Leidos Federal Healthcare Inc. contract for medical bill processing performance valued at $56.9M
Contract Overview
Contract Amount: $56,935,886 ($56.9M)
Contractor: Leidos Federal Healthcare, Inc.
Awarding Agency: General Services Administration
Start Date: 2004-09-30
End Date: 2006-09-30
Contract Duration: 730 days
Daily Burn Rate: $78.0K/day
Number of Offers Received: 5
Pricing Type: TIME AND MATERIALS
Sector: Healthcare
Official Description: MEDICAL BILL PROCESSING PERFORMANCE WORKS STATEMENT
Place of Performance
Location: LANHAM, PRINCE GEORGE'S County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
General Services Administration obligated $56.9 million to LEIDOS FEDERAL HEALTHCARE, INC. for work described as: MEDICAL BILL PROCESSING PERFORMANCE WORKS STATEMENT Key points: 1. Contract awarded for medical bill processing services, indicating a need for efficient claims management. 2. The contract duration of 730 days suggests a medium-term commitment to these services. 3. Awarded under a Time and Materials pricing structure, which can pose cost control challenges. 4. The contract was awarded by the General Services Administration, a common contracting vehicle. 5. Performance work statement focuses on the operational aspects of medical billing. 6. The contract was awarded in 2004, reflecting historical spending patterns in healthcare administration.
Value Assessment
Rating: fair
The contract's value of $56.9 million over two years for medical bill processing is substantial. Without specific benchmarks for the volume of bills processed or the complexity of the services, a direct value-for-money assessment is difficult. Time and Materials contracts can sometimes lead to higher costs if not closely managed, as the contractor is reimbursed for labor hours and materials. Comparing this to similar contracts for medical bill processing services would require detailed data on scope and performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The competition level for this contract is not specified in the provided data. The number of bidders and the procurement method (e.g., full and open competition, sole-source) are crucial for understanding how the price was determined and if it reflects fair market value. A lack of transparency in the competition process can raise concerns about potential overpricing or suboptimal contractor selection.
Taxpayer Impact: The level of competition directly impacts taxpayer value. Robust competition typically drives down prices and encourages innovation, leading to better service at a lower cost. Limited or unknown competition may result in higher costs for taxpayers.
Public Impact
Beneficiaries include federal healthcare programs requiring efficient medical bill processing. Services delivered are critical for the financial operations of healthcare providers within the federal system. Geographic impact is likely nationwide, supporting federal healthcare operations across various locations. Workforce implications include roles in medical billing, claims processing, and administrative support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing structure may lead to cost overruns if not managed effectively.
- Lack of specified competition level raises questions about price discovery and potential for higher costs.
- Contract duration of two years is relatively short, potentially leading to frequent re-competition and transition costs.
Positive Signals
- Awarded by the General Services Administration, a reputable contracting agency.
- The contract addresses a core function (medical bill processing) essential for healthcare operations.
- The contract was awarded to Leidos Federal Healthcare, Inc., a known entity in the federal health sector.
Sector Analysis
This contract falls within the broader healthcare administration and IT services sector, specifically focusing on the financial processing aspects of medical services. The market for medical billing and claims processing is significant, with numerous private and public entities offering such services. This contract represents a portion of federal spending aimed at streamlining healthcare operations and ensuring accurate financial transactions within government healthcare programs. Benchmarking would involve comparing the cost per claim processed or the overall contract value against similar federal or large-scale private sector contracts.
Small Business Impact
The provided data does not indicate whether this contract included small business set-asides or subcontracting requirements. Analysis of small business participation is essential to understand the contract's impact on the small business ecosystem. Without this information, it's difficult to assess if opportunities were provided to small businesses or if subcontracting plans were in place to leverage their capabilities.
Oversight & Accountability
Oversight mechanisms for this contract would typically be managed by the contracting officers and program managers within the General Services Administration. Accountability measures would be tied to the performance work statement and the terms of the Time and Materials contract. Transparency assessment depends on the availability of contract details and performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Federal Healthcare IT Services
- Medical Claims Processing Contracts
- General Services Administration Contracts
- Health Information Management Systems
Risk Flags
- Time and Materials contract type
- Lack of specified competition details
- Potential for cost overruns without strict oversight
Tags
healthcare, medical-billing, claims-processing, general-services-administration, leidos-federal-healthcare, time-and-materials, federal-acquisition-service, maryland, health-it, administrative-services
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $56.9 million to LEIDOS FEDERAL HEALTHCARE, INC.. MEDICAL BILL PROCESSING PERFORMANCE WORKS STATEMENT
Who is the contractor on this award?
