HHS Audits of Medicare MCOs: $2.06M Contract Awarded to Bland & Associates PC

Contract Overview

Contract Amount: $2,057,505 ($2.1M)

Contractor: Bland & Associates PC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-09

End Date: 2026-07-15

Contract Duration: 1,405 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COST-BASED MEDICARE MANAGED CARE ORGANIZATIONS (MCOS) COST REPORTS AUDITS

Place of Performance

Location: OMAHA, DOUGLAS County, NEBRASKA, 68114

State: Nebraska Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.1 million to BLAND & ASSOCIATES PC for work described as: COST-BASED MEDICARE MANAGED CARE ORGANIZATIONS (MCOS) COST REPORTS AUDITS Key points: 1. Contract focuses on auditing cost reports for Medicare Managed Care Organizations (MCOs). 2. Bland & Associates PC, an accounting firm, secured the contract. 3. The contract duration is 1405 days, spanning from September 2022 to July 2026. 4. This audit function is crucial for ensuring the integrity of Medicare spending.

Value Assessment

Rating: fair

The contract is a Firm Fixed Price (FFP) type, which generally provides good cost control. However, without specific per-unit cost data or comparison to similar audit contracts, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair pricing, but the specific price discovery mechanisms are not detailed.

Taxpayer Impact: Ensuring accurate MCO cost reporting helps prevent improper payments and protects taxpayer funds by verifying the appropriate use of Medicare funds.

Public Impact

Ensures accountability in Medicare spending by MCOs. Supports the financial integrity of the Medicare program. Aids in identifying potential fraud or waste within MCO operations. Contributes to the accuracy of capitation payments to MCOs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the professional services sector, specifically accounting and auditing for government programs. Benchmarks for similar government audit contracts can vary widely based on scope and complexity.

Small Business Impact

The data does not indicate any specific provisions or considerations for small business participation in this contract.

Oversight & Accountability

The Centers for Medicare and Medicaid Services (CMS) is responsible for overseeing this contract. Standard audit procedures and reporting requirements are expected to ensure accountability.

Related Government Programs

Risk Flags

Tags

offices-of-certified-public-accountants, department-of-health-and-human-services, ne, bpa-call, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.1 million to BLAND & ASSOCIATES PC. COST-BASED MEDICARE MANAGED CARE ORGANIZATIONS (MCOS) COST REPORTS AUDITS

Who is the contractor on this award?

The obligated recipient is BLAND & ASSOCIATES PC.

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 $2.1 million.

What is the period of performance?

Start: 2022-09-09. End: 2026-07-15.

What is the expected impact of these audits on overall Medicare program savings?

The primary impact of these audits is to ensure the accuracy of cost reports submitted by Medicare Managed Care Organizations (MCOs). By verifying these costs, the audits help prevent improper payments, identify potential fraud or waste, and ultimately contribute to the financial integrity and potential savings within the Medicare program. The exact savings are contingent on the findings of the audits themselves.

What are the key risks associated with this contract for the government?

Key risks include the potential for incomplete or inaccurate audits if the contractor lacks sufficient expertise or resources, leading to undetected improper payments. There's also a risk that the audit findings may not be effectively acted upon by CMS. Furthermore, the long duration of the contract could expose it to changing regulatory environments or MCO operational shifts that might not be fully captured by the initial audit scope.

How effective is the full and open competition method in ensuring value for this type of service?

Full and open competition is generally effective in driving value by encouraging multiple bidders to offer competitive pricing and demonstrate their capabilities. For specialized services like MCO cost report audits, this method allows the government to select a qualified firm that offers the best combination of price and technical merit. However, the ultimate effectiveness depends on the clarity of the solicitation and the rigor of the evaluation process.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesAccounting, Tax Preparation, Bookkeeping, and Payroll ServicesOffices 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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 450 REGENCY PKWY STE 340, OMAHA, NE, 68114

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,057,505

Exercised Options: $2,057,505

Current Obligation: $2,057,505

Actual Outlays: $1,537,404

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75FCMC21A0003

IDV Type: BPA

Timeline

Start Date: 2022-09-09

Current End Date: 2026-07-15

Potential End Date: 2026-07-15 00:00:00

Last Modified: 2026-03-04

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