HHS awards $53.6M for Management Consulting Services to StrategicHealthSolutions, LLC under full and open competition
Contract Overview
Contract Amount: $53,651,348 ($53.7M)
Contractor: Strategichealthsolutions, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2012-04-17
End Date: 2017-10-06
Contract Duration: 1,998 days
Daily Burn Rate: $26.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF
Place of Performance
Location: OMAHA, DOUGLAS County, NEBRASKA, 68114
State: Nebraska Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $53.7 million to STRATEGICHEALTHSOLUTIONS, LLC for work described as: IGF::OT::IGF Key points: 1. Spending of $53.6M over 5 years for administrative management consulting. 2. Contract awarded via full and open competition, suggesting market availability. 3. Risk of cost overruns or scope creep exists in long-term consulting contracts. 4. Sector is administrative management, a common area for government outsourcing.
Value Assessment
Rating: fair
The contract value of $53.6M over approximately 5 years averages to about $10.7M annually. Benchmarking against similar administrative management consulting contracts is difficult without more specific service details, but this appears to be a substantial award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering.
Taxpayer Impact: Taxpayer funds are used for administrative management consulting services, aiming to improve efficiency and effectiveness within the Centers for Medicare and Medicaid Services.
Public Impact
Impacts the Centers for Medicare and Medicaid Services' administrative operations. Potential for improved program management and efficiency through expert consulting. Ensures adherence to regulatory and administrative standards within HHS.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (5 years) increases risk of price escalation.
- Lack of specific performance metrics makes value assessment difficult.
- Potential for vendor lock-in if services are highly specialized.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type helps control costs.
- Multiple delivery orders suggest ongoing need and successful performance.
Sector Analysis
The administrative management and general management consulting services sector (NAICS 541611) is a broad category encompassing a wide range of support functions for government agencies. Spending in this sector can vary significantly based on agency needs and project scope.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
Oversight is provided by the Centers for Medicare and Medicaid Services. The contract's duration and value necessitate regular performance reviews and financial audits to ensure accountability and proper use of funds.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Long contract duration increases risk.
- Potential for scope creep.
- Lack of detailed service description.
- No indication of small business subcontracting.
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, ne, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $53.7 million to STRATEGICHEALTHSOLUTIONS, LLC. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is STRATEGICHEALTHSOLUTIONS, 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 $53.7 million.
What is the period of performance?
Start: 2012-04-17. End: 2017-10-06.
What specific administrative management challenges did CMS aim to address with this significant contract award?
The contract likely aimed to address complex administrative challenges within CMS, potentially related to program efficiency, operational improvements, regulatory compliance, or strategic planning. Without detailed statements of work, the precise objectives remain unclear, but such contracts typically support high-level management functions critical to agency operations and policy implementation.
How does the firm fixed price structure mitigate risks associated with a 5-year consulting contract?
A firm fixed price (FFP) contract establishes a ceiling price regardless of the contractor's actual costs. This structure shifts the risk of cost overruns to the contractor, providing budget certainty for the government. However, it requires careful scope definition upfront to prevent disputes or change orders that could negate the FFP benefits.
What is the potential long-term effectiveness of engaging a single vendor for administrative management consulting over an extended period?
Engaging a single vendor for an extended period can foster deep institutional knowledge and a strong working relationship, potentially leading to highly effective, tailored solutions. However, it also carries risks of complacency, reduced innovation, and potential vendor lock-in. Regular performance evaluations and market checks are crucial to ensure continued effectiveness and value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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
Solicitation ID: RFPCMS20120001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4211 S 102ND ST, OMAHA, NE, 68127
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Woman Owned Business
Financial Breakdown
Contract Ceiling: $54,581,735
Exercised Options: $53,651,348
Current Obligation: $53,651,348
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS10F0231T
IDV Type: FSS
Timeline
Start Date: 2012-04-17
Current End Date: 2017-10-06
Potential End Date: 2017-11-06 00:00:00
Last Modified: 2020-01-22
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