Labor Dept. Pays $824K for Healthcare Claims Data Services from Fair Health Inc
Contract Overview
Contract Amount: $82,395 ($82.4K)
Contractor: Fair Health Inc
Awarding Agency: Department of Labor
Start Date: 2024-09-23
End Date: 2027-09-22
Contract Duration: 1,094 days
Daily Burn Rate: $75/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: HEALTHCARE CLAIMS DATA BENCHMARKS SUBSCRIPTION SERVICES
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10022
State: New York Government Spending
Plain-Language Summary
Department of Labor obligated $82,395 to FAIR HEALTH INC for work described as: HEALTHCARE CLAIMS DATA BENCHMARKS SUBSCRIPTION SERVICES Key points: 1. The contract is for healthcare claims data benchmark subscription services. 2. Fair Health Inc. is the sole provider of this specific data. 3. The contract value is $823,950 over approximately three years. 4. The data is crucial for understanding healthcare costs and trends.
Value Assessment
Rating: fair
The contract value of $823,950 for a three-year subscription appears reasonable given the specialized nature of healthcare claims data benchmarks. Without direct comparable contracts, a precise pricing assessment is difficult, but the cost aligns with the niche market for such data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and competitive pressure, potentially leading to higher costs than if multiple vendors had bid.
Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition for this essential healthcare data.
Public Impact
Provides valuable data for analyzing healthcare costs and trends. Supports informed decision-making for the Department of Labor's programs. Ensures access to critical benchmark information for policy development. May limit broader market innovation due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Lack of competition
- Potential for overpayment due to sole-source award
Positive Signals
- Access to critical data
- Specialized service provider
Sector Analysis
The IT and data services sector is vast, but specialized data providers like Fair Health Inc. occupy a niche. Benchmarking data for healthcare claims is essential for government agencies to understand costs and ensure fair pricing in healthcare-related initiatives.
Small Business Impact
This contract does not appear to involve small business participation. The specialized nature of the data and the sole-source award likely preclude small businesses from this specific procurement.
Oversight & Accountability
The contract was awarded via a purchase order, which is a common method for acquiring goods and services. Oversight would focus on ensuring the data provided meets the agreed-upon specifications and that the pricing remains justified.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Labor Contracting
- Office of the Assistant Secretary for Administration and Management Programs
Risk Flags
- Sole-source award limits competition.
- Potential for price escalation over contract term.
- Lack of transparency in pricing justification.
- Dependence on a single data provider.
Tags
computing-infrastructure-providers-data-, department-of-labor, ny, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $82,395 to FAIR HEALTH INC. HEALTHCARE CLAIMS DATA BENCHMARKS SUBSCRIPTION SERVICES
Who is the contractor on this award?
The obligated recipient is FAIR HEALTH INC.
Which agency awarded this contract?
Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).
What is the total obligated amount?
The obligated amount is $82,395.
What is the period of performance?
Start: 2024-09-23. End: 2027-09-22.
What is the specific utility of this healthcare claims data for the Department of Labor's operations?
The healthcare claims data benchmarks are likely used by the Department of Labor to inform policy decisions related to employee health benefits, workers' compensation programs, and potentially for understanding the cost drivers impacting federal employee health insurance plans. It provides a crucial external reference point for evaluating the fairness and efficiency of healthcare expenditures.
What are the risks associated with a sole-source award for essential data services?
The primary risk of a sole-source award is the absence of competitive pressure, which can lead to inflated prices and reduced incentive for the vendor to innovate or improve service quality. It also limits the government's ability to explore alternative solutions or providers that might offer better value or more tailored services.
How can the effectiveness of this data subscription be measured?
Effectiveness can be measured by the extent to which the data directly informs and improves decision-making within the Department of Labor, leading to demonstrable cost savings or better program outcomes. Tracking the utilization of the data in reports, policy analyses, and program evaluations would indicate its effectiveness.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 1605C1-24-Q-00042
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 800 3RD AVE STE 900, NEW YORK, NY, 10022
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $227,520
Exercised Options: $135,138
Current Obligation: $82,395
Actual Outlays: $55,269
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2024-09-23
Current End Date: 2027-09-22
Potential End Date: 2028-09-22 00:00:00
Last Modified: 2026-04-06
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