HHS Awards $32.3M for ZONE 7 MEDI-MEDI Task Order to Safeguard Services LLC

Contract Overview

Contract Amount: $32,332,429 ($32.3M)

Contractor: Safeguard Services LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2008-09-30

End Date: 2018-05-31

Contract Duration: 3,530 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: ZONE 7 MEDI-MEDI TASK ORDER

Place of Performance

Location: PLANO, COLLIN County, TEXAS, 75024

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $32.3 million to SAFEGUARD SERVICES LLC for work described as: ZONE 7 MEDI-MEDI TASK ORDER Key points: 1. The contract value is $32.3 million, awarded to Safeguard Services LLC. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is substantial, spanning from September 2008 to May 2018. 4. The NAICS code 561440 indicates the primary industry is Collection Agencies.

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed carefully. Without specific performance metrics and award fee criteria, it's difficult to definitively assess value for money compared to fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders were likely considered. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The $32.3 million awarded represents taxpayer funds allocated for collection agency services, the efficiency of which impacts overall return on investment.

Public Impact

This contract supports the Centers for Medicare and Medicaid Services (CMS) in its collection efforts. The long duration suggests a sustained need for these collection services. The use of a Cost Plus Award Fee contract type implies performance-based incentives were intended.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can incentivize cost overruns if not properly monitored.
Long contract durations may not always reflect the most current market pricing.
Lack of specific performance data makes it hard to gauge effectiveness.

Positive Signals

Full and open competition suggests a robust market was tapped.
The contract addresses a critical function for CMS: revenue collection.
The award fee structure, if well-designed, can drive performance.

Sector Analysis

The contract falls under the Collection Agencies sector (NAICS 561440). Spending in this sector is driven by government needs for debt recovery and accounts receivable management, with benchmarks varying based on the complexity and volume of debt.

Small Business Impact

The data indicates the awardee is SAFEGUARD SERVICES LLC, and the 'sb' field is false, suggesting this was not set aside for small businesses.

Oversight & Accountability

The contract was awarded by the Department of Health and Human Services (HHS) through CMS. Oversight would typically involve monitoring performance against award fee criteria and ensuring compliance with contract terms.

Related Government Programs

Collection Agencies
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Potential for cost overruns with CPAF contract type.
Long contract duration may not reflect current market efficiencies.
Lack of specific performance metrics in the provided data.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $32.3 million to SAFEGUARD SERVICES LLC. ZONE 7 MEDI-MEDI TASK ORDER

Who is the contractor on this award?

The obligated recipient is SAFEGUARD SERVICES LLC.

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 $32.3 million.

What is the period of performance?

Start: 2008-09-30. End: 2018-05-31.

What was the specific performance achieved under the Cost Plus Award Fee structure that justified the awarded fees?

The effectiveness of the Cost Plus Award Fee (CPAF) structure hinges on clearly defined performance metrics and achievable award fee criteria. Without access to the specific performance data and the agency's assessment of Safeguard Services LLC against those criteria, it's impossible to determine if the fees paid were justified by exceptional performance or simply met minimum requirements. A thorough review would involve examining the contract's statement of work, the established metrics, and the agency's documented evaluations.

How did the pricing from Safeguard Services LLC compare to other bidders under the full and open competition?

While full and open competition suggests multiple bids were received, the specific pricing details and comparisons are not provided in this summary. To assess the competitiveness of Safeguard Services LLC's pricing, one would need access to the bid proposals and the source selection decision document. This would reveal the proposed costs, the evaluation of those costs, and how Safeguard's offer was deemed the best value, considering both price and non-price factors.

What was the net financial impact of this contract on CMS's revenue collection efforts?

Determining the net financial impact requires comparing the total cost of the contract ($32.3 million) against the total amount of revenue successfully collected by Safeguard Services LLC on behalf of CMS. This involves analyzing the contract's performance reports, collection rates, and the agency's own cost of internal collection efforts. A positive net impact would mean the collected revenue significantly exceeded the contract cost, demonstrating the contract's value.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Collection Agencies

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 5400 LEGACY DRIVE, PLANO, TX, 75024

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $32,332,429

Exercised Options: $32,332,429

Current Obligation: $32,332,429

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSM500200800030I

IDV Type: IDC

Timeline