CMS Awards $55.4M Task Order to Companion Data Services for Medicare Claims Processing
Contract Overview
Contract Amount: $55,409,112 ($55.4M)
Contractor: Companion Data Services LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2023-06-01
End Date: 2024-05-31
Contract Duration: 365 days
Daily Burn Rate: $151.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: MEDICARE FEE FOR SERVICE CLAIMS PROCESSING WORKLOAD B
Place of Performance
Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29219
Plain-Language Summary
Department of Health and Human Services obligated $55.4 million to COMPANION DATA SERVICES LLC for work described as: MEDICARE FEE FOR SERVICE CLAIMS PROCESSING WORKLOAD B Key points: 1. Significant contract value highlights the importance of Medicare claims processing. 2. Full and open competition suggests a competitive bidding environment. 3. Potential risk associated with reliance on a single vendor for critical operations. 4. IT sector spending benchmark for similar services needs further analysis.
Value Assessment
Rating: good
The award of $55.4 million for a 1-year period appears reasonable given the critical nature of Medicare fee-for-service claims processing. Benchmarking against similar IT service contracts for government agencies is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential government services like Medicare claims processing.
Public Impact
Ensures continued processing of Medicare fee-for-service claims, impacting millions of beneficiaries and healthcare providers. Supports the operational efficiency of the Centers for Medicare and Medicaid Services (CMS). Potential for improved or maintained service levels for Medicare beneficiaries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Vendor lock-in risk if performance is consistently good.
- Potential for scope creep in future task orders.
- Dependence on a single vendor for critical IT infrastructure.
Positive Signals
- Awarded through full and open competition.
- Clear performance period (1 year).
- Focus on essential government function.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Government spending in this area is substantial, supporting a wide range of critical functions from data processing to cybersecurity.
Small Business Impact
The data does not indicate specific set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The award is managed by the Centers for Medicare and Medicaid Services (CMS), a key agency within HHS. Standard government oversight mechanisms for contract performance and financial management would apply.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Critical function reliance
- Potential for vendor lock-in
- Lack of small business participation noted
- Need for detailed performance metric analysis
Tags
computer-systems-design-services, department-of-health-and-human-services, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $55.4 million to COMPANION DATA SERVICES LLC. MEDICARE FEE FOR SERVICE CLAIMS PROCESSING WORKLOAD B
Who is the contractor on this award?
The obligated recipient is COMPANION DATA SERVICES 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 $55.4 million.
What is the period of performance?
Start: 2023-06-01. End: 2024-05-31.
What is the historical performance of Companion Data Services LLC on similar government contracts?
Assessing Companion Data Services LLC's past performance on comparable government contracts is crucial. Reviewing past performance evaluations, on-time delivery records, and adherence to budget constraints will provide insight into their reliability and capability to fulfill this Medicare claims processing workload effectively and efficiently.
How does the awarded price compare to the government's independent cost estimate?
Comparing the awarded price of $55.4 million to the government's independent cost estimate (ICE) is vital for validating value for money. A significant difference could indicate either an overly optimistic estimate or a highly competitive bid, warranting further investigation into the pricing structure and assumptions.
What are the key performance indicators (KPIs) for this task order and how will they be measured?
Understanding the specific KPIs for Medicare claims processing workload is essential for evaluating effectiveness. These likely include metrics such as claims processing time, accuracy rates, and system uptime. Robust measurement and reporting of these KPIs will ensure the contractor meets performance expectations and taxpayer requirements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DATA CENTER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 230391
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: INTERSTATE 20 AT ALPINE RD, COLUMBIA, SC, 29219
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $56,849,122
Exercised Options: $55,409,112
Current Obligation: $55,409,112
Actual Outlays: $55,409,112
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSM500201600016I
IDV Type: IDC
Timeline
Start Date: 2023-06-01
Current End Date: 2024-05-31
Potential End Date: 2024-05-31 00:00:00
Last Modified: 2025-02-27
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