HHS Awards $3.1M Contract for Rapid Medical Exams to OptumServe Health Services

Contract Overview

Contract Amount: $3,061,463 ($3.1M)

Contractor: Optumserve Health Services, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-11-14

End Date: 2026-11-13

Contract Duration: 1,825 days

Daily Burn Rate: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: RAPID MEDICAL EXAMINATIONS FOR COMMISSIONED CORPS ACCESSIONS

Place of Performance

Location: LA CROSSE, LA CROSSE County, WISCONSIN, 54601

State: Wisconsin Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.1 million to OPTUMSERVE HEALTH SERVICES, INC. for work described as: RAPID MEDICAL EXAMINATIONS FOR COMMISSIONED CORPS ACCESSIONS Key points: 1. Contract awarded to OptumServe Health Services, Inc. for medical examinations. 2. The contract value is $3,061,463.09. 3. This is a definitive contract with a firm fixed price. 4. The contract falls under the 'All Other Miscellaneous Ambulatory Health Care Services' NAICS code. 5. The contract duration is 1825 days.

Value Assessment

Rating: fair

The contract value of $3.1M for medical examinations appears reasonable given the duration and scope. Benchmarking against similar contracts for accession medical services would provide a clearer assessment of value.

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. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing competitive pricing for essential medical examination services.

Public Impact

Ensures timely medical evaluations for commissioned corps accessions, supporting personnel readiness. Provides essential health services to maintain the integrity and operational capacity of the commissioned corps. Supports the Department of Health and Human Services' mission in personnel management and health oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or KPIs in the provided data.
Potential for cost overruns if scope expands beyond initial projections.
Dependence on a single vendor for a critical service.

Positive Signals

Firm fixed price contract limits cost uncertainty.
Full and open competition suggests a competitive market.
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on ambulatory health care. Spending in this area is critical for government personnel readiness and public health initiatives.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). Further analysis would be needed to determine if small businesses had an opportunity to participate in the full and open competition.

Oversight & Accountability

The contract is managed by the Office of the Assistant Secretary for Administration within HHS. Oversight would involve monitoring performance, adherence to terms, and financial accountability throughout the contract period.

Related Government Programs

All Other Miscellaneous Ambulatory Health Care Services
Department of Health and Human Services Contracting
Office of the Assistant Secretary for Administration Programs

Risk Flags

Potential for scope creep impacting cost.
Contractor performance risk over a long duration.
Dependence on a single vendor for critical health assessments.
Lack of detailed performance metrics in the provided summary.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.1 million to OPTUMSERVE HEALTH SERVICES, INC.. RAPID MEDICAL EXAMINATIONS FOR COMMISSIONED CORPS ACCESSIONS

Who is the contractor on this award?

The obligated recipient is OPTUMSERVE HEALTH SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $3.1 million.

What is the period of performance?

Start: 2021-11-14. End: 2026-11-13.

What specific medical services are included in 'Rapid Medical Examinations' and how do they align with accession requirements?

The contract specifies 'All Other Miscellaneous Ambulatory Health Care Services' (NAICS 621999). While the exact scope isn't detailed, these examinations are crucial for verifying the health status of individuals joining the Commissioned Corps, ensuring they meet the physical standards required for their roles and can perform their duties effectively without undue health risks.

What are the potential risks associated with a firm fixed-price contract for these services over a five-year period?

A firm fixed-price contract can pose risks if the scope of services or the cost of providing them significantly changes over the five-year term. If unforeseen medical complexities arise or the volume of examinations increases unexpectedly, the contractor might face financial strain, potentially impacting service quality or leading to requests for contract modifications. Conversely, the government risks overpaying if the contractor efficiently manages costs.

How does the government ensure the quality and effectiveness of the medical examinations provided under this contract?

Quality assurance is typically managed through contract performance monitoring by the contracting officer's representative (COR). This involves reviewing examination reports, potentially conducting audits, and ensuring compliance with established medical standards and protocols. The government likely has defined quality metrics and procedures for addressing any deficiencies identified in the contractor's service delivery.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › All Other Miscellaneous Ambulatory Health Care Services

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75P00122R00001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Unitedhealth Group Incorporated

Address: 328 FRONT ST S, LA CROSSE, WI, 54601

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,061,463

Exercised Options: $3,061,463

Current Obligation: $3,061,463

Actual Outlays: $1,904,110

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline