HHS Awards $158.5M Medicare Claims Processing Contract to Peraton Enterprise Solutions
Contract Overview
Contract Amount: $158,509,771 ($158.5M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2018-05-31
End Date: 2023-05-31
Contract Duration: 1,826 days
Daily Burn Rate: $86.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MEDICARE FEE-FOR-SERVICE CLAIMS PROCESSING - WORKLOAD A
Place of Performance
Location: PLANO, COLLIN County, TEXAS, 75024
State: Texas Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $158.5 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: MEDICARE FEE-FOR-SERVICE CLAIMS PROCESSING - WORKLOAD A Key points: 1. Contract value of $158.5 million over five years. 2. Peraton Enterprise Solutions is the sole awardee. 3. Potential risks include vendor lock-in and performance issues. 4. Spending falls within the IT infrastructure and data processing sector.
Value Assessment
Rating: good
The contract value appears reasonable for a five-year period supporting critical Medicare operations. Benchmarking against similar large-scale IT service contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, as a single delivery order, it implies a specific task within a broader framework.
Taxpayer Impact: Taxpayer funds are being used to ensure the efficient processing of Medicare claims, a vital public service.
Public Impact
Ensures continued processing of Medicare fee-for-service claims. Supports the operational integrity of a major federal healthcare program. Impacts millions of Medicare beneficiaries and healthcare providers.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for cost overruns if workload increases significantly.
- Dependence on a single vendor for critical IT infrastructure.
Positive Signals
- Awarded through full and open competition.
- Firm fixed-price contract provides cost certainty.
- Long-term contract supports stable operations.
Sector Analysis
This contract falls under the IT sector, specifically focusing on computing infrastructure and data processing for healthcare services. Spending benchmarks for similar government IT contracts vary widely based on scope and complexity.
Small Business Impact
The data does not indicate specific provisions or set-asides for small businesses in this particular award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Centers for Medicare and Medicaid Services (CMS) is responsible for overseeing this contract. Robust performance metrics and regular reviews are crucial for ensuring accountability and effective service delivery.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for vendor lock-in.
- Risk of performance degradation over contract term.
- Dependence on a single provider for critical infrastructure.
- Scope creep leading to cost increases.
Tags
computing-infrastructure-providers-data-, department-of-health-and-human-services, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $158.5 million to PERATON ENTERPRISE SOLUTIONS LLC. MEDICARE FEE-FOR-SERVICE CLAIMS PROCESSING - WORKLOAD A
Who is the contractor on this award?
The obligated recipient is PERATON ENTERPRISE SOLUTIONS 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 $158.5 million.
What is the period of performance?
Start: 2018-05-31. End: 2023-05-31.
What is the specific scope of 'workload' covered by this contract and how is it measured?
The contract covers the workload associated with Medicare Fee-For-Service claims processing. While specific metrics aren't detailed here, this typically involves the volume of claims submitted, processed, and adjudicated. The 'workload' is likely defined by service level agreements (SLAs) within the contract, measuring factors like processing time, accuracy rates, and system uptime to ensure efficient operation of the Medicare program.
What are the key performance indicators (KPIs) used to assess Peraton's performance and ensure value for money?
Key performance indicators likely include metrics related to claims processing accuracy, turnaround time, system availability, data security, and compliance with regulations. CMS would monitor these KPIs against established benchmarks and contractually agreed-upon service levels. Consistent achievement of these KPIs is essential for demonstrating value for money and ensuring the continued effective operation of Medicare's claims processing.
How does this contract align with CMS's broader IT modernization strategy and long-term goals?
This contract supports the ongoing operational needs of Medicare claims processing, a foundational element of CMS's mission. Its alignment with broader modernization strategies would depend on whether the awarded services contribute to or hinder initiatives like cloud migration, data analytics enhancement, or the adoption of newer technologies. Ensuring the contract allows for flexibility and future integration is key to its long-term strategic value.
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: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: RFPCMS20120007
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 15050 CONFERENCE CENTER DR, CHANTILLY, VA, 20151
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $161,154,164
Exercised Options: $158,509,771
Current Obligation: $158,509,771
Actual Outlays: $53,218,993
Subaward Activity
Number of Subawards: 29
Total Subaward Amount: $3,260,893
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSM500201300014I
IDV Type: IDC
Timeline
Start Date: 2018-05-31
Current End Date: 2023-05-31
Potential End Date: 2023-09-22 00:00:00
Last Modified: 2024-05-29
More Contracts from Peraton Enterprise Solutions LLC
- Federal Contract — $1.2B (Department of Health and Human Services)
- Other ADP & Telecommunications Services — $771.5M (Department of Defense)
- THE Agency Consolidated End-User Services (aces)contract Will Provide and Manage Nasa's Personal Computing Hardware, Agency Standard Software, Mobile IT Services, Peripherals and Accessories, Associated End-User Services, and Supporting Infrastructure — $769.2M (National Aeronautics and Space Administration)
- THE Above Solicitation Number IS a Continuation of Solicitation Numbers Hshqdc-07-Q-00050a and Hshqdc-07-Q-00050b. This Number IS for the Down Select Process and Shall Start With Base Notice Even Though ALL Amendments ARE Attached From Phase ONE — $749.5M (Department of Homeland Security)
- Other ADP & Telecommunications Services — $674.7M (Department of Defense)
View all Peraton Enterprise Solutions LLC federal contracts →
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →