HHS awards $28.7M contract for qualified independent contractor services to C2C Innovative Solutions

Contract Overview

Contract Amount: $28,723,035 ($28.7M)

Contractor: C2C Innovative Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-06-01

End Date: 2025-08-31

Contract Duration: 1,552 days

Daily Burn Rate: $18.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PART B NORTH QUALIFIED INDEPENDENT CONTRACTOR (QIC)

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32202

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.7 million to C2C INNOVATIVE SOLUTIONS, INC. for work described as: PART B NORTH QUALIFIED INDEPENDENT CONTRACTOR (QIC) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for administrative management and general management consulting services. 3. The contract duration is 1552 days, spanning from June 2021 to August 2025. 4. The contract type is Firm Fixed Price, which provides cost certainty. 5. The award was made to C2C Innovative Solutions, Inc. 6. The contract is a delivery order under a larger contract vehicle. 7. The North American Industry Classification System (NAICS) code is 541611.

Value Assessment

Rating: good

The contract's value of $28.7 million over approximately four years for qualified independent contractor services appears reasonable given the scope of administrative management and consulting. Benchmarking against similar contracts for QIC services within HHS or CMS would provide a more precise value-for-money assessment. The firm fixed-price structure helps manage cost overruns, but the total value should be monitored against performance milestones.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it is a delivery order suggests it was likely competed as part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar multiple-award vehicle. The presence of two bids (no: 2) suggests a moderate level of competition for this specific delivery order.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Centers for Medicare and Medicaid Services (CMS), which will receive administrative management and consulting services. The services delivered are crucial for ensuring the integrity and proper functioning of Medicare and Medicaid programs through independent contractor oversight. The contract has a geographic impact primarily within Florida, where the contractor is located. The contract supports specialized consulting roles, potentially impacting the workforce in administrative management and healthcare consulting sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) for this delivery order could indicate potential for higher prices than if more competition existed.
The specific performance metrics and quality assurance measures for the 'qualified independent contractor' services are not detailed, posing a potential risk to service effectiveness.
The long contract duration (over 4 years) necessitates ongoing monitoring to ensure continued value and alignment with evolving program needs.

Positive Signals

Awarded through full and open competition, which generally promotes fair pricing and access for qualified vendors.
Firm Fixed Price contract type provides cost predictability for the government.
The contractor, C2C Innovative Solutions, Inc., has secured a significant federal contract, indicating a level of established capability.
The contract is a delivery order, suggesting it is part of a pre-competed framework, potentially streamlining acquisition.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is vital for government operations, providing expertise in areas like program management, policy analysis, and operational efficiency. The market for such services is competitive, with numerous firms offering specialized consulting. The value of this contract is modest within the broader federal consulting landscape, but significant for the specific QIC function it serves within CMS.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and the contractor is not identified as a small business. Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award, nor is there an explicit benefit to the small business ecosystem through this particular contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within CMS, responsible for monitoring performance, deliverables, and compliance. The firm fixed-price nature of the contract provides a degree of financial oversight. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Medicare Program Integrity
Medicaid Program Integrity
Healthcare Consulting Services
Federal Management Consulting Services
Independent Contractor Oversight

Risk Flags

Potential for reduced competition due to only two bidders.
Risk of service relevance diminishing over the long contract duration.
Need for robust performance monitoring to ensure quality and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.7 million to C2C INNOVATIVE SOLUTIONS, INC.. PART B NORTH QUALIFIED INDEPENDENT CONTRACTOR (QIC)

Who is the contractor on this award?

The obligated recipient is C2C INNOVATIVE SOLUTIONS, 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 $28.7 million.

What is the period of performance?

Start: 2021-06-01. End: 2025-08-31.

What is the specific role and responsibility of a 'Qualified Independent Contractor' (QIC) within the context of CMS programs?

A Qualified Independent Contractor (QIC) within the Centers for Medicare and Medicaid Services (CMS) plays a critical role in the appeals process for Medicare beneficiaries and providers. QICs are responsible for conducting the second level of appeal for claims denials. This involves an independent review of the claim and the initial determination made by the Medicare Administrative Contractor (MAC) or other initial reviewer. The QIC's objective is to provide a fair and impartial reconsideration, ensuring that beneficiaries and providers have their cases thoroughly re-evaluated based on Medicare laws, regulations, and policies. Their work is essential for maintaining the integrity of the appeals system and ensuring due process.

How does the firm fixed-price (FFP) contract type benefit the government in this scenario?

The Firm Fixed-Price (FFP) contract type is advantageous for the government in this scenario because it establishes a definitive price for the services rendered by C2C Innovative Solutions, Inc. This means the contractor bears the primary risk of cost overruns. For the government, this provides budget certainty and predictability, as the total cost is known upfront, barring any contract modifications. This structure incentivizes the contractor to manage its costs efficiently to maintain profitability. Given the nature of consulting services, where scope can sometimes be fluid, an FFP contract helps to lock in costs for the defined services, making financial planning more straightforward for CMS.

What are the potential risks associated with awarding a contract for over four years?

Awarding a contract for a duration of over four years (1552 days) presents several potential risks. Firstly, the needs and priorities of CMS or the broader healthcare landscape could evolve significantly during this period, potentially making the contracted services less relevant or requiring substantial modifications. Secondly, there's a risk of contractor complacency or a decline in service quality over an extended period if performance is not rigorously monitored. Thirdly, market conditions and technological advancements might offer more cost-effective or efficient solutions that emerge after the contract is awarded, making the current contract potentially less competitive in terms of value over its lifespan. Finally, long-term contracts can sometimes lock the government into specific approaches or vendors, potentially hindering innovation or the adoption of newer methodologies.

Given the NAICS code 541611, what is the typical market landscape for administrative management and general management consulting services?

The NAICS code 541611, 'Administrative Management and General Management Consulting Services,' represents a broad and highly competitive segment of the professional services market. This sector includes firms that provide expertise in areas such as strategic planning, organizational design, operational improvement, human capital management, and information technology consulting. The market is populated by a wide range of providers, from large, global consulting firms to smaller, specialized boutiques and individual consultants. Federal agencies like HHS frequently procure these services to enhance efficiency, implement new policies, manage complex programs, and improve overall performance. Competition is typically driven by factors such as demonstrated expertise, past performance, understanding of government processes, and price.

What does the limited number of bidders (2) for this delivery order imply about competition?

The fact that only two bids were received for this specific delivery order, despite being awarded under a full and open competition framework, suggests a moderate level of competition for this particular task. While 'full and open' means the opportunity was broadly advertised, the actual number of bidders can be influenced by various factors. These might include the specialized nature of the services required, the complexity of the solicitation, the perceived difficulty of the work, the existing relationships between agencies and contractors, or the specific requirements of the underlying contract vehicle from which this delivery order was issued. A lower number of bidders can sometimes indicate less price pressure compared to a scenario with numerous competing offers, potentially impacting the final negotiated price.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 532 RIVERSIDE AVE, JACKSONVILLE, FL, 32202

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

Financial Breakdown

Contract Ceiling: $37,249,847

Exercised Options: $28,723,035

Current Obligation: $28,723,035

Actual Outlays: $24,268,017

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSM500200400005I

IDV Type: IDC

Timeline