HHS Awards $275M Task Order to Coventbridge USA Inc. for Technical Services
Contract Overview
Contract Amount: $274,965,441 ($275.0M)
Contractor: Coventbridge USA Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2016-05-24
End Date: 2026-07-18
Contract Duration: 3,707 days
Daily Burn Rate: $74.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: IGF::OT::IGF MIDWESTERN JURISDICTION UPIC WORK TASK ORDER 1
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $275.0 million to COVENTBRIDGE USA INC for work described as: IGF::OT::IGF MIDWESTERN JURISDICTION UPIC WORK TASK ORDER 1 Key points: 1. Significant contract value of $275 million over 10 years. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate given the long duration and cost-plus award fee structure. 4. Sector is professional, scientific, and technical services, with a focus on healthcare support.
Value Assessment
Rating: good
The contract is a Cost Plus Award Fee (CPAF) type, which allows for contractor reimbursement of costs plus a fee that is based on performance. This structure can incentivize good performance but requires robust oversight to ensure costs are reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The full and open competition suggests that taxpayers are likely benefiting from a competitive price discovery process, although the CPAF structure requires careful monitoring of costs.
Public Impact
Supports critical healthcare services through technical expertise. Long-term award order provides stability for service delivery. Potential for innovation and efficiency gains through performance incentives.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Long contract duration (10 years) increases risk of cost escalation.
- Cost Plus Award Fee structure requires diligent oversight to control costs.
- Potential for scope creep over the life of the contract.
Positive Signals
- Full and open competition indicates a competitive bidding process.
- Performance incentives in CPAF can drive higher quality service.
- Award order provides continuity for essential services.
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically 'All Other Professional, Scientific, and Technical Services'. Spending in this broad category is substantial across government, supporting a wide range of agency functions.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The contract was awarded under full and open competition, suggesting large businesses were likely the primary bidders.
Oversight & Accountability
The Cost Plus Award Fee structure necessitates strong government oversight to ensure contractor performance meets objectives and costs remain reasonable. Regular performance reviews and audits are crucial for accountability.
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
- Long contract duration (10 years).
- Cost Plus Award Fee structure requires strong oversight.
- Potential for scope creep.
- Lack of specific small business participation noted.
Tags
all-other-professional-scientific-and-te, department-of-health-and-human-services, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $275.0 million to COVENTBRIDGE USA INC. IGF::OT::IGF MIDWESTERN JURISDICTION UPIC WORK TASK ORDER 1
Who is the contractor on this award?
The obligated recipient is COVENTBRIDGE USA 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 $275.0 million.
What is the period of performance?
Start: 2016-05-24. End: 2026-07-18.
How does the performance of Coventbridge USA Inc. on this contract compare to industry benchmarks for similar technical services?
Assessing performance against industry benchmarks requires access to detailed performance metrics and fee structures, which are not publicly available. However, the award fee component suggests a mechanism exists to reward superior performance. Future analysis could involve comparing the awarded fees against the base costs to gauge efficiency and effectiveness relative to potential market rates for comparable services.
What are the primary risks associated with the 10-year duration of this task order, and how are they being mitigated?
The primary risks of a 10-year duration include potential cost escalation due to inflation, technological obsolescence, and changes in government requirements. Mitigation strategies likely involve robust contract management, periodic reviews of service needs, and performance-based incentives that encourage efficiency and adaptability. The CPAF structure also allows for adjustments to the fee based on performance, providing some flexibility.
To what extent does the 'All Other Professional, Scientific, and Technical Services' category represent a significant portion of HHS's overall spending, and is this contract typical?
The 'All Other Professional, Scientific, and Technical Services' category is broad and encompasses a wide array of support functions critical to agency operations. While specific breakdowns for HHS are not provided, such services are generally a significant expenditure for large federal agencies like HHS, supporting everything from IT to research and program management. This contract's value and duration appear substantial, suggesting it addresses a key, long-term need.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HHSM5002015RFP0122
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 9485 REGENCY SQ BLVD STE 200, JACKSONVILLE, FL, 32225
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $274,965,441
Exercised Options: $274,965,441
Current Obligation: $274,965,441
Actual Outlays: $137,996,657
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $2,717,518
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HHSM500201600079I
IDV Type: IDC
Timeline
Start Date: 2016-05-24
Current End Date: 2026-07-18
Potential End Date: 2026-07-18 00:00:00
Last Modified: 2025-11-04
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