HHS awards $27M for administrative management consulting, with Tricenturion Inc. securing the contract
Contract Overview
Contract Amount: $26,982,751 ($27.0M)
Contractor: Tricenturion Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2002-09-27
End Date: 2009-11-16
Contract Duration: 2,607 days
Daily Burn Rate: $10.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: OTHER PROFESSIONAL SERVICES
Place of Performance
Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29223
Plain-Language Summary
Department of Health and Human Services obligated $27.0 million to TRICENTURION INC for work described as: OTHER PROFESSIONAL SERVICES Key points: 1. Contract value of $26.98M for professional services. 2. Full and open competition was utilized. 3. Potential for cost overruns due to Cost Plus Award Fee structure. 4. Services fall under administrative management and general management consulting.
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee structure can lead to higher-than-expected costs if performance incentives are aggressively met. Benchmarking against similar management consulting contracts is difficult without detailed scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Cost Plus Award Fee pricing arrangement may not have fully optimized price discovery.
Taxpayer Impact: Taxpayer funds were used in a competitive process, but the fee structure warrants scrutiny to ensure value for money.
Public Impact
Supports critical administrative functions within CMS. Contract duration spans over 7 years. Potential impact on healthcare policy implementation and operational efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure
- Long contract duration
Positive Signals
- Full and open competition
- Supports essential government functions
Sector Analysis
This contract falls within the professional services sector, specifically management consulting. Spending in this area is common across federal agencies for operational support and strategic advice.
Small Business Impact
The data does not indicate any specific set-aside for small businesses, suggesting larger firms likely participated in the competition.
Oversight & Accountability
The contract was awarded via delivery order, implying it may be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on performance metrics and cost controls.
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
- Potential for cost overruns due to CPAF structure.
- Long contract duration may indicate a lack of flexibility.
- Lack of small business participation noted.
- Specific performance metrics and outcomes are not detailed.
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $27.0 million to TRICENTURION INC. OTHER PROFESSIONAL SERVICES
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 $27.0 million.
What is the period of performance?
Start: 2002-09-27. End: 2009-11-16.
What specific management consulting services were provided, and how did they contribute to CMS's mission?
The contract was for 'Administrative Management and General Management Consulting Services' (NAICS 541611). These services likely encompassed areas such as strategic planning, organizational efficiency improvements, program management support, and administrative process optimization for the Centers for Medicare and Medicaid Services. The exact contribution would depend on the specific tasks performed under the delivery order.
How effectively did the Cost Plus Award Fee structure incentivize performance while controlling costs?
The Cost Plus Award Fee (CPAF) structure aims to incentivize contractor performance by allowing reimbursement of costs plus a fixed fee that is adjusted based on performance. While it can drive high performance, it also carries a risk of cost escalation if performance targets are set too high or if oversight is insufficient. Evaluating its effectiveness requires examining the final award fee paid versus the base cost.
What was the competitive landscape for this specific administrative consulting need?
The contract was awarded under 'Full and Open Competition,' indicating that multiple bidders were allowed to compete. This suggests that there were likely several qualified firms capable of providing these administrative management and general management consulting services. The specific number of bids received and the details of the competition would provide further insight into the market dynamics.
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: TWO STEP
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 7909 PARKLANE RD STE 190, COLUMBIA, SC, 29223
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $26,982,751
Exercised Options: $26,982,751
Current Obligation: $26,982,751
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 500990011
IDV Type: IDC
Timeline
Start Date: 2002-09-27
Current End Date: 2009-11-16
Potential End Date: 2009-11-16 00:00:00
Last Modified: 2021-02-17
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