HHS Awards $31.5M Contract for Management Consulting Services to Island Peer Review Organization Inc
Contract Overview
Contract Amount: $31,507,904 ($31.5M)
Contractor: Island Peer Review Organization Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2025-05-01
End Date: 2030-05-27
Contract Duration: 1,852 days
Daily Burn Rate: $17.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: THE CONTRACTOR SHALL FURNISH THE NECESSARY PERSONNEL, MATERIALS, SERVICES, EQUIPMENT, AND FACILITIES (EXCEPT AS OTHERWISE SPECIFIED HEREIN), AND OTHERWISE DO ALL THE THINGS NECESSARY FOR OR INCIDENT TO THE PERFORMANCE OF THE WORK AS SET FORTH IN THE
Place of Performance
Location: NEW HYDE PARK, NASSAU County, NEW YORK, 11042
State: New York Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $31.5 million to ISLAND PEER REVIEW ORGANIZATION INC for work described as: THE CONTRACTOR SHALL FURNISH THE NECESSARY PERSONNEL, MATERIALS, SERVICES, EQUIPMENT, AND FACILITIES (EXCEPT AS OTHERWISE SPECIFIED HEREIN), AND OTHERWISE DO ALL THE THINGS NECESSARY FOR OR INCIDENT TO THE PERFORMANCE OF THE WORK AS SET FORTH IN THE Key points: 1. The contract is for 'Other Management Consulting Services' valued at $31.5 million. 2. Awarded to Island Peer Review Organization Inc., based in New York. 3. The contract spans approximately 5 years, from May 2025 to May 2030. 4. This is a Cost Plus Fixed Fee contract type. 5. The contract was awarded under full and open competition.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar management consulting contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The total value of $31.5 million over five years represents a significant taxpayer investment in management consulting services for CMS.
Public Impact
Impacts Centers for Medicare and Medicaid Services (CMS) operations and potentially healthcare policy implementation. The duration of the contract suggests a long-term need for these consulting services. Potential for improved efficiency or effectiveness in CMS programs through expert advice.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Long contract duration may not adapt to changing needs.
- Lack of specific service details makes value assessment difficult.
Positive Signals
- Awarded under full and open competition.
- Contractor is an established organization (Island Peer Review Organization Inc.).
- Clear start and end dates provide planning certainty.
Sector Analysis
This contract falls under 'Other Management Consulting Services,' a broad category. Spending in this sector can vary widely depending on agency needs, but typically supports strategic planning, operational improvements, and policy analysis.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight will be crucial to ensure the contractor delivers value and stays within the fixed fee, especially given the Cost Plus Fixed Fee structure. The Centers for Medicare and Medicaid Services (CMS) will need robust monitoring mechanisms.
Related Government Programs
- Other Management Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Cost Plus Fixed Fee structure
- Vague service description
- Long contract duration
- Potential for cost overruns
- Limited insight into specific deliverables
Tags
other-management-consulting-services, department-of-health-and-human-services, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $31.5 million to ISLAND PEER REVIEW ORGANIZATION INC. THE CONTRACTOR SHALL FURNISH THE NECESSARY PERSONNEL, MATERIALS, SERVICES, EQUIPMENT, AND FACILITIES (EXCEPT AS OTHERWISE SPECIFIED HEREIN), AND OTHERWISE DO ALL THE THINGS NECESSARY FOR OR INCIDENT TO THE PERFORMANCE OF THE WORK AS SET FORTH IN THE
Who is the contractor on this award?
The obligated recipient is ISLAND PEER REVIEW ORGANIZATION INC.
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 $31.5 million.
What is the period of performance?
Start: 2025-05-01. End: 2030-05-27.
What specific management consulting services will be provided under this contract?
The contract description is very general, stating 'Other Management Consulting Services.' Without specific details on the scope of work, it's impossible to assess the necessity or potential effectiveness of these services. Understanding the deliverables and objectives is key to evaluating the contract's value beyond its monetary amount.
What are the risks associated with a Cost Plus Fixed Fee contract for these services?
Cost Plus Fixed Fee contracts carry the risk that the contractor may not be sufficiently incentivized to control costs, as their fee is fixed regardless of the actual expenses incurred. This could lead to the government paying more than necessary if costs escalate beyond initial projections. Robust oversight is essential to mitigate this risk.
How will the effectiveness of the consulting services be measured?
The effectiveness of these consulting services will depend on the establishment of clear performance metrics and key performance indicators (KPIs) within the contract's statement of work. Regular reviews and assessments by CMS will be necessary to track progress against defined objectives and ensure the services are delivering the intended value and impact.
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: 75FCMC25RJ019
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1979 MARCUS AVE STE 105, NEW HYDE PARK, NY, 11042
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: $31,507,904
Exercised Options: $31,507,904
Current Obligation: $31,507,904
Actual Outlays: $3,457,422
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75FCMC19D0029
IDV Type: IDC
Timeline
Start Date: 2025-05-01
Current End Date: 2030-05-27
Potential End Date: 2030-05-27 00:00:00
Last Modified: 2025-11-25
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