HHS awards $2M contract for Medicare Advantage financial audits, highlighting a need for robust oversight

Contract Overview

Contract Amount: $1,999,088 ($2.0M)

Contractor: Myers & Stauffer LC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-25

End Date: 2026-09-24

Contract Duration: 364 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ATTESTATION ENGAGEMENTS FOR THE FINANCIAL INFORMATION OF MEDICARE ADVANTAGE ORGANIZATIONS (MAOS) AND PRESCRIPTION DRUG PLANS (PDPS) - ONE THIRD FINANCIAL AUDITS.

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64112

State: Missouri Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.0 million to MYERS & STAUFFER LC for work described as: ATTESTATION ENGAGEMENTS FOR THE FINANCIAL INFORMATION OF MEDICARE ADVANTAGE ORGANIZATIONS (MAOS) AND PRESCRIPTION DRUG PLANS (PDPS) - ONE THIRD FINANCIAL AUDITS. Key points: 1. Contract focuses on critical financial attestations for Medicare Advantage Organizations and Prescription Drug Plans. 2. The award signifies a commitment to ensuring the financial integrity of vital healthcare programs. 3. Competition was full and open, suggesting a healthy market for these specialized audit services. 4. The fixed-price contract type aims to provide cost certainty for the government. 5. This engagement is crucial for maintaining public trust in Medicare's financial operations. 6. The duration of one year indicates a need for ongoing, regular financial scrutiny.

Value Assessment

Rating: good

The contract value of approximately $2 million for a one-year period for financial attestations appears reasonable given the specialized nature of auditing Medicare Advantage Organizations and Prescription Drug Plans. Benchmarking against similar contracts for these specific services is challenging without more granular data on the scope of work and the size of the entities being audited. However, the fixed-price nature of the contract suggests an effort to control costs and ensure value for money by defining the total cost upfront.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This approach typically fosters a competitive environment, encouraging bidders to offer competitive pricing and high-quality services to win the contract. The specific number of bidders is not provided, but the open competition suggests a sufficient number to ensure price discovery and a fair market assessment.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring that the government secures services at a fair market price, maximizing the value of public funds.

Public Impact

Beneficiaries of Medicare Advantage and Prescription Drug Plans benefit from increased assurance of the financial stability and integrity of their plans. The Centers for Medicare and Medicaid Services (CMS) receives critical audit services to fulfill its oversight responsibilities. The contract supports the financial auditing sector, particularly firms specializing in healthcare finance. The geographic impact is national, as it pertains to the oversight of Medicare Advantage and Prescription Drug Plans across the United States.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased audit scope creep if not clearly defined in the Statement of Work.
Reliance on a single contractor for a critical function could pose a risk if performance issues arise.

Positive Signals

Award to a qualified firm (MYERS & STAUFFER LC) with demonstrated expertise in government audits.
Use of a fixed-price contract type to manage cost expectations.
Full and open competition suggests a robust selection process.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on accounting and auditing services. The market for these services is competitive, with a number of firms specializing in government contracts and healthcare finance. The total federal spending on auditing and accounting services is substantial, reflecting the government's need for independent verification of financial operations across various agencies and programs. This specific contract addresses a niche but critical area within the healthcare sector's financial oversight.

Small Business Impact

The data indicates that 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 this specific award. The primary contractor, MYERS & STAUFFER LC, is likely a larger firm specializing in this niche. The absence of a small business set-aside means that opportunities for small businesses in this particular contract are limited.

Oversight & Accountability

Oversight for this contract will be managed by the Centers for Medicare and Medicaid Services (CMS), likely through contract officers and technical monitors who will ensure adherence to the terms of the agreement and the quality of the attestations. Transparency is facilitated through the federal procurement system, where contract awards are publicly reported. While specific Inspector General (IG) jurisdiction for this particular engagement isn't detailed, the HHS OIG generally has oversight over programs administered by CMS, including financial management and audit functions.

