HHS awards $9.6M contract for patient provider dispute resolution support to C2C Innovative Solutions

Contract Overview

Contract Amount: $9,625,505 ($9.6M)

Contractor: C2C Innovative Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-09-24

End Date: 2026-09-27

Contract Duration: 1,829 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PATIENT PROVIDER DISPUTE RESOLUTION SUPPORT

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32202

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $9.6 million to C2C INNOVATIVE SOLUTIONS, INC. for work described as: PATIENT PROVIDER DISPUTE RESOLUTION SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. The duration of the contract is over 5 years, indicating a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541611 points to administrative management and general management consulting services. 5. The award was a single delivery order under a larger contract vehicle. 6. The contract is not set aside for small businesses, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

Benchmarking the value of this $9.6 million contract for patient provider dispute resolution support is challenging without more specific performance metrics and comparable contract data. The Time and Materials pricing structure requires careful oversight to ensure cost-effectiveness over its 5-year duration. While the total award amount is moderate, the potential for cost overruns exists if labor hours and material costs are not rigorously managed and justified.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This 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 approach generally fosters price discovery and allows the government to select the best value offering. The open competition suggests a healthy market for these types of administrative management and consulting services.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for essential dispute resolution services.

Public Impact

Patients and healthcare providers will benefit from a structured process to resolve disputes. The services delivered will support the Centers for Medicare and Medicaid Services (CMS) in managing administrative functions. The contract is geographically focused on Florida (FL), suggesting a regional or state-specific operational scope. The contract supports administrative and management consulting roles, potentially impacting a specialized workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Long contract duration (over 5 years) requires sustained oversight to ensure continued value.
Lack of small business set-aside may limit participation of smaller, specialized firms.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Supports critical administrative functions for CMS, addressing a clear government need.
Clear performance period with defined start and end dates.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, a broad category encompassing advisory and assistance services. The market for such services is competitive, with numerous firms offering expertise in process improvement, operational efficiency, and program support. The $9.6 million award is a moderate size within this sector, and its focus on dispute resolution aligns with the operational needs of large government health agencies like CMS.

Small Business Impact

This contract was not set aside for small businesses, meaning it was open to all eligible vendors, including large corporations. While this ensures broad competition, it may limit direct opportunities for small businesses unless they are part of a larger subcontracting team. The absence of a specific small business subcontracting plan requirement (as indicated by 'sb': false) further suggests that direct small business participation might be minimal.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within CMS responsible for dispute resolution. Accountability measures are inherent in the Time and Materials contract type, requiring detailed tracking of labor hours and costs. Transparency is generally maintained through contract award databases, though specific performance reports may not be publicly available.

Related Government Programs

Healthcare Administrative Support Services
Medicaid Dispute Resolution Programs
Provider Compliance and Appeals
Federal Consulting Services

Risk Flags

Time and Materials contract type requires diligent oversight to control costs.
Long-term contract duration necessitates ongoing performance monitoring.
Potential for cost escalation due to T&M structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $9.6 million to C2C INNOVATIVE SOLUTIONS, INC.. PATIENT PROVIDER DISPUTE RESOLUTION SUPPORT

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 $9.6 million.

What is the period of performance?

Start: 2021-09-24. End: 2026-09-27.

What is the specific nature of the patient-provider dispute resolution services being provided under this contract?

The contract, NAICS code 541611, is for 'Administrative Management and General Management Consulting Services.' While the description 'PATIENT PROVIDER DISPUTE RESOLUTION SUPPORT' is provided, the exact nature of the services would detail the processes, methodologies, and support functions C2C Innovative Solutions, Inc. is expected to deliver. This could range from mediation and arbitration facilitation to developing and managing dispute resolution platforms, providing analytical support for dispute trends, or offering guidance on best practices for resolving patient-provider disagreements within the Medicare and Medicaid frameworks. Further details would clarify if the support is policy-oriented, operational, or involves direct case management.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar consulting services, and what are the associated risks?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change. Unlike fixed-price contracts, T&M pays the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. For consulting services, T&M can offer flexibility but carries a higher risk of cost overruns if not managed diligently. The government must have robust oversight to ensure that labor hours are reasonable and necessary, and that material costs are justified. Compared to Firm-Fixed-Price (FFP) contracts, T&M shifts more cost risk to the government. However, for services where precise deliverables are hard to define upfront, T&M can be a necessary mechanism, provided strong controls are in place.

What is the historical spending pattern for patient provider dispute resolution support within HHS or CMS?

Analyzing historical spending patterns for patient provider dispute resolution support within HHS or CMS is crucial for contextualizing the $9.6 million award. Without specific historical data, it's difficult to determine if this amount represents an increase, decrease, or stable level of investment. Trends in healthcare policy, patient advocacy, and regulatory changes can influence the volume and complexity of disputes, thereby affecting spending. Examining prior contracts for similar services, their durations, and total values would reveal whether this contract is part of a long-term strategy or a response to a specific, potentially temporary, need. Understanding these patterns helps assess the efficiency and necessity of current spending.

What is the track record of C2C Innovative Solutions, Inc. in delivering similar administrative or consulting services to federal agencies?

Evaluating the track record of C2C Innovative Solutions, Inc. is essential for assessing the risk associated with this $9.6 million contract. Information on past performance, including successful completion of similar projects, client satisfaction, and adherence to timelines and budgets, would provide insight into their capabilities. Specifically, their experience with federal healthcare agencies like HHS and CMS, and their expertise in dispute resolution or related administrative support, would be key indicators. A review of their contract history, including any past performance evaluations or awards, would help determine their reliability and suitability for this role. A strong track record suggests a lower risk of performance issues.

How does the competition level (full and open) for this contract typically influence pricing and service quality compared to sole-source or limited competition awards?

Full and open competition generally leads to more competitive pricing and potentially higher service quality because it allows a wider range of vendors to bid, fostering a price-sensitive environment. When multiple companies vie for a contract, they are incentivized to offer their best pricing and demonstrate superior capabilities to win the award. This contrasts with sole-source or limited competition, where fewer bidders may result in less downward pressure on prices and potentially less innovation. For taxpayers, full and open competition is usually more advantageous as it increases the likelihood of securing services at a fair market price. The $9.6 million award through this method suggests an effort to leverage market forces for optimal value.

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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 301 W BAY ST STE 1110, JACKSONVILLE, FL, 32202

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,874,589

Exercised Options: $9,625,505

Current Obligation: $9,625,505

Actual Outlays: $5,132,976

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA20D003J

IDV Type: FSS

Timeline