HHS awards $4.3M contract for Medicare & Medicaid closeout services to Seventh Sense, LLC

Contract Overview

Contract Amount: $4,347,057 ($4.3M)

Contractor: Seventh Sense, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-04-27

End Date: 2025-11-04

Contract Duration: 1,287 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: THE CONTRACTOR SHALL PROVIDE VARIOUS ON-SITE AND CONTRACTING OFFICER REPRESENTATIVE (COR) APPROVED OFF-SITE (ALSO REFERRED TO AS TELEWORK) SERVICES IN SUPPORT OF CONTRACT AND INTERAGENCY AGREEMENT (IAA) CLOSEOUT TO THE CENTERS FOR MEDICARE & MEDI

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.3 million to SEVENTH SENSE, LLC for work described as: THE CONTRACTOR SHALL PROVIDE VARIOUS ON-SITE AND CONTRACTING OFFICER REPRESENTATIVE (COR) APPROVED OFF-SITE (ALSO REFERRED TO AS TELEWORK) SERVICES IN SUPPORT OF CONTRACT AND INTERAGENCY AGREEMENT (IAA) CLOSEOUT TO THE CENTERS FOR MEDICARE & MEDI Key points: 1. Contract focuses on administrative management and general management consulting. 2. Seventh Sense, LLC, a small business, is the awardee. 3. The contract has a duration of 1287 days. 4. Services include on-site and telework support. 5. The contract was awarded via full and open competition. 6. The primary service area is Maryland.

Value Assessment

Rating: fair

The contract value of $4.3 million over approximately 3.5 years for administrative closeout services appears reasonable for the scope of work. Benchmarking against similar contracts for administrative support and consulting services is challenging without more granular detail on the specific tasks and deliverables. However, the per-diem rates for labor hours, if available, would provide a clearer picture of value for money. Given the nature of closeout services, which can be labor-intensive and require specialized knowledge, the allocated funds seem to align with typical industry costs for such support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple interested parties had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the procurement suggests that the government sought the best value from a range of qualified vendors. This approach generally leads to more competitive pricing and a wider selection of capabilities.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, which typically drives down costs and encourages innovation among contractors, ultimately leading to better service delivery for the government.

Public Impact

The Centers for Medicare & Medicaid Services (CMS) benefits from efficient contract and interagency agreement closeout processes. This contract supports the administrative functions critical to the financial and operational integrity of CMS programs. The services are primarily delivered within Maryland, impacting the local economy through employment opportunities. The contract supports specialized administrative and consulting roles, potentially creating jobs for skilled professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the closeout services.
The duration of the contract (over 3 years) may indicate a long-term need that could potentially be addressed through more permanent staffing solutions.
Limited information on the specific deliverables and success criteria for the closeout services.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Seventh Sense, LLC is a small business, aligning with federal goals to support small business contractors.
The contract addresses a critical administrative function (closeout services) essential for program management.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This sector encompasses a wide range of professional services aimed at improving organizational efficiency and effectiveness. Spending in this sector is significant across federal agencies, supporting everything from strategic planning to operational closeout. Comparable spending benchmarks are difficult to establish without knowing the precise nature and volume of the closeout activities, but contracts for similar administrative support services can range from hundreds of thousands to several million dollars annually, depending on the agency and scope.

Small Business Impact

Seventh Sense, LLC, the awardee, is identified as a small business. This contract award aligns with federal initiatives to promote small business participation in government contracting. As the prime contractor, Seventh Sense will be responsible for delivering the services. There is no explicit mention of subcontracting requirements or set-asides for other small businesses within the provided data, but the prime award itself contributes to the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Centers for Medicare & Medicaid Services (CMS) contracting officer and their appointed Contracting Officer's Representative (COR). The COR is responsible for monitoring performance, ensuring compliance with contract terms, and approving deliverables. Transparency is facilitated through contract databases like FPDS. Accountability measures are inherent in the contract terms, with potential for performance reviews and remedies for non-compliance. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Centers for Medicare & Medicaid Services (CMS) Operations
Federal Contract Closeout Procedures
Administrative Management Consulting Services
Interagency Agreements (IAAs)

Risk Flags

Potential for performance issues if contractor lacks sufficient resources or expertise.
Risk of cost overruns if scope is not clearly defined or managed.
Dependence on a single small business could pose continuity risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.3 million to SEVENTH SENSE, LLC. THE CONTRACTOR SHALL PROVIDE VARIOUS ON-SITE AND CONTRACTING OFFICER REPRESENTATIVE (COR) APPROVED OFF-SITE (ALSO REFERRED TO AS TELEWORK) SERVICES IN SUPPORT OF CONTRACT AND INTERAGENCY AGREEMENT (IAA) CLOSEOUT TO THE CENTERS FOR MEDICARE & MEDI

Who is the contractor on this award?

