HHS Awards $46M for Marketplace Operations Support to AIR over 3 Years
Contract Overview
Contract Amount: $46,179,654 ($46.2M)
Contractor: American Institutes for Research in the Behavioral Sciences
Awarding Agency: Department of Health and Human Services
Start Date: 2023-01-05
End Date: 2026-01-16
Contract Duration: 1,107 days
Daily Burn Rate: $41.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: MARKETPLACE OPERATIONS SUPPORT (MOS)
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $46.2 million to AMERICAN INSTITUTES FOR RESEARCH IN THE BEHAVIORAL SCIENCES for work described as: MARKETPLACE OPERATIONS SUPPORT (MOS) Key points: 1. Significant contract value of $46.2M awarded. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is for administrative management and general management consulting services. 4. The award is for the Centers for Medicare and Medicaid Services (CMS).
Value Assessment
Rating: good
The contract is a delivery order under a larger contract, making direct pricing comparisons difficult. However, the Time and Materials (T&M) pricing structure requires careful monitoring to ensure cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition indicates a robust process for selecting a vendor. This method generally promotes competitive pricing and allows for a wide range of qualified contractors to participate.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a fair market price for the services.
Public Impact
Supports critical operations for the Health Insurance Marketplace. Ensures continued access to health insurance for millions of Americans. The contract duration extends through January 2026, providing stability for services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can lead to cost overruns if not managed strictly.
- Lack of specific small business participation noted.
Positive Signals
- Full and open competition utilized.
- Awarded to a reputable organization (AIR).
- Supports essential government functions.
Sector Analysis
This contract falls under professional services, specifically administrative and management consulting. Benchmarks for similar large-scale government support contracts vary widely based on scope and duration.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Centers for Medicare and Medicaid Services (CMS) is responsible for overseeing this contract. Standard government oversight mechanisms for delivery orders and T&M contracts should be in place.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for cost overruns due to T&M pricing.
- Limited visibility into small business subcontracting.
- Dependence on a single delivery order for significant operational support.
- Contract duration extends over multiple fiscal years, requiring ongoing budget allocation.
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $46.2 million to AMERICAN INSTITUTES FOR RESEARCH IN THE BEHAVIORAL SCIENCES. MARKETPLACE OPERATIONS SUPPORT (MOS)
Who is the contractor on this award?
The obligated recipient is AMERICAN INSTITUTES FOR RESEARCH IN THE BEHAVIORAL SCIENCES.
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 $46.2 million.
What is the period of performance?
Start: 2023-01-05. End: 2026-01-16.
What specific metrics will be used to evaluate the performance and value delivered by AIR under this contract?
Performance evaluation will likely involve key performance indicators (KPIs) related to operational efficiency, user support, system uptime, and responsiveness to marketplace needs. Value assessment will consider whether the services provided contribute to the overall effectiveness and accessibility of the Health Insurance Marketplace, aligning with CMS objectives and budget constraints.
What are the potential risks associated with the Time and Materials pricing model for this extensive contract?
The primary risk with T&M is the potential for uncontrolled cost escalation if labor hours and material usage are not meticulously tracked and justified. This could lead to the contract exceeding its estimated value without a proportional increase in delivered value. Robust oversight and clear task definitions are crucial to mitigate this risk.
How effectively does this contract contribute to the overall mission of CMS and the accessibility of health insurance?
This contract is crucial for the day-to-day functioning of the Health Insurance Marketplace, directly impacting its operational stability and user support. By ensuring these critical administrative and management functions are adequately resourced, the contract supports CMS's mission to improve health and healthcare access for millions of Americans.
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: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1400 CRYSTAL DR FL 10, ARLINGTON, VA, 22202
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: $52,598,747
Exercised Options: $46,179,654
Current Obligation: $46,179,654
Actual Outlays: $35,214,121
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $3,604,778
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS00F347CA
IDV Type: FSS
Timeline
Start Date: 2023-01-05
Current End Date: 2026-01-16
Potential End Date: 2028-01-16 00:00:00
Last Modified: 2026-01-13
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