HHS Awards $151.5M Contract to Icahn School of Medicine for Clinical Center of Excellence

Contract Overview

Contract Amount: $151,547,927 ($151.5M)

Contractor: Icahn School of Medicine AT Mount Sinai

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-29

End Date: 2026-09-28

Contract Duration: 1,460 days

Daily Burn Rate: $103.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST NO FEE

Sector: Healthcare

Official Description: WTCHP CLINICAL CENTER OF EXCELLENCE

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10029

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $151.5 million to ICAHN SCHOOL OF MEDICINE AT MOUNT SINAI for work described as: WTCHP CLINICAL CENTER OF EXCELLENCE Key points: 1. The contract value of $151.5 million over 4 years represents a significant investment in clinical research and development. 2. Icahn School of Medicine at Mount Sinai, a well-established institution, is the sole awardee. 3. Potential risks include the lack of demonstrated competition and the reliance on a single entity for this critical function. 4. The sector is healthcare, specifically outpatient care centers, with a focus on clinical excellence and research.

Value Assessment

Rating: fair

The contract type is 'COST NO FEE', which can make direct price comparisons difficult. Benchmarking against similar 'Center of Excellence' contracts is challenging due to unique scopes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bids were considered. However, the specific details of the price discovery process are not provided, making it hard to assess if the final price reflects optimal value.

Taxpayer Impact: Taxpayer funds are being invested in a specialized healthcare center, with the expectation of improved clinical outcomes and research advancements.

Public Impact

Enhances specialized healthcare services and research capabilities. Supports advanced medical treatment and patient care protocols. Potential for breakthroughs in clinical understanding and treatment efficacy. Contributes to the advancement of medical knowledge and public health initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown for 'COST NO FEE' contract.
Limited transparency on specific performance metrics and success indicators.
Potential for scope creep without clear cost controls.

Positive Signals

Award to a reputable institution with demonstrated expertise.
Focus on clinical excellence and research aligns with public health goals.
Long-term contract duration allows for sustained program development.

Sector Analysis

This contract falls within the healthcare sector, specifically outpatient care centers. Spending benchmarks for 'Centers of Excellence' can vary widely based on specialization and scope, but $151.5M over four years suggests a significant, focused initiative.

Small Business Impact

There is no indication that small businesses were involved in this contract award. The focus appears to be on a large, established research institution.

Oversight & Accountability

Oversight will be crucial to ensure the 'Center of Excellence' meets its objectives and that funds are used efficiently. The Centers for Disease Control and Prevention (CDC) is responsible for monitoring performance and adherence to contract terms.

Related Government Programs

All Other Outpatient Care Centers
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Lack of detailed cost justification for 'COST NO FEE'.
Reliance on a single entity for a critical function.
Potential for limited transparency in performance reporting.
Absence of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $151.5 million to ICAHN SCHOOL OF MEDICINE AT MOUNT SINAI. WTCHP CLINICAL CENTER OF EXCELLENCE

Who is the contractor on this award?

The obligated recipient is ICAHN SCHOOL OF MEDICINE AT MOUNT SINAI.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $151.5 million.

What is the period of performance?

Start: 2022-09-29. End: 2026-09-28.

What specific clinical outcomes or research advancements are expected from this 'Center of Excellence' to justify the $151.5 million investment?

The contract aims to establish a 'Center of Excellence' to advance clinical research, improve patient care protocols, and potentially develop new treatment strategies. Specific expected outcomes would likely include publications in peer-reviewed journals, development of best practices, and measurable improvements in patient health metrics related to the center's focus area. The CDC anticipates these advancements will contribute to broader public health goals.

Given the 'COST NO FEE' structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure fiscal responsibility?

While 'COST NO FEE' contracts primarily reimburse allowable costs, oversight mechanisms are critical. The CDC will likely monitor expenditures closely, conduct audits, and require detailed reporting to ensure costs are reasonable, allocable, and necessary. Performance metrics tied to milestones can also incentivize efficiency and prevent unchecked spending, though the absence of a fixed fee or profit margin changes the incentive structure.

How will the effectiveness of the 'Clinical Center of Excellence' be measured, and what are the key performance indicators (KPIs) to assess its impact?

Effectiveness will likely be measured through a combination of quantitative and qualitative KPIs. These could include the number and impact of research publications, successful implementation of new clinical protocols, patient outcome data, successful grant applications secured by the center, and adherence to budget. Regular reviews and reporting by the Icahn School of Medicine to the CDC will be essential for tracking progress against defined objectives.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › All Other Outpatient Care Centers

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75D301-22-R-72142

Offers Received: 8

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: ONE GUSTAVE L LEVY PL, NEW YORK, NY, 10029

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $340,841,558

Exercised Options: $151,547,927

Current Obligation: $151,547,927

Actual Outlays: $106,644,689

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline