HHS awarded $12.17M for administrative management consulting, with a significant portion spent on fixed-fee services

Contract Overview

Contract Amount: $12,167,389 ($12.2M)

Contractor: C2C Innovative Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2005-02-10

End Date: 2008-03-13

Contract Duration: 1,127 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: QIC - EAST

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32202

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12.2 million to C2C INNOVATIVE SOLUTIONS, INC. for work described as: QIC - EAST Key points: 1. The contract's value of $12.17 million over its period of performance suggests a substantial investment in management consulting. 2. The 'COST PLUS FIXED FEE' contract type indicates a baseline fee was established, with costs reimbursed up to a ceiling. 3. The contract was awarded under 'FULL AND OPEN COMPETITION', suggesting a robust bidding process. 4. The duration of 1127 days (approximately 3 years) allowed for sustained engagement on administrative management tasks. 5. The primary service area, 'Administrative Management and General Management Consulting Services', points to support for organizational efficiency and operations. 6. The award was made to C2C INNOVATIVE SOLUTIONS, INC., a single contractor for this specific delivery order.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific details on the scope of services provided by C2C INNOVATIVE SOLUTIONS, INC. However, $12.17 million for three years of administrative management consulting services for CMS appears to be within a reasonable range for complex federal projects. The 'COST PLUS FIXED FEE' structure, while common, can sometimes lead to higher overall costs if not carefully managed, as it incentivizes cost incurrence up to the ceiling. Further analysis would require comparing the specific deliverables and outcomes against industry standards and similar contracts awarded by CMS or other agencies for comparable services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION', indicating that all responsible sources were permitted to submit a bid. This typically suggests a competitive environment where multiple companies vied for the contract. The fact that it resulted in a single delivery order awarded to C2C INNOVATIVE SOLUTIONS, INC. implies that this company was selected as the best value among the bidders. The level of competition can influence pricing by driving down costs as contractors seek to offer the most attractive proposals.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and higher quality services. It ensures that the government is not limited to a single provider, increasing the likelihood of securing a cost-effective solution.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) likely benefited from improved administrative management and operational efficiency. The services delivered were focused on general management consulting, potentially impacting program administration and policy implementation within CMS. The geographic impact is primarily within Florida, where the contractor is located (st), suggesting potential local economic benefits. Workforce implications are not explicitly detailed but could involve the contractor's personnel supporting CMS operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST PLUS FIXED FEE' contract type can sometimes lead to cost overruns if not meticulously monitored, as the contractor is reimbursed for costs incurred up to a predetermined fee.
Without detailed performance metrics, it's difficult to assess the true value for money delivered by C2C INNOVATIVE SOLUTIONS, INC. over the contract's duration.

Positive Signals

The award was made through 'FULL AND OPEN COMPETITION', indicating a robust and fair bidding process that likely resulted in a competitive selection.
The contract duration of over three years suggests a stable and ongoing need for the services, potentially indicating successful past performance or critical support.

Sector Analysis

The federal sector for Administrative Management and General Management Consulting Services (NAICS 541611) is a significant market. Agencies like CMS frequently procure these services to enhance operational efficiency, manage complex programs, and implement strategic initiatives. Spending in this category can fluctuate based on agency priorities and the need for specialized expertise. This contract represents a portion of the broader federal spending on professional services aimed at improving government operations.

Small Business Impact

This contract does not appear to have been specifically set aside for small businesses, as indicated by 'sb': false. The award was made to C2C INNOVATIVE SOLUTIONS, INC., and there is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Centers for Medicare and Medicaid Services (CMS). As a delivery order under a larger contract vehicle, its execution would be monitored by CMS program managers. Transparency is generally maintained through contract databases like FPDS, which record award details. Specific accountability measures would be defined in the contract's statement of work and performance requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Management and Financial Consulting, Acquisition and Commercialization
Professional Services
Administrative Support Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Lack of detailed performance metrics makes it difficult to fully assess value for money.
Limited information on specific deliverables hinders a comprehensive risk assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.2 million to C2C INNOVATIVE SOLUTIONS, INC.. QIC - EAST

Who is the contractor on this award?

