HHS Awards $127.7M POM-Q Contract to RTI for Health Services Research

Contract Overview

Contract Amount: $127,710,410 ($127.7M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2019-08-19

End Date: 2026-02-18

Contract Duration: 2,375 days

Daily Burn Rate: $53.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PATIENT CARE FIRST - PAYMENT, OPERATIONS, MANAGEMENT AND QUALITY (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 $127.7 million to RESEARCH TRIANGLE INSTITUTE for work described as: PATIENT CARE FIRST - PAYMENT, OPERATIONS, MANAGEMENT AND QUALITY (POM-Q) Key points: 1. Contract value of $127.7 million over its period of performance. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is for Research and Development in Social Sciences and Humanities, specifically within health services. 4. Potential risks include cost overruns given the Cost Plus Fixed Fee structure.

Value Assessment

Rating: good

The contract's value of $127.7 million appears reasonable for a multi-year R&D effort in health services. Benchmarking against similar large-scale health research contracts would provide further context on its pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. This method allows multiple qualified vendors to bid, fostering a competitive environment that should drive down costs.

Taxpayer Impact: The competitive nature of the award is expected to ensure taxpayer funds are used efficiently for valuable health research.

Public Impact

Supports critical health services research for CMS and HHS. Potential for advancements in patient care, operations, management, and quality. Long-term contract (over 6 years) indicates sustained need for these services. Awarded to a single entity, