HHS Awards $43.5M for TAS QIC Part B Redeterminations to Q2 Administrators
Contract Overview
Contract Amount: $43,464,998 ($43.5M)
Contractor: Q2 Administrators, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2009-12-17
End Date: 2013-08-31
Contract Duration: 1,353 days
Daily Burn Rate: $32.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TAS::75 0511::TAS QIC PART B SOUTH REDETERMINATIONS
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $43.5 million to Q2 ADMINISTRATORS, LLC for work described as: TAS::75 0511::TAS QIC PART B SOUTH REDETERMINATIONS Key points: 1. Contract awarded to Q2 Administrators, LLC for administrative support services. 2. The contract spans over four years, indicating a significant, long-term need. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The services fall under Administrative Management and General Management Consulting. 5. This award represents a substantial investment in Medicare administrative functions.
Value Assessment
Rating: good
The contract's value of $43.5 million over four years suggests a fair price for ongoing administrative services. Benchmarking against similar long-term contracts for Medicare redeterminations would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, allowing multiple vendors to bid. This method generally leads to better price discovery and potentially more competitive pricing for the government.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the best possible value.
Public Impact
Ensures continued processing of Medicare Part B redeterminations, crucial for beneficiary access to services. Supports the administrative infrastructure of the Centers for Medicare and Medicaid Services (CMS). The long duration of the contract suggests a stable, ongoing requirement for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope expands beyond initial projections.
- Reliance on a single contractor for a critical function could pose a risk if performance falters.
Positive Signals
- Full and open competition likely secured competitive pricing.
- Long-term contract provides stability and predictability for service delivery.
- Award to a specialized firm suggests expertise in the required services.
Sector Analysis
This contract falls within administrative management consulting services, a broad category. Benchmarks for similar long-term contracts in the public sector for administrative support are generally in the tens of millions, aligning with this award.
Small Business Impact
The data indicates this was a full and open competition, but does not specify if small businesses were involved as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Centers for Medicare and Medicaid Services (CMS), a major agency within HHS. Oversight would typically involve contract management specialists ensuring performance and adherence to terms.
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
- Contract duration is lengthy (over 4 years).
- High contract value ($43.5M).
- Services are critical to Medicare operations.
- Potential for vendor performance issues over the contract term.
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $43.5 million to Q2 ADMINISTRATORS, LLC. TAS::75 0511::TAS QIC PART B SOUTH REDETERMINATIONS
Who is the contractor on this award?
The obligated recipient is Q2 ADMINISTRATORS, 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 $43.5 million.
What is the period of performance?
Start: 2009-12-17. End: 2013-08-31.
What is the specific impact of these redeterminations on Medicare beneficiaries?
These redeterminations are critical for ensuring that Medicare beneficiaries receive appropriate coverage for services and medical equipment. They involve reviewing claims to confirm eligibility and medical necessity, directly impacting patient access to care and provider reimbursement.
What are the primary risks associated with a long-term contract for administrative services?
Long-term contracts carry risks such as potential vendor lock-in, reduced flexibility to adapt to changing needs, and the possibility of cost increases over time if not managed effectively. There's also a risk if the contractor's performance declines or if they face financial instability.
How does this contract contribute to the overall effectiveness of the Medicare program?
This contract is vital for the operational effectiveness of Medicare by ensuring timely and accurate processing of claims and appeals. Efficient redetermination processes prevent backlogs, reduce administrative burden, and maintain the integrity of the program's finances, ultimately supporting beneficiary trust and program sustainability.
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: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Maximus Inc
Address: 17 TECHNOLOGY CIR, COLUMBIA, SC, 29203
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $43,464,998
Exercised Options: $43,464,998
Current Obligation: $43,464,998
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSM500200400010I
IDV Type: IDC
Timeline
Start Date: 2009-12-17
Current End Date: 2013-08-31
Potential End Date: 2013-08-31 00:00:00
Last Modified: 2024-06-13
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