The obligated recipient is C2C INNOVATIVE SOLUTIONS, 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 $12.2 million.

What is the period of performance?

Start: 2005-02-10. End: 2008-03-13.

What was the specific scope of 'Administrative Management and General Management Consulting Services' provided under this contract?

The provided data indicates the contract falls under NAICS code 541611, 'Administrative Management and General Management Consulting Services.' This broad category typically encompasses services such as strategic planning, organizational design, process improvement, performance management, and general management advice. For CMS, these services could have been related to improving the efficiency of their vast healthcare programs, managing complex administrative processes, or advising on policy implementation. Without the detailed Statement of Work (SOW), the precise nature of the consulting provided remains unspecified, but it is understood to be focused on enhancing the operational and administrative functions of the agency.

How does the 'COST PLUS FIXED FEE' (CPFF) contract type compare to other pricing arrangements for similar consulting services?

The 'COST PLUS FIXED FEE' (CPFF) contract type is common in federal contracting, especially for services where the scope may evolve or is difficult to define precisely upfront. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This differs from fixed-price contracts, where the price is set regardless of actual costs, and cost-reimbursement contracts without a fixed fee, which can offer less incentive for cost control. While CPFF provides flexibility and ensures contractors are compensated for their efforts, it can also lead to higher overall costs if not managed diligently, as the government bears the risk of cost overruns up to the contract ceiling. For consulting services, it balances the need for expertise with the government's desire to manage financial exposure.

What is the typical duration for federal contracts providing administrative management consulting services?

Federal contracts for administrative management and general management consulting services can vary significantly in duration, depending on the complexity and scope of the project. Contracts can range from short-term, project-specific engagements lasting a few months to longer-term, strategic support agreements that extend over several years. The 1127-day duration (approximately 3 years) of this particular contract is not unusual for federal consulting engagements that require sustained effort to implement changes, provide ongoing advisory services, or manage complex administrative functions within an agency. Longer durations often indicate a critical need for continuous support and a successful working relationship between the agency and the contractor.

What does the 'FULL AND OPEN COMPETITION' designation imply about the selection process for C2C INNOVATIVE SOLUTIONS, INC.?

The 'FULL AND OPEN COMPETITION' designation signifies that the contract award process was designed to be as competitive as possible, allowing any responsible source to submit an offer. This means that the government actively sought proposals from a wide range of qualified contractors, rather than restricting the opportunity to a pre-approved list or a sole source. The selection of C2C INNOVATIVE SOLUTIONS, INC. from this competitive pool suggests that their proposal was deemed the most advantageous to the government, likely based on a combination of factors such as technical approach, past performance, and price. This process is intended to ensure fair market competition and achieve the best value for taxpayer dollars.

Are there any indicators of potential risks associated with this contract based on the available data?

Based on the limited data, potential risks are primarily associated with the 'COST PLUS FIXED FEE' (CPFF) contract type. CPFF contracts, while flexible, carry a risk of cost escalation if the contractor's actual costs exceed initial estimates, even though the fee is fixed. Effective oversight and diligent cost tracking by the agency are crucial to mitigate this risk. Additionally, without specific performance metrics or details on the scope of work, it's difficult to assess the risk related to the contractor's ability to deliver the expected outcomes or the overall value for money. The fact that it's a single delivery order awarded to one contractor also means that the agency relied heavily on that specific entity's capabilities.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: TMF Health Quality Institute

Address: 532 RIVERSIDE AVE, JACKSONVILLE, FL, 32202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,167,389

Exercised Options: $12,167,389

Current Obligation: $12,167,389

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSM500200400005I

IDV Type: IDC

Timeline