HHS awarded Cognosante $24.6M for NPI Enumerator services, highlighting IT support for healthcare data
Contract Overview
Contract Amount: $24,588,978 ($24.6M)
Contractor: Cognosante, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2010-08-20
End Date: 2015-08-22
Contract Duration: 1,828 days
Daily Burn Rate: $13.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TAS::75 0511::TAS NATIONAL PROVIDER IDENTIFIER ENUMERATOR (NPI)
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85250
State: Arizona Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $24.6 million to COGNOSANTE, LLC for work described as: TAS::75 0511::TAS NATIONAL PROVIDER IDENTIFIER ENUMERATOR (NPI) Key points: 1. Contract value of $24.6M over 5 years suggests a significant investment in healthcare data management. 2. The 'Other Computer Related Services' NAICS code indicates a focus on IT infrastructure and support. 3. A single award for this contract may warrant further investigation into competition dynamics. 4. The firm fixed-price contract type generally offers cost certainty for the government. 5. The contract duration of 1828 days (approx. 5 years) aligns with typical IT service agreements. 6. The geographic location in Arizona (AZ) may indicate a specific operational focus or regional requirement.
Value Assessment
Rating: fair
The contract value of $24.6 million over approximately five years for NPI Enumerator services appears to be within a reasonable range for large-scale IT support contracts within the federal government. Benchmarking against similar contracts for data management and IT services would provide a clearer picture of value for money. The firm fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be beneficial for the government if the scope is well-defined.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of full and open competition is generally a positive sign for price discovery and ensuring the government receives competitive pricing. The specific number of bidders and the details of the bidding process would provide further insight into the level of competition achieved.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.
Public Impact
Beneficiaries include healthcare providers who rely on accurate National Provider Identifier (NPI) data for billing and identification. Services delivered involve the enumeration and management of NPIs, crucial for the integrity of the healthcare system. The geographic impact is national, as the NPI system is a federal requirement for all healthcare providers in the U.S. Workforce implications may include the need for skilled IT professionals and data management specialists to support the contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if the definition of 'enumerator services' is not tightly managed.
- Dependence on a single contractor for a critical function like NPI enumeration could pose a risk if performance falters.
- Ensuring data security and privacy for sensitive healthcare provider information is paramount.
Positive Signals
- Awarded under full and open competition, suggesting a robust selection process.
- Firm fixed-price contract provides cost certainty for the government.
- Long-term contract duration allows for stability and continuity of essential services.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on IT services for the healthcare industry. The market for healthcare IT services is substantial, driven by the increasing digitization of health records, the need for interoperability, and regulatory compliance. Contracts like this support the foundational IT infrastructure that enables the efficient functioning of healthcare systems, including data management and provider identification.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a single large entity, Cognosante, LLC. While this specific contract may not directly involve small business set-asides, the prime contractor may engage small businesses as subcontractors. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Centers for Medicare and Medicaid Services (CMS) within the Department of Health and Human Services (HHS). Mechanisms likely include regular performance reviews, contract management oversight, and potentially audits. Transparency is generally facilitated through contract award databases and public reporting, though specific performance metrics may not always be publicly disclosed.
Related Government Programs
- Healthcare IT Services
- Data Management Solutions
- Provider Enrollment Systems
- National Provider Identifier (NPI) Program
- Centers for Medicare and Medicaid Services (CMS) Contracts
Risk Flags
- Potential for data security risks
- Dependence on a single contractor for critical function
- Need for clear performance metrics and oversight
Tags
it-services, healthcare-it, data-management, hhs, cms, national-provider-identifier, enumerator-services, firm-fixed-price, full-and-open-competition, it-support, arizona, cognosante-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $24.6 million to COGNOSANTE, LLC. TAS::75 0511::TAS NATIONAL PROVIDER IDENTIFIER ENUMERATOR (NPI)
Who is the contractor on this award?
The obligated recipient is COGNOSANTE, 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 $24.6 million.
What is the period of performance?
Start: 2010-08-20. End: 2015-08-22.
What is the historical spending pattern for NPI enumeration services by HHS?
