HHS Awards $10.2M Contract to Cotiviti Gov Services for Collection Agencies Services

Contract Overview

Contract Amount: $10,265,674 ($10.3M)

Contractor: Cotiviti GOV Services, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-05-01

End Date: 2033-10-30

Contract Duration: 3,104 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SEE ATTACHMENT J.1 STATEMENT OF WORK (SOW)

Place of Performance

Location: SOUTH JORDAN, SALT LAKE County, UTAH, 84095

State: Utah Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.3 million to COTIVITI GOV SERVICES, LLC for work described as: SEE ATTACHMENT J.1 STATEMENT OF WORK (SOW) Key points: 1. Contract value of $10.2 million over 8 years. 2. Full and open competition was utilized. 3. Risk is moderate due to long contract duration and fixed-price nature. 4. Sector is administrative services, specifically collection agencies.

Value Assessment

Rating: fair

The contract is a firm-fixed-price definitive contract. Without specific cost breakdowns or benchmarks for collection agency services, assessing the pricing against similar contracts is difficult. The long duration suggests potential for price escalation or savings depending on market conditions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. The use of a definitive contract with a fixed-price structure aims to establish clear cost expectations from the outset.

Taxpayer Impact: The use of full and open competition is intended to secure the best value for taxpayers. The fixed-price nature helps control costs over the contract's lifespan.

Public Impact

Impacts beneficiaries of Medicare and Medicaid by ensuring efficient debt collection. Supports the financial health of federal healthcare programs. Potential for improved recovery rates of outstanding debts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (8 years) increases risk of price becoming uncompetitive.
Fixed-price contract may not fully account for fluctuating operational costs.
Lack of specific performance metrics in provided data.

Positive Signals

Full and open competition should drive value.
Definitive contract provides clear scope and pricing.
Focus on essential service (debt collection).

Sector Analysis

This contract falls within the administrative and support services sector, specifically focusing on collection agencies. Spending in this area is often tied to government revenue recovery efforts. Benchmarks for collection agency services can vary widely based on the type of debt and recovery rates.

Small Business Impact

The provided data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the contract was not specifically set aside for small businesses, and the prime contractor is not a small business.

Oversight & Accountability

Oversight will be crucial to ensure Cotiviti Gov Services meets performance expectations and adheres to the fixed-price terms throughout the contract's 8-year duration. Regular reviews of collection efficiency and compliance will be necessary.

Related Government Programs

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

Risk Flags

Long contract duration may lead to uncompetitive pricing over time.
Fixed-price contract could be disadvantageous if costs escalate significantly.
Potential for reputational risk if collection practices are not compliant.
Dependence on a single contractor for a critical function.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.3 million to COTIVITI GOV SERVICES, LLC. SEE ATTACHMENT J.1 STATEMENT OF WORK (SOW)

Who is the contractor on this award?

The obligated recipient is COTIVITI GOV 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 $10.3 million.

What is the period of performance?

Start: 2025-05-01. End: 2033-10-30.

What is the expected recovery rate for the debts being collected under this contract?

The expected recovery rate is not explicitly stated in the provided data. However, the contract's success will largely depend on Cotiviti Gov Services' ability to efficiently and effectively collect outstanding debts for CMS. A target recovery rate should be a key performance indicator monitored by the agency to ensure value for taxpayer money.

How will the agency ensure the fixed-price contract remains competitive over its 8-year term?

The agency can ensure competitiveness through robust contract management, including regular performance reviews and market research. If collection costs significantly increase or market rates decrease, the agency may have options to renegotiate or exercise contract clauses, though the fixed-price nature limits flexibility. Monitoring industry trends and competitor pricing will be essential.

What specific mechanisms are in place to measure the effectiveness of the collection services provided?

Effectiveness is likely measured through key performance indicators (KPIs) such as debt recovery rates, cost per dollar collected, and compliance with regulations. While not detailed here, the Statement of Work (SOW) would typically outline these metrics and reporting requirements to ensure the contractor is meeting its obligations and providing value.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Collection Agencies

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75FCMC25RJ003

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10701 S RIVER FRONT PKWY, SOUTH JORDAN, UT, 84095

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $100,265,674

Exercised Options: $10,265,674

Current Obligation: $10,265,674

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline