HHS Awards $25.4M for Medicare Appeals Services to Federal Specialized Services, LLC
Contract Overview
Contract Amount: $25,449,575 ($25.4M)
Contractor: Federal Specialized Services, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2015-07-02
End Date: 2020-06-30
Contract Duration: 1,825 days
Daily Burn Rate: $13.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Healthcare
Official Description: IGF::OT::IGF APPEALS FOR MEDICARE PROVIDER PART A
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60608
State: Illinois Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $25.4 million to FEDERAL SPECIALIZED SERVICES, LLC for work described as: IGF::OT::IGF APPEALS FOR MEDICARE PROVIDER PART A Key points: 1. Contract awarded to a single vendor for specialized Medicare appeals processing. 2. Significant contract value suggests a critical function within CMS. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, making direct sector benchmarks difficult.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to costs exceeding initial estimates if not managed tightly. Without specific performance metrics or benchmarks, assessing value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may not have yielded the most competitive pricing.
Taxpayer Impact: The CPFF structure and limited competition raise concerns about maximizing taxpayer value. Oversight is crucial to ensure costs remain reasonable for the services rendered.
Public Impact
Ensures continued processing of Medicare provider appeals, impacting healthcare providers' financial stability. Affects the efficiency and accuracy of the Medicare appeals system. Potential for delays or increased costs if the contractor underperforms or if the contract is not well-managed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Limited competition awarded
- Broad NAICS code
Positive Signals
- Contract addresses a critical function for Medicare providers
- Long contract duration suggests sustained need
Sector Analysis
This contract falls under professional, scientific, and technical services, specifically related to healthcare administration. Benchmarking is difficult due to the specialized nature of Medicare appeals processing.
Small Business Impact
The contract was not awarded to small businesses, as indicated by 'sb': false. There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
The 'IL' (Illinois) state code and 'st' (State) field are unusual for a federal contract and warrant further investigation. Oversight of the CPFF contract is essential to control costs and ensure performance.
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
- Potential for cost overruns due to CPFF structure
- Limited competition may have resulted in suboptimal pricing
- Lack of clear performance benchmarks in provided data
- Unusual state code ('IL') associated with the contract
Tags
all-other-professional-scientific-and-te, department-of-health-and-human-services, il, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $25.4 million to FEDERAL SPECIALIZED SERVICES, LLC. IGF::OT::IGF APPEALS FOR MEDICARE PROVIDER PART A
Who is the contractor on this award?
The obligated recipient is FEDERAL SPECIALIZED SERVICES, 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 $25.4 million.
What is the period of performance?
Start: 2015-07-02. End: 2020-06-30.
What specific performance metrics are in place to ensure the quality and efficiency of Medicare appeals processing under this CPFF contract?
The provided data does not specify performance metrics. A thorough review of the contract's statement of work and any associated performance work statements would be necessary to identify these. Effective oversight would involve tracking key performance indicators related to timeliness, accuracy, and cost-effectiveness of appeals resolution.
How was the fixed fee determined in this Cost Plus Fixed Fee contract, and what analysis was done to ensure it was reasonable?
The data does not detail the methodology for determining the fixed fee. Typically, this involves evaluating the contractor's proposed costs, profit margin, and the complexity of the work. A review of the source selection documentation and negotiation records would be needed to understand the basis for the fee and its reasonableness.
What is the rationale behind the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type, and were there any justifications for excluding other potential bidders?
This award type suggests that while full and open competition was intended, certain sources were excluded, possibly due to specific requirements or prior performance. The justification for excluding other sources would typically be documented in the contract file, potentially related to specialized capabilities or existing relationships necessary for continuity of services.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HHSM5002013RFP0030
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 633 S PLYMOUTH CT STE 202, CHICAGO, IL, 60605
Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,449,575
Exercised Options: $25,449,575
Current Obligation: $25,449,575
Actual Outlays: $54,163
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-07-02
Current End Date: 2020-06-30
Potential End Date: 2020-06-30 00:00:00
Last Modified: 2024-09-19
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