HHS awarded $41.4M contract for management consulting services to TRICENTURION INC

Contract Overview

Contract Amount: $41,437,175 ($41.4M)

Contractor: Tricenturion Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2002-05-15

End Date: 2009-01-31

Contract Duration: 2,453 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Place of Performance

Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29223

State: South Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $41.4 million to TRICENTURION INC for work described as: Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but can lead to higher costs. 3. The duration of the contract was 2453 days, indicating a long-term engagement. 4. The contract was awarded to TRICENTURION INC. by the Department of Health and Human Services. 5. The North American Industry Classification System (NAICS) code 541611 points to administrative management and general management consulting services. 6. The contract was not set aside for small businesses, nor did it involve small business subcontracting. 7. The contract was awarded in South Carolina.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. However, the Cost Plus Award Fee structure implies that the government aims to achieve good value through performance incentives. The total award amount of $41.4 million over approximately 6.7 years suggests an average annual spend of around $6.1 million. This figure needs to be compared against the scope and complexity of the consulting services provided to determine true value for money. Without more detailed information on the services rendered and their impact, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust competitive environment at the time of award. The number of bidders is not specified, but the designation implies that the government sought to maximize competition to ensure fair pricing and access to a wide range of capabilities. The open competition likely contributed to price discovery and potentially secured more favorable terms for the government.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to innovative solutions. This process helps ensure that government funds are used efficiently by fostering a market-driven approach to service acquisition.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) within HHS, which likely received support in administrative and management functions. Services delivered were in the realm of administrative management and general management consulting. The geographic impact is primarily associated with the awarding agency's operations, likely centered around CMS's headquarters and operational areas. Workforce implications could include the engagement of specialized consultants to support government staff, potentially enhancing efficiency or providing expertise not available internally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to cost overruns if not managed tightly.
Lack of specific performance metrics makes it difficult to assess the true impact and value delivered.
The long duration of the contract (over 6 years) may reduce flexibility to adapt to changing needs or market conditions.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
The Cost Plus Award Fee structure includes incentives for contractor performance.
The contract was awarded to TRICENTURION INC., suggesting established capabilities in management consulting.

Sector Analysis

The administrative management and general management consulting services sector is a significant part of the federal procurement landscape. This contract falls under professional services, where agencies often seek external expertise to improve operations, efficiency, and strategic planning. The total award of $41.4 million over nearly seven years is a substantial sum, reflecting the ongoing need for such services within a large agency like HHS. Comparable spending benchmarks would typically involve analyzing other contracts for similar consulting services awarded to large federal agencies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of small business subcontracting requirements. This suggests that the primary award went to a larger entity, and the focus was on obtaining the required services through the most competitive means available, rather than specifically promoting small business participation. The absence of small business involvement in this particular award means it does not directly contribute to the small business contracting ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Centers for Medicare and Medicaid Services. The Cost Plus Award Fee structure necessitates close monitoring of performance against established award criteria to ensure accountability and justify fee payments. Transparency would be enhanced through contract award databases and reporting requirements, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS Management and Administrative Support Contracts
CMS Consulting Services
Federal Management Consulting Services
Cost Plus Award Fee Contracts

Risk Flags

Long contract duration may limit flexibility.
CPAF structure requires careful performance monitoring.
Lack of specific performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $41.4 million to TRICENTURION INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is TRICENTURION 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 $41.4 million.

What is the period of performance?

Start: 2002-05-15. End: 2009-01-31.

What specific management and administrative consulting services did TRICENTURION INC. provide under this contract?

The contract, NAICS 541611, specifies 'Administrative Management and General Management Consulting Services.' While the exact deliverables are not detailed in the provided data, such services typically encompass areas like organizational structure analysis, process improvement, strategic planning, operational efficiency enhancements, policy development support, and program management assistance. For the Centers for Medicare and Medicaid Services (CMS), these services could have been crucial for managing complex healthcare programs, improving administrative processes, ensuring regulatory compliance, and supporting the agency's overall mission delivery. The Cost Plus Award Fee structure suggests that performance was measured against specific objectives and award criteria related to the quality and effectiveness of these consulting services.

How does the $41.4 million award amount compare to similar contracts for management consulting services at HHS or CMS?

Comparing the $41.4 million award to similar contracts requires access to a broader dataset of HHS and CMS procurements for management consulting. However, as a total award over approximately 6.7 years (2453 days), this averages to roughly $6.1 million per year. This annual figure is within the range for significant consulting engagements for large federal agencies. Contracts of this magnitude often involve comprehensive support for major programs or agency-wide initiatives. Without specific details on the scope of work and performance periods of comparable contracts, a precise benchmark is difficult, but the amount suggests a substantial, long-term engagement rather than a small, project-based service.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this size and duration?

The primary risks with a CPAF contract of this size ($41.4M over ~6.7 years) include potential cost growth if the 'cost plus' component is not rigorously controlled and if award fees are consistently maximized without commensurate value. The government bears the risk of the contractor's costs, while the award fee incentivizes performance. A significant risk is ensuring that the award fee criteria are clearly defined, measurable, and aligned with true government objectives. If criteria are vague or easily met, the incentive may not drive desired outcomes. Furthermore, the long duration can lead to contractor 'lock-in' and reduced flexibility for the agency to adapt to evolving needs or seek alternative solutions if performance falters or requirements change significantly.

What was the historical spending pattern for TRICENTURION INC. with the federal government prior to or during this contract?

The provided data does not include historical spending patterns for TRICENTURION INC. To assess their track record, one would need to analyze federal procurement databases (like FPDS or USASpending) for previous awards to this contractor. This analysis would reveal the types of services they have provided, the agencies they have served, the total value of contracts awarded, and their performance history, including any contract terminations or disputes. Understanding their past performance and contract values would provide context for the $41.4 million award from HHS and help evaluate their reliability and capability in delivering management consulting services.

How effective were the management and administrative consulting services provided by TRICENTURION INC. in achieving CMS's objectives?

Assessing the effectiveness of the services requires access to performance evaluations, contract close-out reports, and potentially program outcome data from CMS. The 'Award Fee' component of the contract suggests that performance was formally evaluated against specific criteria. However, without these internal assessments or publicly available impact studies, it's impossible to definitively state the effectiveness. Generally, the success of such consulting engagements depends on the clarity of objectives, the quality of the contractor's recommendations, the agency's implementation of those recommendations, and the ultimate impact on CMS's operational efficiency, program delivery, or strategic goals. The long duration might imply a degree of satisfaction or perceived value, but it's not a direct measure of effectiveness.

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/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: 7909 PARKLANE RD STE 190, COLUMBIA, SC, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $50,821,835

Exercised Options: $82,229,791

Current Obligation: $41,437,175

Parent Contract

Parent Award PIID: 500990011

IDV Type: IDC

Timeline