HHS awards $507M for Admin Management Consulting Services to HP Enterprise Services over 8 years
Contract Overview
Contract Amount: $50,683,600 ($50.7M)
Contractor: HP Enterprise Services, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2002-05-15
End Date: 2010-12-01
Contract Duration: 3,122 days
Daily Burn Rate: $16.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 11
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Place of Performance
Location: PLANO, COLLIN County, TEXAS, 75024
State: Texas Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $50.7 million to HP ENTERPRISE SERVICES, LLC for work described as: Key points: 1. Significant contract value of $506.8M over 8 years. 2. HP Enterprise Services is the sole awardee. 3. Contract type is Cost Plus Award Fee, indicating potential for performance-based incentives. 4. Services fall under Administrative Management and General Management Consulting.
Value Assessment
Rating: questionable
The contract spans 8 years with a large value, making direct pricing comparisons difficult without specific task order details. The Cost Plus Award Fee structure suggests costs could vary significantly based on performance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the long duration and specific nature of the services may limit the number of truly competitive bids.
Taxpayer Impact: The long-term nature and cost-plus fee structure warrant close monitoring to ensure taxpayer funds are used efficiently and effectively.
Public Impact
Impacts Medicare and Medicaid services, affecting millions of beneficiaries. Long contract duration could lead to vendor lock-in if not managed properly. Potential for significant cost overruns if performance incentives are not well-defined or managed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (8 years)
- Cost Plus Award Fee structure
- Sole awardee for the duration
Positive Signals
- Awarded under full and open competition
- Services support critical health programs
Sector Analysis
This contract falls under professional services, specifically management consulting, which is a common area of government spending. Benchmarks for similar long-term, high-value consulting contracts are difficult to establish without detailed task order information.
Small Business Impact
The data indicates the awardee is HP Enterprise Services, LLC, a large corporation. There is no explicit indication of small business participation in this specific award, suggesting potential missed opportunities for small businesses.
Oversight & Accountability
The long duration and cost-plus fee structure necessitate robust oversight from CMS to ensure performance targets are met and costs remain reasonable. Regular audits and performance reviews are crucial.
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
- Long contract duration may reduce flexibility and increase risk.
- Cost Plus Award Fee structure can lead to higher costs if not managed tightly.
- Lack of specific performance metrics makes value assessment difficult.
- Potential for vendor lock-in over the 8-year period.
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $50.7 million to HP ENTERPRISE SERVICES, LLC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is HP ENTERPRISE SERVICES, 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 $50.7 million.
What is the period of performance?
Start: 2002-05-15. End: 2010-12-01.
What specific administrative management and general management consulting services were provided under this contract, and how did they contribute to the efficiency of CMS operations?
The contract likely encompassed a range of services such as strategic planning, process improvement, organizational design, and operational support for CMS. The effectiveness would be measured by improvements in program efficiency, cost savings, or enhanced service delivery for Medicare and Medicaid beneficiaries. Detailed task orders and performance reports would provide specific insights into the value delivered.
Given the Cost Plus Award Fee structure and the 8-year duration, what mechanisms were in place to mitigate the risk of cost overruns and ensure fair pricing?
A Cost Plus Award Fee contract requires strong government oversight. Mechanisms likely included detailed Statements of Work for each task order, clear performance metrics tied to award fees, regular progress reviews, and potentially independent cost analyses. The government's ability to adjust award fees based on performance was a key lever to control costs and incentivize efficiency.
How was the success of HP Enterprise Services measured throughout the 8-year contract period, and what was the overall impact on the Centers for Medicare and Medicaid Services?
Success would have been measured against pre-defined performance standards and objectives outlined in the contract and individual task orders. These could include metrics related to project completion, cost control, quality of deliverables, and stakeholder satisfaction. The overall impact on CMS would be assessed by improvements in operational efficiency, program effectiveness, and the ability to manage complex healthcare programs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 11
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: HP, Inc.
Address: 5400 LEGACY DR, PLANO, TX, 75024
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $20,698,400
Exercised Options: $20,698,400
Current Obligation: $50,683,600
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 500990012
IDV Type: IDC
Timeline
Start Date: 2002-05-15
Current End Date: 2010-12-01
Potential End Date: 2010-12-01 00:00:00
Last Modified: 2023-09-10
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