HHS awards $20.4M for accounting services to Grant Thornton LLP over 7 years
Contract Overview
Contract Amount: $20,371,575 ($20.4M)
Contractor: Grant Thornton LLP
Awarding Agency: Department of Health and Human Services
Start Date: 2013-09-06
End Date: 2020-11-15
Contract Duration: 2,627 days
Daily Burn Rate: $7.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF
Place of Performance
Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21202
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $20.4 million to GRANT THORNTON LLP for work described as: IGF::OT::IGF Key points: 1. The contract value is $20.4 million over 7 years. 2. Grant Thornton LLP is the sole awardee. 3. The contract type is Firm Fixed Price, indicating price certainty. 4. The sector is professional services, specifically accounting. 5. The duration is substantial at over 2600 days.
Value Assessment
Rating: fair
The contract was awarded on a Firm Fixed Price basis. Without specific performance metrics or benchmarks for 'Other Accounting Services', it's difficult to definitively assess value. The long duration suggests a need for consistent support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the data indicates this was a 'Delivery Order', which might imply it was part of a larger indefinite-delivery contract, potentially limiting the scope of competition for this specific order.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers, aiming to secure the best price. The total award value of $20.4 million over seven years represents a significant but potentially justified expenditure for specialized accounting services.
Public Impact
Taxpayers benefit from competitive bidding for accounting services. Long-term contracts can provide stability but require ongoing scrutiny. The Centers for Medicare and Medicaid Services rely on these services for financial integrity. The duration of the contract spans multiple fiscal years, impacting budget planning.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may reduce flexibility.
- Lack of specific performance metrics makes value assessment difficult.
- Potential for scope creep over a 7-year period.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type provides cost certainty.
- Experienced contractor (Grant Thornton LLP).
Sector Analysis
This contract falls under professional services, specifically accounting services (NAICS 541219). Spending in this category can vary widely based on agency needs, but long-term, high-value contracts like this suggest critical, ongoing support requirements.
Small Business Impact
The awardee is Grant Thornton LLP, a large public accounting firm. There is no indication that small businesses were involved in this specific award, either as prime contractors or subcontractors.
Oversight & Accountability
The contract was awarded by the Centers for Medicare and Medicaid Services, an agency with significant oversight responsibilities. The long duration necessitates regular performance reviews and financial oversight to ensure continued value and accountability.
Related Government Programs
- Other Accounting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Long contract duration (7 years).
- Limited detail on specific services provided.
- Potential for contractor performance degradation over time.
- Lack of clear performance metrics in provided data.
Tags
other-accounting-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $20.4 million to GRANT THORNTON LLP. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is GRANT THORNTON 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 $20.4 million.
What is the period of performance?
Start: 2013-09-06. End: 2020-11-15.
What specific accounting services were provided under this contract, and how did they contribute to the agency's mission?
The contract was for 'Other Accounting Services' (NAICS 541219). While specific details are not provided, these services likely encompassed a range of financial management, auditing, advisory, or compliance support critical to the Centers for Medicare and Medicaid Services' complex operations. Understanding the precise nature of these services would clarify their direct contribution to the agency's mission of ensuring health insurance programs operate effectively and efficiently.
Given the 7-year duration, what mechanisms were in place to manage potential cost increases or ensure continued relevance of services?
The contract utilized a Firm Fixed Price (FFP) structure, which generally locks in the price and shifts the risk of cost overruns to the contractor. However, for a 7-year period, mechanisms like annual price adjustments based on economic indices, or clear provisions for re-negotiation if the scope of services significantly changed, would be crucial for managing costs and ensuring the services remained relevant and valuable to CMS throughout the contract's life.
How was the 'full and open competition' process structured for this delivery order, and did it effectively drive competitive pricing?
While the contract states 'full and open competition', the fact that it's a 'Delivery Order' suggests it might have been issued under a pre-existing larger contract vehicle. The effectiveness of competition in driving price would depend on how many qualified bidders were solicited for this specific order and the evaluation criteria used. Without more details on the bidding process for this order, it's difficult to definitively assess the extent to which competition drove optimal pricing.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Grant Thornton International Ltd (UEI: 347201258)
Address: 333 JOHN CARLYLE ST STE 500, ALEXANDRIA, VA, 22314
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $20,371,575
Exercised Options: $20,371,575
Current Obligation: $20,371,575
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F8196H
IDV Type: FSS
Timeline
Start Date: 2013-09-06
Current End Date: 2020-11-15
Potential End Date: 2020-11-15 00:00:00
Last Modified: 2022-03-29
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