HHS awards $15.5M contract for payment system technical support to Acumen LLC

Contract Overview

Contract Amount: $15,461,139 ($15.5M)

Contractor: Acumen LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-09-17

End Date: 2026-09-16

Contract Duration: 1,825 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TECHNICAL SUPPORT FOR PAYMENT SYSTEMS AND RATES.

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.5 million to ACUMEN LLC for work described as: TECHNICAL SUPPORT FOR PAYMENT SYSTEMS AND RATES. Key points: 1. Contract provides essential technical support for critical payment systems. 2. Acumen LLC, a small business, secured this award. 3. The contract is structured as a firm-fixed-price delivery order. 4. Performance is concentrated in Maryland. 5. The contract duration is five years, aligning with long-term system needs. 6. This award falls under administrative management and general management consulting services.

Value Assessment

Rating: good

The contract value of $15.5 million over five years represents a significant investment in maintaining essential payment systems. Benchmarking against similar IT support contracts is challenging without more specific service details. However, the firm-fixed-price structure suggests a degree of cost certainty for the government. The award to a small business may indicate a focus on supporting smaller contractors within the federal IT ecosystem.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages a wider range of solutions. The agency's decision to use full and open competition suggests confidence in the market's ability to meet the requirements effectively.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment, which can lead to better pricing and more innovative solutions, ultimately maximizing the value of federal dollars.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and potentially healthcare providers and beneficiaries who rely on accurate payment processing. Services delivered include technical support for payment systems and rates, ensuring operational continuity. Geographic impact is primarily focused on Maryland, where the contractor is located and likely where services will be performed. Workforce implications may include the creation or sustainment of IT support jobs within Acumen LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if technical expertise becomes highly specialized and difficult to transfer.
Reliance on a single small business contractor for critical payment system support could pose a risk if the contractor faces financial or operational challenges.

Positive Signals

Award to a small business aligns with federal goals to support small business participation in government contracting.
Firm-fixed-price contract provides cost predictability for the government.
Long-term contract duration (5 years) suggests a stable and reliable partnership for essential services.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on administrative and management consulting related to government payment systems. The market for IT support services for federal agencies is substantial, with significant spending allocated to maintaining and upgrading complex systems like those managed by CMS. Comparable spending benchmarks would typically involve IT support, system maintenance, and specialized consulting for large-scale government programs.

Small Business Impact

Acumen LLC is identified as a small business, and this award represents a direct contract win. The contract does not explicitly mention small business set-asides, but the awardee itself is a small business. This could imply that the agency is actively seeking to contract with small businesses, or that Acumen LLC was the most competitive offeror under full and open competition. Further analysis would be needed to determine if subcontracting opportunities for other small businesses are anticipated.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Centers for Medicare and Medicaid Services (CMS). The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon budget. Transparency is facilitated through contract databases like FPDS. The Inspector General for the Department of Health and Human Services would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Centers for Medicare and Medicaid Services (CMS) IT Modernization
Federal Health IT Services
Government Payment System Support
Administrative Management Consulting

Risk Flags

Potential for single-point-of-failure if contractor performance degrades.
Reliance on a small business for critical infrastructure support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.5 million to ACUMEN LLC. TECHNICAL SUPPORT FOR PAYMENT SYSTEMS AND RATES.

Who is the contractor on this award?

The obligated recipient is ACUMEN 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 $15.5 million.

What is the period of performance?

Start: 2021-09-17. End: 2026-09-16.

What is the specific nature of the 'technical support' required for the payment systems and rates?

The provided data indicates the contract is for 'TECHNICAL SUPPORT FOR PAYMENT SYSTEMS AND RATES.' While the specific nature of the support is not detailed, it generally encompasses a range of activities crucial for the operational integrity of payment systems. This could include help desk support, system maintenance, troubleshooting, software updates, performance monitoring, and potentially assistance with rate setting or adjustments within the payment systems. Given the context of CMS, these systems are vital for processing Medicare and Medicaid payments, making reliable technical support essential to prevent disruptions and ensure accurate financial transactions for healthcare providers and beneficiaries.

How does the $15.5 million contract value compare to historical spending on similar services by CMS?

Direct comparison of the $15.5 million contract value to historical spending on similar services by CMS requires access to detailed historical contract data for specific technical support functions related to payment systems. Without granular data on the scope and duration of previous contracts for comparable services, a precise benchmark is difficult. However, the five-year duration (1825 days) suggests an average annual spend of approximately $3.1 million. This figure can be used as a starting point for comparison. Agencies often issue multiple contracts for various aspects of IT support, so this single award's value should be considered within the broader context of CMS's overall IT budget and procurement strategy for payment system maintenance and enhancement.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a contract focused on technical support for critical payment systems, typical KPIs and SLAs would likely revolve around system uptime, response times for issue resolution, accuracy of support provided, and adherence to security protocols. For instance, CMS might mandate specific response times for critical system outages, target resolution times for different severity levels of technical issues, and require the contractor to maintain a certain percentage of system availability. These metrics are crucial for ensuring the reliability and efficiency of the payment processing operations managed by CMS.

What is Acumen LLC's track record with the Department of Health and Human Services (HHS) or CMS?

The provided data indicates that Acumen LLC is the contractor for this specific award from HHS/CMS. To assess their track record, one would need to examine their past performance on previous contracts with HHS or CMS, or other federal agencies. This would involve looking at factors such as past performance evaluations, any history of contract disputes or terminations, and the successful completion of prior similar tasks. As Acumen LLC is a small business, their history might include a mix of smaller, specialized contracts and potentially larger awards like this one. A thorough review of their federal contracting history would provide insight into their reliability and capability in delivering technical support services.

Are there any identified risks associated with relying on Acumen LLC for this critical support function?

Potential risks associated with relying on Acumen LLC for this critical support function include the general risks associated with any single-source provider for essential services. As a small business, Acumen LLC might have fewer resources or a smaller workforce compared to larger federal contractors, which could impact their ability to scale rapidly or absorb unexpected surges in demand. There's also the risk of key personnel departure, which could lead to a loss of institutional knowledge. Furthermore, the long-term sustainability of any small business can be a consideration. However, the firm-fixed-price contract structure and the five-year duration suggest a level of commitment and planning by CMS to mitigate some of these risks through a defined contractual relationship.

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: 500 AIRPORT BLVD, BURLINGAME, CA, 94010

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,461,139

Exercised Options: $15,461,139

Current Obligation: $15,461,139

Actual Outlays: $11,468,582

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS10F0133S

IDV Type: FSS

Timeline