HHS awards $5.6M contract for Program Integrity Strategic Management Services to KPMG LLP

Contract Overview

Contract Amount: $5,606,051 ($5.6M)

Contractor: Kpmg LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2023-08-08

End Date: 2025-08-07

Contract Duration: 730 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PRB184 C 5197. PROGRAM INTEGRITY STRATEGIC MANAGEMENT SERVICES.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.6 million to KPMG LLP for work described as: PRB184 C 5197. PROGRAM INTEGRITY STRATEGIC MANAGEMENT SERVICES. Key points: 1. Contract focuses on enhancing program integrity within health services. 2. KPMG LLP, a large professional services firm, is the awardee. 3. The contract is a delivery order under a larger contract vehicle. 4. Performance period spans two years, indicating a medium-term engagement. 5. The award was made through full and open competition. 6. Fixed-price contract type suggests defined scope and predictable costs.

Value Assessment

Rating: good

The contract value of approximately $5.6 million over two years for strategic management services related to program integrity appears reasonable. Benchmarking against similar contracts for management consulting and strategic advisory services within federal health agencies suggests this pricing is within expected ranges. The fixed-price nature of the award provides cost certainty for the government, assuming the scope of work is well-defined and managed effectively. Further analysis would require detailed comparison of the specific services rendered against market rates for comparable expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of three bidders suggests a moderate level of competition for this specific delivery order. While three bidders is not exceptionally high, it does provide a basis for price discovery and allows the agency to select from multiple qualified firms. The agency's decision to use full and open competition is generally positive for ensuring a competitive marketplace.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Department of Health and Human Services (HHS) and its Health Resources and Services Administration (HRSA), which will receive strategic management support. The services delivered are expected to enhance the integrity of federal health programs, potentially reducing fraud, waste, and abuse. The geographic impact is national, as HRSA programs often have nationwide reach. Workforce implications include the engagement of specialized consultants from KPMG LLP, potentially augmenting government capacity in strategic planning and program integrity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if strategic objectives are not clearly defined upfront.
Reliance on external consultants may not build long-term internal capacity for program integrity management.
Effectiveness hinges on the clarity of HRSA's program integrity goals and the contractor's ability to align strategic advice.

Positive Signals

Award to a reputable firm (KPMG LLP) with demonstrated experience in professional services.
Fixed-price contract type helps control costs and manage budget predictability.
Full and open competition suggests a fair evaluation process and potential for value.
The contract duration of two years allows for focused strategic development and implementation.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting and strategic advisory services. The federal government is a significant consumer of these services to support policy development, program management, and operational efficiency. Comparable spending benchmarks for strategic management and program integrity consulting within HHS and other large federal agencies would typically range from hundreds of thousands to several million dollars annually, depending on the scope and duration.

Small Business Impact

This contract was awarded through full and open competition and does not appear to have a specific small business set-aside. The awardee, KPMG LLP, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem is likely minimal unless specific subcontracting opportunities arise from the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the program officials at the Health Resources and Services Administration (HRSA). As a delivery order under a larger contract vehicle, existing oversight mechanisms for that vehicle would also apply. Transparency is facilitated by public contract databases, but detailed performance metrics and internal reviews are typically not publicly disclosed. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract arise.

Related Government Programs

HHS Program Integrity Initiatives
HRSA Strategic Planning Contracts
Federal Management Consulting Services
Government Program Oversight Contracts

Risk Flags

Potential for vendor lock-in if strategic plans are highly proprietary.
Dependence on contractor expertise may limit internal knowledge transfer.
Effectiveness is contingent on strong government program management and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.6 million to KPMG LLP. PRB184 C 5197. PROGRAM INTEGRITY STRATEGIC MANAGEMENT SERVICES.

Who is the contractor on this award?

The obligated recipient is KPMG LLP.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Health Resources and Services Administration).

What is the total obligated amount?

The obligated amount is $5.6 million.

What is the period of performance?

Start: 2023-08-08. End: 2025-08-07.

What is KPMG LLP's track record with federal health agencies, particularly HHS?

KPMG LLP has a significant track record of providing professional services to federal agencies, including HHS. Their services often encompass financial management, audit, advisory, and IT solutions. Within HHS, they have likely engaged in contracts related to program integrity, financial systems modernization, and strategic planning. While specific details of past performance on similar program integrity contracts are not provided here, their status as a major professional services firm suggests they possess the requisite expertise and experience. A deeper dive into contract databases like FPDS or SAM.gov would reveal the extent and nature of their prior work with HHS and HRSA, including performance evaluations and any past issues.

How does the $5.6 million value compare to similar program integrity consulting contracts?

The $5.6 million value for a two-year contract focused on strategic management for program integrity is within a reasonable range for federal consulting engagements of this nature. Similar contracts awarded by agencies like CMS (Centers for Medicare & Medicaid Services) or other HHS components for strategic planning, policy analysis, or program integrity support can range from several hundred thousand to millions of dollars annually, depending on the scope, duration, and complexity. Factors influencing cost include the level of expertise required, the number of personnel involved, and the specific deliverables. Without knowing the precise scope of work, it's difficult to provide an exact benchmark, but the award appears to be a moderate-sized engagement for specialized advisory services.

What are the key risks associated with this contract, and how are they mitigated?

Key risks include the potential for the contractor's strategic recommendations to be misaligned with HRSA's operational realities, leading to ineffective implementation. Another risk is the contractor's ability to truly understand the nuances of federal healthcare program integrity, which is complex and constantly evolving. Furthermore, there's a risk of scope creep if the strategic objectives are not tightly defined and managed. Mitigation strategies likely involve clear performance work statements, regular progress reviews between HRSA and KPMG, defined key performance indicators (KPIs), and strong government oversight. The fixed-price nature also incentivizes the contractor to manage scope effectively to maintain profitability.

How effective is the 'full and open competition' approach for securing value in this type of specialized service?

Full and open competition is generally considered the most effective method for securing value in specialized services like strategic management consulting, as it maximizes the pool of potential offerors and encourages competitive pricing. In this case, with three bidders, the agency had options to compare proposals and pricing. However, the effectiveness also depends on the quality of the solicitation (RFP) and the evaluation criteria used. If the RFP clearly articulates the agency's needs and the evaluation process fairly assesses both technical approach and price, full and open competition can yield significant value. The limited number of bidders (three) suggests that while competitive, the market for this specific niche might not be vast, or perhaps other firms chose not to bid.

What is the historical spending trend for program integrity strategic management services at HRSA or similar agencies?

Historical spending on program integrity strategic management services within HRSA and similar federal health agencies has generally trended upwards over the past decade, driven by increased focus on combating fraud, waste, and abuse in federal healthcare programs. Agencies are increasingly investing in strategic planning and advanced analytics to proactively identify vulnerabilities and improve program oversight. While specific historical data for HRSA's strategic management contracts in this area isn't provided, broader trends indicate a sustained or growing demand for such expertise. This $5.6 million award aligns with this trend of investing in strategic capabilities to safeguard federal health dollars.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8350 BROAD ST STE 900, MC LEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $5,606,051

Exercised Options: $5,606,051

Current Obligation: $5,606,051

Actual Outlays: $5,606,051

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00F275CA

IDV Type: FSS

Timeline