HHS Awards $23.3M Contract for Medicare Appeals to C2C Innovative Solutions
Contract Overview
Contract Amount: $23,352,802 ($23.4M)
Contractor: C2C Innovative Solutions, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2006-09-30
End Date: 2009-12-31
Contract Duration: 1,188 days
Daily Burn Rate: $19.7K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 22
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: MEDICARE 2ND LEVEL OF APPEALS
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32202
State: Florida Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $23.4 million to C2C INNOVATIVE SOLUTIONS, INC. for work described as: MEDICARE 2ND LEVEL OF APPEALS Key points: 1. Contract Value: $23.3 million over 3 years. 2. Competition: Awarded via competitive delivery order. 3. Risk: Moderate risk due to cost-plus fixed fee structure. 4. Sector: Administrative Management and General Management Consulting Services.
Value Assessment
Rating: fair
The contract uses a Cost Plus Fixed Fee (CPFF) pricing structure, which can lead to higher costs if not carefully managed. Benchmarking against similar administrative support contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was awarded through a competitive delivery order, suggesting multiple vendors were considered. However, the CPFF structure may not be the most price-efficient for this type of service.
Taxpayer Impact: Taxpayer funds are being used for administrative support services. The CPFF structure necessitates robust oversight to ensure cost-effectiveness and prevent overspending.
Public Impact
Ensures continued processing of Medicare appeals, impacting beneficiaries. Supports the administrative functions of the Centers for Medicare and Medicaid Services. Potential for cost overruns due to CPFF pricing model. Contract duration of nearly 3 years indicates a significant operational need.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee pricing
- Potential for scope creep
- Limited transparency on specific cost drivers
Positive Signals
- Competitive award process
- Established contract duration
- Supports critical government function
Sector Analysis
This contract falls within the professional services sector, specifically administrative and management consulting. Spending in this area is common for government agencies needing specialized support for complex operations like Medicare appeals.
Small Business Impact
The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Centers for Medicare and Medicaid Services (CMS) is responsible for oversight. The CPFF structure requires diligent monitoring of costs and performance to ensure accountability and value for taxpayer money.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Cost Plus Fixed Fee pricing structure
- Potential for cost overruns
- Limited detail on performance metrics
- Contract duration of nearly 3 years
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $23.4 million to C2C INNOVATIVE SOLUTIONS, INC.. MEDICARE 2ND LEVEL OF APPEALS
Who is the contractor on this award?
The obligated recipient is C2C INNOVATIVE SOLUTIONS, INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $23.4 million.
What is the period of performance?
Start: 2006-09-30. End: 2009-12-31.
What is the specific value proposition of C2C Innovative Solutions for Medicare appeals processing?
The specific value proposition is not detailed in the provided data. However, as a provider of administrative management and general management consulting services, C2C likely offers expertise in streamlining complex administrative processes, managing large volumes of cases, and ensuring compliance with regulations, contributing to the efficient functioning of the Medicare appeals system.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) pricing structure in this contract?
The primary risks of a CPFF structure include potential cost overruns if the contractor's actual costs exceed estimates, reduced incentive for the contractor to control costs, and a greater burden on the government to meticulously track and audit expenses. This can lead to less predictable final costs for the taxpayer compared to fixed-price contracts.
How effective is the competitive delivery order process in ensuring optimal pricing for these services?
A competitive delivery order process is generally effective in fostering price discovery and ensuring a reasonable price, as multiple vendors compete. However, the effectiveness is tempered by the CPFF pricing model, which inherently introduces cost uncertainty. While competition drives initial bids, ongoing cost management remains crucial for overall effectiveness and value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: RFPQIC040001
Offers Received: 22
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 301 W BAY ST 6TH FL, JACKSONVILLE, FL, 32202
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,352,802
Exercised Options: $23,352,802
Current Obligation: $23,352,802
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSM500200400005I
IDV Type: IDC
Timeline
Start Date: 2006-09-30
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2024-06-13
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