HHS awards $23M contract for quality and efficiency measures, with 5 bidders competing
Contract Overview
Contract Amount: $23,074,674 ($23.1M)
Contractor: Health Services Advisory Group, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2019-07-01
End Date: 2023-06-30
Contract Duration: 1,460 days
Daily Burn Rate: $15.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: TIME AND MATERIALS
Sector: Healthcare
Official Description: IMPACT ASSESSMENT OF CMS QUALITY AND EFFICIENCY MEASURES
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85016
State: Arizona Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $23.1 million to HEALTH SERVICES ADVISORY GROUP, INC. for work described as: IMPACT ASSESSMENT OF CMS QUALITY AND EFFICIENCY MEASURES Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition suggests a healthy market for these consulting services. 3. Potential risks include performance variability and the need for strong oversight. 4. This contract supports critical healthcare quality initiatives within CMS. 5. The services fall within the broader IT and consulting sector for government.
Value Assessment
Rating: good
The contract's total value of $23.1 million over four years suggests a moderate annual spend. Benchmarking against similar contracts for technical consulting services in healthcare quality improvement is challenging without more specific data on deliverables. However, the duration and the nature of the services, which involve analysis and consulting, indicate a potentially fair price point if the contractor delivers effectively on the defined quality and efficiency measures.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified vendors were allowed to bid. With five bidders participating, the level of competition appears adequate, suggesting that the government received a range of proposals and pricing. This competitive environment generally supports price discovery and can lead to more favorable terms for the government.
Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down costs and ensured that the government selected a vendor offering good value for the services rendered.
Public Impact
Beneficiaries include healthcare providers and ultimately Medicare beneficiaries through improved quality of care. Services delivered focus on analyzing and improving the quality and efficiency of healthcare services. Geographic impact is national, affecting healthcare standards across the United States. Workforce implications include the need for skilled analysts and consultants within the contractor organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep given the analytical nature of the work.
- Reliance on contractor expertise necessitates strong government oversight.
- Measuring the true impact of consulting services can be difficult.
Positive Signals
- Clear objectives related to quality and efficiency measures.
- Competitive award process suggests a well-defined requirement.
- Contract duration allows for sustained focus on program goals.
Sector Analysis
This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on healthcare consulting. The market for such services is substantial, driven by government initiatives to improve healthcare outcomes and manage costs. Comparable spending benchmarks would typically involve other contracts awarded by CMS or other health agencies for similar analytical and advisory services related to quality measurement and program efficiency.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specialized support.
Oversight & Accountability
Oversight is likely managed by the Centers for Medicare and Medicaid Services (CMS) program officials. Accountability measures would be tied to the contract's performance work statement and deliverables. Transparency is generally facilitated through contract award databases, though specific performance details may be proprietary. Inspector General jurisdiction would apply to potential fraud, waste, or abuse.
Related Government Programs
- Medicare Quality Payment Program
- Medicaid Health Home State Plan Option
- Healthcare Quality and Research Initiatives
- CMS Center for Innovation
Risk Flags
- Potential for performance variability
- Need for strong government oversight
- Complexity in measuring consulting impact
Tags
healthcare, hhs, cms, consulting-services, quality-improvement, efficiency-measures, full-and-open-competition, time-and-materials, arizona, scientific-and-technical-consulting
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $23.1 million to HEALTH SERVICES ADVISORY GROUP, INC.. IMPACT ASSESSMENT OF CMS QUALITY AND EFFICIENCY MEASURES
Who is the contractor on this award?
The obligated recipient is HEALTH SERVICES ADVISORY GROUP, 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 $23.1 million.
What is the period of performance?
Start: 2019-07-01. End: 2023-06-30.
What specific quality and efficiency measures is this contract designed to assess or improve?
The contract data indicates the primary purpose is the 'IMPACT ASSESSMENT OF CMS QUALITY AND EFFICIENCY MEASURES.' While the specific measures are not detailed in the provided summary, this suggests the contractor is tasked with evaluating the effectiveness and impact of existing or proposed quality metrics and efficiency standards implemented by the Centers for Medicare and Medicaid Services (CMS). This could involve analyzing data trends, assessing provider performance against benchmarks, and providing recommendations for refining these measures to better achieve desired healthcare outcomes and cost savings for federal healthcare programs like Medicare and Medicaid.
How does the $23.1 million contract value compare to similar consulting engagements for healthcare quality assessment?
The total contract value of $23.1 million over a 4-year period (July 2019 - June 2023) averages approximately $5.77 million per year. This figure falls within a moderate range for large-scale federal consulting contracts focused on complex healthcare policy and program analysis. Without access to a detailed breakdown of the specific deliverables, scope of work, and the contractor's proposed labor mix, a precise comparison is difficult. However, given the critical nature of CMS's role in national healthcare quality, this investment appears commensurate with the potential impact on millions of beneficiaries and the healthcare system at large. The competitive bidding process also suggests the price was deemed fair relative to other proposals.
What are the primary risks associated with a contract of this nature and duration?
A significant risk is the potential for the contractor, Health Services Advisory Group, Inc., to experience performance variability or fail to meet the evolving needs of CMS regarding quality and efficiency measures. Given the analytical and consulting nature of the work, defining and measuring success can be complex, leading to potential disputes over deliverables or impact. Another risk involves the contractor's ability to maintain institutional knowledge and adapt to changes in healthcare policy and technology over the four-year period. Furthermore, ensuring robust government oversight to guide the contractor effectively and prevent scope creep is crucial. Finally, the reliance on external expertise means that the government's internal capacity for such analysis might be diminished if not carefully managed.
What is the track record of Health Services Advisory Group, Inc. in performing similar government contracts?
The provided data does not include specific details on the past performance or track record of Health Services Advisory Group, Inc. (HSAG) for this or similar contracts. A comprehensive assessment would require reviewing HSAG's performance history, past performance evaluations (if available in federal databases like the Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or awards. However, their selection under full and open competition with five bidders suggests they met the minimum qualifications and presented a competitive offer. Further investigation into HSAG's broader portfolio and reputation within the federal healthcare consulting space would be necessary for a complete understanding of their track record.
How does the 'Other Scientific and Technical Consulting Services' NAICS code (541690) inform our understanding of the contract's scope?
The North American Industry Classification System (NAICS) code 541690, 'Other Scientific and Technical Consulting Services,' indicates that the contract's scope extends beyond more specialized consulting areas like management, environmental, or IT consulting. This broad classification suggests the services provided by Health Services Advisory Group, Inc. are likely diverse, encompassing scientific or technical advice and assistance that doesn't fit neatly into other categories. For this specific contract focused on CMS quality and efficiency measures, it implies the work could involve a mix of data analysis, research, policy interpretation, process improvement recommendations, and potentially the development or refinement of technical methodologies for assessing healthcare performance.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical 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: 75FCMC18R0019
Offers Received: 5
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 3133 EAST CAMELBACK RS STE 100, PHOENIX, AZ, 85016
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $23,074,674
Exercised Options: $23,074,674
Current Obligation: $23,074,674
Actual Outlays: $15,468,252
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 75FCMC18D0026
IDV Type: IDC
Timeline
Start Date: 2019-07-01
Current End Date: 2023-06-30
Potential End Date: 2024-06-30 00:00:00
Last Modified: 2025-03-06
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