HHS awards $39.8M BPA Call for exam prep services to Palmetto GBA, LLC
Contract Overview
Contract Amount: $39,803,411 ($39.8M)
Contractor: Palmetto GBA, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2021-06-15
End Date: 2026-06-30
Contract Duration: 1,841 days
Daily Burn Rate: $21.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Healthcare
Official Description: THE PURPOSE OF THIS BPA CALL IS TO AWARD TASK ORDER, "ROUND 2024 PREPARATION".
Place of Performance
Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29202
Plain-Language Summary
Department of Health and Human Services obligated $39.8 million to PALMETTO GBA, LLC for work described as: THE PURPOSE OF THIS BPA CALL IS TO AWARD TASK ORDER, "ROUND 2024 PREPARATION". Key points: 1. Value for money appears fair given the 5-year duration and the specialized nature of exam preparation. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Risk indicators are low, with no reported issues or concerns. 4. Performance context is within the scope of exam preparation and tutoring services. 5. Sector positioning is within healthcare administration and professional development. 6. The contract type is Time and Materials, which can pose cost control challenges if not managed closely.
Value Assessment
Rating: fair
The contract value of $39.8 million over approximately five years for exam preparation services seems reasonable. Benchmarking against similar contracts for specialized training and certification is difficult without more specific service details. However, the duration suggests a sustained need for these services. The Time and Materials pricing model requires careful monitoring to ensure cost-effectiveness and prevent scope creep.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This BPA Call was awarded under full and open competition, indicating that all responsible sources were permitted to submit an offer. The specific number of bidders is not provided, but the use of full and open competition generally promotes a healthy price discovery process and encourages competitive pricing.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing due to the open competition, which aims to secure the best value for the government.
Public Impact
Beneficiaries include healthcare professionals seeking certification or recertification through CMS-approved programs. Services delivered include exam preparation materials, study guides, and potentially tutoring or review sessions. Geographic impact is likely national, supporting healthcare professionals across the United States. Workforce implications involve supporting the professional development and maintenance of qualifications for the healthcare workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not closely managed.
- Lack of specific performance metrics makes it difficult to assess the effectiveness of the exam preparation.
- The broad scope of 'Exam Preparation and Tutoring' could lead to undefined requirements if not clearly delineated in task orders.
Positive Signals
- Awarded under full and open competition, suggesting a robust selection process.
- Long contract duration (5 years) indicates a stable and ongoing need for these services.
- The contractor, Palmetto GBA, LLC, is a known entity in government contracting, particularly within healthcare.
Sector Analysis
This contract falls within the professional services sector, specifically focusing on education and training for healthcare professionals. The market for exam preparation services is significant, driven by licensing, certification, and continuing education requirements across various professions. Comparable spending benchmarks would depend on the specific certifications targeted, but government spending on professional development and training is substantial.
Small Business Impact
The contract was awarded to Palmetto GBA, LLC, and there is no indication of a small business set-aside. The data does not specify subcontracting plans or requirements, so the direct impact on the small business ecosystem is unclear. However, larger prime contractors often utilize small businesses for specialized support services.
Oversight & Accountability
Oversight for this BPA Call would primarily reside with the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures would be defined within individual task orders, including performance standards and reporting requirements. Transparency is facilitated through contract award data, but detailed task order specifics may be less publicly accessible.
Related Government Programs
- Healthcare Professional Training Programs
- Continuing Medical Education Contracts
- Government Employee Development Services
- Professional Certification Support
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Scope definition in task orders is critical for effective service delivery.
- Performance metrics not explicitly detailed in the award data.
Tags
healthcare, hhs, cms, bpa-call, professional-services, training, exam-preparation, time-and-materials, full-and-open-competition, palmetto-gba, south-carolina
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $39.8 million to PALMETTO GBA, LLC. THE PURPOSE OF THIS BPA CALL IS TO AWARD TASK ORDER, "ROUND 2024 PREPARATION".
Who is the contractor on this award?
The obligated recipient is PALMETTO GBA, 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 $39.8 million.
What is the period of performance?
Start: 2021-06-15. End: 2026-06-30.
What is the specific nature of the 'exam preparation and tutoring' services provided under this contract?
The provided data indicates the contract's purpose is 'Exam Preparation and Tutoring' (NAICS 611691). While the specific exams are not detailed, given the agency (Centers for Medicare and Medicaid Services - CMS), it is highly probable that these services relate to the preparation and ongoing education for professionals involved in Medicare and Medicaid programs. This could include preparation for certifications, accreditations, or specialized roles within healthcare administration and compliance. The Time and Materials (T&M) pricing structure suggests that the scope might be flexible or evolve, requiring detailed task orders to define the exact services, materials, and support provided for each specific exam or training need.
How does the $39.8 million contract value compare to similar government spending on exam preparation and tutoring services?
Directly comparing the $39.8 million contract value to similar government spending on exam preparation and tutoring is challenging without more granular data on the specific types of exams and the scope of services. However, considering this is a five-year contract (June 2021 - June 2026) awarded under full and open competition, the annual average of approximately $7.96 million is not exceptionally high for a federal agency like CMS, which manages complex healthcare programs. Government spending on professional development, training, and certification is substantial across various agencies. This contract appears to be a significant, but not outlier, investment in ensuring the competency and qualifications of personnel involved in critical healthcare administration functions.
What are the primary risks associated with a Time and Materials (T&M) contract for exam preparation services?
The primary risk associated with a Time and Materials (T&M) contract for exam preparation services is the potential for cost escalation if not managed diligently. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used. This can lead to cost overruns if the scope of work is not clearly defined, if the contractor's efficiency is low, or if there is scope creep. For exam preparation, this could mean extended tutoring sessions or development of more materials than initially anticipated. Effective oversight, including detailed tracking of hours, rigorous review of material costs, and clear definition of deliverables in task orders, is crucial to mitigate these risks and ensure value for taxpayer money.
What is Palmetto GBA, LLC's track record with the Centers for Medicare and Medicaid Services (CMS)?
Palmetto GBA, LLC has a significant and established track record with the Centers for Medicare and Medicaid Services (CMS). They are a well-known Medicare Administrative Contractor (MAC) responsible for processing Medicare claims in specific jurisdictions. Their long-standing relationship with CMS suggests a deep understanding of CMS operations, regulations, and healthcare policy. Awarding them a BPA Call for exam preparation services aligns with their existing expertise in the healthcare domain and their familiarity with CMS's operational needs. This established relationship likely contributed to their successful bid, as CMS would have confidence in their ability to deliver relevant and effective training solutions.
How does the competition level (full and open) impact the cost-effectiveness of this contract?
The 'full and open' competition level is a positive indicator for cost-effectiveness. It means that the Centers for Medicare and Medicaid Services (CMS) allowed any qualified vendor to bid on this contract, rather than restricting it to a pre-approved list or specific types of businesses. This broad competition typically drives down prices as vendors vie to offer the most attractive terms and pricing to win the contract. While the contract uses a Time and Materials pricing model, which inherently carries cost risks, the initial competitive bidding process likely established a baseline fair market price. Effective management and oversight of the task orders under this BPA Call will be essential to maintain cost-effectiveness throughout the contract's duration.
Industry Classification
NAICS: Educational Services › Other Schools and Instruction › Exam Preparation and Tutoring
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
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 17 TECHNOLOGY CIR, COLUMBIA, SC, 29203
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $39,803,411
Exercised Options: $39,803,411
Current Obligation: $39,803,411
Actual Outlays: $30,528,011
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75FCMC21A0001
IDV Type: BPA
Timeline
Start Date: 2021-06-15
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-04-08
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