HHS awards $37M for QIC Part B South contract to C2C Innovative Solutions, Inc

Contract Overview

Contract Amount: $37,081,234 ($37.1M)

Contractor: C2C Innovative Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2014-07-01

End Date: 2019-08-31

Contract Duration: 1,887 days

Daily Burn Rate: $19.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF QUALIFIED INDEPENDENT CONTRACTOR (QIC) PART B SOUTH

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32202

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $37.1 million to C2C INNOVATIVE SOLUTIONS, INC. for work described as: IGF::CL::IGF QUALIFIED INDEPENDENT CONTRACTOR (QIC) PART B SOUTH Key points: 1. Contract value of $37.1M over 5 years suggests a significant investment in administrative management services. 2. The contract was awarded under full and open competition, indicating a broad market search. 3. A firm-fixed-price contract type generally shifts risk to the contractor, potentially stabilizing costs. 4. The duration of 1887 days (approx. 5 years) allows for sustained service delivery and potential for performance improvements. 5. The North American Industry Classification System (NAICS) code 541611 points to specialized management consulting expertise. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $37.1 million over approximately five years averages to about $7.4 million annually. Benchmarking this against similar administrative management and general management consulting services contracts awarded by federal agencies requires access to a broader dataset of comparable procurements. However, the firm-fixed-price nature suggests that the government has a clear understanding of the scope and has negotiated a price that is expected to cover all contractor costs and profit. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The data indicates there were 2 bids received. A competitive process with multiple bidders generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards. The presence of two bidders suggests a degree of market interest, though a higher number of bids would typically indicate more robust competition.

Taxpayer Impact: For taxpayers, full and open competition is generally favorable as it encourages multiple companies to vie for the contract, driving down prices and improving the quality of services offered. This process aims to ensure that the government secures the best value for public funds.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and potentially healthcare providers and beneficiaries who rely on the efficient administration of Medicare programs. Services delivered likely involve administrative support, management consulting, and operational assistance for CMS initiatives, specifically related to 'QIC Part B South'. The geographic impact is primarily within the service area covered by 'QIC Part B South', likely a specific region within Florida. Workforce implications could involve the direct employment by C2C Innovative Solutions, Inc. and potentially indirect employment through subcontractors, contributing to the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'QIC Part B South' responsibilities are not clearly defined.
Dependence on a single contractor for critical administrative functions could pose a risk if performance falters.
The limited number of bidders (2) might indicate a niche market or high barriers to entry, potentially limiting future competition.

Positive Signals

Firm-fixed-price contract type aligns costs with performance expectations.
Awarded under full and open competition, suggesting a fair and transparent procurement process.
Contract duration of over 5 years allows for continuity of services and potential for contractor learning curve benefits.

Sector Analysis

The contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This sector is crucial for government operations, providing expertise in efficiency, process improvement, and strategic planning. The federal government is a significant consumer of these services, particularly within large agencies like HHS. The market size for government consulting is substantial, with numerous firms competing for contracts. This specific award represents a portion of HHS's broader spending on operational and administrative support for its vast healthcare programs.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. However, the prime contractor, C2C Innovative Solutions, Inc., may still choose to engage small businesses as subcontractors to fulfill certain aspects of the contract, depending on their own business practices and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, linking payment to successful delivery of services. Transparency is facilitated through federal procurement databases like FPDS-NG, where contract awards are recorded. The Inspector General's office for HHS may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

Medicare Administrative Contractor (MAC) Support Services
Healthcare Consulting Services
Federal Management and Consulting Contracts
CMS Program Support
Administrative Services for Health Agencies

Risk Flags

Contract duration exceeds 5 years.
Limited number of bidders received.
Potential for evolving requirements in healthcare administration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $37.1 million to C2C INNOVATIVE SOLUTIONS, INC.. IGF::CL::IGF QUALIFIED INDEPENDENT CONTRACTOR (QIC) PART B SOUTH

Who is the contractor on this award?

The obligated recipient is C2C INNOVATIVE SOLUTIONS, 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 $37.1 million.

What is the period of performance?

Start: 2014-07-01. End: 2019-08-31.

What specific services does 'QIC Part B South' entail, and how does C2C Innovative Solutions, Inc. support these functions?

The contract designation 'QIC Part B South' likely refers to a Qualified Independent Contractor (QIC) responsible for handling certain aspects of Medicare Part B claims appeals or administrative processes within a specific geographic region ('South'). C2C Innovative Solutions, Inc. would be providing the necessary administrative management and general management consulting services to support these functions. This could include tasks such as claims processing oversight, contractor management, data analysis, process improvement, policy implementation, and reporting related to Medicare Part B operations in their designated area. The exact scope would be detailed in the contract's Statement of Work (SOW).

How does the $37.1 million contract value compare to other similar administrative management contracts awarded by CMS or HHS?

Benchmarking the $37.1 million contract value requires comparing it against a portfolio of similar administrative management and general management consulting services contracts awarded by CMS and HHS. Contracts of this magnitude are substantial and suggest a significant, long-term need for specialized support. Without access to a comprehensive database of comparable contracts, it's difficult to provide a precise comparison. However, given the critical nature of Medicare operations, such funding levels are not uncommon for comprehensive support contracts that span several years and cover complex administrative functions across a defined region.

What are the key performance indicators (KPIs) or metrics used to evaluate C2C Innovative Solutions, Inc.'s performance under this contract?

While the specific Key Performance Indicators (KPIs) are not detailed in the provided summary data, they would typically be outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For a contract supporting Medicare operations, KPIs could include metrics related to claims processing timeliness, accuracy rates, customer service satisfaction (for providers or beneficiaries interacting with the QIC), adherence to regulatory requirements, efficiency of operations, and successful implementation of any required process improvements. Performance would likely be monitored through regular reporting and potentially site visits or audits by CMS.

What is the historical spending pattern for 'QIC Part B South' or similar functions within HHS?

Historical spending patterns for 'QIC Part B South' or similar functions within HHS are not directly available from the provided data. However, Medicare administrative functions, including those related to claims processing and appeals, represent a significant and ongoing expenditure for CMS. Contracts for these services are often long-term due to the complexity and stability required. Previous awards for QIC services or related administrative support would provide insight into the consistency of spending in this area. It's common for such contracts to be re-competed periodically, reflecting sustained government needs.

What is the risk associated with a firm-fixed-price contract of this duration for administrative services?

The primary risk associated with a firm-fixed-price (FFP) contract of this duration (approx. 5 years) for administrative services is the potential for the contractor to become complacent or for the government's needs to evolve significantly beyond the original scope without adequate mechanisms for adjustment. For the government, the risk is that the fixed price may become uncompetitive over time if market rates decrease or if the contractor's efficiency gains are not passed on. For the contractor, the risk is that unforeseen cost increases or scope changes not covered by contract modifications could erode profit margins. Robust contract management and clear change order procedures are crucial to mitigate these risks.

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: TMF Health Quality Institute

Address: 532 RIVERSIDE AVE, JACKSONVILLE, FL, 32202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,081,234

Exercised Options: $37,081,234

Current Obligation: $37,081,234

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSM500200400005I

IDV Type: IDC

Timeline