HHS Awards $45.5M Contract to Superior Health Quality Alliance for Management Consulting Services

Contract Overview

Contract Amount: $45,477,770 ($45.5M)

Contractor: Superior Health Quality Alliance 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: $24.6K/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: MADISON, DANE County, WISCONSIN, 53713

State: Wisconsin Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $45.5 million to SUPERIOR HEALTH QUALITY ALLIANCE 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 Superior Health Quality Alliance Inc. for management consulting. 2. The contract has a duration of 1852 days, ending in May 2030. 3. This is a Cost Plus Fixed Fee contract, indicating potential for cost overruns. 4. The North American Industry Classification System (NAICS) code is 541618, 'Other Management Consulting Services'.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to higher costs than fixed-price contracts 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, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms within a Cost Plus Fixed Fee structure warrant scrutiny.

Taxpayer Impact: Taxpayer funds are being used for management consulting services. The Cost Plus Fixed Fee structure requires careful oversight to ensure cost efficiency and prevent unnecessary expenditures.

Public Impact

Potential impact on healthcare quality improvement initiatives managed by CMS. The contract supports 'Other Management Consulting Services,' which could encompass a wide range of activities affecting federal programs. Long contract duration (over 5 years) suggests a sustained need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type
Long contract duration
Lack of specific service details

Positive Signals

Full and open competition
Awarded to a specific alliance, potentially indicating specialized expertise

Sector Analysis

This contract falls under management consulting services, a broad sector. Benchmarks for this type of service vary widely based on scope and complexity. The award amount is significant for a single contract in this category.

Small Business Impact

The data indicates the contract was not set aside for small businesses (sb: false). Therefore, small businesses were likely not the primary focus of this specific award, though they may be subcontractors.

Oversight & Accountability

The Cost Plus Fixed Fee structure necessitates robust oversight from the Centers for Medicare and Medicaid Services (CMS) to monitor costs, ensure performance, and prevent contractor overcharges. Regular audits and performance reviews are crucial.

Related Government Programs

Other Management Consulting Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Potential for cost overruns due to Cost Plus Fixed Fee structure.
Broad scope of 'Other Management Consulting Services' may lack specific performance targets.
Long contract duration could lead to evolving needs not fully captured in initial scope.
Lack of small business set-aside may limit broader economic impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $45.5 million to SUPERIOR HEALTH QUALITY ALLIANCE 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 SUPERIOR HEALTH QUALITY ALLIANCE 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 $45.5 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, and how do they align with CMS strategic goals?

The contract details are limited, but 'Other Management Consulting Services' (NAICS 541618) suggests support for operational efficiency, strategic planning, policy analysis, or program management within CMS. A clear articulation of how these services directly contribute to CMS's mission, such as improving healthcare quality or reducing costs, is essential for justifying the $45.5 million expenditure.

What are the key performance indicators (KPIs) and risk mitigation strategies for this Cost Plus Fixed Fee contract?

Given the Cost Plus Fixed Fee structure, defining clear KPIs is critical to measure contractor performance and control costs. Robust risk mitigation strategies should be in place to address potential cost overruns, scope creep, and performance deficiencies. Regular progress reviews and independent cost analyses will be vital for effective oversight.

How will the effectiveness of the management consulting services be measured to ensure value for taxpayer money?

Effectiveness should be measured against pre-defined, objective metrics tied to the specific consulting services rendered. This could include improvements in process efficiency, cost savings achieved, successful implementation of strategic initiatives, or enhanced program outcomes. Regular reporting and independent evaluations will be necessary to validate the value delivered.

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: 2909 LANDMARK PLACE, MADISON, WI, 53713

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: $45,477,770

Exercised Options: $45,477,770

Current Obligation: $45,477,770

Actual Outlays: $5,491,135

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $12,961,713

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75FCMC19D0057

IDV Type: IDC

Timeline