HHS CMS Spends $28.8M on CPA Audit Services, Raising Questions on Value and Oversight
Contract Overview
Contract Amount: $28,795,341 ($28.8M)
Contractor: Myers & Stauffer LC
Awarding Agency: Department of Health and Human Services
Start Date: 2018-03-01
End Date: 2023-02-28
Contract Duration: 1,825 days
Daily Burn Rate: $15.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: IGF::OT::IGF COST REPORT AUDIT RISK ASSESSMENT ACCURACY AND EDUCATION (CRARAAE)
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $28.8 million to MYERS & STAUFFER LC for work described as: IGF::OT::IGF COST REPORT AUDIT RISK ASSESSMENT ACCURACY AND EDUCATION (CRARAAE) Key points: 1. High contract value ($28.8M) for audit services warrants scrutiny. 2. Full and open competition was used, but the specific pricing mechanisms need review. 3. Potential risks include overspending and the effectiveness of the audit's impact. 4. The sector is professional services, specifically accounting and auditing.
Value Assessment
Rating: questionable
The contract value of $28.8 million for audit services is substantial. Benchmarking against similar contracts for CPA audit services is crucial to determine if the pricing is competitive and reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the time and materials pricing structure could lead to cost overruns if not managed diligently.
Taxpayer Impact: Taxpayer funds are being used for these services. Ensuring the audits are effective and provide value for money is essential to protect taxpayer interests.
Public Impact
Taxpayers fund these essential audit services for Medicare and Medicaid. The accuracy of these audits directly impacts the integrity of healthcare programs. Contract performance affects the efficiency and effectiveness of federal healthcare spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value
- Time and materials pricing
- Potential for cost overruns
Positive Signals
- Full and open competition utilized
- Contract supports critical healthcare oversight
Sector Analysis
This contract falls within the professional services sector, specifically accounting and auditing. Spending benchmarks for similar government contracts for CPA audit services are important for evaluating cost-effectiveness.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract's duration and value suggest a need for robust oversight to ensure performance standards are met and costs remain controlled. Regular reviews of audit accuracy and contractor performance are critical.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- High contract value may indicate potential for overspending.
- Time and materials pricing structure increases risk of cost escalation.
- Lack of specific performance metrics in provided data.
- Need for detailed benchmarking against similar audit contracts.
- Potential for scope creep without stringent oversight.
Tags
offices-of-certified-public-accountants, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $28.8 million to MYERS & STAUFFER LC. IGF::OT::IGF COST REPORT AUDIT RISK ASSESSMENT ACCURACY AND EDUCATION (CRARAAE)
Who is the contractor on this award?
The obligated recipient is MYERS & STAUFFER LC.
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 $28.8 million.
What is the period of performance?
Start: 2018-03-01. End: 2023-02-28.
What is the specific scope of work for these audit services, and how does it justify the $28.8 million cost?
The scope of work likely involves auditing the financial operations and compliance of the Centers for Medicare and Medicaid Services (CMS) programs. This could include audits of healthcare providers, program integrity, and financial statements. The substantial cost suggests a broad and complex audit mandate, potentially covering multiple program areas and requiring extensive resources from the contractor.
What are the key performance indicators (KPIs) for this contract, and how is the accuracy and effectiveness of the audits being measured?
Key performance indicators would likely focus on audit timeliness, adherence to professional auditing standards (e.g., GAAP, GAGAS), the identification of significant financial discrepancies or compliance issues, and the clarity and usefulness of audit reports. Effectiveness is measured by how well the audits inform CMS decision-making, improve program integrity, and ensure accountability for federal healthcare funds.
Given the time and materials pricing, what mechanisms are in place to prevent cost overruns and ensure the government receives fair value?
Mechanisms to prevent cost overruns and ensure fair value under a time and materials contract typically include strict contract ceiling limits, detailed reporting requirements for labor hours and materials, independent government cost estimates, and regular performance reviews. The Contracting Officer's Representative (COR) plays a vital role in monitoring the contractor's effort and approving invoices to ensure alignment with the contract's objectives and budget.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 75FCMC18Q0004
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 700 W 47TH ST, KANSAS CITY, MO, 64112
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,795,341
Exercised Options: $28,795,341
Current Obligation: $28,795,341
Actual Outlays: $10,056,872
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS23F0058V
IDV Type: FSS
Timeline
Start Date: 2018-03-01
Current End Date: 2023-02-28
Potential End Date: 2023-02-28 00:00:00
Last Modified: 2024-05-06
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