TRICENTURION INC awarded $56.9M for administrative management consulting services by HHS

Contract Overview

Contract Amount: $56,918,176 ($56.9M)

Contractor: Tricenturion Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2005-09-30

End Date: 2017-01-31

Contract Duration: 4,141 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: TAS::75 8393::TAS MED & SURGICAL INSTRUMENTS,EQ & SUP

Place of Performance

Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29223

State: South Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $56.9 million to TRICENTURION INC for work described as: TAS::75 8393::TAS MED & SURGICAL INSTRUMENTS,EQ & SUP Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but can lead to higher costs. 3. Duration of over 11 years indicates a long-term need for these services. 4. The contract was awarded as a delivery order under a larger contract. 5. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services. 6. The contract was awarded to TRICENTURION INC, a single entity. 7. The contract was awarded by the Department of Health and Human Services (HHS).

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. The Cost Plus Award Fee structure allows for flexibility but can inflate costs if not managed tightly. Comparing to similar administrative management consulting contracts would require detailed scope analysis. The long duration suggests a sustained need, but the overall value for money depends heavily on the effectiveness and efficiency of the services provided over the contract's life.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but the competition level suggests that the government sought to obtain the best possible value through a broad solicitation. This approach generally leads to more competitive pricing and a wider range of potential solutions.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the most advantageous price and quality. Full and open competition increases the likelihood of finding efficient service providers and prevents potential price gouging.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) likely benefits from improved administrative management and general consulting services. These services are expected to support the operational efficiency and effectiveness of CMS programs. The geographic impact is primarily within the scope of CMS operations, likely supporting federal agencies. Workforce implications could include support staff for consulting services and potential enhancements to government employee productivity through better management practices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to higher overall costs compared to fixed-price contracts if award fees are consistently met without strict cost controls.
The extended duration of over 11 years necessitates ongoing scrutiny to ensure continued relevance and value.
Lack of specific performance metrics makes it difficult to objectively assess the 'award fee' component and its justification.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
The contract aims to provide essential administrative management and consulting services to a critical agency (CMS).
The long duration implies a stable and potentially successful relationship, assuming performance has been satisfactory.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) is a broad sector encompassing a wide range of advisory services aimed at improving organizational efficiency and effectiveness. This contract falls within the professional services segment of the federal market. Spending in this sector is often driven by the need for specialized expertise to manage complex government operations, implement new policies, or improve existing processes. Comparable spending benchmarks would depend on the specific nature of the consulting services provided.

Small Business Impact

There is no indication that this contract included small business set-asides. The contract was awarded to TRICENTURION INC. Further analysis would be needed to determine if TRICENTURION INC has a subcontracting plan that benefits small businesses, which is a common requirement for larger federal contracts.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officers and program managers within the Centers for Medicare and Medicaid Services (CMS). The Cost Plus Award Fee structure implies performance monitoring to determine award fee payouts. Transparency would be enhanced by public contract databases, but detailed performance reports and cost breakdowns may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Administrative Management and General Management Consulting Services
Centers for Medicare and Medicaid Services Contracts
Department of Health and Human Services Contracts

Risk Flags

Long contract duration may lead to misalignment with evolving government needs.
Cost Plus Award Fee structure requires careful monitoring to ensure cost control and value.
Lack of specific performance details makes objective assessment of value difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $56.9 million to TRICENTURION INC. TAS::75 8393::TAS MED & SURGICAL INSTRUMENTS,EQ & SUP

Who is the contractor on this award?

The obligated recipient is TRICENTURION 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 $56.9 million.

What is the period of performance?

Start: 2005-09-30. End: 2017-01-31.

What specific administrative management and general consulting services were provided under this contract?

The provided data indicates the contract falls under NAICS code 541611, 'Administrative Management and General Management Consulting Services.' This broad category typically includes services such as strategic planning, organizational analysis, process improvement, management consulting, and general administrative support. Without access to the contract's statement of work (SOW), the precise nature of the services delivered by TRICENTURION INC remains unspecified. However, given the awarding agency is the Centers for Medicare and Medicaid Services (CMS), these services likely supported the complex operational, policy, and program management needs of the agency, potentially focusing on areas like healthcare program administration, regulatory compliance, or internal operational efficiencies.

How does the Cost Plus Award Fee (CPAF) structure impact the overall cost and value for money compared to other contract types?

The Cost Plus Award Fee (CPAF) contract type allows the contractor to be reimbursed for allowable costs plus a fee that is composed of a fixed base fee and an award amount. The award amount is determined by the government based on the contractor's performance against pre-defined criteria. This structure incentivizes high performance by offering potential for higher profits. However, it can also lead to higher overall costs compared to fixed-price contracts because the government bears more risk regarding cost overruns. For value for money, the effectiveness of the award fee criteria in driving desired outcomes is crucial. If the criteria are well-defined and aligned with program goals, CPAF can yield excellent results. Conversely, poorly defined criteria or overly generous award fees can diminish value for taxpayers.

What is the historical spending pattern for TRICENTURION INC with the Department of Health and Human Services?

Analyzing the historical spending patterns for TRICENTURION INC with the Department of Health and Human Services (HHS) requires access to comprehensive federal procurement databases. The provided data shows a single contract valued at approximately $56.9 million awarded in 2005 and ending in 2017. This suggests a significant, long-term engagement with HHS during that period. To understand broader patterns, one would need to examine all contracts awarded to TRICENTURION INC by HHS across different agencies and years, looking for trends in contract values, types, and the services procured. This specific contract represents a substantial investment by HHS in administrative and management consulting services over more than a decade.

What are the potential risks associated with a contract duration of over 11 years?

A contract duration exceeding 11 years, like the one awarded to TRICENTURION INC, carries several potential risks. Firstly, the risk of obsolescence is significant; the services or technologies required at the outset may become outdated or less relevant over such a long period. Secondly, there's a risk of contractor complacency, where the long-term nature of the contract might reduce the incentive for continuous innovation or cost-efficiency improvements. Thirdly, the government's needs and priorities can evolve substantially over more than a decade, potentially leading to a misalignment between the contract's scope and current requirements. Finally, extended contracts can sometimes stifle competition for future work, as incumbent contractors may have an advantage.

How does the 'Administrative Management and General Management Consulting Services' category compare to other service contracts within HHS?

The 'Administrative Management and General Management Consulting Services' category (NAICS 541611) represents a significant portion of the professional services spending within HHS, but it is just one segment. HHS, particularly through agencies like CMS, procures a vast array of services, including IT services, healthcare services, research and development, and specialized program support. Consulting services are often used to address complex challenges in strategy, operations, and policy implementation. Compared to IT services, which can represent billions in spending, management consulting might be a smaller slice but is critical for organizational effectiveness. The value of these consulting services is often measured by their impact on improving efficiency, reducing costs, or enhancing the delivery of healthcare services, which are core missions of HHS.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 7909 PARKLANE RD STE 190, COLUMBIA, SC, 29223

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $56,918,176

Exercised Options: $56,918,176

Current Obligation: $56,918,176

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 500990011

IDV Type: IDC

Timeline