HHS Awards $24.5M Appeals Support Contract to Federal Specialized Services, LLC
Contract Overview
Contract Amount: $24,552,494 ($24.6M)
Contractor: Federal Specialized Services, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2023-07-01
End Date: 2026-06-30
Contract Duration: 1,095 days
Daily Burn Rate: $22.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: APPEALS SUPPORT CONTRACTOR
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60608
State: Illinois Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $24.6 million to FEDERAL SPECIALIZED SERVICES, LLC for work described as: APPEALS SUPPORT CONTRACTOR Key points: 1. Contract value of $24.5 million over three years. 2. Federal Specialized Services, LLC is the sole awardee. 3. The contract falls under Administrative Management and General Management Consulting Services. 4. This award represents a significant investment in administrative support for CMS.
Value Assessment
Rating: fair
The contract is Time and Materials, which can lead to cost overruns if not managed carefully. Benchmarking against similar administrative support contracts is difficult without more detailed cost breakdowns.
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. However, the specific pricing structure (Time and Materials) requires diligent oversight to ensure fair pricing and prevent excessive costs.
Taxpayer Impact: Taxpayers are impacted by the $24.5 million expenditure, with the effectiveness of this spending dependent on the quality of services provided and cost controls.
Public Impact
Ensures continued support for Medicare and Medicaid appeals processes. Potential for improved efficiency in handling beneficiary appeals. Impacts beneficiaries by ensuring timely and fair resolution of claims disputes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing structure
- Lack of specific performance metrics in provided data
Positive Signals
- Full and open competition
- Supports critical healthcare administration functions
Sector Analysis
This contract falls within the professional services sector, specifically management consulting. Spending in this area is common for government agencies needing specialized administrative support to manage complex programs like Medicare and Medicaid.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false).
Oversight & Accountability
Oversight will be crucial to manage the Time and Materials contract effectively, ensuring that costs remain within budget and that the services provided meet the needs of the Centers for Medicare and Medicaid Services.
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 Time and Materials pricing.
- Lack of detailed performance metrics.
- Sole awardee may limit future competitive pressure.
- Contract duration of three years requires ongoing monitoring.
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $24.6 million to FEDERAL SPECIALIZED SERVICES, LLC. APPEALS SUPPORT CONTRACTOR
Who is the contractor on this award?
The obligated recipient is FEDERAL SPECIALIZED 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 $24.6 million.
What is the period of performance?
Start: 2023-07-01. End: 2026-06-30.
What specific metrics will be used to evaluate the contractor's performance and ensure value for money?
Performance evaluation metrics are not detailed in the provided data. Effective oversight would require the agency to establish clear Key Performance Indicators (KPIs) related to appeal processing times, accuracy rates, and beneficiary satisfaction. These metrics should be regularly reviewed and used to hold the contractor accountable for delivering high-quality services within the agreed-upon budget.
How will the agency mitigate the risks associated with a Time and Materials contract to prevent cost overruns?
Mitigation strategies for Time and Materials contracts typically involve establishing strong contract management practices. This includes setting clear ceilings on labor hours and rates, requiring detailed justifications for all hours billed, and conducting regular audits of invoices. The agency should also define specific deliverables and milestones to ensure progress aligns with spending.
What is the expected impact of this contract on the efficiency and effectiveness of the appeals process for Medicare and Medicaid beneficiaries?
The contract is intended to enhance the efficiency and effectiveness of the appeals process by providing specialized administrative support. This should lead to more streamlined handling of appeals, potentially reducing processing times and improving the accuracy of decisions. Ultimately, this aims to ensure beneficiaries receive timely and fair resolutions to their claims disputes.
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: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1701 S RACINE AVE, CHICAGO, IL, 60608
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $42,004,374
Exercised Options: $24,552,494
Current Obligation: $24,552,494
Actual Outlays: $20,525,284
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QRAA19D006E
IDV Type: FSS
Timeline
Start Date: 2023-07-01
Current End Date: 2026-06-30
Potential End Date: 2028-05-31 00:00:00
Last Modified: 2026-03-26
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