HHS CMS awards $69M for Admin Management Consulting Services to HP Enterprise Services, LLC
Contract Overview
Contract Amount: $69,148,374 ($69.1M)
Contractor: HP Enterprise Services, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2003-04-15
End Date: 2017-01-31
Contract Duration: 5,040 days
Daily Burn Rate: $13.7K/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 $69.1 million to HP ENTERPRISE SERVICES, LLC for work described as: Key points: 1. Significant contract value of $69.1M over 14 years. 2. HP Enterprise Services, LLC is the sole awardee. 3. Contract type is Cost Plus Award Fee, indicating performance-based incentives. 4. Services fall under Administrative Management and General Management Consulting.
Value Assessment
Rating: fair
The contract spans over 14 years with a substantial value. Without specific performance metrics or comparable contracts, assessing the value for money is challenging. The Cost Plus Award Fee structure suggests potential for good performance, but the long duration raises questions about sustained efficiency.
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 over its lifespan.
Taxpayer Impact: The long-term nature of this contract means taxpayers are committed to significant spending over many years. The effectiveness of the services and the efficiency of the pricing model will determine the ultimate taxpayer impact.
Public Impact
Impacts healthcare administration through consulting services. Long-term commitment of federal funds for management consulting. Potential for improved operational efficiency within CMS. Relies on contractor performance for successful outcomes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (14 years)
- Cost Plus Award Fee structure can lead to cost overruns if not managed tightly
- Sole awardee for a significant period
Positive Signals
- Awarded under full and open competition
- Performance-based fee structure incentivizes good outcomes
Sector Analysis
This contract falls within the professional services sector, specifically management consulting. Benchmarks for similar long-term, high-value consulting contracts are difficult to establish due to the unique nature of government requirements and the extended period.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. The primary awardee is a large corporation, suggesting limited direct opportunities for small businesses unless through subcontracting.
Oversight & Accountability
The long duration of the contract necessitates robust oversight from CMS to ensure performance standards are met and costs remain justified. Regular reviews and performance evaluations 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
- Long contract duration may lead to reduced flexibility and potential for cost escalation.
- Cost Plus Award Fee contracts require diligent oversight to prevent overspending.
- Lack of specific performance data makes value assessment difficult.
- Potential for vendor lock-in over the extended contract 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 $69.1 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 $69.1 million.
What is the period of performance?
Start: 2003-04-15. End: 2017-01-31.
How effectively were the administrative management and general management consulting services utilized to improve CMS operations over the contract's 14-year span?
Assessing the effectiveness requires detailed performance reports and outcome metrics from CMS. Without this data, it's difficult to quantify the improvements. The Cost Plus Award Fee structure implies that performance was tracked, but the actual impact on operational efficiency and cost savings remains an open question requiring further investigation into specific deliverables and achieved results.
What was the total cost incurred by the government, and how did it compare to the anticipated budget or alternative solutions?
The obligated amount is $69.1M, but the total cost could be higher depending on the final award fees earned. A comprehensive cost-benefit analysis comparing this expenditure against the achieved improvements and potential alternative service providers or internal solutions would be necessary to determine if it represented good value for taxpayer money.
Were there any challenges in maintaining competition or ensuring fair pricing given the long-term nature and specific service requirements?
While initially awarded under full and open competition, the 14-year duration presents a risk of vendor lock-in and reduced competitive pressure over time. Ensuring fair pricing would depend on rigorous negotiation, clear performance metrics, and potentially periodic re-evaluations or competitive phasing to mitigate the effects of a prolonged single-award contract.
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: $69,148,374
Exercised Options: $69,148,374
Current Obligation: $69,148,374
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 500990012
IDV Type: IDC
Timeline
Start Date: 2003-04-15
Current End Date: 2017-01-31
Potential End Date: 2017-01-31 00:00:00
Last Modified: 2023-09-11
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