HHS awards $33.9M contract for administrative management and general management consulting services to Florida Medical Quality Assurance, Inc
Contract Overview
Contract Amount: $33,900,922 ($33.9M)
Contractor: Florida Medical Quality Assurance, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2007-11-02
End Date: 2009-11-16
Contract Duration: 745 days
Daily Burn Rate: $45.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: CHANGE OF GTL
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33609
State: Florida Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $33.9 million to FLORIDA MEDICAL QUALITY ASSURANCE, INC. for work described as: CHANGE OF GTL Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to higher costs if not managed carefully. 2. The contract was not competed, raising questions about potential price discovery and value for money. 3. The duration of the contract (745 days) suggests a significant scope of work. 4. The contractor, Florida Medical Quality Assurance, Inc., is based in Florida, indicating potential regional focus. 5. The contract falls under Administrative Management and General Management Consulting Services, a broad category.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging without more specific details on the services rendered and comparable contracts. The cost-plus-fixed-fee pricing structure inherently carries a risk of cost overruns if not rigorously monitored. Given the lack of competition, it's difficult to assess if the pricing reflects a competitive market rate. Further analysis would require understanding the specific deliverables and comparing them to industry standards and other government contracts for similar consulting services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not open to competition from other potential vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances prevent a competitive bidding process. The lack of competition limits the government's ability to leverage market forces to secure the best possible price and service.
Taxpayer Impact: Taxpayers may not have received the best value due to the absence of competitive bidding, potentially leading to higher costs than if multiple vendors had vied for the contract.
Public Impact
The primary beneficiary appears to be the Department of Health and Human Services, specifically the Centers for Medicare and Medicaid Services, which will receive administrative and management consulting services. The services delivered are related to administrative management and general management consulting, likely aimed at improving operational efficiency or strategic planning within CMS. The geographic impact is primarily within the United States, supporting federal health programs. Workforce implications are likely internal to the contractor and the agency, with potential for knowledge transfer and improved agency operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to suboptimal pricing.
- Cost-plus-fixed-fee contracts require stringent oversight to prevent cost escalation.
- The broad nature of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not well-defined.
Positive Signals
- The contract is awarded to a specific entity, suggesting a focused relationship for service delivery.
- The contract duration indicates a commitment to addressing specific needs over a defined period.
Sector Analysis
The contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This sector is a significant component of federal spending, supporting a wide range of government functions. Comparable spending benchmarks would depend on the specific nature of the consulting services, but the overall market for management consulting is substantial, with numerous firms offering specialized expertise.
Small Business Impact
Information regarding small business set-asides or subcontracting is not available for this contract. As it was awarded on a sole-source basis, the typical mechanisms for engaging small businesses through competition or subcontracting goals may not have been applied.
Oversight & Accountability
Oversight mechanisms for this contract would primarily reside within the Department of Health and Human Services and the Centers for Medicare and Medicaid Services. Accountability measures would be defined by the contract's terms and performance metrics. Transparency is limited due to the sole-source nature and lack of readily available performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Centers for Medicare and Medicaid Services Operations Support
- Federal Health Program Management Consulting
- Administrative Support Services Contracts
- Management and Consulting Services
Risk Flags
- Sole-source award limits price competition.
- Cost-plus-fixed-fee structure requires diligent cost monitoring.
- Lack of detailed service description hinders performance assessment.
Tags
health-and-human-services, centers-for-medicare-and-medicaid-services, administrative-management-consulting, general-management-consulting, definitive-contract, cost-plus-fixed-fee, sole-source, florida, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $33.9 million to FLORIDA MEDICAL QUALITY ASSURANCE, INC.. CHANGE OF GTL
Who is the contractor on this award?
The obligated recipient is FLORIDA MEDICAL QUALITY ASSURANCE, 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 $33.9 million.
What is the period of performance?
Start: 2007-11-02. End: 2009-11-16.
What specific deliverables were expected under this administrative and management consulting contract?
The provided data does not specify the exact deliverables for this contract. 'Administrative Management and General Management Consulting Services' is a broad category that could encompass a wide range of activities, such as strategic planning, organizational analysis, process improvement, policy development, or operational efficiency studies. To understand the specific outcomes, one would need to access the contract's statement of work (SOW) or performance work statement (PWS). Without this, it's difficult to assess the contract's effectiveness or the value derived from the $33.9 million expenditure.
How does the $33.9 million award compare to typical spending for similar consulting services by CMS?
Comparing this $33.9 million award to typical spending for similar services by CMS requires access to historical contract data and a clear definition of the services rendered. Given that this contract was sole-source and for a duration of approximately two years (745 days), it suggests a substantial, potentially specialized, engagement. Benchmarking would involve identifying other CMS contracts for administrative and management consulting, noting their scope, duration, and total value. Without more granular data on the specific consulting tasks performed, a precise comparison is difficult. However, $33.9 million over two years for specialized consulting indicates a significant investment.
What are the potential risks associated with a sole-source, cost-plus-fixed-fee contract of this magnitude?
A sole-source award eliminates the competitive pressure that typically drives down costs and encourages innovation. This means the government may not be getting the best possible price. Furthermore, a cost-plus-fixed-fee (CPFF) contract structure, while providing flexibility, can incentivize the contractor to incur more costs to increase the fixed fee, especially if the fee is a percentage of costs. This necessitates robust government oversight to ensure costs are reasonable and allocable to the contract. The combination of sole-source and CPFF for a $33.9 million contract presents a heightened risk of cost overruns and potentially less value for taxpayer money if not managed with extreme diligence.
What is the track record of Florida Medical Quality Assurance, Inc. in performing federal contracts, particularly with HHS or CMS?
The provided data indicates that Florida Medical Quality Assurance, Inc. (FMQAI) was awarded this specific contract. To assess their track record, one would need to examine their past performance on other federal contracts, especially those with the Department of Health and Human Services (HHS) or its sub-agencies like the Centers for Medicare and Medicaid Services (CMS). A review of contract databases (like FPDS or USASpending) would reveal previous awards, contract types, performance ratings, and any past performance issues. Without this broader historical context, it's difficult to gauge FMQAI's reliability and effectiveness in fulfilling government obligations.
What oversight mechanisms were in place to ensure the effective use of funds for this contract?
For a contract of this nature and value, oversight would typically involve a Contracting Officer's Representative (COR) or a Technical Point of Contact (TPOC) responsible for monitoring performance, ensuring deliverables are met, and approving invoices. The agency's acquisition and grants office would also provide oversight. Given the CPFF structure, rigorous financial oversight to audit and approve incurred costs would be crucial. The contract likely includes reporting requirements and performance metrics that the agency would track. The Inspector General's office for HHS would have oversight authority concerning potential fraud, waste, or abuse.
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 › DEPENDENT MEDICARE SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Health Services Holdings, Inc. (UEI: 196578053)
Address: 5201 W KENNEDY BLVD STE 900, TAMPA, FL, 33609
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $33,900,922
Exercised Options: $33,900,922
Current Obligation: $33,900,922
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2007-11-02
Current End Date: 2009-11-16
Potential End Date: 2009-11-16 00:00:00
Last Modified: 2022-01-19
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