HHS Spends $30.9M on Medicare Services Administration via Cost Plus Award Fee Contract
Contract Overview
Contract Amount: $30,918,207 ($30.9M)
Contractor: TMF Health Quality Institute
Awarding Agency: Department of Health and Human Services
Start Date: 2006-02-01
End Date: 2009-01-31
Contract Duration: 1,095 days
Daily Burn Rate: $28.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Healthcare
Official Description: TAS::75 0511::TAS DEPENDENT MEDICARE SERVICES
Place of Performance
Location: AUSTIN, TRAVIS County, TEXAS, 78730
State: Texas Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $30.9 million to TMF HEALTH QUALITY INSTITUTE for work described as: TAS::75 0511::TAS DEPENDENT MEDICARE SERVICES Key points: 1. Contract awarded to TMF Health Quality Institute for Medicare Services Administration. 2. Significant spending of $30.9M over 3 years. 3. Contract type is Cost Plus Award Fee, which can incentivize performance but requires careful oversight. 4. The sector is Healthcare, specifically public health programs. 5. No small business participation noted.
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee structure allows for potential cost overruns if not managed tightly. Benchmarking against similar contracts for Medicare services administration is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited or sole-source award. This limits price discovery and potentially leads to higher costs than a competitive process.
Taxpayer Impact: Taxpayer funds are used for this contract. The lack of competition raises concerns about whether the government achieved the best possible price for these essential Medicare services.
Public Impact
Ensures continued administration of vital Medicare services. Potential for increased costs due to lack of competition. Oversight is crucial to ensure efficient use of taxpayer funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Award Fee structure
- No small business participation
Positive Signals
- Ensures continuity of Medicare services
- Potential for performance incentives
Sector Analysis
This contract falls within the Healthcare sector, specifically focusing on the administration of public health programs related to Medicare. Spending benchmarks for similar Medicare administration contracts are highly variable and depend on the scope of services.
Small Business Impact
There is no indication of small business participation in this contract. This represents a missed opportunity to support small businesses within the healthcare administration sector.
Oversight & Accountability
The Cost Plus Award Fee structure necessitates robust oversight from CMS to ensure the contractor meets performance objectives and that costs are reasonable and allocable. Accountability for performance and spending is critical.
Related Government Programs
- Administration of Public Health Programs
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Lack of competition
- Cost Plus Award Fee structure
- Potential for cost overruns
- No small business participation
Tags
administration-of-public-health-programs, 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 $30.9 million to TMF HEALTH QUALITY INSTITUTE. TAS::75 0511::TAS DEPENDENT MEDICARE SERVICES
Who is the contractor on this award?
The obligated recipient is TMF HEALTH QUALITY INSTITUTE.
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 $30.9 million.
What is the period of performance?
Start: 2006-02-01. End: 2009-01-31.
What was the justification for awarding this contract on a limited/non-competitive basis?
The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION'. A detailed justification would typically be required by federal acquisition regulations, outlining reasons such as unique capabilities, urgent need, or prior successful performance that made a competitive process impractical or detrimental to the government's interests.
How effectively did the Cost Plus Award Fee structure incentivize performance and control costs?
Without performance metrics and award fee determinations, it's impossible to assess effectiveness. This structure requires clear performance standards and objective evaluation criteria to ensure the award fee truly reflects superior performance and doesn't simply inflate costs without commensurate benefit to Medicare services administration.
What is the long-term impact of awarding Medicare administration services non-competitively?
Consistently awarding services non-competitively can stifle innovation, reduce market competition, and potentially lead to higher costs for taxpayers over time. It also limits opportunities for new or smaller entities to enter the market and demonstrate their capabilities in administering critical public health programs.
Industry Classification
NAICS: Public Administration › Administration of Human Resource Programs › Administration of Public Health Programs
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 AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 5918 W COURTYARD DR, AUSTIN, TX, 78730
Business Categories: Category Business, Corporate Entity Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $30,918,207
Exercised Options: $30,918,207
Current Obligation: $30,918,207
Actual Outlays: $982,011
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2006-02-01
Current End Date: 2009-01-31
Potential End Date: 2009-01-31 00:00:00
Last Modified: 2022-03-10
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