CMS awards $2.08M contract for payment standardization code services to Acumen LLC

Contract Overview

Contract Amount: $2,078,697 ($2.1M)

Contractor: Acumen LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-08

End Date: 2027-02-07

Contract Duration: 305 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: THE PURPOSE OF THIS COMMERCIAL ACQUISITION IS TO ACQUIRE PROFESSIONAL SERVICES FOR THE CENTERS FOR MEDICARE AND MEDICAID INNOVATION (INNOVATION CENTER) TO PRODUCE HIGH-QUALITY, FULLY ANNOTATED PAYMENT STANDARDIZATION CODE IN THE CMS ENVIRONMENT TO SU

Place of Performance

Location: BURLINGAME, SAN MATEO County, CALIFORNIA, 94010

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.1 million to ACUMEN LLC for work described as: THE PURPOSE OF THIS COMMERCIAL ACQUISITION IS TO ACQUIRE PROFESSIONAL SERVICES FOR THE CENTERS FOR MEDICARE AND MEDICAID INNOVATION (INNOVATION CENTER) TO PRODUCE HIGH-QUALITY, FULLY ANNOTATED PAYMENT STANDARDIZATION CODE IN THE CMS ENVIRONMENT TO SU Key points: 1. Contract focuses on producing high-quality, annotated payment standardization code within the CMS environment. 2. Acumen LLC, the contractor, will provide professional services for the Centers for Medicare and Medicaid Innovation. 3. The contract duration is 305 days, with an estimated completion date in February 2027. 4. This acquisition falls under Administrative Management and General Management Consulting Services. 5. The contract was awarded through full and open competition, indicating a competitive bidding process. 6. The total award amount is approximately $2.08 million.

Value Assessment

Rating: fair

The contract value of $2.08 million for 305 days of professional services appears to be within a reasonable range for specialized consulting in the healthcare IT sector. Benchmarking against similar contracts for coding and data standardization services would provide a clearer picture of value for money. Without specific details on the scope of work and deliverables, a precise value assessment is challenging, but the award amount does not immediately suggest overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. The number of bidders is not specified, but this procurement method generally fosters price discovery and allows the government to select the best value offer. The competitive nature of the award is a positive indicator for achieving fair market pricing.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for essential payment standardization code development.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Innovation (CMMI) in their efforts to standardize payment codes. Services delivered will result in high-quality, fully annotated payment standardization code. The geographic impact is primarily within the CMS environment, supporting federal healthcare initiatives. Workforce implications may involve specialized consultants with expertise in healthcare coding and data management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'fully annotated' is not precisely defined.
Reliance on a single contractor for critical code standardization could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Clear objective to produce high-quality, annotated code for payment standardization.
Defined contract period and estimated completion date provide project clarity.

Sector Analysis

This contract falls within the broader Health Information Technology (Health IT) and professional services sector, specifically focusing on data standardization and administrative management consulting. The market for healthcare data management and coding services is substantial, driven by regulatory requirements and the need for interoperability. Comparable spending benchmarks would involve other contracts for developing or maintaining coding systems, data dictionaries, or administrative process improvements within federal health agencies.

Small Business Impact

The data indicates this contract was awarded through full and open competition and does not specify any small business set-aside. Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Acumen LLC, may choose to subcontract portions of the work, potentially creating opportunities for small businesses if they possess the required expertise.

Oversight & Accountability

Oversight for this contract will likely be managed by the Centers for Medicare and Medicaid Services (CMS) through contract officers and technical representatives. Accountability measures are inherent in the contract terms, including performance standards and delivery schedules. Transparency is facilitated by the public nature of federal contract awards, though specific performance metrics and detailed annotations of the code produced may not be publicly disclosed.

