HHS awarded $48.7M for QIC Part C Jurisdiction services, with Maximus Federal Services as the prime contractor

Contract Overview

Contract Amount: $48,680,744 ($48.7M)

Contractor: Maximus Federal Services, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2011-07-01

End Date: 2015-06-30

Contract Duration: 1,460 days

Daily Burn Rate: $33.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: QUALIFIED INDEPENDENT CONTRACTORS (QIC) PART C JURISDICTION

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $48.7 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: QUALIFIED INDEPENDENT CONTRACTORS (QIC) PART C JURISDICTION Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type indicates that the price was set at the time of award, providing cost certainty. 3. The contract duration of 1460 days (4 years) suggests a need for sustained services. 4. The award was made to a single contractor, MAXIMUS FEDERAL SERVICES, INC., for a specific jurisdiction. 5. The North American Industry Classification System (NAICS) code 541611 points to administrative management and general management consulting services. 6. The contract was issued as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the total value of the parent IDIQ contract or comparable delivery orders for similar services. The firm-fixed-price nature provides some cost control. However, the total award amount of $48.7 million over four years suggests a significant investment in administrative management consulting for a specific jurisdiction.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this specific delivery order. While two bidders participated, it's unclear if this represents robust competition or if other potential bidders were deterred.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging competitive pricing and potentially leading to better value. However, the limited number of bidders for this specific order warrants further investigation into the overall market landscape.

Public Impact

Beneficiaries of the Qualified Independent Contractors (QIC) Part C Jurisdiction services are likely healthcare providers and patients within the designated geographic area. The services delivered are administrative management and general management consulting, crucial for the effective operation of healthcare programs. The geographic impact is specific to the 'VA' jurisdiction, indicating a localized focus for these services. Workforce implications may include the employment of consultants and administrative staff by MAXIMUS FEDERAL SERVICES, INC. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bidders could potentially lead to higher costs for taxpayers.
The specific 'VA' jurisdiction may limit the pool of qualified contractors, impacting competition.
Lack of detailed performance metrics makes it difficult to assess the effectiveness of the services provided.
The nature of administrative consulting can sometimes be opaque, making value assessment challenging.

Positive Signals

Awarded under full and open competition, which is a positive indicator for market engagement.
Firm-fixed-price contract type provides cost certainty for the government.
The contractor, MAXIMUS FEDERAL SERVICES, INC., is a known entity in federal contracting, suggesting some level of established capability.
The contract duration implies a stable, long-term need for these essential administrative services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is vital for government operations, providing expertise in areas like program management, policy implementation, and operational efficiency. The market for such services is competitive, with numerous firms offering specialized consulting. The total federal spending on management consulting services is substantial, and this contract represents a portion of that expenditure within the healthcare domain.

Small Business Impact

The data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. However, the prime contractor may engage small businesses as subcontractors, which would be detailed in their subcontracting plan if applicable.

Oversight & Accountability

Oversight for this contract would typically be managed by the Centers for Medicare and Medicaid Services (CMS) within the Department of Health and Human Services (HHS). Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if there were allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Medicare Administrative Contractors (MACs)
Medicaid Information Technology Architecture (MITA)
Healthcare Consulting Services
Federal Management Consulting Contracts

Risk Flags

Limited Competition
Potential for Scope Creep
Contractor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $48.7 million to MAXIMUS FEDERAL SERVICES, INC.. QUALIFIED INDEPENDENT CONTRACTORS (QIC) PART C JURISDICTION

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 $48.7 million.

What is the period of performance?

Start: 2011-07-01. End: 2015-06-30.

What is the specific role and function of the 'Qualified Independent Contractors (QIC) Part C Jurisdiction'?

The 'Qualified Independent Contractors (QIC) Part C Jurisdiction' refers to entities contracted by the Centers for Medicare and Medicaid Services (CMS) to perform specific administrative and oversight functions related to Medicare Part C (Medicare Advantage) within a defined geographic jurisdiction. These functions often include reviewing coverage decisions, handling beneficiary appeals, and ensuring compliance with program rules. The 'Part C Jurisdiction' designation indicates the specific geographic area or set of states for which the QIC is responsible. The contract awarded to MAXIMUS FEDERAL SERVICES, INC. likely supports these critical administrative tasks, ensuring the proper functioning and oversight of Medicare Advantage plans within that designated area.

How does the firm-fixed-price (FFP) contract type impact cost control and risk for this contract?

A firm-fixed-price (FFP) contract type means that the total price of the contract is set at the time of award and is not subject to adjustment based on the contractor's cost experience. This significantly benefits the government by providing cost certainty and predictability. The risk of cost overruns is primarily borne by the contractor, MAXIMUS FEDERAL SERVICES, INC. If the contractor's costs exceed the fixed price, their profit margin will decrease. Conversely, if they can perform the work for less than the fixed price, their profit will increase. For the government, this structure incentivizes the contractor to manage costs efficiently and deliver the specified services within the agreed-upon budget, making it a preferred contract type for services with well-defined scopes.

What does the limited number of bidders (2) for this 'full and open competition' contract suggest about the market for these services?

While the contract was awarded under 'full and open competition,' the fact that only two bids were received suggests that the market for these specific administrative management and general management consulting services for the 'QIC Part C Jurisdiction' may be concentrated or that barriers to entry are significant. This could be due to specialized knowledge requirements, existing relationships with CMS, or the specific nature of the jurisdiction. A low number of bidders, even in a full and open competition, can sometimes indicate reduced price competition compared to markets with numerous participants. Further analysis would be needed to determine if this is a systemic issue for this type of service or a one-time occurrence.

Can we compare the awarded amount of $48.7 million over 4 years to similar contracts for QIC services?

Directly comparing the $48.7 million award for this specific delivery order over four years to other QIC contracts is challenging without more context. The total value of the parent IDIQ contract (if this is a delivery order) or the specific scope of work for this jurisdiction is crucial. However, on an annual basis, this contract averages approximately $12.175 million per year ($48.7M / 4 years). This figure can be used as a preliminary benchmark. To conduct a robust comparison, one would need to identify other contracts for similar QIC functions, with comparable scopes of work, for similar jurisdictions, and awarded around the same time period, considering inflation and market dynamics.

What are the potential risks associated with a contract of this duration (4 years) for administrative consulting services?

Contracts of this duration, like the 4-year award to MAXIMUS FEDERAL SERVICES, INC., carry several potential risks. Firstly, the scope of work might become outdated or misaligned with evolving program needs or regulatory changes over the four years, potentially leading to inefficiencies or the need for costly modifications. Secondly, a long-term engagement can reduce the government's flexibility to adapt to new technologies or service providers that might offer better value or performance. Thirdly, there's a risk of contractor complacency or a decline in service quality over time if performance monitoring is not rigorous. Finally, the fixed price, while offering certainty, could become disadvantageous if market rates for these services increase significantly during the contract period.

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: $48,680,744

Exercised Options: $48,680,744

Current Obligation: $48,680,744

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSM500200400007I

IDV Type: IDC

Timeline