HHS awards $74.8M for CPC+ program support, with a focus on research and development

Contract Overview

Contract Amount: $74,782,305 ($74.8M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2018-09-27

End Date: 2022-09-26

Contract Duration: 1,460 days

Daily Burn Rate: $51.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: BASE TASK ORDER AWARD UNDER HHSM-500-2014-00037I FOR CPC+ POM-Q

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $74.8 million to RESEARCH TRIANGLE INSTITUTE for work described as: BASE TASK ORDER AWARD UNDER HHSM-500-2014-00037I FOR CPC+ POM-Q Key points: 1. Contract awarded for comprehensive program management and support services. 2. Significant investment in research and development within the social sciences and humanities. 3. Contract duration spans nearly four years, indicating a long-term need for services. 4. Awarded under a full and open competition, suggesting a robust bidding process. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility in research projects. 6. Geographic focus on North Carolina for program implementation and oversight.

Value Assessment

Rating: good

The contract value of $74.8 million over approximately four years suggests a substantial investment in program support. Benchmarking this against similar large-scale federal research and development contracts is challenging without more specific service details. However, the cost-plus-fixed-fee structure implies that costs are monitored, and the fixed fee provides a predictable profit margin for the contractor. The value appears reasonable given the scope of managing a complex program like CPC+.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of two bids suggests a competitive environment, which typically leads to better price discovery and value for the government. The specific number of bidders can influence the intensity of competition and its impact on pricing.

Taxpayer Impact: A full and open competition generally benefits taxpayers by ensuring that the government receives competitive pricing and the best available services through a transparent process.

Public Impact

Beneficiaries include Medicare and Medicaid beneficiaries through improved program design and delivery. Services delivered encompass program management, research, and development for the CPC+ initiative. Geographic impact is primarily focused on North Carolina, where the contractor is based and likely where much of the program's operational oversight occurs. Workforce implications include potential job creation within the contractor's organization and indirectly within healthcare provider organizations participating in CPC+.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
Dependence on a single contractor for critical program management functions.
Scope creep could increase costs beyond initial projections without adequate oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Contract duration suggests a stable and predictable need for services.
Focus on research and development can lead to innovative healthcare solutions.

Sector Analysis

This contract falls within the Research and Development in the Social Sciences and Humanities sector, specifically supporting healthcare policy and program implementation. The Centers for Medicare and Medicaid Services (CMS) frequently contracts for program support and research to evaluate and improve healthcare delivery models. Comparable spending in this area can vary widely based on program complexity and duration, but significant investments are common for initiatives aimed at transforming healthcare.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity capable of handling the extensive program management and research scope. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

Oversight is likely managed by the Centers for Medicare and Medicaid Services (CMS) program officials. Accountability measures would be tied to performance metrics and deliverables outlined in the contract. Transparency is generally maintained through federal contract databases, but specific oversight activities and Inspector General involvement would depend on the nature of any identified issues or audits.

Related Government Programs

Center for Medicare & Medicaid Innovation (CMMI) Initiatives
Healthcare Payment and Delivery System Reforms
Medicare and Medicaid Program Administration
Health Services Research
Public Health Program Management

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Long-term contract duration requires sustained oversight to ensure continued value.
Dependence on a single contractor for critical program functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $74.8 million to RESEARCH TRIANGLE INSTITUTE. BASE TASK ORDER AWARD UNDER HHSM-500-2014-00037I FOR CPC+ POM-Q

Who is the contractor on this award?

The obligated recipient is RESEARCH TRIANGLE INSTITUTE.

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 $74.8 million.

What is the period of performance?

Start: 2018-09-27. End: 2022-09-26.

What is the track record of Research Triangle Institute (RTI) in managing similar federal health programs?

Research Triangle Institute (RTI) has a long-standing and extensive track record of managing complex federal health programs, particularly those administered by the Department of Health and Human Services (HHS) and its agencies like CMS. RTI is a well-established non-profit research institute known for its work in health policy, program evaluation, and research across various domains. They have historically been involved in numerous large-scale contracts related to healthcare delivery system reforms, public health initiatives, and health services research. Their experience often includes managing multi-year projects, conducting rigorous evaluations, and providing technical assistance to government agencies and healthcare providers. This specific contract for CPC+ program support aligns with their core competencies and past performance in similar large-scale federal health initiatives.

