HHS Awards $3.9M Recovery Audit Contract to Cotiviti Gov Services for Region 5
Contract Overview
Contract Amount: $3,908,792 ($3.9M)
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: $1.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: RECOVERY AUDIT CONTRACTOR REGION 5
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 $3.9 million to COTIVITI GOV SERVICES, LLC for work described as: RECOVERY AUDIT CONTRACTOR REGION 5 Key points: 1. Contract awarded to a single vendor, Cotiviti Gov Services, LLC. 2. The contract aims to recover improper payments within the Centers for Medicare and Medicaid Services (CMS). 3. A long duration of 8 years suggests potential for significant long-term impact. 4. The NAICS code 561440 indicates a focus on collection agencies.
Value Assessment
Rating: fair
The contract value of $3.9M over 8 years is relatively low for a recovery audit program. Benchmarking against similar large-scale recovery audit contracts is difficult without more specific scope details.
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 relatively low award value might indicate a limited scope or a specific niche within recovery audits.
Taxpayer Impact: The primary taxpayer impact is the potential for recovering improperly paid funds, offsetting program costs. The contract's success hinges on its effectiveness in identifying and recouping these funds.
Public Impact
Potential for significant recovery of taxpayer funds lost to improper payments. Improved financial integrity within Medicare and Medicaid programs. Ensures accountability for healthcare providers receiving federal funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (8 years) may lead to complacency or reduced urgency.
- Low contract value for an 8-year period could indicate a limited scope or potential underperformance.
- No explicit mention of small business participation.
Positive Signals
- Full and open competition ensures a fair process.
- Focus on recovery audits directly benefits taxpayer by recouping misused funds.
- Clear performance period with defined end date.
Sector Analysis
This contract falls under administrative and support services, specifically collection agencies, within the broader healthcare sector. Spending benchmarks for recovery audit contractors vary widely based on program scope and agency.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were overlooked or if the scope was unsuitable for small businesses.
Oversight & Accountability
The long duration of the contract necessitates robust oversight from CMS to ensure performance targets are met and funds are effectively recovered. Regular performance reviews and audits will be crucial.
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 reduce urgency.
- Low award value for an 8-year term.
- No indication of small business involvement.
- Potential for contractor to focus on easier recoveries, missing complex ones.
- Effectiveness dependent on robust government oversight.
Tags
collection-agencies, department-of-health-and-human-services, ut, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $3.9 million to COTIVITI GOV SERVICES, LLC. RECOVERY AUDIT CONTRACTOR REGION 5
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 $3.9 million.
What is the period of performance?
Start: 2025-05-01. End: 2033-10-30.
What is the projected return on investment for this recovery audit contract?
The projected ROI is not explicitly stated in the provided data. However, the contract's success will be measured by its ability to recover more funds than its cost. Given the 8-year duration and $3.9M value, a significant recovery rate is expected to justify the investment and demonstrate value to taxpayers.
What specific types of improper payments will the contractor focus on identifying?
The data does not specify the exact types of improper payments. Typically, recovery audit contractors focus on areas like provider billing errors, duplicate payments, and medically unnecessary services within Medicare and Medicaid. The NAICS code 561440 suggests a strong emphasis on financial recovery and collections.
How will the effectiveness of this contract be measured and reported?
Effectiveness is likely measured by the amount of funds recovered versus the contract cost, and potentially by the accuracy and efficiency of the recovery process. CMS will likely require regular performance reports detailing identified overpayments, recovered amounts, and any disputes or appeals handled by the contractor.
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: 3
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: $39,908,792
Exercised Options: $3,908,792
Current Obligation: $3,908,792
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-05-01
Current End Date: 2033-10-30
Potential End Date: 2035-04-30 00:00:00
Last Modified: 2026-03-31
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