The obligated recipient is SEVENTH SENSE, 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 $4.3 million.

What is the period of performance?

Start: 2022-04-27. End: 2025-11-04.

What is the specific nature of the 'closeout' services required under this contract?

The contract specifies that Seventh Sense, LLC will provide "various on-site and contracting officer representative (COR) approved off-site (also referred to as telework) services in support of contract and interagency agreement (IAA) closeout." This typically involves tasks such as finalizing financial records, ensuring all deliverables have been met, resolving outstanding issues, processing final payments, archiving documentation, and formally closing out completed contracts and agreements. The exact scope would be detailed in the Performance Work Statement (PWS), which is not provided here. These services are crucial for maintaining accurate financial records and ensuring proper closure of government obligations.

How does the $4.3 million contract value compare to similar administrative support contracts at CMS or other HHS agencies?

Direct comparison of the $4.3 million value is difficult without specific details on the scope, duration, and labor mix of similar contracts. However, for administrative support and consulting services, this value over approximately 3.5 years (1287 days) suggests a moderate-sized engagement. Larger agencies like CMS often have numerous contracts for various support functions. Contracts for specialized closeout services can vary significantly based on the complexity and volume of contracts/IAAs being closed. If this contract covers a substantial portfolio of complex agreements, the value could be considered reasonable. Conversely, if it's for routine closeouts, it might be on the higher end.

What are the key performance indicators (KPIs) or metrics used to evaluate Seventh Sense, LLC's performance?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics for this contract. Typically, for contract closeout services, KPIs might include metrics such as the number of contracts/IAAs closed per period, timeliness of closeout actions, accuracy of financial reconciliation, adherence to documentation standards, and client satisfaction (e.g., from COR feedback). The Performance Work Statement (PWS) would normally outline these specific metrics and the acceptable performance levels. Without the PWS, a detailed assessment of performance evaluation is not possible.

What is Seventh Sense, LLC's track record with federal contracts, particularly in administrative support or closeout services?

Information regarding Seventh Sense, LLC's specific track record with federal contracts, especially in administrative support or closeout services, is not detailed in the provided data. As a small business, its contract history might be less extensive than larger, more established firms. Federal procurement data (like SAM.gov or FPDS) would typically provide details on past performance, including previous awards, contract values, and agencies served. A thorough assessment would require reviewing this historical data to understand their experience and success in similar roles.

What is the potential risk associated with relying on a single small business for critical contract closeout functions?

The primary risk associated with relying on a single small business for critical functions like contract closeout is potential disruption if the contractor faces financial instability, management issues, or fails to meet performance expectations. Small businesses may have fewer resources to absorb unexpected challenges compared to larger corporations. However, the government mitigates this risk through contract oversight, performance monitoring, and the ability to exercise contract remedies if necessary. The full and open competition award suggests that multiple capable small businesses were considered, potentially indicating a healthy market for these services.

How does this contract align with the Centers for Medicare & Medicaid Services' overall mission and strategic goals?

This contract directly supports the Centers for Medicare & Medicaid Services' (CMS) mission by ensuring the proper and efficient closure of contracts and interagency agreements. Effective closeout processes are vital for financial accountability, accurate record-keeping, and the responsible stewardship of taxpayer funds. By ensuring that all obligations are properly settled and documented, CMS can maintain clean financial statements, comply with federal regulations, and free up resources. This administrative function, while not directly patient-facing, is foundational to the operational integrity and trustworthiness of the agency's extensive programs.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 14626 CROSSFIELD WAY, WOODBRIDGE, VA, 22191

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,347,057

Exercised Options: $4,347,057

Current Obligation: $4,347,057

Actual Outlays: $4,347,057

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F102GA

IDV Type: FSS

Timeline