Related Government Programs

Medicare Advantage Program Audits
Prescription Drug Plan Financial Oversight
HHS Financial Statement Audits
Federal Audit Services

Risk Flags

Potential for performance issues impacting audit quality.
Risk of cost overruns if contract scope is not tightly managed (though mitigated by fixed-price).
Dependence on contractor expertise for critical financial oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.0 million to MYERS & STAUFFER LC. ATTESTATION ENGAGEMENTS FOR THE FINANCIAL INFORMATION OF MEDICARE ADVANTAGE ORGANIZATIONS (MAOS) AND PRESCRIPTION DRUG PLANS (PDPS) - ONE THIRD FINANCIAL AUDITS.

Who is the contractor on this award?

The obligated recipient is MYERS & STAUFFER LC.

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 $2.0 million.

What is the period of performance?

Start: 2025-09-25. End: 2026-09-24.

What is the track record of MYERS & STAUFFER LC in performing similar financial attestations for federal healthcare programs?

MYERS & STAUFFER LC is a well-established public accounting firm with extensive experience in government auditing, particularly within the healthcare sector. They frequently serve state and federal agencies, including CMS, providing services such as audits of Medicare and Medicaid programs, financial statement audits, and compliance services. Their specialization in healthcare finance and government regulations suggests a strong capability to perform the required attestations for Medicare Advantage Organizations and Prescription Drug Plans. Public records and past performance reviews would offer further insight into their specific track record on similar engagements, including timeliness, quality of deliverables, and client satisfaction.

How does the awarded amount of approximately $2 million compare to previous spending on similar attestations by CMS?

To accurately benchmark the $2 million award, a detailed analysis of historical spending on similar attestations by CMS would be necessary. This would involve identifying prior contracts for financial attestations of Medicare Advantage Organizations (MAOs) and Prescription Drug Plans (PDPs), noting their duration, scope, and awarded values. Factors such as inflation, changes in regulatory requirements, and the number or size of entities being audited can significantly influence year-over-year spending. Without access to this specific historical data, it's difficult to definitively state whether this award represents an increase, decrease, or stable spending trend. However, the fixed-price nature suggests an effort to contain costs within a defined budget for the one-year period.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential inaccuracies in the financial attestations, which could undermine the integrity of Medicare Advantage and Prescription Drug Plan financial reporting. Another risk is the contractor's performance not meeting the required standards or deadlines, potentially delaying critical oversight. Furthermore, reliance on a single firm for a specific set of audits could pose a risk if the firm encounters unforeseen issues. Mitigation strategies likely include robust contract oversight by CMS, clear performance standards in the contract, regular progress reviews, and potentially requiring the contractor to maintain adequate professional liability insurance. The competitive bidding process also serves as a risk mitigation by selecting a qualified firm.

How effective are these attestations in ensuring the financial health and compliance of Medicare Advantage Organizations and Prescription Drug Plans?

Financial attestations are a cornerstone of ensuring the financial health and compliance of Medicare Advantage Organizations (MAOs) and Prescription Drug Plans (PDPs). These independent audits provide assurance to CMS and the public that the financial statements presented by these entities are free from material misstatement and comply with relevant regulations. By scrutinizing revenue, expenses, assets, and liabilities, attestations help detect potential fraud, mismanagement, or non-compliance, which could jeopardize the solvency of the plans or lead to improper payments. The effectiveness hinges on the quality of the audit work performed and the rigor of the standards applied. Regular attestations contribute to a system of accountability that is vital for the sustainability of these critical healthcare programs.

What is the typical duration and value range for contracts related to financial attestations of MAOs and PDPs?

Contracts for financial attestations of Medicare Advantage Organizations (MAOs) and Prescription Drug Plans (PDPs) typically have a duration of one year, often with options for renewal, reflecting the annual nature of financial reporting and auditing cycles. The value range can vary significantly based on the number and size of the entities being audited, the complexity of their operations, and the specific scope of work required by CMS. While this contract is valued at approximately $2 million for a one-year term, other similar contracts could range from several hundred thousand dollars to several million dollars annually, depending on these factors. The 'one third financial audits' mentioned in the description suggests this award might cover a portion of the total audit needs for a given period.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 700 W 47TH ST, KANSAS CITY, MO, 64112

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,999,088

Exercised Options: $1,999,088

Current Obligation: $1,999,088

Actual Outlays: $399,817

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75FCMC22A0027

IDV Type: BPA

Timeline