HHS awards $16.3M contract for National Responder Health Assessment and Treatment Services to OptumServe
Contract Overview
Contract Amount: $16,319,868 ($16.3M)
Contractor: Optumserve Health Services, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2008-06-01
End Date: 2010-09-30
Contract Duration: 851 days
Daily Burn Rate: $19.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Healthcare
Official Description: NATIONAL RESPONDER HEALTH ASSESSMENT AND TREATMENT SERVICES CONTRACT
Place of Performance
Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15236
Plain-Language Summary
Department of Health and Human Services obligated $16.3 million to OPTUMSERVE HEALTH SERVICES, INC. for work described as: NATIONAL RESPONDER HEALTH ASSESSMENT AND TREATMENT SERVICES CONTRACT Key points: 1. Contract awarded to OptumServe Health Services, Inc. 2. Total contract value is $16,319,867.70. 3. Contract duration is 851 days. 4. The NAICS code is 524114 (Direct Health and Medical Insurance Carriers). 5. The contract type is Cost Plus Fixed Fee.
Value Assessment
Rating: fair
The contract value of $16.3M over 851 days suggests a moderate per-day cost. Without specific service details or benchmarks for similar health assessment and treatment services, a precise value assessment is difficult. The Cost Plus Fixed Fee structure can lead to cost overruns if not managed carefully.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes competitive pricing and allows the government to select the most advantageous offer.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds were likely used efficiently, though the Cost Plus Fixed Fee structure warrants monitoring for potential cost escalations.
Public Impact
Ensures health assessment and treatment services for national responders. Supports public health infrastructure and emergency preparedness. Contract value contributes to the healthcare services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure may incentivize higher costs.
- Contract duration is significant, requiring ongoing oversight.
Positive Signals
- Awarded under full and open competition.
- Addresses critical health services for responders.
Sector Analysis
This contract falls within the healthcare services sector, specifically focusing on direct health and medical insurance carriers. The spending benchmark for this NAICS code can vary widely based on the specific services provided and the scale of operations.
Small Business Impact
The data indicates that the awardee is OptumServe Health Services, Inc., a large corporation. There is no explicit indication of small business participation in this specific contract award.
Oversight & Accountability
The contract's duration and Cost Plus Fixed Fee structure necessitate robust oversight from the Centers for Disease Control and Prevention to ensure cost control and adherence to service requirements. Regular performance reviews and financial audits are crucial.
Related Government Programs
- Direct Health and Medical Insurance Carriers
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Cost Plus Fixed Fee structure.
- Lack of specific performance metrics in provided data.
- Potential for cost overruns.
- Long contract duration requires sustained oversight.
Tags
direct-health-and-medical-insurance-carr, department-of-health-and-human-services, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $16.3 million to OPTUMSERVE HEALTH SERVICES, INC.. NATIONAL RESPONDER HEALTH ASSESSMENT AND TREATMENT SERVICES CONTRACT
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 (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $16.3 million.
What is the period of performance?
Start: 2008-06-01. End: 2010-09-30.
What specific health assessment and treatment services are covered under this contract, and how do they align with the needs of national responders?
The contract details for 'NATIONAL RESPONDER HEALTH ASSESSMENT AND TREATMENT SERVICES' would specify the scope of medical evaluations, diagnostic procedures, and treatment protocols provided. These services are crucial for ensuring the well-being of individuals responding to national emergencies or critical incidents, covering physical and mental health assessments, post-incident care, and ongoing health monitoring to mitigate long-term effects.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this service, and how are they mitigated?
The primary risk with CPFF is that the contractor may have less incentive to control costs, as the government covers allowable costs plus a fixed fee. Mitigation strategies include stringent cost accounting standards, detailed performance metrics, regular audits, and clear definitions of allowable costs to prevent overspending and ensure value for taxpayer money.
How does the $16.3 million contract value compare to similar health assessment and treatment services procured by federal agencies?
Benchmarking this $16.3 million contract requires comparing it against contracts for similar health assessment and treatment services for responder populations. Factors like the number of individuals served, the complexity of services, and the contract duration (851 days) are critical. Without specific comparative data, it's challenging to definitively state if this represents excellent or fair value, but it appears to be a substantial investment in responder health.
Industry Classification
NAICS: Finance and Insurance › Insurance Carriers › Direct Health and Medical Insurance Carriers
Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 2008N10358
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
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 Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $34,486,718
Exercised Options: $34,486,718
Current Obligation: $16,319,868
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2008-06-01
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2024-11-20
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