HHS awards $41.9M for Medical & Surgical Instruments, Equipment & Supplies to Cotiviti Gov Services
Contract Overview
Contract Amount: $41,961,460 ($42.0M)
Contractor: Cotiviti GOV Services, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2002-12-20
End Date: 2011-10-01
Contract Duration: 3,207 days
Daily Burn Rate: $13.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Healthcare
Official Description: MED & SURGICAL INSTRUMENTS,EQ & SUP
Place of Performance
Location: OMAHA, DOUGLAS County, NEBRASKA, 68164
State: Nebraska Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $42.0 million to COTIVITI GOV SERVICES, LLC for work described as: MED & SURGICAL INSTRUMENTS,EQ & SUP Key points: 1. Contract awarded for Medical & Surgical Instruments, Equipment & Supplies. 2. Cotiviti Gov Services, LLC is the contractor. 3. Department of Health and Human Services (HHS) is the agency. 4. Full and open competition was used. 5. Contract type is Cost Plus Award Fee.
Value Assessment
Rating: fair
The contract was awarded using a Cost Plus Award Fee structure, which can incentivize performance but may lead to higher costs if not managed carefully. The award amount of $41.9M over its duration needs to be benchmarked against similar contracts for specific medical and surgical items.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust process for soliciting bids and ensuring fair market pricing. However, the Cost Plus Award Fee structure requires careful monitoring to ensure cost efficiency.
Taxpayer Impact: The use of full and open competition is generally positive for taxpayer value. The Cost Plus Award Fee structure, however, necessitates diligent oversight to prevent cost overruns and ensure funds are used effectively.
Public Impact
Ensures availability of essential medical and surgical instruments and supplies for federal health programs. Supports healthcare delivery by providing necessary equipment and services. The contract's performance impacts the operational capacity of agencies like CMS. Competition ensures a range of potential providers could bid, potentially leading to better value.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure requires strong oversight to control costs.
- Lack of specific details on the 'Medical & Surgical Instruments, Equipment & Supplies' makes precise benchmarking difficult.
- Contract duration is substantial (3207 days), increasing the need for ongoing performance evaluation.
Positive Signals
- Awarded under full and open competition, indicating a competitive bidding process.
- Contract supports critical healthcare needs within HHS.
- The contractor, Cotiviti Gov Services, LLC, has experience in government contracting.
Sector Analysis
The procurement falls under Administrative Management and General Management Consulting Services, often supporting the acquisition and management of specialized goods and services. Spending in this category can vary widely depending on agency needs, but consistent competition is key to managing costs effectively.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business participation was sought or subcontracted.
Oversight & Accountability
The Cost Plus Award Fee contract type necessitates robust oversight from the Centers for Medicare and Medicaid Services (CMS) to ensure performance objectives are met and costs are controlled. Regular audits and performance reviews are crucial for accountability.
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
- Cost Plus Award Fee structure can lead to cost overruns without strict oversight.
- Lack of specific itemization makes direct cost comparison difficult.
- Contract duration is long, increasing potential for price drift and performance issues.
- No indication of small business subcontracting opportunities.
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, ne, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $42.0 million to COTIVITI GOV SERVICES, LLC. MED & SURGICAL INSTRUMENTS,EQ & SUP
Who is the contractor on this award?
The obligated recipient is COTIVITI GOV 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 $42.0 million.
What is the period of performance?
Start: 2002-12-20. End: 2011-10-01.
What specific types of medical and surgical instruments and equipment were procured under this contract, and how do their unit costs compare to market rates?
The provided data lacks specificity regarding the exact medical and surgical instruments and equipment. To assess value, a detailed breakdown of procured items and their unit costs is required. Benchmarking these against General Services Administration (GSA) schedules, other federal contracts, or commercial price lists would reveal if the pricing was competitive and offered good value to taxpayers.
What were the key performance metrics and award fee criteria used in this Cost Plus Award Fee contract, and how effectively were they monitored?
The specific performance metrics and award fee criteria are not detailed in the provided data. Effective monitoring of these criteria by HHS/CMS is crucial for a Cost Plus Award Fee contract. Without this information, it's difficult to assess if the contractor was appropriately incentivized and if taxpayer funds were used efficiently to achieve desired outcomes.
How did the full and open competition process ensure the best possible price and quality for these medical and surgical supplies?
A full and open competition theoretically allows all responsible sources to submit offers, fostering a competitive environment that should drive down prices and improve quality. The effectiveness of this process depends on the clarity of the solicitation, the evaluation criteria, and the rigor of the negotiation. Without access to the solicitation and evaluation details, it's presumed the process aimed for optimal value, but the Cost Plus Award Fee structure still requires diligent management.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: HMS Holdings Corp. (UEI: 129077280)
Address: 2121 N 117TH AVE # 200, OMAHA, NE, 02
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $41,961,460
Exercised Options: $41,961,460
Current Obligation: $41,961,460
Parent Contract
Parent Award PIID: 500990021
IDV Type: IDC
Timeline
Start Date: 2002-12-20
Current End Date: 2011-10-01
Potential End Date: 2011-10-01 00:00:00
Last Modified: 2012-06-26
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