HHS Awards $53M Task Order to Telligen for Quality Innovation Network Support
Contract Overview
Contract Amount: $52,998,784 ($53.0M)
Contractor: Telligen, Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2019-11-08
End Date: 2025-03-07
Contract Duration: 1,946 days
Daily Burn Rate: $27.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 16
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: QUALITY INNOVATION NETWORK/QUALITY IMPROVEMENT ORGANIZATIONS (QIN-QIO) TASK ORDER
Place of Performance
Location: WEST DES MOINES, POLK County, IOWA, 50266
State: Iowa Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $53.0 million to TELLIGEN, INC for work described as: QUALITY INNOVATION NETWORK/QUALITY IMPROVEMENT ORGANIZATIONS (QIN-QIO) TASK ORDER Key points: 1. Significant contract value of $52.99M for essential healthcare quality improvement services. 2. Full and open competition indicates a competitive bidding process. 3. Potential risk associated with long contract duration (over 1900 days). 4. Spending falls within the 'Other Management Consulting Services' sector.
Value Assessment
Rating: good
The contract value of $52.99M for a 5-year period appears reasonable for specialized quality improvement services. Benchmarking against similar large-scale consulting 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. This method typically leads to more competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently for quality healthcare initiatives.
Public Impact
Enhances quality of care for Medicare beneficiaries. Supports federal efforts to improve healthcare outcomes and reduce costs. Impacts healthcare providers through guidance and technical assistance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to scope creep or outdated methodologies.
- Reliance on a single awardee for critical quality improvement functions.
Positive Signals
- Full and open competition promotes fair market access.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls under 'Other Management Consulting Services' (NAICS 541618), a broad category. Spending benchmarks for similar large federal consulting contracts vary widely based on scope and duration.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small business participation was incorporated as a subcontracting goal.
Oversight & Accountability
The Centers for Medicare and Medicaid Services (CMS) oversees this task order. Standard federal procurement oversight mechanisms should apply, including performance monitoring and compliance checks.
Related Government Programs
- Other Management Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Long contract duration (over 5 years).
- Potential for vendor lock-in.
- Lack of explicit small business participation noted.
- Scope definition clarity for a long-term service contract.
Tags
other-management-consulting-services, department-of-health-and-human-services, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $53.0 million to TELLIGEN, INC. QUALITY INNOVATION NETWORK/QUALITY IMPROVEMENT ORGANIZATIONS (QIN-QIO) TASK ORDER
Who is the contractor on this award?
The obligated recipient is TELLIGEN, INC.
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 $53.0 million.
What is the period of performance?
Start: 2019-11-08. End: 2025-03-07.
Is the $53M allocation justified by the expected improvements in healthcare quality and efficiency?
The justification for the $53M allocation hinges on the demonstrable impact of the Quality Innovation Network/Quality Improvement Organizations (QIN-QIO) program. Success is measured by improvements in patient safety, care quality, and cost reduction for Medicare beneficiaries. A thorough review of past QIN-QIO performance metrics and the specific objectives outlined in this task order would be necessary to fully assess the value proposition.
What are the primary risks associated with a 5-year firm-fixed-price contract for consulting services?
A significant risk with a long-term, fixed-price contract is the potential for the contractor's costs to increase due to inflation or unforeseen challenges, while the price remains static, potentially reducing profit margins or leading to cost-cutting measures. Conversely, the government risks paying above market rates if the contractor's initial bid was too high and the market competition evolves unfavorably over the contract's life. Ensuring clear performance metrics and change control processes is crucial.
How effectively does this contract leverage competition to ensure optimal pricing and service delivery?
The contract's award under 'full and open competition' is a strong indicator of effective leverage. This process allows any qualified vendor to bid, fostering a competitive environment that typically drives down prices and encourages high-quality service offerings. The agency's ability to attract multiple competitive bids is key to realizing the benefits of this approach and ensuring taxpayer value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services
Product/Service Code: MEDICAL SERVICES › DEPENDENT MEDICARE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 190319
Offers Received: 16
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1776 WEST LAKES PKWY, WEST DES MOINES, IA, 50266
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $52,998,784
Exercised Options: $52,998,784
Current Obligation: $52,998,784
Actual Outlays: $41,492,890
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75FCMC19D0058
IDV Type: IDC
Timeline
Start Date: 2019-11-08
Current End Date: 2025-03-07
Potential End Date: 2025-03-07 00:00:00
Last Modified: 2024-11-04
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