HHS Awards $69.3M Contract to OptumServe for Nationwide Provider Network
Contract Overview
Contract Amount: $69,346,474 ($69.3M)
Contractor: Optumserve Health Services, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2016-07-01
End Date: 2021-06-30
Contract Duration: 1,825 days
Daily Burn Rate: $38.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Healthcare
Official Description: IGF::OT::IGF:: WTCHP NATIONWIDE PROVIDER NETWORK
Place of Performance
Location: LA CROSSE, LA CROSSE County, WISCONSIN, 54601
Plain-Language Summary
Department of Health and Human Services obligated $69.3 million to OPTUMSERVE HEALTH SERVICES, INC. for work described as: IGF::OT::IGF:: WTCHP NATIONWIDE PROVIDER NETWORK Key points: 1. Contract awarded to OptumServe Health Services, Inc. for a nationwide provider network. 2. The contract, valued at $69.3 million, spans over five years. 3. Competition was full and open, suggesting potential for competitive pricing. 4. The sector is healthcare, specifically direct health and medical insurance carriers.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which typically drives better pricing and value for the government. The award was a definitive contract.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the services rendered.
Public Impact
Ensures access to a nationwide network of healthcare providers. Supports public health initiatives by facilitating provider engagement. Impacts beneficiaries of health programs managed by CDC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost escalation.
Positive Signals
- Full and open competition ensures a competitive bidding process.
- Long-term contract provides stability for provider network services.
Sector Analysis
This contract falls within the healthcare sector, specifically related to health insurance carriers. Spending in this area is significant due to the nature of public health services.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract.
Oversight & Accountability
The contract was awarded by the Centers for Disease Control and Prevention (CDC), a component of HHS. Oversight would involve monitoring performance and expenditures against the contract terms.
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
- Potential for cost overruns with Cost Plus Fixed Fee structure.
- Lack of specific performance metrics in provided data.
- No indication of small business participation.
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 $69.3 million to OPTUMSERVE HEALTH SERVICES, INC.. IGF::OT::IGF:: WTCHP NATIONWIDE PROVIDER NETWORK
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 $69.3 million.
What is the period of performance?
Start: 2016-07-01. End: 2021-06-30.
What specific services does the nationwide provider network encompass?
The contract details are limited, but the NAICS code 524114 suggests services related to direct health and medical insurance carriers. This likely includes establishing and managing a network of healthcare providers for specific public health programs administered by the CDC.
What are the key performance indicators (KPIs) for this contract?
Specific KPIs are not detailed in the provided data. However, for a nationwide provider network contract, typical KPIs would include network adequacy, provider participation rates, claims processing efficiency, and patient satisfaction with network access and quality of care.
How does this contract contribute to the CDC's overall mission?
This contract likely supports the CDC's mission by ensuring that individuals eligible for specific public health programs have access to necessary healthcare services through a robust and well-managed provider network. It facilitates the delivery of care and data collection for public health surveillance.
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
Offers Received: 1
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: $69,346,474
Exercised Options: $69,346,474
Current Obligation: $69,346,474
Actual Outlays: $1,172,545
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-07-01
Current End Date: 2021-06-30
Potential End Date: 2021-06-30 00:00:00
Last Modified: 2022-08-26
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