HHS awards $54.7M for administrative management consulting, with a significant portion allocated to Florida

Contract Overview

Contract Amount: $54,733,131 ($54.7M)

Contractor: C2C Innovative Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-09-30

End Date: 2025-12-31

Contract Duration: 1,553 days

Daily Burn Rate: $35.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PART A EAST 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 $54.7 million to C2C INNOVATIVE SOLUTIONS, INC. for work described as: PART A EAST QUALIFIED INDEPENDENT CONTRACTOR (QIC) Key points: 1. Contract value represents a substantial investment in management consulting services. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract extends over several years, indicating a long-term need for these services. 5. The award is concentrated in Florida, suggesting a specific regional focus for the services. 6. The North American Industry Classification System (NAICS) code points to general management consulting services.

Value Assessment

Rating: good

The contract value of $54.7 million for administrative management consulting services appears reasonable given the scope and duration. Benchmarking against similar contracts for management consulting services by federal agencies indicates that pricing for this type of support can vary widely. However, the firm-fixed-price structure provides cost certainty. Without specific details on the deliverables and labor mix, a precise value-for-money assessment is challenging, but the competitive award process suggests a degree of price efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 2 bids indicates a moderate level of competition for this requirement. While more bidders could potentially drive prices lower, two offers suggest that the market has sufficient interest and capability to respond to this type of solicitation. The agency's decision to use full and open competition is generally favorable for price discovery and ensuring a broad range of potential solutions.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and better pricing. It ensures that the government is not limited to a narrow set of providers, increasing the likelihood of obtaining optimal value for public funds.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) is the primary beneficiary, receiving administrative management and general management consulting services. These services are expected to support the operational efficiency and effectiveness of CMS programs. The contract has a significant geographic concentration in Florida, indicating that services may be delivered or focused within this state. The contract could potentially impact the workforce by requiring specialized consulting expertise, possibly creating opportunities for skilled professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly due to the broad nature of administrative management consulting.
Dependence on a single contractor for critical management functions could pose a risk if performance falters.
The fixed-price nature might incentivize the contractor to minimize effort, potentially impacting service quality if not monitored.
Geographic concentration in Florida might limit the applicability of insights or services to other regions without adaptation.

Positive Signals

The firm-fixed-price contract type provides budget certainty and shifts performance risk to the contractor.
Awarding through full and open competition suggests a robust selection process and potential for competitive pricing.
The contract duration allows for sustained support and potential for deep integration of consulting expertise.
The contractor, C2C INNOVATIVE SOLUTIONS, INC., has been awarded this contract, implying they met the agency's qualifications.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, supporting a wide array of agency functions from strategic planning to operational improvements. The market for these services is competitive, with numerous firms offering specialized expertise. Comparable spending benchmarks for management consulting can vary greatly depending on the complexity, duration, and specific services required, but contracts in the tens of millions are common for large federal agencies like HHS.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses mandated by this award. The prime contractor, C2C INNOVATIVE SOLUTIONS, INC., is likely a mid-to-large-sized business given the contract value. The absence of a small business set-aside means that opportunities for small business participation would depend on the prime contractor's own subcontracting strategy, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the program officials within the Centers for Medicare and Medicaid Services (CMS). The firm-fixed-price nature of the contract provides a degree of accountability by linking payment to deliverables. Transparency is facilitated by the public nature of federal contract awards, allowing for general scrutiny. Specific performance metrics and reporting requirements, typically outlined in the contract's statement of work, would be key to ongoing oversight and ensuring accountability for service delivery.

Related Government Programs

Management and Administrative Support Services
Consulting Services
Health Program Support
Federal IT Consulting

Risk Flags

Potential for contractor performance issues
Risk of scope creep in consulting engagements
Geographic concentration may limit broader applicability

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $54.7 million to C2C INNOVATIVE SOLUTIONS, INC.. PART A EAST 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 $54.7 million.

What is the period of performance?

Start: 2021-09-30. End: 2025-12-31.

What is the track record of C2C INNOVATIVE SOLUTIONS, INC. with federal contracts, particularly within HHS?

C2C INNOVATIVE SOLUTIONS, INC. has been awarded federal contracts, including this significant delivery order from the Centers for Medicare and Medicaid Services (CMS) within the Department of Health and Human Services (HHS). A deeper dive into the Federal Procurement Data System (FPDS) or other contract databases would reveal the full extent of their federal contract history, including prior awards, performance ratings, and any past issues or commendations. Understanding their performance on previous HHS contracts, especially those involving similar services or values, would provide crucial context for assessing their capability and reliability in fulfilling this current $54.7 million award.

How does the awarded amount compare to typical spending on administrative management consulting by CMS or similar agencies?

The $54.7 million awarded to C2C INNOVATIVE SOLUTIONS, INC. for administrative management and general management consulting services is a substantial sum, reflecting a significant investment by CMS. To benchmark this value, one would compare it against historical spending patterns for similar services within CMS and other large federal health agencies like the Department of Veterans Affairs or the National Institutes of Health. Factors such as contract duration (over 4 years in this case), the specific scope of work (e.g., strategic planning, process improvement, organizational development), and the labor categories involved would influence comparability. While specific benchmark data requires access to detailed procurement databases, awards in the tens of millions for comprehensive consulting engagements are not uncommon for agencies of CMS's size and complexity.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential performance deficiencies by the contractor, scope creep, and the possibility that the delivered services may not fully meet CMS's evolving needs. Mitigation strategies are embedded within the contract structure and oversight processes. The firm-fixed-price (FFP) contract type shifts significant financial risk to the contractor, incentivizing them to manage costs and deliver within budget. The full and open competition process aims to select a capable contractor. Ongoing mitigation relies on robust government oversight, including regular performance reviews, clear communication channels, and adherence to the contract's statement of work and deliverables. The contract duration also allows for adjustments and feedback loops to address emerging needs.

What is the expected impact of these consulting services on the effectiveness of CMS programs?

The expected impact of these administrative management and general management consulting services on CMS programs is to enhance operational efficiency, improve strategic planning, and potentially optimize the delivery of healthcare services facilitated by CMS. By engaging external expertise, CMS aims to identify areas for process improvement, streamline administrative functions, and ensure that its management practices align with its mission objectives. The specific impact will depend on the focus areas defined in the contract's statement of work, which could range from organizational restructuring to policy analysis and implementation support. Effective consulting should lead to better resource allocation, improved decision-making, and ultimately, more effective program outcomes for beneficiaries.

How has CMS's spending on administrative management consulting evolved over the past five years?

Analyzing CMS's spending evolution on administrative management consulting over the past five years would require accessing historical federal procurement data. Generally, spending in this category can fluctuate based on agency priorities, budget cycles, and the initiation of new strategic initiatives or program enhancements. Agencies like CMS often require ongoing consulting support to navigate complex regulatory environments, implement new healthcare policies, and improve operational performance. An upward trend might indicate increased reliance on external expertise for modernization or efficiency drives, while a decrease could suggest internal capacity building or shifting priorities. This specific $54.7 million award represents a significant single investment within that broader spending context.

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: $69,389,014

Exercised Options: $54,733,131

Current Obligation: $54,733,131

Actual Outlays: $45,553,985

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