HHS awards $44.6M consulting contract to Comagine Health for management services

Contract Overview

Contract Amount: $44,589,393 ($44.6M)

Contractor: Comagine Health

Awarding Agency: Department of Health and Human Services

Start Date: 2025-01-06

End Date: 2030-01-05

Contract Duration: 1,825 days

Daily Burn Rate: $24.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: C.1 STATEMENT OF WORK INDEPENDENTLY AND NOT AS AN AGENT OF THE GOVERNMENT, THE CONTRACTOR SHALL FURNISH ALL THE NECESSARY PERSONNEL, MATERIALS, SERVICES, EQUIPMENT, AND FACILITIES, NOT OTHERWISE PROVIDED BY THE GOVERNMENT, AS NEEDED TO PERFORM THE S

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98113

State: Washington Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $44.6 million to COMAGINE HEALTH for work described as: C.1 STATEMENT OF WORK INDEPENDENTLY AND NOT AS AN AGENT OF THE GOVERNMENT, THE CONTRACTOR SHALL FURNISH ALL THE NECESSARY PERSONNEL, MATERIALS, SERVICES, EQUIPMENT, AND FACILITIES, NOT OTHERWISE PROVIDED BY THE GOVERNMENT, AS NEEDED TO PERFORM THE S Key points: 1. Contract focuses on management consulting services, indicating a need for specialized expertise. 2. The contract duration of five years suggests a long-term need for these services. 3. Awarded under full and open competition, implying a robust bidding process. 4. The Cost Plus Fixed Fee pricing structure requires careful monitoring of costs. 5. This award represents a significant investment in external management support for CMS. 6. The specific Statement of Work emphasizes the contractor's role in providing comprehensive services and resources.

Value Assessment

Rating: good

The contract value of $44.6 million over five years for management consulting services appears reasonable given the scope. Benchmarking against similar large-scale consulting contracts within HHS or CMS would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) structure necessitates diligent oversight to ensure costs remain within acceptable bounds while achieving the fixed fee objectives. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the competitive nature of the award suggests a degree of price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This approach generally fosters a competitive environment, encouraging bidders to offer their best pricing and technical solutions. The number of bidders is not specified, but the open competition suggests a healthy market for these management consulting services. This process is designed to ensure the government receives competitive proposals and selects the most advantageous offer.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that is expected to yield a fair price and high-quality services, minimizing the risk of overpayment or substandard performance.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and potentially healthcare providers and beneficiaries through improved program management. Services delivered encompass a broad range of management consulting, including personnel, materials, equipment, and facilities support. The geographic impact is likely national, given CMS's role in administering federal healthcare programs. Workforce implications may involve the integration of contractor personnel with government staff to enhance operational efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts require rigorous oversight to prevent cost overruns and ensure the fixed fee is justified by performance.
The broad scope of 'Other Management Consulting Services' could lead to scope creep if not clearly defined and managed.
Reliance on external contractors for critical management functions may pose risks if knowledge transfer or continuity is not adequately planned.

Positive Signals

Awarded under full and open competition, suggesting a competitive market and potentially better value.
The five-year duration indicates a stable, long-term need, allowing for sustained improvements and relationship building.
The contractor, Comagine Health, likely has relevant experience in healthcare consulting, contributing to potential success.

Sector Analysis

This contract falls within the Management Consulting Services sector, a broad category encompassing advisory and assistance services for management and professional needs. The federal government is a significant consumer of these services to improve efficiency, implement new policies, and manage complex programs. Comparable spending benchmarks would involve analyzing other large consulting contracts awarded by agencies like HHS, DOD, or GSA for similar strategic or operational support. The market size for federal management consulting is substantial, driven by the government's continuous need for expertise in areas like healthcare, technology, and program management.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Comagine Health, may engage small businesses as subcontractors if it aligns with their strategy and the contract's needs, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will be crucial, likely managed by contracting officers and program managers within CMS. Accountability measures will be tied to the contract's performance metrics and deliverables outlined in the Statement of Work. Transparency will depend on the agency's reporting practices regarding contract spending and performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

HHS Management and Program Support Contracts
CMS Healthcare Consulting Services
Federal Management Consulting Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts
Government-wide Acquisition Contracts (GWACs) for Professional Services

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring of costs.
Broad 'Other Management Consulting Services' scope may present challenges in defining and managing deliverables.
Long-term contract duration necessitates robust performance management and potential for contractor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $44.6 million to COMAGINE HEALTH. C.1 STATEMENT OF WORK INDEPENDENTLY AND NOT AS AN AGENT OF THE GOVERNMENT, THE CONTRACTOR SHALL FURNISH ALL THE NECESSARY PERSONNEL, MATERIALS, SERVICES, EQUIPMENT, AND FACILITIES, NOT OTHERWISE PROVIDED BY THE GOVERNMENT, AS NEEDED TO PERFORM THE S

Who is the contractor on this award?

