GSA awards $13.3M for medical coding compliance auditing support to Serco Inc

Contract Overview

Contract Amount: $13,269,818 ($13.3M)

Contractor: Serco Inc

Awarding Agency: General Services Administration

Start Date: 2023-04-24

End Date: 2027-04-23

Contract Duration: 1,460 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: MEDICAL CODING COMPLIANCE AUDITING SPECIALIST PM SUPPORT

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78226

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $13.3 million to SERCO INC for work described as: MEDICAL CODING COMPLIANCE AUDITING SPECIALIST PM SUPPORT Key points: 1. Contract value represents a significant investment in ensuring accurate medical coding practices. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The use of Time and Materials pricing may introduce cost variability depending on effort expended. 4. The duration of the contract (4 years) indicates a long-term need for these specialized services. 5. The award to Serco Inc. positions them as a key provider in this niche federal support area. 6. The contract's focus on auditing and compliance suggests a proactive approach to regulatory adherence.

Value Assessment

Rating: good

The contract value of $13.3 million over four years for medical coding compliance auditing specialist support appears reasonable given the specialized nature of the services. Benchmarking against similar contracts for administrative management and consulting services in the federal space would provide a more precise value-for-money assessment. The Time and Materials pricing structure, while flexible, warrants close monitoring to ensure costs remain aligned with the scope of work and do not escalate unexpectedly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bidders suggests a moderate level of competition for this specialized service. While not a highly contested bid, the open competition process generally supports price discovery and encourages vendors to offer competitive terms.

Taxpayer Impact: The full and open competition provides taxpayers with assurance that the government sought the best value by allowing all eligible sources to participate, potentially leading to more cost-effective solutions.

Public Impact

Federal agencies requiring accurate medical coding for billing and compliance will benefit from this specialized support. The services delivered will enhance the integrity of medical record-keeping and financial transactions within the government. The contract is geographically located in Texas, suggesting a focus on federal operations within that state. The contract supports specialized administrative and management consulting roles, potentially impacting a niche workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing if not managed diligently.
Reliance on a single contractor for a critical compliance function could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
Contract duration suggests a stable and ongoing need, allowing for specialized expertise development.
Focus on compliance auditing addresses a critical area for government operations and financial integrity.

Sector Analysis

The federal sector for administrative management and general management consulting services is substantial, with agencies consistently seeking expertise to improve operations and ensure compliance. This contract fits within the broader category of professional services supporting healthcare administration and regulatory adherence. Comparable spending benchmarks for similar auditing and compliance support services would typically fall within the multi-million dollar range for multi-year engagements.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by the 'sb' field being false. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Serco Inc. voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA) Federal Acquisition Service, which awarded the contract. Accountability measures will be embedded in the contract terms, performance standards, and delivery schedules. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Medical Billing Services
Healthcare Compliance Auditing
Administrative Consulting Services
Federal Healthcare IT Support
Government Contract Management

Risk Flags

Potential for cost overruns with T&M pricing.
Reliance on contractor performance for critical compliance function.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $13.3 million to SERCO INC. MEDICAL CODING COMPLIANCE AUDITING SPECIALIST PM SUPPORT

Who is the contractor on this award?

The obligated recipient is SERCO INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $13.3 million.

What is the period of performance?

Start: 2023-04-24. End: 2027-04-23.

What is Serco Inc.'s track record with federal contracts, particularly in administrative and compliance services?

Serco Inc. is a well-established government contractor with a significant history of performing a wide range of services for federal agencies. Their portfolio often includes areas like IT support, healthcare services, and administrative management. While specific performance details for this particular contract are not yet available due to its recent award, Serco's broader federal contracting experience suggests they possess the organizational capacity and expertise to handle complex requirements. A review of their past performance ratings on similar contracts, if publicly accessible, would offer further insight into their reliability and effectiveness in delivering compliant and high-quality services to the government.

How does the $13.3 million contract value compare to similar medical coding compliance auditing contracts?

The $13.3 million contract value over four years for medical coding compliance auditing specialist support is within a reasonable range for specialized federal professional services. However, a precise comparison requires access to a broader dataset of similar contracts, considering factors like the specific scope of auditing, the number of agencies or programs supported, and the complexity of the coding systems involved. Contracts for comprehensive healthcare compliance and auditing services can vary significantly. Without more granular data on comparable contracts, it's difficult to definitively benchmark this award. However, for a multi-year, specialized support role, this figure suggests a substantial but not necessarily outlier investment.

What are the primary risks associated with a Time and Materials (T&M) contract for auditing services?

The primary risk associated with a Time and Materials (T&M) contract for auditing services is the potential for cost escalation if not managed effectively. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours and associated costs, plus a fixed fee or percentage. This structure can lead to higher-than-anticipated costs if the scope of work expands, if inefficiencies arise, or if the contractor's labor rates are high. For auditing services, this means that the total expenditure could exceed initial estimates if the auditing process requires more time or resources than planned. Robust oversight, clear task definitions, and diligent monitoring of labor hours and rates are crucial to mitigate these risks and ensure value for taxpayer money.

What is the expected effectiveness of these auditing services in improving medical coding accuracy and compliance?

The expected effectiveness of these auditing services hinges on several factors, including the contractor's expertise, the thoroughness of their methodologies, and the agency's responsiveness to audit findings. By providing specialized support for medical coding compliance auditing, the contract aims to identify and rectify inaccuracies in coding practices. This, in turn, should lead to more accurate billing, reduced claim denials, better data for healthcare analysis, and stronger adherence to regulatory requirements like HIPAA and Medicare guidelines. The success will be measured by improvements in coding accuracy rates, a decrease in audit discrepancies over time, and the successful implementation of corrective actions recommended by the auditors.

What has been the historical spending trend for medical coding compliance auditing support by the GSA or similar agencies?

Historical spending data for medical coding compliance auditing support specifically by the GSA or similar agencies is not readily available in a consolidated format within this dataset. However, the federal government's overall expenditure on healthcare administration, compliance, and professional services is substantial and generally trending upwards due to increasing regulatory complexity and the growth of healthcare services. Agencies like CMS (Centers for Medicare & Medicaid Services) and HHS (Department of Health and Human Services) are major spenders in this domain. The GSA, acting as a procurement agent, facilitates these types of contracts. The award to Serco Inc. suggests a continued or potentially increasing investment in ensuring the integrity of medical coding processes across federal healthcare operations.

How does the 'Administrative Management and General Management Consulting Services' NAICS code (541611) encompass the scope of medical coding compliance auditing?

The NAICS code 541611, 'Administrative Management and General Management Consulting Services,' broadly covers establishments primarily engaged in providing operating advice and assistance on matters of administrative management to other businesses and other organizations. This includes advice on financial management, marketing, human resource management, production planning and control, quality systems, and information systems management. Medical coding compliance auditing falls under this umbrella because it involves providing expert advice and assistance on the administrative and management aspects of ensuring accurate and compliant medical coding practices. It requires understanding operational workflows, quality control, and regulatory adherence, all of which are core components of management consulting services aimed at improving organizational efficiency and compliance.

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 SERVICES › CERTIFIED MEDICAL SUPPORT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFWA23R0002

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 12930 WORLDGATE DR, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,240,960

Exercised Options: $15,976,480

Current Obligation: $13,269,818

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F297CA

IDV Type: FSS

Timeline