HHS Awards $34.7M to OptumServe for Nationwide Provider Network Transition
Contract Overview
Contract Amount: $34,757,107 ($34.8M)
Contractor: Optumserve Health Services, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2021-08-04
End Date: 2024-02-14
Contract Duration: 924 days
Daily Burn Rate: $37.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Healthcare
Official Description: BRIDGE CONTRACT FOR WTCHP NATIONWIDE PROVIDER NETWORK (NPN) TRANSITION
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30345
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $34.8 million to OPTUMSERVE HEALTH SERVICES, INC. for work described as: BRIDGE CONTRACT FOR WTCHP NATIONWIDE PROVIDER NETWORK (NPN) TRANSITION Key points: 1. The contract focuses on transitioning the WTCHP Nationwide Provider Network (NPN). 2. OptumServe Health Services, Inc. is the sole awardee. 3. The contract type is Cost Plus Fixed Fee. 4. This award represents a significant investment in healthcare infrastructure.
Value Assessment
Rating: fair
The contract value of $34.7 million for a 924-day period suggests a moderate per-diem cost. Benchmarking against similar IT transition contracts would be necessary for a precise assessment, but the fixed fee component offers some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. Without competition, the government may not have achieved the best possible price or terms, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition raises concerns about potential overspending and whether taxpayers received the best value for this critical healthcare transition.
Public Impact
Impacts the transition of a nationwide provider network, affecting healthcare access. Potential for improved efficiency in managing healthcare provider information. Ensures continuity of services for beneficiaries reliant on the NPN.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
Positive Signals
- Addresses a critical need for healthcare network transition
- Definitive contract provides a clear framework
Sector Analysis
This contract falls within the IT and Healthcare sectors, specifically related to health insurance carriers. Spending in this area is often driven by the need for efficient data management and provider network administration.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting missed opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is meeting all performance requirements and that costs are reasonable and justified.
Related Government Programs
- Direct Health and Medical Insurance Carriers
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Sole-source award lacks competition
- Potential for uncompetitive pricing
- Limited transparency on specific deliverables
- No small business participation noted
Tags
direct-health-and-medical-insurance-carr, department-of-health-and-human-services, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $34.8 million to OPTUMSERVE HEALTH SERVICES, INC.. BRIDGE CONTRACT FOR WTCHP NATIONWIDE PROVIDER NETWORK (NPN) TRANSITION
Who is the contractor on this award?
The obligated recipient is OPTUMSERVE HEALTH SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $34.8 million.
What is the period of performance?
Start: 2021-08-04. End: 2024-02-14.
What specific services are included in the WTCHP Nationwide Provider Network (NPN) transition, and how do they align with the $34.7 million cost?
The contract details are limited, but the transition likely involves migrating data, updating systems, and ensuring seamless communication between healthcare providers and the WTCHP. The cost reflects the complexity of managing a nationwide network, including IT infrastructure, personnel, and program management over the contract's duration.
What are the risks associated with a sole-source award for a critical healthcare network transition?
The primary risk is the potential for inflated costs due to the absence of competitive bidding. There's also a risk that the chosen vendor may not be the most innovative or efficient solution available. Furthermore, a sole-source award can limit the government's leverage in negotiating favorable terms and conditions.
How will the success of this NPN transition be measured, and what are the key performance indicators?
Success metrics would likely include the timely and accurate migration of provider data, minimal disruption to healthcare services, successful integration with existing systems, and adherence to budget. Key performance indicators might track data accuracy rates, system uptime, provider satisfaction, and cost variance against the fixed fee.
Industry Classification
NAICS: Finance and Insurance › Insurance Carriers › Direct Health and Medical Insurance Carriers
Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 75D301-21-R-71908
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Unitedhealth Group Incorporated
Address: 328 FRONT ST S, LA CROSSE, WI, 54601
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,757,107
Exercised Options: $34,757,107
Current Obligation: $34,757,107
Actual Outlays: $31,735,198
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-08-04
Current End Date: 2024-02-14
Potential End Date: 2024-02-14 00:00:00
Last Modified: 2024-05-09
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