The obligated recipient is COMAGINE HEALTH.

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 $44.6 million.

What is the period of performance?

Start: 2025-01-06. End: 2030-01-05.

What is Comagine Health's track record with federal contracts, particularly within HHS or CMS?

Comagine Health has a history of working with federal agencies, including Medicare and Medicaid Services. Their experience often centers on quality improvement, healthcare innovation, and program administration within the healthcare sector. Analyzing their past performance on similar contracts, including any awards, penalties, or significant challenges, would provide insight into their reliability and capability. Federal procurement databases and agency performance reviews can offer details on their contract history, payment timeliness, and adherence to contractual obligations. A review of their past federal awards and any publicly available performance evaluations would be necessary for a comprehensive assessment of their track record.

How does the $44.6 million contract value compare to similar management consulting services procured by CMS or HHS?

The $44.6 million contract value over five years for management consulting services is substantial but falls within the range of large-scale federal consulting engagements. To benchmark effectively, one would compare this award to other contracts for similar services (e.g., program management, strategic planning, operational improvement) awarded by CMS or other HHS divisions. Factors like contract duration, specific deliverables, and the level of expertise required influence pricing. For instance, contracts supporting major healthcare policy implementation or large-scale IT modernization efforts often exceed this value. Conversely, smaller, more focused consulting tasks would be significantly less. Without specific details on the 'Other Management Consulting Services' scope, a precise comparison is difficult, but it appears to be a significant investment indicative of a complex, long-term need.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risks with a CPFF contract of this magnitude ($44.6 million) revolve around cost control and ensuring the fixed fee remains appropriate for the work performed. The government bears the risk of cost overruns, as the contractor is reimbursed for all allowable costs. The fixed fee, however, is intended to incentivize efficiency. Key risks include: 1) Inadequate cost estimation by the contractor, leading to costs exceeding initial projections. 2) Potential for scope creep, where the contractor undertakes work beyond the original SOW, increasing costs without a corresponding adjustment to the fee. 3) Difficulty in accurately defining and measuring the contractor's performance against the fixed fee, potentially leading to disputes. Robust oversight, clear SOW, and diligent cost tracking are essential to mitigate these risks.

What is the expected impact of these management consulting services on CMS's operational effectiveness?

The expected impact of these management consulting services on CMS's operational effectiveness is likely to be significant, assuming the contractor, Comagine Health, delivers as per the Statement of Work. These services are intended to enhance program management, improve efficiency in service delivery, support policy implementation, and potentially identify cost-saving measures. By providing specialized expertise, the contractor can help CMS navigate complex healthcare regulations, optimize administrative processes, and adapt to evolving healthcare landscapes. The success will hinge on the clarity of the SOW, the contractor's ability to integrate with CMS personnel, and the agency's commitment to implementing the consultant's recommendations. Ultimately, improved operational effectiveness should translate to better outcomes for Medicare and Medicaid beneficiaries.

How has federal spending on 'Other Management Consulting Services' (NAICS 541618) trended in recent years, and how does this award fit?

Federal spending on 'Other Management Consulting Services' (NAICS 541618) has generally shown an upward trend over the past decade, reflecting the government's increasing reliance on external expertise to manage complex programs, implement new technologies, and navigate policy changes. Agencies like HHS, DOD, and GSA are major consumers. This $44.6 million award to Comagine Health fits within this trend, representing a significant, albeit specific, allocation within this broader category. It suggests a continued demand for specialized consulting support within the healthcare sector, particularly for agencies like CMS that manage vast and intricate healthcare programs. The award size indicates a substantial project, likely addressing critical operational or strategic needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: MEDICAL SERVICES › DEPENDENT MEDICARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75FCMC25RJ006

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10700 MERIDIAN N AVE STE 100, SEATTLE, WA, 98133

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: $44,589,393

Exercised Options: $44,589,393

Current Obligation: $44,589,393

Actual Outlays: $7,861,235

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75FCMC19D0051

IDV Type: IDC

Timeline