HHS Awards $56.6M Contract for Part C Appeals Services to Maximus Federal Services
Contract Overview
Contract Amount: $56,650,816 ($56.7M)
Contractor: Maximus Federal Services, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2017-05-01
End Date: 2017-05-01
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 C APPEALS SERVICES.
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $56.7 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: IGF::OT::IGF - PROVIDE QUALIFIED INDEPENDENT CONTRACTOR PART C APPEALS SERVICES. Key points: 1. Contract awarded to Maximus Federal Services, Inc. for independent contractor Part C appeals services. 2. The contract value is $56.6 million. 3. The contract was awarded under full and open competition. 4. The North American Industry Classification System (NAICS) code is 541611 for Administrative Management and General Management Consulting Services. 5. The contract type is Firm Fixed Price.
Value Assessment
Rating: good
The contract value of $56.6 million for administrative management and general management consulting services appears reasonable given the scope of providing qualified independent contractor Part C appeals services. Benchmarking against similar contracts for specialized consulting services would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value is obtained for the services rendered.
Taxpayer Impact: The use of full and open competition suggests that taxpayers are likely receiving a fair price for these essential Medicare appeals services.
Public Impact
Ensures timely and fair processing of Medicare Part C appeals. Supports beneficiaries' rights to appeal coverage decisions. Maintains the integrity of the Medicare program. Provides essential administrative support to the Centers for Medicare and Medicaid Services (CMS).
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for vendor lock-in if not managed carefully.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type helps control costs.
- Supports a critical government function (Medicare appeals).
Sector Analysis
The healthcare sector, particularly within government services, often involves complex administrative and consulting contracts. Spending benchmarks for similar administrative management and consulting services for federal agencies can vary widely based on specialization and contract duration.
Small Business Impact
The provided data does not indicate any specific set-aside for small businesses. The contract was awarded under full and open competition, suggesting that large businesses were likely the primary participants.
Oversight & Accountability
The contract is managed by the Centers for Medicare and Medicaid Services (CMS), a key agency within HHS. Oversight would typically involve performance monitoring, quality assurance, and financial audits to ensure compliance and effectiveness.
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
- Potential for cost overruns if scope creep occurs.
- Dependence on a single contractor for critical appeals processing.
- Risk of service quality degradation if performance is not rigorously monitored.
- Limited transparency on specific performance metrics and outcomes.
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 $56.7 million to MAXIMUS FEDERAL SERVICES, INC.. IGF::OT::IGF - PROVIDE QUALIFIED INDEPENDENT CONTRACTOR PART C 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 $56.7 million.
What is the period of performance?
Start: 2017-05-01. End: 2017-05-01.
What is the specific volume of appeals processed under this contract and how does it compare to historical data?
The provided data does not specify the volume of appeals processed. To assess value effectively, it would be crucial to obtain data on the number of appeals handled, the complexity of each case, and the average processing time. Comparing this to historical trends or industry standards for appeals processing would reveal if the $56.6 million award represents efficient resource allocation for the services rendered.
What are the key performance indicators (KPIs) for Maximus Federal Services under this contract, and how is their performance measured?
The data does not detail the specific KPIs or performance measurement methods for Maximus Federal Services. Understanding these metrics, such as turnaround time for appeals, accuracy rates, and beneficiary satisfaction, is essential for assessing contract effectiveness and identifying potential risks. Without this information, it's difficult to gauge the quality of service and ensure accountability.
How does the cost per appeal processed under this contract compare to similar contracts or internal government processing?
A direct cost-per-appeal benchmark is not available from the provided data. To evaluate the cost-effectiveness, this figure should be calculated and compared against industry averages for similar outsourced appeals services or, if applicable, against the cost of internal processing by CMS. This comparison would highlight potential cost savings or overspending.
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: $56,965,789
Exercised Options: $56,650,816
Current Obligation: $56,650,816
Actual Outlays: $13,343,247
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: 2017-05-01
Current End Date: 2017-05-01
Potential End Date: 2022-04-30 00:00:00
Last Modified: 2023-01-10
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