The obligated recipient is LEIDOS FEDERAL HEALTHCARE, INC..
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $56.9 million.
What is the period of performance?
Start: 2004-09-30. End: 2006-09-30.
What was the specific performance standard for medical bill processing under this contract, and how was it measured?
The provided data does not detail the specific performance standards or metrics used to evaluate the 'MEDICAL BILL PROCESSING PERFORMANCE WORKS STATEMENT'. Typically, such contracts would include metrics related to accuracy rates, turnaround times for claims processing, denial rates, and compliance with federal regulations. Performance would likely be assessed through regular reporting by Leidos Federal Healthcare, Inc. to the GSA contracting officer, potentially including audits and reviews of processed claims. Without the full performance work statement, a precise evaluation of performance against established benchmarks is not possible.
How does the $56.9 million contract value compare to other federal contracts for similar medical bill processing services awarded around the same period (2004-2006)?
Comparing the $56.9 million contract value requires access to a broader dataset of federal contracts for medical bill processing from the 2004-2006 timeframe. However, for a two-year contract, this value suggests a significant scope of work, potentially covering a large volume of claims or complex processing requirements for a specific federal agency or program. Contracts of this magnitude often involve extensive IT infrastructure, specialized personnel, and robust security protocols. Without comparative data on contract size, duration, and the specific services rendered by other contractors, it is challenging to definitively state whether this represents a high, low, or average value.
What were the primary risks associated with this Time and Materials contract, and how were they mitigated?
Time and Materials (T&M) contracts inherently carry risks of cost overruns, as the government pays for the actual labor hours and material costs incurred by the contractor, rather than a fixed price. This can lead to unpredictable expenditures if the scope of work expands or if labor hours are not efficiently managed. Mitigation strategies typically include establishing strong oversight, defining the level of effort (LOE) or ceiling prices, requiring detailed reporting of hours and materials, and implementing strict change control processes. The GSA would have been responsible for monitoring contractor performance and expenditures closely to ensure the contract remained within budget and delivered the intended value.
What was the track record of Leidos Federal Healthcare, Inc. (or its predecessor) in handling federal medical billing contracts prior to or during this period?
Leidos Federal Healthcare, Inc., and its predecessor entities, have a long history of providing services to the federal government, including in the healthcare sector. Prior to and during the 2004-2006 period, the company (often operating under different names like Lockheed Martin's health IT division before its acquisition by Leidos) was a significant contractor for various federal agencies, including the Department of Defense and the Department of Veterans Affairs. Their experience typically encompassed health IT, claims processing, and administrative support. A detailed review of their past performance records, including any past performance evaluations or contract awards from agencies like GSA, would be necessary to fully assess their track record specifically for medical bill processing during that era.
How did this contract contribute to the overall efficiency and effectiveness of federal healthcare administration during its term?
This contract aimed to enhance the efficiency and effectiveness of federal healthcare administration by outsourcing the critical function of medical bill processing. By leveraging the specialized capabilities of Leidos Federal Healthcare, Inc., federal agencies could potentially achieve faster claims adjudication, improved accuracy, and reduced administrative overhead compared to managing these functions entirely in-house. The success of the contract in contributing to overall efficiency would depend on the contractor's performance against the agreed-upon metrics in the Statement of Work, such as processing times, error rates, and cost savings realized. Effective bill processing is fundamental to the financial health and operational flow of healthcare systems.
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1 CURIE COURT, ROCKVILLE, MD, 08
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $62,091,718
Exercised Options: $62,091,718
Current Obligation: $56,935,886
Parent Contract
Parent Award PIID: GS07T00BGD0019
IDV Type: GWAC
Timeline
Start Date: 2004-09-30
Current End Date: 2006-09-30
Potential End Date: 2006-09-30 00:00:00
Last Modified: 2012-05-03
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