HHS awards $46.9M to OptumServe for National Responder Health Care Program
Contract Overview
Contract Amount: $46,884,572 ($46.9M)
Contractor: Optumserve Health Services, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2010-09-30
End Date: 2016-06-30
Contract Duration: 2,100 days
Daily Burn Rate: $22.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Healthcare
Official Description: TAS::75 0943::TAS WTC NATIONAL RESPONDER HEALTH CARE PROGRAM
Place of Performance
Location: LA CROSSE, LA CROSSE County, WISCONSIN, 54601
Plain-Language Summary
Department of Health and Human Services obligated $46.9 million to OPTUMSERVE HEALTH SERVICES, INC. for work described as: TAS::75 0943::TAS WTC NATIONAL RESPONDER HEALTH CARE PROGRAM Key points: 1. Contract awarded to OptumServe Health Services, Inc. for health care services. 2. The contract falls under the Direct Health and Medical Insurance Carriers sector. 3. Full and open competition was utilized for this award. 4. The contract duration was 2100 days, ending in June 2016. 5. A significant portion of the award value was obligated.
Value Assessment
Rating: fair
The contract value of $46.9M over approximately 5.75 years suggests a moderate annual spend. Benchmarking against similar direct health and medical insurance carrier contracts would be necessary to fully assess pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. However, the specific pricing structure (Cost Plus Fixed Fee) can sometimes lead to cost overruns if not managed closely.
Taxpayer Impact: Taxpayer funds were used for health and medical insurance services, with the effectiveness of competition influencing the final cost.
Public Impact
Provides essential health and medical insurance services to national responders. Supports the well-being and healthcare needs of a critical workforce. Ensures access to medical care through a contracted service provider.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Contract duration is long, potentially leading to scope creep or outdated services.
Positive Signals
- Full and open competition utilized.
- Awarded by a major federal agency (HHS).
Sector Analysis
This contract falls within the Direct Health and Medical Insurance Carriers sector, which is a significant area of federal spending. Benchmarks for this sector often relate to per-member-per-month costs or overall program administration expenses.
Small Business Impact
The data does not indicate any specific set-asides or participation from small businesses in this contract award.
Oversight & Accountability
Oversight would typically be managed by the Centers for Disease Control and Prevention (CDC) to ensure service delivery and cost control. The contract type and duration warrant close monitoring.
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 contract type.
- Long contract duration.
- Potential for unmanaged costs.
- Lack of specific performance metrics in summary data.
Tags
direct-health-and-medical-insurance-carr, department-of-health-and-human-services, wi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $46.9 million to OPTUMSERVE HEALTH SERVICES, INC.. TAS::75 0943::TAS WTC NATIONAL RESPONDER HEALTH CARE PROGRAM
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 $46.9 million.
What is the period of performance?
Start: 2010-09-30. End: 2016-06-30.
What was the specific scope of services provided under this contract, and how did it align with the needs of national responders?
The contract was for the National Responder Health Care Program, managed by the CDC. While the exact scope isn't detailed here, it likely encompassed medical insurance and direct healthcare services for individuals involved in national response efforts. Understanding the specific benefits and provider network is key to assessing its value.
Were there any identified cost overruns or performance issues given the Cost Plus Fixed Fee structure and contract duration?
The provided data does not detail cost overruns or performance issues. However, Cost Plus Fixed Fee contracts inherently carry a risk of increased costs if the fixed fee is not adequately justified by the scope and effort. Close monitoring by HHS would have been crucial to mitigate this risk.
How effective was the full and open competition in achieving competitive pricing for these specialized health services?
Full and open competition is generally effective in driving competitive pricing. The success in this case would depend on the number and quality of bids received, the clarity of the solicitation, and the government's negotiation strategy. Without bid data, it's difficult to definitively assess the pricing outcome.
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: 2010N12135
Offers Received: 2
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 Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $56,188,877
Exercised Options: $56,188,877
Current Obligation: $46,884,572
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2010-09-30
Current End Date: 2016-06-30
Potential End Date: 2016-06-30 00:00:00
Last Modified: 2024-12-20
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