HHS Spends $40.6M on Program Integrity Oversight with KPMG LLP
Contract Overview
Contract Amount: $40,644,467 ($40.6M)
Contractor: Kpmg LLP
Awarding Agency: Department of Health and Human Services
Start Date: 2012-09-27
End Date: 2018-02-09
Contract Duration: 1,961 days
Daily Burn Rate: $20.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: PROGRAM INTEGRITY AND FINANCIAL OVERSIGHT
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $40.6 million to KPMG LLP for work described as: PROGRAM INTEGRITY AND FINANCIAL OVERSIGHT Key points: 1. Significant investment in program integrity and financial oversight. 2. KPMG LLP, a major accounting firm, holds the contract. 3. Contract awarded by CMS, a key agency within HHS. 4. Full and open competition was utilized for this award.
Value Assessment
Rating: good
The contract value of $40.6M over approximately 6 years suggests a substantial investment in oversight services. Benchmarking against similar large-scale financial oversight contracts would be necessary for a precise assessment, but the duration and scope indicate a significant engagement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust process to solicit bids from multiple qualified vendors. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The investment in program integrity and financial oversight is intended to safeguard taxpayer funds by preventing fraud, waste, and abuse within Medicare and Medicaid programs.
Public Impact
Ensures the financial integrity of critical healthcare programs like Medicare and Medicaid. Aims to reduce fraud, waste, and abuse in healthcare spending. Supports the Centers for Medicare and Medicaid Services (CMS) in its mission. Leverages expertise from a major accounting firm for complex financial oversight.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is relatively long (approx. 6 years).
- Specific performance metrics and outcomes are not detailed in the provided data.
Positive Signals
- Awarded via full and open competition.
- Focuses on critical program integrity and financial oversight.
- Contracted with a reputable firm (KPMG LLP).
Sector Analysis
This contract falls under professional services, specifically accounting and auditing, related to government program oversight. Spending benchmarks for such services can vary widely based on scope and duration, but significant investments are common for large federal agencies like CMS.
Small Business Impact
The data does not indicate any specific set-asides or participation goals for small businesses in this contract. As a large professional services contract, it may have been challenging for smaller firms to compete directly.
Oversight & Accountability
The contract's purpose is directly related to program integrity and financial oversight, suggesting a strong focus on accountability. However, the specific oversight mechanisms and reporting requirements are not detailed here.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Long contract duration.
- Lack of specific performance outcome data.
- Potential for vendor lock-in.
- Limited insight into specific oversight mechanisms.
Tags
offices-of-certified-public-accountants, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $40.6 million to KPMG LLP. PROGRAM INTEGRITY AND FINANCIAL OVERSIGHT
Who is the contractor on this award?
The obligated recipient is KPMG LLP.
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 $40.6 million.
What is the period of performance?
Start: 2012-09-27. End: 2018-02-09.
What specific program integrity activities were performed under this contract, and what were the measurable outcomes in terms of fraud detection or cost savings?
The provided data focuses on the contract award and value, not the specific deliverables or outcomes. To assess value, a review of the contract's statement of work, performance reports, and any documented savings or fraud recoveries attributed to KPMG's oversight services would be necessary. Without this, the precise impact remains unclear.
Given the significant contract value, what were the key risk mitigation strategies employed by CMS to ensure effective oversight of KPMG's performance?
Effective risk mitigation for such a contract would typically involve clear performance standards, regular progress reviews, independent quality assurance checks, and robust contract management by CMS personnel. The 'Program Integrity and Financial Oversight' designation suggests an inherent focus on risk, but specific contractual safeguards are not detailed.
How does the $40.6M expenditure compare to the agency's overall budget for program integrity and financial oversight, and what was the return on investment?
Comparing this expenditure to the agency's total budget for similar functions would provide context on its relative scale. A true return on investment (ROI) analysis would require quantifying the costs of fraud, waste, and abuse prevented or recovered due to this contract, which is not available in the provided summary data.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants
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: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kpmg L.L.P. (UEI: 001667906)
Address: 1801 K ST NW STE 12000, WASHINGTON, DC, 20006
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $40,644,467
Exercised Options: $40,644,467
Current Obligation: $40,644,467
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F8127H
IDV Type: FSS
Timeline
Start Date: 2012-09-27
Current End Date: 2018-02-09
Potential End Date: 2019-01-30 00:00:00
Last Modified: 2019-02-05
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