HHS Awards $28.7M for Virtual Contact Center Strategy Support to KT Consulting

Contract Overview

Contract Amount: $28,678,764 ($28.7M)

Contractor: KT Consulting, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2022-06-21

End Date: 2026-06-20

Contract Duration: 1,460 days

Daily Burn Rate: $19.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VIRTUAL CONTACT CENTER STRATEGY (VCS) SUPPORT

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85048

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.7 million to KT CONSULTING, INC. for work described as: VIRTUAL CONTACT CENTER STRATEGY (VCS) SUPPORT Key points: 1. Contract awarded to KT Consulting, Inc. for $28.7 million. 2. Services are for Virtual Contact Center Strategy (VCS) Support. 3. The contract falls under Engineering Services (NAICS 541330). 4. Competition was Full and Open after exclusion of sources. 5. The contract duration is 1460 days, ending June 20, 2026.

Value Assessment

Rating: good

The contract value of $28.7 million for a 4-year period appears reasonable for specialized engineering and consulting services. Benchmarking against similar large-scale IT strategy and support contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating a competitive process was initiated. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary services.

Public Impact

Enhances critical healthcare services through improved contact center technology. Supports the Centers for Medicare and Medicaid Services (CMS) operations. Potential for improved patient and provider interactions. Ensures continuity of essential government functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics provided.
Potential for scope creep in long-term strategy support.
Reliance on a single vendor for critical infrastructure strategy.

Positive Signals

Clear contract duration and end date.
Competitive bidding process utilized.
Firm Fixed Price contract type limits cost overruns.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services. Spending in this area is crucial for government modernization and operational efficiency, with benchmarks varying widely based on specialization.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract is managed by the Centers for Medicare and Medicaid Services (CMS), a major agency within HHS. Standard government oversight processes for contract performance and financial management are expected to be in place.

Related Government Programs

Engineering Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Contract duration is substantial (4 years).
Potential for vendor lock-in.
Scope may be broad and subject to change.
Reliance on engineering services for strategic planning.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.7 million to KT CONSULTING, INC.. VIRTUAL CONTACT CENTER STRATEGY (VCS) SUPPORT

Who is the contractor on this award?

The obligated recipient is KT CONSULTING, 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 $28.7 million.

What is the period of performance?

Start: 2022-06-21. End: 2026-06-20.

What specific virtual contact center technologies or strategies are being developed or implemented under this contract?

The contract focuses on 'Virtual Contact Center Strategy (VCS) Support,' implying a broad scope encompassing planning, design, and potentially implementation guidance for advanced contact center solutions. This could include AI-driven chatbots, omnichannel communication platforms, and data analytics for service improvement, aiming to modernize how CMS interacts with beneficiaries and providers.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential vendor lock-in, challenges in adapting to evolving technology, and ensuring the strategy aligns with CMS's long-term goals. Mitigation strategies likely involve clear performance metrics, phased deliverables, regular reviews, and maintaining flexibility within the contract to incorporate technological advancements and changing requirements.

How will the success of this VCS support contract be measured in terms of effectiveness and taxpayer value?

Effectiveness will likely be measured by improvements in contact center efficiency (e.g., reduced wait times, higher first-call resolution rates), enhanced user satisfaction (patient and provider feedback), and successful integration of new technologies. Taxpayer value will be assessed through cost savings achieved by optimized operations, avoidance of redundant systems, and the overall return on investment from the strategic guidance provided.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4435 E CHANDLER BLVD STE 130, PHOENIX, AZ, 85048

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $38,287,677

Exercised Options: $28,678,764

Current Obligation: $28,678,764

Actual Outlays: $24,654,989

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS123

IDV Type: IDC

Timeline