Related Government Programs

Centers for Medicare and Medicaid Services (CMS) IT Modernization
Healthcare Data Standards Development
Payment Innovation Initiatives
Administrative Management Consulting Services

Risk Flags

Potential for performance issues if contractor lacks specific CMS coding expertise.
Risk of delays if annotation requirements are not clearly defined.
Dependence on a single contractor for critical code development.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.1 million to ACUMEN LLC. THE PURPOSE OF THIS COMMERCIAL ACQUISITION IS TO ACQUIRE PROFESSIONAL SERVICES FOR THE CENTERS FOR MEDICARE AND MEDICAID INNOVATION (INNOVATION CENTER) TO PRODUCE HIGH-QUALITY, FULLY ANNOTATED PAYMENT STANDARDIZATION CODE IN THE CMS ENVIRONMENT TO SU

Who is the contractor on this award?

The obligated recipient is ACUMEN LLC.

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 $2.1 million.

What is the period of performance?

Start: 2026-04-08. End: 2027-02-07.

What is the specific expertise Acumen LLC brings to payment standardization code development?

Acumen LLC is a professional services firm that provides management consulting and administrative support. While the provided data does not detail their specific past performance on payment standardization code development, their classification under NAICS code 541611 (Administrative Management and General Management Consulting Services) suggests they possess capabilities in areas such as process improvement, strategic planning, and operational efficiency. For this contract, their expertise would likely involve understanding healthcare payment systems, data structures, and the technical requirements for creating and annotating standardized codes within the CMS environment. Further investigation into their project portfolio and client testimonials would reveal the depth of their experience in this niche area.

How does the $2.08 million award compare to similar contracts for healthcare coding services?

Benchmarking the $2.08 million award for 305 days of service requires comparing it to contracts with similar scopes, such as developing, annotating, or maintaining healthcare coding systems (e.g., ICD-10, CPT, HCPCS) or payment standardization initiatives. The average cost for such specialized professional services can vary significantly based on complexity, duration, and the specific agency. Without access to a comprehensive database of comparable federal contracts for payment standardization code production, a precise comparison is difficult. However, for a project involving high-quality, fully annotated code within the CMS environment, this award appears to be within a plausible range, reflecting the specialized nature of the work and the expertise required.

What are the key performance indicators (KPIs) for this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, based on the contract's purpose, likely KPIs would revolve around the quality, accuracy, and completeness of the payment standardization code produced. This could include metrics such as the percentage of code fully annotated according to specified standards, the error rate in the generated code, adherence to timelines for deliverables, and the successful integration of the code into the CMS environment. The contract's success will ultimately be measured by its contribution to the Centers for Medicare and Medicaid Innovation's goals for payment standardization.

What is the historical spending pattern for payment standardization code services at CMS?

The provided data focuses on a single contract award and does not offer historical spending patterns for payment standardization code services at CMS. To assess historical spending, one would need to analyze past contracts awarded by CMS or its related entities (like CMMI) for similar services. This would involve searching federal procurement databases for contracts related to code development, data standardization, payment integrity, and healthcare informatics. Understanding the volume, value, and duration of previous contracts would reveal trends, identify key contractors, and provide context for the current $2.08 million award.

What are the potential risks associated with Acumen LLC's performance on this contract?

Potential risks associated with Acumen LLC's performance on this contract include challenges in meeting the stringent quality requirements for 'fully annotated' payment standardization code, especially within the complex CMS environment. There's also a risk of delays if the scope of annotation or the technical integration proves more challenging than anticipated. Furthermore, if Acumen LLC lacks specific, deep expertise in the nuances of CMS payment methodologies or coding standards, it could lead to suboptimal outcomes or require significant government oversight. The relatively short duration (305 days) also implies a need for rapid ramp-up and efficient execution to meet the project timeline.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75FCMC26Q0048

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 500 AIRPORT BLVD STE 100, BURLINGAME, CA, 94010

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

Financial Breakdown

Contract Ceiling: $2,500,000

Exercised Options: $2,078,697

Current Obligation: $2,078,697

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA25D002Q

IDV Type: FSS

Timeline