How does the value of this contract compare to other large-scale program management contracts within CMS?

The $74.8 million award for the CPC+ program management over approximately four years is a significant, but not unprecedented, value for large-scale federal health program support contracts managed by CMS. CMS frequently awards contracts in the tens to hundreds of millions of dollars for initiatives that involve complex program design, implementation, evaluation, and technical assistance. Programs like the Comprehensive Primary Care Plus (CPC+) initiative are designed to test innovative payment and delivery models, requiring substantial resources for management, data analysis, and stakeholder engagement. When compared to other major CMS contracts for similar program management, research, and technical assistance efforts, this award falls within a typical range for initiatives of this scope and duration. The value reflects the complexity of managing a multi-state, multi-payer demonstration project aimed at transforming primary care.

What are the primary risks associated with this Cost Plus Fixed Fee contract structure for the government?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract structure for the government is the potential for cost overruns. While the contractor's profit is fixed, the government bears the risk of covering all allowable costs incurred by the contractor. If the contractor's costs exceed initial estimates, the government pays the actual costs plus the agreed-upon fixed fee. This can lead to the total contract value being higher than initially anticipated, especially if the scope of work is not precisely defined or if unforeseen challenges arise during performance. Effective oversight, rigorous cost monitoring, and clear definition of allowable costs are crucial to mitigate this risk. Without strong management, CPFF contracts can be less cost-effective than fixed-price arrangements.

How effective has the CPC+ program been in achieving its stated goals, and what role does this contract play?

The Comprehensive Primary Care Plus (CPC+) program aimed to improve the quality of primary care, enhance patient health, and reduce healthcare costs by supporting primary care practices in delivering enhanced services. Early evaluations and reports indicated mixed results, with some evidence of improved quality metrics and modest impacts on healthcare utilization and spending, though not always meeting ambitious targets. This contract, awarded to Research Triangle Institute, plays a crucial role in the ongoing management, support, and potentially the evaluation of the CPC+ program. RTI's work would involve ensuring the program operates smoothly, providing technical assistance to participating practices, managing data collection and analysis, and contributing to the understanding of the program's effectiveness and areas for improvement. The contract's duration suggests continued support and refinement of the program's implementation and outcomes.

What is the historical spending trend for program management and R&D support services by CMS?

Centers for Medicare & Medicaid Services (CMS) has a consistent and substantial history of spending on program management and research and development (R&D) support services. This spending is driven by the agency's mission to administer Medicare, Medicaid, and the Children's Health Insurance Program (CHIP), as well as to innovate and improve healthcare delivery and payment systems. CMS regularly awards large contracts for policy analysis, program evaluation, technical assistance, data management, and the development of new healthcare models. Spending in these areas can fluctuate annually based on the initiation of new demonstration projects, the scale of ongoing initiatives, and evolving healthcare policy priorities. Overall, CMS's expenditure on program management and R&D support represents a significant portion of its operational budget, reflecting the complexity and dynamic nature of the U.S. healthcare system.

What are the implications of awarding this contract to a single entity for nearly four years?

Awarding a contract of this magnitude and duration to a single entity like Research Triangle Institute (RTI) for nearly four years has several implications. Positively, it provides stability and continuity for the Comprehensive Primary Care Plus (CPC+) program, allowing for deep institutional knowledge to be built and sustained. This can lead to more efficient operations and a consistent approach to program management and support. However, it also concentrates significant responsibility and potential risk within one organization. For taxpayers, it means relying on the performance and oversight of this single contractor to ensure value for money and effective program outcomes. The long duration also implies a significant commitment by the government to the program's objectives, and any necessary changes or pivots in program strategy would need to be managed through this established relationship, potentially with less flexibility than if multiple vendors were engaged.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Social Sciences and Humanities

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: TORPRMADA20180010

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3040 CORNWALLIS RD, RESEARCH TRIANGLE PARK, NC, 27709

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $74,782,305

Exercised Options: $74,782,305

Current Obligation: $74,782,305

Actual Outlays: $18,392,424

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $145,640,578

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201400037I

IDV Type: IDC

Timeline