HHS awards $55.5M contract for clinical center of excellence services to City of New York Fire Department

Contract Overview

Contract Amount: $55,458,536 ($55.5M)

Contractor: City of NEW York Fire Department

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: $38.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: WTCHP CLINICAL CENTER OF EXCELLENCE

Place of Performance

Location: BROOKLYN, KINGS County, NEW YORK, 11201

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $55.5 million to CITY OF NEW YORK FIRE DEPARTMENT for work described as: WTCHP CLINICAL CENTER OF EXCELLENCE Key points: 1. Contract awarded to a municipal fire department for clinical services raises questions about specialized expertise and potential conflicts. 2. The contract's cost-plus-fixed-fee structure may incentivize cost increases, requiring robust oversight. 3. A single definitive contract award suggests limited competition, potentially impacting price negotiation. 4. The duration of 1460 days (4 years) indicates a long-term commitment to these services. 5. The contract's value, while substantial, needs benchmarking against similar clinical support services. 6. The absence of small business set-asides warrants examination of subcontracting opportunities.

Value Assessment

Rating: questionable

Benchmarking this contract's value is challenging due to the unusual award to a fire department for clinical services. The cost-plus-fixed-fee (CPFF) pricing structure, while common for research and development, can lead to cost overruns if not meticulously managed. Without comparable contracts for similar services from specialized healthcare providers, assessing the true value-for-money is difficult. The fixed fee component provides some cost certainty, but the overall cost efficiency depends heavily on the contractor's ability to manage direct costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were theoretically allowed to submit proposals. However, the award to the City of New York Fire Department for clinical services suggests that either the competition was highly specialized, or the fire department possessed unique qualifications that made them the sole viable bidder despite the broad competition. The number of bidders (8) is provided, but their nature and the reasons for selecting a fire department over traditional healthcare providers are not detailed.

Taxpayer Impact: While full and open competition is generally favorable for taxpayers, the unusual nature of this award means that the expected price discovery benefits might not have been fully realized if only a limited pool of qualified and relevant bidders participated.

Public Impact

The primary beneficiaries are likely the City of New York Fire Department, which receives significant federal funding, and potentially the populations served by the clinical center of excellence. The services delivered are related to a 'clinical center of excellence,' implying advanced medical support, research, or training. The geographic impact is centered in New York, where the City of New York Fire Department is based. Workforce implications could involve the deployment of medical personnel within the fire department or the creation of new roles to manage this federal contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Awarding clinical services to a fire department raises concerns about specialized medical expertise and potential conflicts of interest.
The cost-plus-fixed-fee contract type can lead to cost escalation if not properly managed and monitored.
Limited transparency on the specific services and performance metrics makes it difficult to assess effectiveness.
The rationale for selecting a fire department over established healthcare providers is unclear and warrants further investigation.

Positive Signals

The contract was awarded through full and open competition, suggesting an attempt to solicit a broad range of potential providers.
The definitive contract award provides a clear framework for the service delivery over the contract period.
The fixed fee component in the CPFF structure offers some predictability in contractor profit.

Sector Analysis

This contract falls within the Healthcare sector, specifically related to outpatient care centers and potentially public health initiatives. The market for clinical centers of excellence is competitive, with numerous specialized healthcare providers, research institutions, and academic medical centers. Federal spending in this area often supports public health research, disease management programs, and specialized treatment facilities. The award to a municipal entity like a fire department is atypical for this sector, suggesting a unique service delivery model or a specific public safety-related health initiative.

Small Business Impact

The data indicates that small business participation (sb) is false, meaning there was no specific set-aside for small businesses for this contract. This suggests that the competition was likely geared towards larger entities or that the nature of the services did not lend itself to small business subcontracting. Further analysis would be needed to determine if any subcontracting opportunities were made available to small businesses by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and its relevant contracting and program offices. The cost-plus-fixed-fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Performance monitoring will be crucial to ensure the clinical center of excellence meets its objectives. Transparency could be enhanced by public reporting of key performance indicators and spending details. The Inspector General for HHS would have jurisdiction for audits and investigations.