Analyzing historical spending on NPI enumeration services by HHS is crucial for understanding the long-term investment in this area and for benchmarking current contract values. While specific historical data for this exact contract is not provided, the current award of $24.6 million over approximately five years suggests a significant and ongoing commitment. Federal procurement data, accessible through resources like USAspending.gov, would allow for a detailed examination of previous contracts awarded for similar services, including the number of awards, contract values, durations, and the contractors involved. This historical context helps in assessing whether the current contract represents an increase or decrease in spending, and if it aligns with inflation and evolving service needs. Understanding past spending trends can also reveal patterns in contractor performance and competition levels over time.
How does the per-unit cost of NPI enumeration under this contract compare to industry benchmarks?
Determining the per-unit cost of NPI enumeration requires a clear definition of what constitutes a 'unit' (e.g., per NPI processed, per provider enrolled, per data record managed) and access to detailed contract deliverables and pricing structures. Without this granular information, a precise per-unit cost comparison is challenging. However, the total contract value of $24.6 million over roughly five years, supporting a national program, suggests a substantial operational scale. Industry benchmarks for IT services in the healthcare sector, particularly those involving data management and compliance, can provide a general reference point. Factors such as the complexity of data validation, security requirements, and the volume of NPIs processed would influence the per-unit cost. A thorough analysis would involve comparing the contractor's proposed rates for specific tasks against market rates for similar services, considering the government's specific requirements and the competitive landscape.
What is Cognosante, LLC's track record with similar federal IT contracts, particularly in healthcare?
Cognosante, LLC has a notable track record in providing IT services to federal agencies, with a significant focus on the healthcare sector. The company has been involved in various large-scale government contracts, including those related to health information technology, data analytics, and program support for agencies like the Department of Defense and the Department of Veterans Affairs, in addition to HHS. Their experience often involves managing complex systems and large datasets, which is relevant to the NPI enumeration services. Reviewing past performance evaluations, contract awards, and any publicly available information on their project outcomes would provide insight into their reliability, technical capabilities, and ability to manage contracts of this magnitude. Understanding their history with similar projects helps in assessing the risk associated with this particular award and their capacity to meet the government's objectives.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
Primary risks associated with this contract include potential data breaches or security vulnerabilities given the sensitive nature of NPI data, performance issues leading to delays in NPI processing or enumeration, and the possibility of cost overruns if the scope is not well-defined, despite the firm fixed-price structure. Another risk could be vendor lock-in or over-reliance on a single provider for a critical function. Mitigation strategies likely involve robust cybersecurity protocols mandated by the contract, regular performance monitoring and reporting by CMS, clearly defined service level agreements (SLAs), and contingency planning for service disruptions. The firm fixed-price nature itself acts as a cost mitigation tool for the government. Furthermore, the full and open competition award process suggests a thorough vetting of the contractor's capabilities and financial stability.
How effective has the NPI enumeration process been historically, and how does this contract contribute to its effectiveness?
The effectiveness of the NPI enumeration process is critical for the integrity of healthcare transactions, billing, and program integrity within CMS. Historically, the NPI system has been largely effective in providing a unique identifier for healthcare providers. This contract, awarded to Cognosante, LLC, aims to ensure the continued and efficient enumeration and management of these identifiers. Its effectiveness will be measured by factors such as the accuracy and completeness of the NPI registry, the timeliness of processing new NPI applications and updates, and the system's ability to prevent fraud and abuse. The contract's contribution to effectiveness lies in providing the necessary IT infrastructure, personnel, and processes to maintain the NPI database, manage enumeration activities, and potentially implement improvements or enhancements to the system over its five-year duration.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cognosante Holdings, LLC (UEI: 826974789)
Address: 3110 FAIRVIEW PARK DR STE 800, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,588,978
Exercised Options: $24,588,978
Current Obligation: $24,588,978
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS35F0201R
IDV Type: FSS
Timeline
Start Date: 2010-08-20
Current End Date: 2015-08-22
Potential End Date: 2015-08-22 00:00:00
Last Modified: 2020-04-28
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