HHS Awards $24.5M Contract to KPMG for Program Integrity and Financial Oversight

Contract Overview

Contract Amount: $24,490,284 ($24.5M)

Contractor: Kpmg LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2021-09-30

End Date: 2025-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $16.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PROGRAM INTEGRITY & FINANCIAL OVERSIGHT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.5 million to KPMG LLP for work described as: PROGRAM INTEGRITY & FINANCIAL OVERSIGHT Key points: 1. Contract value of $24.5 million over approximately 4 years. 2. KPMG LLP, an established accounting firm, is the contractor. 3. The contract aims to enhance program integrity and financial oversight within CMS. 4. This falls under the Offices of Certified Public Accountants (NAICS 541211) sector.

Value Assessment

Rating: good

The contract value of $24.5 million for a 4-year period suggests a reasonable annual spend. Benchmarking against similar contracts for financial oversight and program integrity services would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method is generally expected to yield fair market prices and ensure the best value is obtained.

Taxpayer Impact: The use of competitive bidding aims to ensure taxpayer funds are used efficiently for essential government functions like program integrity.

Public Impact

Enhances oversight of Medicare and Medicaid programs, potentially reducing fraud and waste. Supports financial accountability within a critical federal healthcare agency. Leverages expertise from a major accounting firm for complex financial management tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition
Established contractor
Clear objective for program integrity

Sector Analysis

This contract falls within the professional services sector, specifically accounting and auditing services for government agencies. Spending in this area is crucial for maintaining the integrity of large federal programs like Medicare and Medicaid.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award.

Oversight & Accountability

The contract's objective is directly related to program integrity and financial oversight, suggesting a focus on accountability. The duration and value indicate a significant commitment to these oversight functions.

Related Government Programs

Offices of Certified Public Accountants
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Contract duration of nearly 4 years
Time and Materials pricing structure
Potential for scope creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.5 million to KPMG LLP. PROGRAM INTEGRITY & FINANCIAL OVERSIGHT

Who is the contractor on this award?

The obligated recipient is KPMG LLP.

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 $24.5 million.

What is the period of performance?

Start: 2021-09-30. End: 2025-09-29.

What specific metrics will be used to measure the success of KPMG's program integrity and financial oversight efforts?

Success metrics would likely include quantifiable reductions in improper payments, identification of fraudulent activities, improvements in financial reporting accuracy, and adherence to audit recommendations. The contract should clearly define key performance indicators (KPIs) tied to these objectives to ensure accountability and measure the return on investment for taxpayer funds.

What are the potential risks associated with relying on a single contractor for such critical oversight functions?

Risks include over-reliance, potential for vendor lock-in, and the possibility of groupthink or a lack of diverse perspectives. Mitigating these risks could involve robust performance monitoring, clear deliverables, and contingency planning for contractor performance issues or changes in agency needs.

How effectively will this contract contribute to reducing waste, fraud, and abuse within Medicare and Medicaid?

The effectiveness hinges on the contractor's expertise, the clarity of the SOW, and the agency's active engagement. If KPMG can implement advanced data analytics, robust auditing procedures, and provide actionable insights, it can significantly contribute to reducing waste and abuse, thereby improving the efficiency and trustworthiness of federal healthcare spending.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 8350 BROAD ST STE 900, MC LEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $24,816,616

Exercised Options: $24,490,284

Current Obligation: $24,490,284

Actual Outlays: $19,994,312

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00F275CA

IDV Type: FSS

Timeline