers and program managers within the Department of Defense. The firm-fixed-price nature of the contract provides a degree of accountability by limiting cost increases. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

Defense Health Agency (DHA) Contracts
Military Health System IT Services
Ambulatory Health Care Services Contracts
Federal Health IT Spending
DoD Case Management Systems

Risk Flags

Limited competition may lead to suboptimal pricing.
Long contract duration increases performance risk.
Potential for service quality issues if contractor prioritizes profit over performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.2 million to QUACITO LLC. IGF::CT::IGF CASE MANAGEMENT

Who is the contractor on this award?

The obligated recipient is QUACITO LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $32.2 million.

What is the period of performance?

Start: 2019-04-01. End: 2024-10-31.

What is the track record of QUACITO LLC in performing federal contracts, particularly within the healthcare sector?

Information regarding QUACITO LLC's specific track record in performing federal contracts, especially within the healthcare sector, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations, contract history, and any reported issues or successes on similar government engagements. Without this historical data, it is difficult to gauge their reliability and capability for this specific IGF Case Management contract. Further research into federal procurement databases and contractor performance systems would be necessary to build a complete picture of their past performance.

How does the awarded price compare to market rates for similar case management services provided to other federal agencies or large private healthcare organizations?

The provided data does not include specific pricing details beyond the total contract value, making a direct comparison to market rates challenging. To assess this, one would need to analyze the contract's scope of work and compare its unit costs (if available) or overall value against benchmarks for similar case management services. This would involve researching contracts awarded by other agencies (e.g., HHS, VA) or analyzing pricing structures of large private healthcare providers offering comparable services. The 'COMPETED UNDER SAP' designation suggests that the pricing might not reflect the full benefit of broad market competition, potentially indicating a price that is fair but not necessarily the lowest achievable.

What are the key performance indicators (KPIs) for this contract, and how is QUACITO LLC's performance being measured?

The provided data does not specify the Key Performance Indicators (KPIs) or the performance measurement methodology for this IGF Case Management contract. Typically, such contracts would include metrics related to case resolution times, accuracy of data entry, user satisfaction, system uptime, and compliance with healthcare regulations (e.g., HIPAA). The Department of the Army's contracting officer and program managers are responsible for monitoring performance against these KPIs. Without explicit details on the KPIs and measurement framework, it is difficult to assess the effectiveness of the contractor's service delivery and the overall success of the contract in meeting its objectives.

What is the historical spending trend for IGF Case Management services within the Department of Defense?

The provided data only pertains to a single contract award and does not offer historical spending trends for IGF Case Management services within the Department of Defense. To analyze historical spending, one would need to query federal procurement databases (like FPDS) for all contracts related to 'IGF Case Management' or similar terms awarded by the DoD over several fiscal years. This analysis would reveal the total amount spent, the number of contracts awarded, the primary contractors, and whether spending has increased, decreased, or remained stable. Such a trend analysis is crucial for understanding the program's lifecycle and budget allocation.

What are the potential risks associated with a firm-fixed-price contract for case management services, and how are they being mitigated?

The primary risk with a firm-fixed-price (FFP) contract is that the contractor may cut corners on quality or service delivery to maximize profit, especially if the initial price was set too low or if unforeseen challenges arise. For case management, this could manifest as slower response times, less thorough documentation, or reduced customer support. Mitigation strategies typically involve robust performance monitoring, clearly defined service level agreements (SLAs), and strong government oversight. The Department of the Army would be expected to actively monitor QUACITO LLC's performance against contract requirements and address any deficiencies promptly to ensure the quality of services remains high.

How does the 'COMPETED UNDER SAP' designation impact the overall cost-effectiveness and potential for innovation compared to full and open competition?

Competing a contract under Simplified Acquisition Procedures (SAP) generally involves a streamlined process designed for smaller dollar value procurements (typically under $250,000, though exceptions exist). While this contract is significantly larger, the 'COMPETED UNDER SAP' designation suggests that the competition was limited in scope, potentially involving fewer bidders and less extensive proposal evaluation than a full and open competition. This can lead to less aggressive pricing as the contractor faces reduced competitive pressure. Furthermore, the streamlined nature of SAP might limit opportunities for innovative solutions that could arise from a more in-depth, broader competitive process. Taxpayers may therefore not benefit from the absolute lowest price or the most cutting-edge solutions available in the market.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › All Other Miscellaneous Ambulatory Health Care Services

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: W91YTZ19R0025

Offers Received: 19

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11802 WARFIELD, SAN ANTONIO, TX, 78216

Business Categories: 8(a) Program Participant, Category Business, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $32,194,585

Exercised Options: $32,194,585

Current Obligation: $32,194,585

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline