A/b MAC jurisdiction l
Active Definitive Contract Awarded Last action
- Contract number
- 75FCMC21C0019
- Awardee
-
Novitas Solutions, Inc. UEI PLHWY41UW5V3 Part of Guidewell Mutual Holding Corporation
- Awarding agency
-
Centers for Medicare and Medicaid Services
Department of Health and Human Services
- Obligated
- $544,992,327
Award facts
- Opportunity
-
- Part A/Part B Medicare Administrative Contractor (MAC) Jurisdiction L (JL) Solicitation · 75FCMC20R0008 · Posted Aug 3, 2020
- Part A/Part B Medicare Administrative Contractor (MAC) Jurisdiction L (JL) Award Notice · Posted Jul 27, 2021
- Contract value 69% obligated
-
- $677,600,839.94 Current, with exercised options
- $790,517,472.94 Potential, with all options
- Completion date 75% complete
-
- Current, with exercised options
- Potential, with all options
- NAICS code
- 524114 Direct Health and Medical Insurance Carriers
- Set-aside
- No set-aside
- Competition
- Full and Open Competition · 2 offers Negotiated Proposal / Quote
- Pricing
- Cost Plus Award Fee
- Place of performance
- Mechanicsburg, PA, USA
- Legislative mandates
-
- Employment Eligibility Verification (E-Verify) FAR subpart 22.18
- Service Contract Inventory FAR subpart 4.17
Award details come from SAM.gov/FPDS.
Transactions
| Action | Obligated | Date |
|---|---|---|
| Exercise an Option | $88,962,460 | |
| Supplemental Agreement for work within scope | -$2,683,592 | |
| Supplemental Agreement for work within scope | $13,193,354 | |
| Supplemental Agreement for work within scope | -$64,144 | |
| Funding Only Action | $200,000 | |
| Supplemental Agreement for work within scope | $788,753 | |
| Change Order | $530,373 | |
| Change Order | $100,000 | |
| Other Administrative Action | $0 | |
| Funding Only Action | $6,000,000 | |
| Exercise an Option | $71,978,209 | |
| Funding Only Action | $50,000 | |
| Change Order | $0 | |
| Supplemental Agreement for work within scope | $0 | |
| Supplemental Agreement for work within scope | $0 | |
| Supplemental Agreement for work within scope | $0 | |
| Funding Only Action | $150,000 | |
| Other Administrative Action | $0 | |
| Other Administrative Action | $0 | |
| Supplemental Agreement for work within scope | $0 | |
| Supplemental Agreement for work within scope | -$33,926 | |
| Supplemental Agreement for work within scope | -$989,348 | |
| Supplemental Agreement for work within scope | $734,861 | |
| Change Order | $174,467 | |
| Funding Only Action | $14,979,607 | |
| Other Administrative Action | $0 | |
| Supplemental Agreement for work within scope | $840,507 | |
| Supplemental Agreement for work within scope | $16,009,031 | |
| Supplemental Agreement for work within scope | -$294,983 | |
| Supplemental Agreement for work within scope | $502,282 | |
| Exercise an Option | $67,530,660 | |
| Supplemental Agreement for work within scope | $0 | |
| Supplemental Agreement for work within scope | $5,315,201 | |
| Other Administrative Action | $0 | |
| Other Administrative Action | $0 | |
| Funding Only Action | $85,000 | |
| Other Administrative Action | $0 | |
| Other Administrative Action | $0 | |
| Supplemental Agreement for work within scope | $21,876,884 | |
| Other Administrative Action | $0 | |
| Supplemental Agreement for work within scope | $0 | |
| Funding Only Action | $115,000 | |
| Supplemental Agreement for work within scope | $10,000,000 | |
| Supplemental Agreement for work within scope | $6,249,762 | |
| Definitize Change Order | -$1,222 | |
| Supplemental Agreement for work within scope | $4,329,694 | |
| Definitize Change Order | $0 | |
| Definitize Change Order | -$26,543 | |
| Other Administrative Action | $0 | |
| Funding Only Action | $20,690,393 |
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About this award
The Centers for Medicare and Medicaid Services awarded a $790.517 million definitive contract to Novitas Solutions, Inc. for Medicare Administrative Contractor services covering Jurisdiction L on August 1, 2021, with ultimate completion July 31, 2028, under a cost-plus-award-fee pricing structure.
Jurisdiction L encompasses Delaware, Maryland, New Jersey, Pennsylvania, Washington D.C., and parts of Virginia, supporting approximately 8.5 million Medicare beneficiaries and processing over 17 million Part A bills and 110 million Part B claims annually. Place of performance is Mechanicsburg, PA. The originating solicitation, posted August 3, 2020 with October 5, 2020 proposal due date, sought an indefinite-delivery, indefinite-quantity contract for Part A and Part B Medicare claims processing and payment services, provider enrollment, medical review, appeals processing, and customer service. The contract carries NAICS 524292 and PSC code R499.
The contract's Service Contract Inventory footprint shows FY2025 invoicing of $86.4 million across 346 FTEs performing 719,318 contractor hours, reflecting a blended government-paid rate of $120.09 per hour. Invoiced labor has trended upward from $57.1 million in FY2022 ($110.85/hr) through a peak of $97.9 million in FY2024 ($132.28/hr). Novitas subcontracts approximately 4 percent of hours, with three named subcontractors delivering clinical review, mailroom, provider enrollment processing, cost report audit, contact center, records storage, and optical character recognition services including Pearl Interactive Network LLC (HUBZone and Black American-owned), Servicesource Inc. (AbilityOne nonprofit), and Avosys Technology Inc. (8(a) certified, minority-owned small disadvantaged business), alongside Figliozzi & Company (woman-owned), Broadpath LLC, Iron Mountain Information Management LLC, TDY Medical Staffing Inc. (SDVOSB), Global Computer Products Inc. (minority-owned SDB), Heffler, Radetich & Saitta L.L.P., and Imagenet LLC.
Subawards
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Quick answers
Who was awarded contract 75FCMC21C0019?
75FCMC21C0019 was awarded to Novitas Solutions, Inc. by Centers for Medicare and Medicaid Services (Department of Health and Human Services) on August 1, 2021.
How much is contract 75FCMC21C0019 worth?
The government has obligated $544,992,327 on 75FCMC21C0019. Its current value, with exercised options, is $677,600,840. Its potential value, with all options, is $790,517,473.
Was contract 75FCMC21C0019 competed?
The extent of competition for 75FCMC21C0019 was full and open competition. The government received 2 offers.
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