Related Government Programs

Public Health Services
Emergency Medical Services
Clinical Research Support
Outpatient Care Facilities
Disease Prevention Programs

Risk Flags

Unusual contractor type for service scope
Potential for cost overruns due to CPFF structure
Limited transparency on performance metrics
Lack of clear benchmarking for value

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $55.5 million to CITY OF NEW YORK FIRE DEPARTMENT. WTCHP CLINICAL CENTER OF EXCELLENCE

Who is the contractor on this award?

The obligated recipient is CITY OF NEW YORK FIRE DEPARTMENT.

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 $55.5 million.

What is the period of performance?

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

What specific clinical services is the City of New York Fire Department expected to provide under this contract, and how do these align with their core mission?

The contract is for a 'Clinical Center of Excellence,' which typically involves advanced medical services, research, training, and potentially specialized treatment protocols. While the City of New York Fire Department has a robust Emergency Medical Services (EMS) division, the scope of a 'center of excellence' may extend beyond immediate emergency response. It is crucial to understand if this contract leverages existing medical infrastructure and personnel within the FDNY for public health initiatives, research, or specialized care that complements their emergency response capabilities. The alignment with their core mission would depend on the specific objectives defined in the contract, such as enhancing pre-hospital care research, developing new treatment guidelines, or providing specialized medical support for public health emergencies.

How does the pricing structure (Cost Plus Fixed Fee) for this contract compare to typical contracts for clinical center of excellence services?

Cost Plus Fixed Fee (CPFF) contracts are common for research and development or services where the scope is not precisely defined at the outset, allowing for flexibility. For clinical centers of excellence, CPFF can be appropriate if the work involves significant research or innovation. However, it places a greater burden on the government to monitor costs and ensure they are reasonable and allocable. Compared to fixed-price contracts, CPFF offers less cost certainty for the government but can be more attractive to contractors undertaking complex or uncertain work. Benchmarking against similar contracts would reveal if the fixed fee percentage is within industry norms and if the estimated costs are realistic for the services described. The government's ability to effectively audit costs is paramount for value realization under a CPFF arrangement.

What are the key performance indicators (KPIs) and metrics used to evaluate the success of the City of New York Fire Department in fulfilling this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics for this contract. However, for a 'Clinical Center of Excellence,' typical KPIs might include patient outcomes, research publication rates, successful implementation of new treatment protocols, training completion rates, response times for specialized medical support, and adherence to budget. Given the award to a fire department, specific metrics might also relate to the integration of clinical services with emergency response operations, such as improved pre-hospital care or specialized disaster response capabilities. Robust oversight would require clearly defined, measurable, achievable, relevant, and time-bound (SMART) KPIs that are regularly monitored and reported.

What is the historical spending pattern for 'Clinical Center of Excellence' services by the Department of Health and Human Services, and how does this award compare?

Historical spending data for 'Clinical Center of Excellence' services by HHS is not provided in the current dataset. However, HHS typically contracts with established healthcare providers, academic institutions, and research organizations for such services. Awards are often competitive and may utilize various contract types depending on the nature of the work. This specific award to the City of New York Fire Department for approximately $55.5 million over four years is unusual. It deviates from the norm of contracting with traditional healthcare entities, suggesting a unique program objective or a specific capability possessed by the fire department that aligns with HHS's strategic goals in a particular area, possibly related to public health emergencies or specialized pre-hospital care.

What are the potential risks associated with awarding a clinical services contract to a municipal fire department, and what mitigation strategies are in place?

Potential risks include a lack of specialized clinical expertise beyond emergency medical services, potential conflicts of interest between public safety duties and clinical care provision, and challenges in adapting to the rigorous compliance and reporting requirements of federal healthcare contracts. Mitigation strategies would involve stringent performance monitoring, clear delineation of roles and responsibilities, ensuring adequate clinical staffing and oversight by qualified medical professionals, and robust government quality assurance processes. The contract's success hinges on the FDNY's ability to establish and maintain a true 'center of excellence' standard, potentially requiring significant investment in personnel, training, and infrastructure beyond their typical operational scope.

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 PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 9 METROTECH CTR, BROOKLYN, NY, 11201

Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $118,078,628

Exercised Options: $55,458,536

Current Obligation: $55,458,536

Actual Outlays: $29,643,984

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline