HHS Awards $73.7M Management Consulting Contract to Telligen, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $73,700,615 ($73.7M)
Contractor: Telligen, 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: $39.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
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: WEST DES MOINES, POLK County, IOWA, 50266
State: Iowa Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $73.7 million to TELLIGEN, 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. Contract awarded to Telligen, Inc. for management consulting services. 2. The contract has a total value of $73.7 million. 3. Competition method is 'Full and Open', suggesting broad market participation. 4. The sector is primarily 'Other Management Consulting Services'.
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 under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive bidding environment.
Public Impact
Potential impact on healthcare policy and administration through consulting services. Citizens may benefit from improved efficiency in Medicare and Medicaid services. Transparency in government contracting is maintained through open competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type may incentivize higher costs.
- Lack of specific service details makes per-unit cost benchmarking difficult.
Positive Signals
- Awarded under full and open competition.
- Long-term contract duration (approx. 5 years) provides stability.
Sector Analysis
This contract falls under 'Other Management Consulting Services', a broad category. Benchmarks for this specific sub-sector are hard to define without more granular data on the services provided by Telligen, Inc.
Small Business Impact
The data indicates that small business participation was not a stated factor in this award (sb: false). Further analysis would be needed to determine if small businesses were subcontractors or excluded from the primary award.
Oversight & Accountability
The Centers for Medicare and Medicaid Services (CMS) is responsible for overseeing this contract. The contract's duration and value suggest a need for robust oversight to ensure performance and cost control.
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 contract type.
- Broad 'Other Management Consulting Services' category lacks specificity.
- No explicit mention of small business utilization.
- Long contract duration requires sustained oversight.
Tags
other-management-consulting-services, department-of-health-and-human-services, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $73.7 million to TELLIGEN, 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 TELLIGEN, 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 $73.7 million.
What is the period of performance?
Start: 2025-05-01. End: 2030-05-27.
What specific management consulting services will Telligen, Inc. provide to CMS, and how do these align with CMS's strategic goals?
The provided data lacks specifics on the exact services. However, given the agency (CMS) and the broad category ('Other Management Consulting Services'), Telligen likely provides expertise in areas such as operational efficiency, policy analysis, program management, or strategic planning to support Medicare and Medicaid programs. Alignment with CMS goals would depend on the detailed statement of work.
What are the potential risks associated with a Cost Plus Fixed Fee contract for management consulting services, and how can they be mitigated?
CPFF contracts carry the risk of cost overruns if the contractor's costs exceed estimates, as the government pays actual costs plus a fixed fee. Mitigation strategies include stringent cost monitoring, clear performance metrics, and well-defined scope to prevent scope creep. Regular audits and performance reviews are crucial.
How does the 'full and open competition' award method ensure the best value for taxpayers in this $73.7 million contract?
Full and open competition allows any interested and qualified vendor to submit a bid, fostering a competitive environment. This typically drives down prices and encourages innovation, enabling the government to select the offer that provides the best combination of cost, technical merit, and other factors, thus maximizing taxpayer value.
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: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1776 WEST LAKES PKWY, WEST DES MOINES, IA, 50266
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $73,700,615
Exercised Options: $73,700,615
Current Obligation: $73,700,615
Actual Outlays: $4,542,259
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75FCMC19D0058
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: 2025-11-26
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