TELLIGEN, INC. awarded $20.3M for Other Management Consulting Services by HHS CMS

Contract Overview

Contract Amount: $20,328,506 ($20.3M)

Contractor: Telligen, Inc

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: $18.6K/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

Place of Performance

Location: WEST DES MOINES, POLK County, IOWA, 50266

State: Iowa Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20.3 million to TELLIGEN, INC for work described as: QIO 10TH SOW AWARD Key points: 1. Contract awarded for management consulting services, indicating a need for specialized expertise. 2. The contract duration of 1095 days suggests a medium-term engagement for the services. 3. Awarded as a Definitive Contract, implying a clear scope and established terms. 4. The 'Not Available for Competition' status warrants further investigation into the justification for limited competition. 5. The Cost Plus Fixed Fee pricing structure can incentivize cost control while ensuring contractor profit. 6. Services are categorized under 'Other Management Consulting Services', a broad category requiring specific performance metrics. 7. The contract is managed by the Centers for Medicare and Medicaid Services (CMS), a significant health agency.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. The Cost Plus Fixed Fee (CPFF) structure requires careful oversight to ensure costs remain reasonable and the fixed fee is justified. Comparing this to similar management consulting contracts awarded by CMS would provide a better understanding of its value proposition. The total award amount of $20.3 million over three years suggests a substantial investment in consulting expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'Not Available for Competition,' indicating a sole-source procurement. This means that only one contractor, TELLIGEN, INC., was solicited. The justification for this limited competition is not provided in the data, but typically such awards are made when a unique capability or urgent need exists that only one source can fulfill. This lack of competition limits price discovery and may result in higher costs compared to a fully competed contract.

Taxpayer Impact: For taxpayers, sole-source awards mean less assurance of obtaining the best possible price. The absence of competitive bidding removes the downward pressure on costs that multiple offers would typically create.

Public Impact

The primary beneficiaries are likely the Centers for Medicare and Medicaid Services (CMS), which receives management consulting support. The services delivered are expected to enhance the operational efficiency and effectiveness of CMS programs. The geographic impact is national, as CMS operates nationwide, though specific project locations are not detailed. Workforce implications are primarily for the contractor, TELLIGEN, INC., which will deploy personnel to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer money.
The broad category of 'Other Management Consulting Services' makes it difficult to assess the specific value and impact without detailed performance data.
The Cost Plus Fixed Fee structure, while common, can lead to cost overruns if not rigorously managed and monitored.
Limited transparency regarding the justification for sole-source award hinders public understanding of procurement decisions.

Positive Signals

The contract is awarded to a single entity, suggesting a potentially strong existing relationship or specialized expertise required by CMS.
The Definitive Contract type indicates a clear agreement on terms and scope, providing a stable framework for service delivery.
The three-year duration allows for continuity of services and potential for significant project completion and impact.

Sector Analysis

This contract falls within the Management Consulting services sector, a significant segment of the professional services industry. This sector supports government agencies in improving efficiency, strategy, and operations. Comparable spending in this sector by federal agencies is substantial, with numerous contracts awarded for various consulting needs. The market size for government management consulting is large, driven by the complexity of federal programs and the need for specialized expertise.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The prime contractor, TELLIGEN, INC., is responsible for its own staffing and resource allocation. The absence of a small business set-aside means that larger, established firms were likely considered or were the only ones capable of meeting the contract's requirements.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Centers for Medicare and Medicaid Services (CMS). Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS Management and Administrative Support Contracts
CMS Program Support Services
Federal Management Consulting Services
Government Operations Improvement Contracts

Risk Flags

Sole-source award justification requires scrutiny.
Potential for cost overruns in CPFF contracts.
Lack of specific performance metrics limits value assessment.
Broad service category may obscure specific deliverables.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.3 million to TELLIGEN, INC. QIO 10TH SOW AWARD

Who is the contractor on this award?

The obligated recipient is TELLIGEN, 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 $20.3 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?

The contract data categorizes the services as 'Other Management Consulting Services' (na: 541618). This is a broad classification that can encompass a wide range of activities, including strategic planning, organizational analysis, process improvement, policy development, and program management support. Without access to the contract's Statement of Work (SOW) or performance reports, the precise nature of the services delivered remains unspecified. However, given the awarding agency is the Centers for Medicare and Medicaid Services (CMS), the consulting likely pertained to improving the efficiency, effectiveness, or administration of healthcare programs like Medicare and Medicaid.

How does the $20.3 million award compare to similar management consulting contracts at CMS?

Comparing the $20.3 million award for TELLIGEN, INC. requires context regarding the duration and scope of services. This contract spans 1095 days (3 years), making the average annual value approximately $6.77 million. To benchmark effectively, one would need to analyze other definitive contracts for 'Other Management Consulting Services' awarded by CMS over similar timeframes. Contracts with comparable objectives, such as improving program operations or strategic planning, would be most relevant. Without specific performance metrics or detailed SOWs for comparison, it's difficult to definitively state if this represents a high, low, or average investment. However, for a significant agency like CMS, substantial investments in specialized consulting are not uncommon.

What are the risks associated with a 'Not Available for Competition' award for management consulting?

The primary risk of a 'Not Available for Competition' (sole-source) award is the potential for reduced value for taxpayer money. Without competitive bidding, there is less pressure on the contractor to offer the lowest possible price. This can lead to higher costs than might be achieved in a fully competed environment. Additionally, the government may miss out on innovative solutions or diverse approaches that multiple bidders could have offered. There's also a risk that the justification for sole-sourcing might be weak, potentially indicating a lack of strategic procurement planning or an over-reliance on incumbent contractors without proper market research.

What is the significance of the 'Cost Plus Fixed Fee' (CPFF) contract type for this engagement?

The Cost Plus Fixed Fee (CPFF) contract type means that TELLIGEN, INC. will be reimbursed for all allowable costs incurred in performing the contract, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined at the outset, or when there is uncertainty about the costs involved. For the government, the CPFF structure aims to provide cost control by establishing a fixed profit margin, incentivizing the contractor to manage costs efficiently to maximize their overall return. However, it requires robust government oversight to ensure that all costs claimed are reasonable, allocable, and necessary for the contract's performance.

What is TELLIGEN, INC.'s track record with federal contracts, particularly with CMS?

The provided data indicates TELLIGEN, INC. (co: TELLIGEN, INC.) was awarded this contract by the Department of Health and Human Services (ag: Department of Health and Human Services), specifically the Centers for Medicare and Medicaid Services (sa: Centers for Medicare and Medicaid Services). This suggests a prior relationship or established capability recognized by CMS. To fully assess their track record, one would need to examine their complete federal contract history, including past performance evaluations, any past disputes or contract terminations, and their success in delivering on previous CMS or similar agency contracts. The fact they received this sole-source award implies a level of trust or unique qualification.

How does the $20.3 million spending align with historical federal spending on management consulting?

Federal spending on management consulting services is substantial, often running into billions of dollars annually across various agencies. The $20.3 million awarded to TELLIGEN, INC. by CMS represents a portion of this broader spending. To contextualize this specific award, it's useful to look at trends in federal consulting expenditures. Historically, agencies like HHS and its sub-components (like CMS) frequently procure consulting services to navigate complex healthcare regulations, implement new policies, and improve program administration. The amount is significant for a single contract but falls within the expected range for major federal agencies requiring specialized expertise over a multi-year period.

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: 1776 WESTLAKES PKWY, WEST DES MOINES, IA, 50266

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: $20,328,506

Exercised Options: $20,328,506

Current Obligation: $20,328,506

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline