HHS awards $187M Medicare Administrative Contractor contract to Noridian Healthcare Solutions for North Dakota
Contract Overview
Contract Amount: $186,792,577 ($186.8M)
Contractor: Noridian Healthcare Solutions, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2006-07-31
End Date: 2012-01-31
Contract Duration: 2,010 days
Daily Burn Rate: $92.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: Healthcare
Official Description: TAS::75 0511::TAS JURISDICTION 3 PART A AND PART B MEDICARE ADMINISTRATIVE CONTRACTOR
Place of Performance
Location: FARGO, CASS County, NORTH DAKOTA, 58103
Plain-Language Summary
Department of Health and Human Services obligated $186.8 million to NORIDIAN HEALTHCARE SOLUTIONS, LLC for work described as: TAS::75 0511::TAS JURISDICTION 3 PART A AND PART B MEDICARE ADMINISTRATIVE CONTRACTOR 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. The duration of the contract (2006-2012) indicates a long-term commitment for essential Medicare services. 4. The sector is healthcare insurance, a critical area for government spending and public well-being.
Value Assessment
Rating: good
The contract value of $186.8M over approximately 5 years suggests a significant but potentially reasonable cost for administering Medicare services in North Dakota. Benchmarking against similar MAC contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The price discovery mechanism relies on the competitive bids submitted.
Taxpayer Impact: Taxpayer funds are used for this contract, with the aim of efficient and effective administration of Medicare benefits to beneficiaries.
Public Impact
Ensures continued administration of Medicare benefits for beneficiaries in North Dakota. Supports the operational efficiency of the Centers for Medicare and Medicaid Services (CMS). Potential for improved healthcare access and quality through effective program management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can sometimes lead to cost overruns if not managed tightly.
- Long contract duration may not always reflect the most current market pricing or technological advancements.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Contract aims to ensure efficient administration of critical healthcare services.
Sector Analysis
This contract falls within the Healthcare sector, specifically direct health and medical insurance carriers. Spending in this area is substantial and directly impacts the delivery of healthcare services to millions of Americans.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The primary contractor is Noridian Healthcare Solutions, LLC, a large entity. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Centers for Medicare and Medicaid Services (CMS) is responsible for oversight of this contract. Robust oversight is crucial to ensure performance standards are met and costs are managed effectively, especially with a Cost Plus Award Fee structure.
Related Government Programs
- Direct Health and Medical Insurance Carriers
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Cost Plus Award Fee structure requires diligent oversight to prevent cost overruns.
- Long contract duration may not fully leverage competitive market dynamics.
- Lack of specific small business participation data.
- Potential for performance issues impacting Medicare beneficiary services if not managed properly.
Tags
direct-health-and-medical-insurance-carr, department-of-health-and-human-services, nd, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $186.8 million to NORIDIAN HEALTHCARE SOLUTIONS, LLC. TAS::75 0511::TAS JURISDICTION 3 PART A AND PART B MEDICARE ADMINISTRATIVE CONTRACTOR
Who is the contractor on this award?
The obligated recipient is NORIDIAN HEALTHCARE SOLUTIONS, 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 $186.8 million.
What is the period of performance?
Start: 2006-07-31. End: 2012-01-31.
What was the final award amount compared to the initial estimated cost?
The provided data shows the award amount as $186,792,576.56. Without the initial estimated cost or details on any modifications, it's impossible to determine the variance. Understanding the difference between estimated and final costs is key to assessing cost control effectiveness.
How did Noridian Healthcare Solutions' performance compare to the award fee criteria?
The contract type is Cost Plus Award Fee, meaning a portion of the payment is contingent on meeting specific performance metrics. Information on the actual award fees paid versus the maximum possible would reveal how well the contractor performed against expectations and if the incentive structure was effective.
Were there any significant cost changes or contract modifications during the period?
The contract spanned from 2006 to 2012. Analyzing contract modification history, including any increases or decreases in the award amount, and the reasons behind them, is crucial for understanding the total taxpayer investment and the contractor's ability to manage the scope effectively over time.
Industry Classification
NAICS: Finance and Insurance › Insurance Carriers › Direct Health and Medical Insurance Carriers
Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: CMSRFP20050016
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Noridian Mutual Insurance Company
Address: 901 40TH STREET SOUTH, STE 1, FARGO, ND, 58103
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $484,002,777
Exercised Options: $482,682,633
Current Obligation: $186,792,577
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2006-07-31
Current End Date: 2012-01-31
Potential End Date: 2012-10-20 00:00:00
Last Modified: 2023-09-22
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