HHS Awards $32.6M Contract to Q2 Administrators for Independent Contractor Services
Contract Overview
Contract Amount: $32,613,141 ($32.6M)
Contractor: Q2 Administrators, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2021-09-14
End Date: 2026-09-13
Contract Duration: 1,825 days
Daily Burn Rate: $17.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ADMINISTRATIVE QUALIFIED INDEPENDENT CONTRACTOR
Place of Performance
Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29223
Plain-Language Summary
Department of Health and Human Services obligated $32.6 million to Q2 ADMINISTRATORS, LLC for work described as: ADMINISTRATIVE QUALIFIED INDEPENDENT CONTRACTOR Key points: 1. Contract awarded to Q2 Administrators, LLC for administrative management consulting. 2. Significant contract value of $32.6 million over 5 years. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under Administrative Management and General Management Consulting Services. 5. The contract is managed by the Centers for Medicare and Medicaid Services (CMS).
Value Assessment
Rating: good
The contract's firm fixed price structure provides cost certainty. Benchmarking against similar administrative management contracts is needed to fully assess value, but the duration and scope suggest a fair price point.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely benefiting from a fair market price for these essential administrative services.
Public Impact
Ensures continued administrative support for critical healthcare programs. Supports the operational efficiency of the Centers for Medicare and Medicaid Services. Potential impact on healthcare access and quality through effective program administration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep given the long contract duration.
- Reliance on a single contractor for critical administrative functions.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost predictability.
Sector Analysis
This contract falls within the professional services sector, specifically administrative management consulting. Spending in this area is crucial for government agency efficiency, with benchmarks varying widely based on service complexity and duration.
Small Business Impact
The data does not indicate if small businesses were involved in the subcontracting opportunities for this contract. Further analysis would be required to determine the extent of small business participation.
Oversight & Accountability
The contract is managed by CMS, a major agency within HHS, suggesting established oversight mechanisms. However, the long duration warrants continuous monitoring to ensure performance and adherence to contract terms.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Long contract duration (5 years).
- Potential for vendor lock-in.
- Reliance on contractor for critical administrative functions.
- Need for ongoing performance monitoring.
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $32.6 million to Q2 ADMINISTRATORS, LLC. ADMINISTRATIVE QUALIFIED INDEPENDENT CONTRACTOR
Who is the contractor on this award?
The obligated recipient is Q2 ADMINISTRATORS, 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 $32.6 million.
What is the period of performance?
Start: 2021-09-14. End: 2026-09-13.
What specific administrative functions will Q2 Administrators, LLC be performing under this contract?
The contract is for 'ADMINISTRATIVE QUALIFIED INDEPENDENT CONTRACTOR' services, falling under NAICS code 541611 (Administrative Management and General Management Consulting Services). This typically includes providing expertise and support for organizational planning, management, and administrative processes, potentially related to program management, policy implementation, or operational efficiency within CMS.
What are the key performance indicators (KPIs) for this contract, and how will performance be measured?
Specific KPIs are not detailed in the provided data. However, for administrative consulting services, common KPIs often include timeliness of deliverables, accuracy of information provided, adherence to budget, client satisfaction, and successful implementation of recommended strategies. CMS would typically have a performance management plan in place.
Are there any potential risks associated with the long-term nature of this contract for CMS?
Yes, a significant risk is the potential for vendor lock-in and reduced flexibility if CMS's needs evolve. Over an 1825-day period, technology and administrative best practices can change rapidly. There's also a risk that institutional knowledge resides solely with the contractor, making transitions difficult. Regular performance reviews and contract modifications are crucial.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 300 ARBOR LAKE DR, COLUMBIA, SC, 29223
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $35,254,331
Exercised Options: $32,927,124
Current Obligation: $32,613,141
Actual Outlays: $26,633,577
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSM500200400010I
IDV Type: IDC
Timeline
Start Date: 2021-09-14
Current End Date: 2026-09-13
Potential End Date: 2026-09-13 00:00:00
Last Modified: 2025-12-18
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