HHS awards $41.7M contract to Island Peer Review Organization for management consulting services
Contract Overview
Contract Amount: $41,722,553 ($41.7M)
Contractor: Island Peer Review Organization Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2008-08-01
End Date: 2011-11-07
Contract Duration: 1,193 days
Daily Burn Rate: $35.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Healthcare
Official Description: BASE CONTRACT FOR 9TH SOW
Place of Performance
Location: NEW HYDE PARK, NASSAU County, NEW YORK, 11042
State: New York Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $41.7 million to ISLAND PEER REVIEW ORGANIZATION INC for work described as: BASE CONTRACT FOR 9TH SOW Key points: 1. The contract value is $41.7 million over its duration. 2. The contract was not available for competition, raising potential concerns about price discovery. 3. The primary risk lies in the lack of competitive bidding potentially leading to inflated costs. 4. This falls under 'Other Management Consulting Services' within the broader professional services sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Award Fee, which can incentivize performance but also lead to cost overruns if not managed tightly. Without competitive benchmarks, assessing the value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited approach. This lack of competition may have hindered effective price discovery and potentially resulted in a higher price than a competitive process would yield.
Taxpayer Impact: The absence of competition suggests taxpayers may not have received the best possible price for these management consulting services.
Public Impact
Taxpayers may be paying more than necessary due to the lack of competitive bidding. The Centers for Medicare and Medicaid Services relies on these services, impacting healthcare program administration. The 'not available for competition' status warrants further scrutiny into the justification for sole-sourcing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost Plus Award Fee contract type
- Lack of clear justification for limited competition
Positive Signals
- Contract awarded to a specific organization for management consulting.
- Long-term contract duration suggests ongoing need for services.
Sector Analysis
This contract falls under Other Management Consulting Services (NAICS 541618). Benchmarks for this category can vary widely based on the specific services provided, but a lack of competition makes direct comparison challenging.
Small Business Impact
The data indicates the awardee is ISLAND PEER REVIEW ORGANIZATION INC, and there is no specific mention of small business participation or set-asides for this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The 'not available for competition' status suggests a need for robust oversight to ensure the justification for limited competition was sound and that the contract is being managed effectively to control costs and achieve desired outcomes.
Related Government Programs
- Other Management Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Lack of competition
- Potential for cost overruns with CPAF
- Limited transparency on justification for limited competition
- No clear indication of small business participation
Tags
other-management-consulting-services, department-of-health-and-human-services, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $41.7 million to ISLAND PEER REVIEW ORGANIZATION INC. BASE CONTRACT FOR 9TH SOW
Who is the contractor on this award?
The obligated recipient is ISLAND PEER REVIEW ORGANIZATION 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 $41.7 million.
What is the period of performance?
Start: 2008-08-01. End: 2011-11-07.
What was the specific justification for limiting competition on this contract, and was it adequately documented and approved?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. A thorough review would require accessing the contract file to understand the specific circumstances, such as a sole-source justification based on unique capabilities, urgent need, or other factors. Without this documentation, it's impossible to assess the validity of the limited competition.
How does the Cost Plus Award Fee structure impact the final cost and contractor performance in this specific engagement?
The Cost Plus Award Fee (CPAF) structure allows the contractor to recover allowable costs plus a fee that is composed of a fixed base fee plus a performance-based award amount. While intended to incentivize performance, it can lead to higher costs if the award criteria are not stringent or if cost controls are weak. The final cost is thus variable and dependent on both cost incurrence and performance outcomes.
What specific management consulting services were provided, and how were their effectiveness and impact on CMS operations measured?
The NAICS code 541618 indicates 'Other Management Consulting Services'. The effectiveness and impact would depend on the specific tasks outlined in the Statement of Work (SOW) for each task order under this base contract. Measuring effectiveness would typically involve performance metrics, deliverables, and potentially user feedback from CMS program staff who utilized the consulting services.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other 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 AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 1979 MARCUS AVE STE 105, NEW HYDE PARK, NY, 11042
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $41,722,553
Exercised Options: $41,722,553
Current Obligation: $41,722,553
Actual Outlays: $-99,355
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2008-08-01
Current End Date: 2011-11-07
Potential End Date: 2011-11-07 00:00:00
Last Modified: 2022-09-07
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