HHS Spends $27.5M on Admin Support Services with Island Peer Review Organization Inc
Contract Overview
Contract Amount: $27,510,642 ($27.5M)
Contractor: Island Peer Review Organization Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2009-07-15
End Date: 2017-02-28
Contract Duration: 2,785 days
Daily Burn Rate: $9.9K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: OTHER ADMINISTRATIVE SUPPORT SVCS
Place of Performance
Location: NEW HYDE PARK, NASSAU County, NEW YORK, 11042
State: New York Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $27.5 million to ISLAND PEER REVIEW ORGANIZATION INC for work described as: OTHER ADMINISTRATIVE SUPPORT SVCS Key points: 1. The contract value is substantial at $27.5 million. 2. Competition was competitive, indicated by 'COMPETITIVE DELIVERY ORDER'. 3. The contract spans a significant duration from 2009 to 2017. 4. The sector is administrative support services, a broad category.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar administrative support contracts is difficult without more granular data on the specific services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded via a competitive delivery order, suggesting multiple vendors were considered. This method generally promotes price discovery and value for the government.
Taxpayer Impact: The competitive nature of the award suggests efforts were made to secure fair pricing, but the Cost Plus Fixed Fee structure warrants scrutiny for taxpayer impact.
Public Impact
Taxpayers funded administrative support services for Medicare and Medicaid. The long contract duration (nearly 8 years) indicates ongoing need. The specific nature of 'OTHER ADMINISTRATIVE SUPPORT SVCS' is vague, making public understanding challenging.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Vague service description
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Competitive award
Sector Analysis
This contract falls under administrative management and general management consulting services. Spending in this sector can vary widely depending on agency needs, but significant contracts like this warrant careful oversight to ensure efficiency.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small businesses had opportunities to participate in subcontracting.
Oversight & Accountability
The competitive delivery order process implies some level of oversight in the award. However, the Cost Plus Fixed Fee structure necessitates robust monitoring to control costs and ensure 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
- Potential for cost overruns due to CPFF structure
- Lack of specific service details
- Long contract duration may indicate lack of flexibility
- No small business awardee
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $27.5 million to ISLAND PEER REVIEW ORGANIZATION INC. OTHER ADMINISTRATIVE SUPPORT SVCS
Who is the contractor on this award?
The obligated recipient is ISLAND PEER REVIEW ORGANIZATION INC.
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 $27.5 million.
What is the period of performance?
Start: 2009-07-15. End: 2017-02-28.
What specific administrative support services were provided under this contract?
The contract description 'OTHER ADMINISTRATIVE SUPPORT SVCS' and NAICS code '541611' (Administrative Management and General Management Consulting Services) are broad. Without a detailed statement of work, it's impossible to ascertain the precise services rendered, such as data analysis, program management, or operational support for CMS.
How effectively was the Cost Plus Fixed Fee structure managed to control costs?
The Cost Plus Fixed Fee (CPFF) contract type allows the contractor to recover costs plus a fixed fee. Effective management requires stringent oversight of allowable costs and the fixed fee to prevent contractor over-earning and ensure the government receives good value. The long duration and substantial value suggest ongoing cost management was critical.
What was the overall value proposition of this contract for CMS?
The value proposition hinges on the effectiveness and efficiency of the administrative support provided. Given the competitive award, it's presumed the services met CMS's needs at a reasonable cost. However, the CPFF structure necessitates a post-award review to confirm the actual value delivered against the total expenditure.
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) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FILE TAB 8
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1979 MARCUS AVE STE 105, NEW HYDE PARK, NY, 11042
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $27,510,642
Exercised Options: $27,510,642
Current Obligation: $27,510,642
Actual Outlays: $81,681
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSM500200800005I
IDV Type: IDC
Timeline
Start Date: 2009-07-15
Current End Date: 2017-02-28
Potential End Date: 2017-02-28 00:00:00
Last Modified: 2023-08-25
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