HHS awards $169M contract for administrative management consulting services to Cognosante, LLC
Contract Overview
Contract Amount: $169,266,124 ($169.3M)
Contractor: Cognosante, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2013-05-31
End Date: 2016-11-29
Contract Duration: 1,278 days
Daily Burn Rate: $132.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: IGF::OT::IGF NEW TASK ORDER
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $169.3 million to COGNOSANTE, LLC for work described as: IGF::OT::IGF NEW TASK ORDER Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1278 days indicates a significant, long-term need for these services. 3. The Time and Materials pricing structure may present cost control challenges if not closely managed. 4. The North American Industry Classification System (NAICS) code 541611 points to a focus on general management consulting. 5. The contract was awarded to a single entity, Cognosante, LLC, for delivery order execution. 6. The contract was awarded by the Centers for Medicare and Medicaid Services (CMS), a key agency within HHS.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Time and Materials (T&M) pricing model, while flexible, can lead to cost overruns if not meticulously monitored. The total award amount of $169.2 million over approximately 3.5 years suggests a substantial investment in administrative management and general management consulting services. Without insight into the specific deliverables and outcomes, a definitive value-for-money assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this specific contract action. While two bidders participated, the extent of the competition and the nature of the proposals received are not detailed, making it difficult to fully assess the price discovery achieved.
Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging competitive pricing and potentially leading to more cost-effective solutions. However, the actual savings realized depend on the number and quality of bids received and the negotiation process.
Public Impact
Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and potentially the broader healthcare system through improved administrative efficiency. Services delivered likely encompass strategic planning, operational improvements, and management support for CMS programs. The geographic impact is primarily national, supporting CMS operations which have nationwide reach. Workforce implications may include support for government personnel and potential engagement of contractor staff in project execution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Time and Materials (T&M) contract type can lead to cost uncertainty and potential overruns if not managed rigorously.
- Limited information on the specific performance metrics makes it difficult to assess the contractor's effectiveness and value.
- The relatively low number of bids (two) might indicate potential barriers to entry or limited market interest for this specific requirement.
Positive Signals
- Awarded through full and open competition, suggesting a fair and accessible bidding process.
- The contract duration of over three years indicates a stable, long-term engagement, potentially fostering expertise and efficiency.
- The contractor, Cognosante, LLC, is likely experienced in providing administrative and management consulting services.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is crucial for government operations, providing expertise to improve efficiency, strategy, and program execution. The market for these services is large and competitive, with numerous firms offering specialized consulting capabilities. Comparable spending benchmarks would typically involve analyzing other large-scale consulting contracts awarded by federal agencies for similar management support.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. Therefore, the direct impact on the small business ecosystem from this particular award is not discernible from the information given. Further investigation into subcontracting goals and performance would be needed to assess the broader implications for small businesses.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the Centers for Medicare and Medicaid Services (CMS). Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. The Inspector General for the Department of Health and Human Services would have jurisdiction over potential fraud, waste, or abuse related to this contract.
Related Government Programs
- HHS Administrative Support Contracts
- CMS Management Consulting Services
- Federal IT and Management Consulting
- Government Professional Services Contracts
Risk Flags
- Potential for cost overruns due to T&M contract type.
- Limited competition (two bidders) may affect price discovery.
- Lack of detailed performance metrics hinders value assessment.
Tags
hhs, cms, administrative-management-consulting, general-management-consulting, time-and-materials, full-and-open-competition, delivery-order, cognosante-llc, maryland, professional-services, healthcare-administration
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $169.3 million to COGNOSANTE, LLC. IGF::OT::IGF NEW TASK ORDER
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 $169.3 million.
What is the period of performance?
Start: 2013-05-31. End: 2016-11-29.
What specific administrative management and general management consulting services were provided under this contract?
The contract, awarded to Cognosante, LLC, under NAICS code 541611, focused on 'Administrative Management and General Management Consulting Services.' While the specific statement of work is not detailed in the provided data, such services typically encompass a broad range of activities. These can include strategic planning, organizational analysis, process improvement, program management support, policy development, and operational efficiency enhancements. Given the awarding agency is the Centers for Medicare and Medicaid Services (CMS), the services likely supported CMS's complex mission of administering Medicare, Medicaid, and other health insurance programs, potentially involving areas like healthcare policy implementation, beneficiary services, or program integrity.
How does the $169.2 million award amount compare to similar contracts for administrative management consulting within HHS or CMS?
Assessing the $169.2 million award in isolation is difficult without direct comparative data. However, large federal agencies like HHS, and specifically CMS, frequently award multi-million dollar contracts for management and administrative consulting due to the complexity and scale of their operations. Contracts of this magnitude are not uncommon for supporting major federal programs. To provide a precise comparison, one would need to analyze the duration, scope, and specific services of other similar contracts awarded by CMS or HHS over the past several years. Factors like the number of bidders, contract type (e.g., T&M vs. FFP), and performance outcomes would be crucial for a robust benchmark.
What are the potential risks associated with the Time and Materials (T&M) contract type for this $169.2 million award?
The primary risk with a Time and Materials (T&M) contract, such as the one awarded to Cognosante, LLC, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee. If project scope creeps, timelines extend beyond initial estimates, or labor hours are not meticulously tracked and managed, the total cost can escalate significantly beyond initial projections. For a contract valued at $169.2 million, effective government oversight, detailed tracking of hours and expenses, and clear definition of work requirements are critical to mitigate these risks and ensure the government receives good value for its investment.
What was the historical spending pattern for administrative management and general management consulting services by CMS prior to this award?
The provided data snippet focuses on a single contract award and does not offer historical spending patterns. To understand historical spending, one would need to access federal procurement databases (like FPDS or USASpending.gov) and query for contracts under NAICS code 541611, or similar codes, awarded by CMS over multiple fiscal years. Analyzing this data would reveal trends in spending levels, common contractors, contract types utilized, and the overall demand for these services within CMS. This historical context is vital for evaluating whether the $169.2 million award represents an increase, decrease, or stable level of investment in such services.
What is Cognosante, LLC's track record with federal contracts, particularly within HHS or CMS?
The provided data indicates Cognosante, LLC was awarded this specific $169.2 million contract. To assess their track record, a broader search of federal procurement databases would be necessary. This would reveal other contracts awarded to Cognosante, their values, the agencies they served, and the types of services rendered. Information regarding past performance evaluations, any contract disputes, or awards for exceptional performance would provide a more comprehensive view of their capabilities and reliability as a federal contractor, especially within the health sector served by HHS and CMS.
How does the level of competition (two bidders) potentially impact the pricing and quality of services for this contract?
A competition with only two bidders, as indicated for this contract, presents a mixed picture regarding pricing and quality. On one hand, it still represents a competitive environment, which should theoretically drive down prices and encourage quality compared to a sole-source award. However, fewer bidders might suggest that the market for this specific requirement is limited, or that potential competitors faced barriers to entry. This could mean that the government did not achieve the full benefit of robust competition, potentially leading to prices that are higher than they might be with more bidders, or that the selection was made from a narrower pool of potential solutions. The government's negotiation strategy and the specific details of the proposals would be key factors in determining the ultimate impact.
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: TFTPMC000874B
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $169,266,124
Exercised Options: $169,266,124
Current Obligation: $169,266,124
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS10F0579N
IDV Type: FSS
Timeline
Start Date: 2013-05-31
Current End Date: 2016-11-29
Potential End Date: 2016-11-29 00:00:00
Last Modified: 2019-01-28
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