HHS Awards $35.1M for Appeals Services to Maximus Federal Services, Inc
Contract Overview
Contract Amount: $35,139,696 ($35.1M)
Contractor: Maximus Federal Services, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2016-06-22
End Date: 2020-12-31
Contract Duration: 1,653 days
Daily Burn Rate: $21.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: IGF::OT::IGF - PROVIDE QUALIFIED INDEPENDENT CONTRACTOR PART A WEST APPEALS SERVICES.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $35.1 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: IGF::OT::IGF - PROVIDE QUALIFIED INDEPENDENT CONTRACTOR PART A WEST APPEALS SERVICES. Key points: 1. Maximus Federal Services, Inc. secured a significant contract for independent contractor part A appeals services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The firm fixed price contract type aims to control costs for the government. 4. The sector is administrative management and general management consulting services, crucial for healthcare operations.
Value Assessment
Rating: good
The contract's firm fixed price structure provides cost certainty. Benchmarking against similar contracts for administrative and consulting services would offer further insight into its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this method typically fosters competitive pricing. The government likely received competitive bids, leading to a fair market price discovery.
Taxpayer Impact: The firm fixed price contract helps manage taxpayer funds by setting a clear cost ceiling for the services.
Public Impact
Ensures continued access to essential Medicare appeals services for beneficiaries. Supports the administrative functions of the Centers for Medicare and Medicaid Services (CMS). Provides employment opportunities within the federal contracting sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of over 4 years.
- Potential for follow-on work or contract extensions.
Positive Signals
- Full and open competition.
- Firm fixed price contract type.
Sector Analysis
This contract falls within the administrative management and general management consulting services sector, which is vital for the efficient operation of government agencies, particularly in healthcare. Spending in this sector can vary widely based on agency needs and complexity.
Small Business Impact
The data indicates that small business participation was not a specific requirement or outcome for this contract, as 'sb' is false. Future analysis could explore if subcontracting opportunities were available.
Oversight & Accountability
The contract was awarded by the Centers for Medicare and Medicaid Services (CMS), a major agency within HHS. Oversight would typically involve contract management by CMS officials to ensure performance and adherence to terms.
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
- Long contract duration (over 4 years).
- Sole contractor for a critical service.
- Potential for vendor lock-in if not managed proactively.
- Reliance on a single firm for appeals processing.
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 $35.1 million to MAXIMUS FEDERAL SERVICES, INC.. IGF::OT::IGF - PROVIDE QUALIFIED INDEPENDENT CONTRACTOR PART A WEST APPEALS SERVICES.
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 $35.1 million.
What is the period of performance?
Start: 2016-06-22. End: 2020-12-31.
What was the competitive landscape like for this contract, and did the full and open competition result in significant cost savings compared to other potential award methods?
The contract was awarded under full and open competition, suggesting multiple bidders vied for the contract. This method is generally expected to yield competitive pricing. Without specific bid data, it's difficult to quantify exact savings, but the process itself is designed to achieve value for taxpayer money by leveraging market forces.
What are the key performance indicators (KPIs) for this contract, and how is Maximus Federal Services, Inc. being monitored to ensure effective delivery of appeals services?
Specific KPIs are not detailed in the provided data. However, as a contract for appeals services, typical KPIs would likely include turnaround times, accuracy rates, and customer satisfaction. CMS contract officers are responsible for monitoring performance against the contract's statement of work and addressing any deficiencies.
Given the firm fixed price structure, what mechanisms are in place to handle potential scope creep or unforeseen challenges that could impact the contractor's profitability or service quality?
A firm fixed price contract generally places the risk of cost overruns on the contractor. Mechanisms for scope creep typically involve formal change order processes. If significant unforeseen challenges arise, the government and contractor would need to negotiate contract modifications, potentially impacting price and schedule.
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
Solicitation ID: RFPQIC04001
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Maximus Inc
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: $43,001,043
Exercised Options: $35,139,696
Current Obligation: $35,139,696
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HHSM500200400007I
IDV Type: IDC
Timeline
Start Date: 2016-06-22
Current End Date: 2020-12-31
Potential End Date: 2020-12-31 00:00:00
Last Modified: 2022-08-23
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