HHS awards $17.6M for Ohio Medicaid Quality Improvement, raising concerns about competition and value
Contract Overview
Contract Amount: $17,630,642 ($17.6M)
Contractor: Ohio Kepro, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2008-08-01
End Date: 2011-07-31
Contract Duration: 1,094 days
Daily Burn Rate: $16.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: TAS::75 8005::TAS QIO-STATE OF OHIO, 9TH SOW
Place of Performance
Location: SEVEN HILLS, CUYAHOGA County, OHIO, 44131
State: Ohio Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $17.6 million to OHIO KEPRO, LLC for work described as: TAS::75 8005::TAS QIO-STATE OF OHIO, 9TH SOW Key points: 1. Significant contract value ($17.6M) for management consulting services. 2. Lack of competition raises questions about price discovery and potential overpayment. 3. Long contract duration (1094 days) may indicate a need for ongoing services. 4. Services fall under 'Other Management Consulting,' a broad category.
Value Assessment
Rating: questionable
The contract type is Cost Plus Award Fee, which can incentivize cost overruns. Without competitive bidding, it's difficult to assess if the $17.6M represents fair market value for 'Other Management Consulting Services'. Benchmarking is challenging without specific deliverables.
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 suggests taxpayers may have paid more than necessary for these services.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The quality and effectiveness of the 'Other Management Consulting Services' are not independently verified through competition. Potential for reduced innovation and service quality when contracts are not competed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Award Fee contract type
- Broad service category
Positive Signals
- Contract awarded to a specific entity for a defined period.
Sector Analysis
This contract falls under 'Other Management Consulting Services' for the Centers for Medicare and Medicaid Services (CMS). Spending in this category can vary widely, but a $17.6M award for a single contract warrants scrutiny, especially when not competed.
Small Business Impact
The data does not indicate any specific provisions or considerations for small businesses in this contract award. The focus appears to be on a single, larger entity.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential weaknesses in the procurement process oversight. Further review would be needed to understand the justification for the sole-source award and ensure accountability.
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 competitive bidding
- Potential for inflated costs due to sole-source award
- Cost Plus Award Fee contract type can lead to cost overruns
- Broad service category makes value assessment difficult
- Long contract duration without clear competition justification
Tags
other-management-consulting-services, department-of-health-and-human-services, oh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $17.6 million to OHIO KEPRO, LLC. TAS::75 8005::TAS QIO-STATE OF OHIO, 9TH SOW
Who is the contractor on this award?
The obligated recipient is OHIO KEPRO, 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 $17.6 million.
What is the period of performance?
Start: 2008-08-01. End: 2011-07-31.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically require detailed documentation outlining the necessity, urgency, or unique capabilities that preclude a competitive process. Without this justification, it's impossible to assess if taxpayer funds were used efficiently or if opportunities for better pricing and innovation were missed.
How was the 'Award Fee' component structured, and what metrics were used to determine performance and associated fees?
Understanding the Award Fee structure is essential for assessing value. The criteria for earning the fee must be clearly defined, measurable, and aligned with program objectives. Without transparency into these metrics, it's difficult to determine if the awarded fees reflect exceptional performance or simply a mechanism to increase the total contract cost beyond initial estimates.
What specific outcomes or improvements were achieved by OHIO KEPRO, LLC under this contract, and how do they compare to industry benchmarks?
Measuring the effectiveness of management consulting services is paramount. The contract should ideally have defined Key Performance Indicators (KPIs) and measurable outcomes. Comparing these achievements against industry benchmarks or similar contracts would provide insight into the value delivered and whether the $17.6M investment yielded tangible benefits for the Centers for Medicare and Medicaid 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 COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pennsylvania Medical Society
Address: 5700 LOMBARDO CTR STE 100, CLEVELAND, OH, 44131
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,630,642
Exercised Options: $17,630,642
Current Obligation: $17,630,642
Actual Outlays: $10,000
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-08-01
Current End Date: 2011-07-31
Potential End Date: 2011-07-31 00:00:00
Last Modified: 2022-12-22
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