HHS awards $36.8M for Office Administrative Services to Trailblazer Health Enterprises LLC
Contract Overview
Contract Amount: $36,794,519 ($36.8M)
Contractor: Trailblazer Health Enterprises LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2005-07-01
End Date: 2011-07-03
Contract Duration: 2,193 days
Daily Burn Rate: $16.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: OTHER PROFESSIONAL SERVICES
Place of Performance
Location: DALLAS, DALLAS County, TEXAS, 75243
State: Texas Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $36.8 million to TRAILBLAZER HEALTH ENTERPRISES LLC for work described as: OTHER PROFESSIONAL SERVICES Key points: 1. Significant contract value of $36.8 million over six years. 2. Sole-source award to Trailblazer Health Enterprises LLC. 3. Contract covers Office Administrative Services, a broad category. 4. Awarded by Centers for Medicare and Medicaid Services (CMS).
Value Assessment
Rating: questionable
The contract's pricing structure is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the fixed fee represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition for a $36.8 million contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying more than necessary due to the absence of competitive bidding. The broad nature of 'Office Administrative Services' makes it difficult to assess specific value for money. Long contract duration (6 years) without competition could entrench higher costs. Potential for reduced service quality if contractor faces no competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Consistent service delivery over six years
- Established relationship with contractor
Sector Analysis
Office Administrative Services are crucial for the functioning of government agencies like CMS. However, the benchmark for spending in this sector is highly variable and depends on the specific services rendered. Without competition, it's hard to gauge if this contract aligns with industry standards.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Therefore, there is no direct benefit to small businesses from this specific award.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure the fixed fee remains reasonable and that services are delivered efficiently. Regular performance reviews are essential.
Related Government Programs
- Office Administrative Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (CPFF)
- Limited transparency on pricing justification
- Long contract duration without re-evaluation
Tags
office-administrative-services, department-of-health-and-human-services, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $36.8 million to TRAILBLAZER HEALTH ENTERPRISES LLC. OTHER PROFESSIONAL SERVICES
Who is the contractor on this award?
The obligated recipient is TRAILBLAZER HEALTH ENTERPRISES 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 $36.8 million.
What is the period of performance?
Start: 2005-07-01. End: 2011-07-03.
What specific administrative services were included in this contract, and how were they justified as a sole-source procurement?
The contract specifies 'Office Administrative Services' under NAICS code 561110. A sole-source justification would typically involve demonstrating that only one responsible source is capable of providing the required services, or that a compelling urgency exists. Without further documentation, the specific justification remains unclear, making it difficult to assess the necessity of a non-competitive award.
How was the 'fixed fee' component of the Cost Plus Fixed Fee contract determined without competitive bidding?
In a Cost Plus Fixed Fee contract awarded sole-source, the fixed fee is usually negotiated based on the contractor's proposed costs, historical data, industry benchmarks, and the government's estimate of a reasonable profit margin. However, without competition, there's less external validation of this fee's fairness, making robust government negotiation and cost analysis critical.
What mechanisms were in place to ensure cost control and value for money given the Cost Plus Fixed Fee structure and sole-source award?
Given the contract type and lack of competition, oversight would rely heavily on detailed cost audits, performance monitoring, and strict adherence to the contract's scope of work. The government would need to actively manage the 'cost' portion to prevent overruns and ensure the 'fixed fee' remains justified throughout the contract's life.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Blue Cross & Blue Shield of South Carolina
Address: 8330 LBJ FWY, DALLAS, TX, 75243
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $65,787,816
Exercised Options: $38,007,098
Current Obligation: $36,794,519
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2005-07-01
Current End Date: 2011-07-03
Potential End Date: 2011-07-03 00:00:00
Last Modified: 2023-08-17
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