HHS awards $315M contract to Cognosante for enrollment resolution and reconciliation services
Contract Overview
Contract Amount: $315,516,157 ($315.5M)
Contractor: Cognosante, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2016-11-28
End Date: 2021-11-29
Contract Duration: 1,827 days
Daily Burn Rate: $172.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF CCIIO ENROLLMENT RESOLUTION AND RECONCILIATION, FORM 1095-A DATA REPORTING 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 $315.5 million to COGNOSANTE, LLC for work described as: IGF::OT::IGF CCIIO ENROLLMENT RESOLUTION AND RECONCILIATION, FORM 1095-A DATA REPORTING TASK ORDER Key points: 1. The contract value of $315.5 million over five years indicates a significant investment in administrative support. 2. Cognosante, LLC, a large business, secured this award, highlighting the competitive landscape for large federal IT and consulting contracts. 3. The contract's focus on data reporting and reconciliation presents potential risks related to data accuracy and system integration. 4. This spending falls within the Administrative Management and General Management Consulting Services sector, a common area for federal outsourcing.
Value Assessment
Rating: good
The contract value of $315.5 million for a 5-year period suggests a substantial but potentially reasonable price for the services provided. Benchmarking against similar large-scale data management and reconciliation contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing. The use of a Firm Fixed Price contract provides cost certainty for the government.
Taxpayer Impact: The significant contract value means taxpayers are funding a substantial portion of these administrative services, with the expectation of efficient and accurate data management.
Public Impact
Ensures accurate reporting of enrollment data for healthcare programs, impacting beneficiaries' tax credits and subsidies. Supports the operational integrity of key healthcare exchanges and enrollment systems. Facilitates compliance with tax reporting requirements for individuals and the government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for data breaches or inaccuracies impacting beneficiaries.
- Vendor lock-in if transition is complex.
- Reliance on a single large vendor for critical data functions.
Positive Signals
- Full and open competition likely led to competitive pricing.
- Firm Fixed Price contract provides cost predictability.
- Contract duration allows for stability in critical operations.
Sector Analysis
This contract falls under Administrative Management and General Management Consulting Services, a broad category often involving IT and data processing. Federal spending in this sector is substantial, with many large firms competing for these types of awards.
Small Business Impact
The contract was awarded to Cognosante, LLC, a large business. There is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
The contract is managed by the Centers for Medicare and Medicaid Services (CMS), a key agency within HHS. Oversight would involve monitoring performance, deliverables, and financial expenditures to ensure contract compliance and value.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Data Accuracy and Integrity
- Vendor Performance and Reliability
- Cybersecurity and Data Protection
- Potential for Cost Overruns (despite FFP, scope creep is a risk)
- Impact of System Changes on Reconciliation
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $315.5 million to COGNOSANTE, LLC. IGF::OT::IGF CCIIO ENROLLMENT RESOLUTION AND RECONCILIATION, FORM 1095-A DATA REPORTING 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 $315.5 million.
What is the period of performance?
Start: 2016-11-28. End: 2021-11-29.
What is the specific impact of inaccurate 1095-A data reporting on individual taxpayers and federal tax revenue?
Inaccurate 1095-A data can lead to incorrect tax filings, potentially causing taxpayers to miss out on eligible premium tax credits or subsidies, or to be incorrectly assessed for them. This can result in audits, penalties, and under or overpayment of taxes. For the government, widespread inaccuracies could necessitate costly reconciliation efforts and potentially impact federal tax revenue projections and collection.
What are the primary risks associated with relying on a single vendor for critical enrollment resolution and reconciliation services?
The primary risks include vendor lock-in, making it difficult and expensive to switch providers if performance declines or costs increase. There's also a concentration of risk; if the vendor experiences financial instability, security breaches, or operational failures, it could severely disrupt essential government functions and data integrity. This reliance can also reduce leverage in future negotiations.
How does the firm fixed price contract structure ensure cost-effectiveness and value for the taxpayer in this data reporting task order?
A firm fixed price contract shifts the risk of cost overruns to the contractor, Cognosante, LLC. This incentivizes the contractor to manage costs efficiently and complete the work within the agreed-upon budget. For the taxpayer, it provides budget certainty, as the government knows the maximum cost upfront. However, value is still dependent on the quality of service delivered and effective oversight.
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
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cognosante Holdings, LLC
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: $324,283,866
Exercised Options: $315,516,157
Current Obligation: $315,516,157
Actual Outlays: $19,266,955
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS10F0579N
IDV Type: FSS
Timeline
Start Date: 2016-11-28
Current End Date: 2021-11-29
Potential End Date: 2021-11-29 00:00:00
Last Modified: 2024-09-13
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