HHS awards $21.2M sole-source contract to ADVANCEMED CORPORATION for technical services in Maryland
Contract Overview
Contract Amount: $21,234,816 ($21.2M)
Contractor: Advancemed Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2015-04-10
End Date: 2016-10-19
Contract Duration: 558 days
Daily Burn Rate: $38.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF ZONE 3 ZPIC CONTRACTOR SOLE SOURCE
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $21.2 million to ADVANCEMED CORPORATION for work described as: IGF::OT::IGF ZONE 3 ZPIC CONTRACTOR SOLE SOURCE Key points: 1. Contract awarded to ADVANCEMED CORPORATION for $21.2M. 2. Sole-source award indicates limited competition. 3. Services fall under 'All Other Professional, Scientific, and Technical Services'. 4. Contract duration is 558 days. 5. Awarded by the Centers for Medicare and Medicaid Services.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the $21.2M price is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning it was not competed. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a $21.2M contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying more than necessary due to the sole-source award. Limited transparency into the justification for a sole-source procurement. Potential for reduced service quality or innovation without competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Specific agency need addressed
Sector Analysis
The 'All Other Professional, Scientific, and Technical Services' sector is broad. Benchmarking is difficult without more specific service details, but $21.2M for a 558-day contract is substantial.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the justification was sound and that the contractor is delivering value for money.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Sole-source award lacks transparency and competitive pricing.
- Cost-plus contract type can lead to cost overruns.
- No indication of small business participation.
- Broad service category makes specific value assessment difficult.
Tags
all-other-professional-scientific-and-te, department-of-health-and-human-services, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $21.2 million to ADVANCEMED CORPORATION. IGF::OT::IGF ZONE 3 ZPIC CONTRACTOR SOLE SOURCE
Who is the contractor on this award?
The obligated recipient is ADVANCEMED CORPORATION.
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 $21.2 million.
What is the period of performance?
Start: 2015-04-10. End: 2016-10-19.
What was the specific justification for awarding this contract sole-source?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Further investigation would be required to ascertain the exact rationale.
What is the risk associated with a Cost Plus Fixed Fee contract type?
Cost Plus Fixed Fee (CPFF) contracts carry inherent risks for the government. While the contractor is incentivized to control costs to maximize their fixed fee, there's a risk that the government may end up paying more than anticipated if the contractor's costs exceed initial estimates significantly. Robust oversight is crucial to manage these costs effectively.
How does the lack of competition impact the effectiveness of this contract?
The lack of competition in a sole-source award can negatively impact effectiveness. Without competitive pressure, there may be less incentive for the contractor to innovate, improve efficiency, or offer the most cost-effective solutions. The government relies heavily on contract management and oversight to ensure effectiveness in such scenarios.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HHSM5002015RFP0109
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: HIG Capital Management, Inc.
Address: 7265 WINDSOR BLVD STE 106, BALTIMORE, MD, 21244
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,234,816
Exercised Options: $21,234,816
Current Obligation: $21,234,816
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $1,534,707
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-04-10
Current End Date: 2016-10-19
Potential End Date: 2016-10-19 00:00:00
Last Modified: 2023-02-28
More Contracts from Advancemed Corporation
- MED & Surgical Instruments,EQ & SUP — $170.6M (Department of Health and Human Services)
- Zone Program Integrity Contractor - Zone 5 — $131.2M (Department of Health and Human Services)
- Occupational Medical Services for Doe's Hanford Site — $130.6M (Department of Energy)
- Zone Program Integrity Contractor - Zone 5 — $100.2M (Department of Health and Human Services)
- Zpic - Zone 2 — $67.6M (Department of Health and Human Services)
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →