CMS awards $23.6M contract to Colorado Foundation for Medical Care for Other Management Consulting Services
Contract Overview
Contract Amount: $23,569,969 ($23.6M)
Contractor: Colorado Foundation for Medical Care
Awarding Agency: Department of Health and Human Services
Start Date: 2011-08-01
End Date: 2014-07-31
Contract Duration: 1,095 days
Daily Burn Rate: $21.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: QIO 10TH SOW AWARD FOR THE STATE OF COLORADO
Place of Performance
Location: ENGLEWOOD, ARAPAHOE County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $23.6 million to COLORADO FOUNDATION FOR MEDICAL CARE for work described as: QIO 10TH SOW AWARD FOR THE STATE OF COLORADO Key points: 1. The contract value of $23.6 million over three years is significant for the specified service category. 2. The award was not available for competition, raising questions about price discovery and potential value. 3. The use of a Cost Plus Fixed Fee (CPFF) pricing structure can lead to cost overruns if not managed carefully. 4. The lack of small business participation is noted, despite the contract's substantial value.
Value Assessment
Rating: questionable
The contract's pricing structure (Cost Plus Fixed Fee) makes direct comparison difficult without detailed cost breakdowns. The benchmark of $21.5 million suggests this award is within a reasonable range, but the lack of competition hinders a definitive value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited competition award. This limits the government's ability to leverage market forces for the best possible price and may result in higher costs than if full and open competition were utilized.
Taxpayer Impact: The lack of competitive bidding may lead to taxpayers paying more than necessary for these consulting services.
Public Impact
This contract supports essential functions within the Centers for Medicare and Medicaid Services, impacting healthcare program administration. The award to a single entity without competition raises concerns about transparency and potential for inflated costs. The duration of the contract (3 years) suggests a long-term need for these services, warranting close monitoring.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee pricing
- No small business participation
Positive Signals
- Awarded to established entity
- Supports critical government function
Sector Analysis
This contract falls under Other Management Consulting Services, a broad category often supporting government operations and program management. Benchmarks for this sector vary widely based on the specific services provided, but significant multi-year contracts like this typically involve substantial resource allocation.
Small Business Impact
The contract explicitly states that small business participation was not a factor in this award. Given the contract's value and nature, there may have been missed opportunities to engage small businesses in subcontracting roles.
Oversight & Accountability
The limited competition aspect of this award warrants close oversight from CMS to ensure the contractor is delivering services efficiently and that costs are reasonable under the CPFF structure. Regular performance reviews and audits are crucial.
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 limits price discovery.
- Cost Plus Fixed Fee structure can incentivize higher costs.
- No small business participation noted.
- Contract duration of 3 years requires ongoing scrutiny.
- Limited transparency on specific services rendered.
Tags
other-management-consulting-services, department-of-health-and-human-services, co, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $23.6 million to COLORADO FOUNDATION FOR MEDICAL CARE. QIO 10TH SOW AWARD FOR THE STATE OF COLORADO
Who is the contractor on this award?
The obligated recipient is COLORADO FOUNDATION FOR MEDICAL CARE.
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 $23.6 million.
What is the period of performance?
Start: 2011-08-01. End: 2014-07-31.
What specific management consulting services were provided under this contract, and how did they directly benefit CMS operations?
The contract was for 'Other Management Consulting Services' awarded to the Colorado Foundation for Medical Care. While the specific deliverables are not detailed in the provided data, such services typically involve program analysis, operational efficiency improvements, policy development support, or data management for healthcare programs administered by CMS. The benefit would be in enhancing the effectiveness and efficiency of these critical public health programs.
Given the lack of competition, what mechanisms were in place to ensure the fixed fee was fair and reasonable?
With a Cost Plus Fixed Fee (CPFF) contract, the government pays the contractor's actual allowable costs plus a predetermined fixed fee. To ensure fairness, the government typically conducts a thorough cost analysis of the proposed costs and negotiates the fixed fee based on factors like complexity, risk, and the contractor's historical performance. However, without competition, the government has less leverage to drive down the fee.
How does the $23.6 million award compare to similar contracts for management consulting services within HHS or CMS?
Comparing this $23.6 million award requires access to a broader database of similar contracts. However, the benchmark of $21.5 million suggests this award is within a comparable range for significant, multi-year management consulting engagements within federal health agencies. The lack of competition, however, makes a direct value-for-money assessment challenging compared to competitively awarded contracts.
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
Solicitation ID: CMS10THSOW
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 23 INVERNESS WAY E STE 100, ENGLEWOOD, CO, 80112
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,569,969
Exercised Options: $23,569,969
Current Obligation: $23,569,969
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-08-01
Current End Date: 2014-07-31
Potential End Date: 2014-07-31 00:00:00
Last Modified: 2021-10-20
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