HHS awards $49.5M for Medicare Appeals to Maximus Federal Services under full and open competition
Contract Overview
Contract Amount: $49,541,513 ($49.5M)
Contractor: Maximus Federal Services, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2010-09-01
End Date: 2015-05-31
Contract Duration: 1,733 days
Daily Burn Rate: $28.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TAS::05 0511::TAS MEDICARE 2ND LEVEL APPEALS
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $49.5 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: TAS::05 0511::TAS MEDICARE 2ND LEVEL APPEALS Key points: 1. Maximus Federal Services secured a significant contract for Medicare appeals, indicating strong performance in administrative management. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The firm fixed price contract type helps manage cost certainty for the government. 4. This spending falls within the Administrative Management and General Management Consulting Services sector.
Value Assessment
Rating: good
The contract value of $49.5M over approximately 5 years for Medicare appeals services appears reasonable given the scope. Benchmarking against similar large-scale administrative support contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically drives competitive pricing and ensures the government receives the best value. The existence of two bids suggests a moderately competitive landscape.
Taxpayer Impact: Taxpayer funds are being used for essential Medicare appeals processing, aiming for efficient and fair resolution of beneficiary disputes.
Public Impact
Ensures timely processing of Medicare beneficiary appeals. Supports the integrity and fairness of the Medicare program. Provides critical administrative services for a major federal health program.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for contract scope creep over the duration.
- Reliance on a single vendor for a critical function.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type provides cost predictability.
Sector Analysis
This contract falls under Administrative Management and General Management Consulting Services. Spending in this sector can vary widely based on agency needs, but this award represents a substantial investment in program support.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this contract award.
Oversight & Accountability
The contract was awarded by the Centers for Medicare and Medicaid Services (CMS), a key agency within HHS, suggesting established oversight mechanisms are in place.
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 substantial (over 4 years).
- Limited number of bids received (2).
- Potential for vendor lock-in.
- Dependence on a single vendor for critical function.
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 $49.5 million to MAXIMUS FEDERAL SERVICES, INC.. TAS::05 0511::TAS MEDICARE 2ND LEVEL APPEALS
Who is the contractor on this award?
The obligated recipient is MAXIMUS FEDERAL SERVICES, 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 $49.5 million.
What is the period of performance?
Start: 2010-09-01. End: 2015-05-31.
What was the total number of bids received for this contract, and how did the winning bid compare to others?
The contract was awarded under full and open competition and received two bids. While the specific details of the comparison are not provided, the award to MAXIMUS FEDERAL SERVICES, INC. suggests their proposal met or exceeded the evaluation criteria and represented the best value to the government.
What are the key performance indicators (KPIs) for this contract, and how is Maximus's performance being measured?
The provided data does not detail the specific Key Performance Indicators (KPIs) for this contract. However, for Medicare appeals, typical KPIs would likely include timeliness of processing, accuracy of decisions, and beneficiary satisfaction. CMS would have established metrics to monitor Maximus's performance.
What is the potential impact on Medicare beneficiaries if Maximus Federal Services fails to meet contractual obligations?
Failure by Maximus to meet contractual obligations could lead to significant delays and inaccuracies in processing Medicare appeals. This would negatively impact beneficiaries by prolonging uncertainty regarding their healthcare coverage and potentially causing financial hardship or denial of necessary services.
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 (UEI: 082347477)
Address: 11419 SUNSET HILLS ROAD, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $49,541,513
Exercised Options: $49,541,513
Current Obligation: $49,541,513
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSM500200400007I
IDV Type: IDC
Timeline
Start Date: 2010-09-01
Current End Date: 2015-05-31
Potential End Date: 2015-05-31 00:00:00
Last Modified: 2021-08-20
More Contracts from Maximus Federal Services, Inc.
- Contact Center Operations (CCO) — $5.5B (Department of Health and Human Services)
- Contact Center Operations — $2.6B (Department of Health and Human Services)
- 2020 Census Questionnaire Assistance (2020 CQA) — $918.3M (Department of Commerce)
- Debt Management and Collections System (dmcs) Igf::ct::igf — $906.9M (Department of Education)
- CDC Info Surge Support and National Covid 19 Vaccination Assistance Hotline — $354.6M (General Services Administration)
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →