HHS Spends $52.5M on Exam Prep Services via BPA Call, Raising Value Questions
Contract Overview
Contract Amount: $52,466,062 ($52.5M)
Contractor: Palmetto GBA, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2016-07-01
End Date: 2021-06-30
Contract Duration: 1,825 days
Daily Burn Rate: $28.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Healthcare
Official Description: IGF::OT::IGF ROUND 2019 PREPARATION
Place of Performance
Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29202
Plain-Language Summary
Department of Health and Human Services obligated $52.5 million to PALMETTO GBA, LLC for work described as: IGF::OT::IGF ROUND 2019 PREPARATION Key points: 1. Significant spending on exam preparation services ($52.5M) warrants scrutiny. 2. Competition was full and open, but the value proposition needs further analysis. 3. Risk of overspending exists if services are not tightly managed. 4. Healthcare sector spending on professional development is common, but efficiency varies.
Value Assessment
Rating: questionable
The contract awarded $52.5 million for exam preparation and tutoring. Without specific performance metrics or comparison to similar services, it's difficult to assess if this represents good value. The time and materials pricing model can also lead to cost overruns if not carefully monitored.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under a BPA Call with full and open competition, indicating a broad search for qualified vendors. However, the pricing structure (Time and Materials) may not have driven the most cost-effective solutions.
Taxpayer Impact: Taxpayers funded $52.5 million for exam preparation services. The effectiveness and necessity of this level of spending for employee development require further justification to ensure optimal use of public funds.
Public Impact
Federal employees receive specialized training and exam preparation, potentially enhancing skills and service delivery. The significant investment could indicate a focus on professional development within CMS. Transparency regarding the specific exams and skills covered is limited, impacting public understanding of the investment's direct benefits.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clear performance metrics
- Potential for cost overruns with T&M pricing
- Limited public information on specific training outcomes
Positive Signals
- Full and open competition utilized
- Focus on employee professional development
Sector Analysis
Spending on professional development and training is a common practice across government agencies, particularly within large organizations like HHS. Benchmarks for such services can vary widely depending on the specialization and duration of the training.
Small Business Impact
The data does not indicate if small businesses participated in or benefited from this contract. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The use of a BPA Call suggests an existing framework for procurement. Oversight would focus on ensuring the services delivered meet the stated objectives and that the Time and Materials pricing is appropriately managed to prevent waste.
Related Government Programs
- Exam Preparation and Tutoring
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- High contract value for intangible services
- Potential for uncontrolled costs with T&M pricing
- Lack of specific performance metrics
- Limited transparency on training outcomes
Tags
exam-preparation-and-tutoring, department-of-health-and-human-services, sc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $52.5 million to PALMETTO GBA, LLC. IGF::OT::IGF ROUND 2019 PREPARATION
Who is the contractor on this award?
The obligated recipient is PALMETTO GBA, 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 $52.5 million.
What is the period of performance?
Start: 2016-07-01. End: 2021-06-30.
What specific exams or certifications were covered under this contract, and how do they align with the Centers for Medicare and Medicaid Services' strategic goals?
The contract details do not specify the exact exams or certifications. To assess value, CMS should provide a breakdown of the training provided, linking it directly to critical job functions and agency objectives. This would clarify if the $52.5 million investment directly contributes to improved healthcare program administration and oversight.
What measures were in place to control costs and ensure efficiency given the Time and Materials pricing structure?
With a Time and Materials contract, robust oversight is crucial. CMS should have implemented strict monitoring of labor hours, rates, and material costs. Regular reviews and performance evaluations would be necessary to ensure that the contractor's efforts were efficient and that the total expenditure remained justified against the services rendered.
How was the effectiveness of the exam preparation and tutoring services measured to ensure a return on investment for taxpayer funds?
The provided data lacks information on how the effectiveness of these services was measured. A comprehensive assessment would require tracking employee pass rates, subsequent job performance improvements, and overall impact on agency operations. Without such metrics, it's difficult to ascertain if the $52.5 million yielded a tangible return for the government.
Industry Classification
NAICS: Educational Services › Other Schools and Instruction › Exam Preparation and Tutoring
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
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Blue Cross & Blue Shield of South Carolina
Address: 17 TECHNOLOGY CIR, COLUMBIA, SC, 29203
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $52,466,062
Exercised Options: $52,466,062
Current Obligation: $52,466,062
Actual Outlays: $22
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: HHSM500201600007B
IDV Type: BPA
Timeline
Start Date: 2016-07-01
Current End Date: 2021-06-30
Potential End Date: 2021-06-30 00:00:00
Last Modified: 2023-04-25
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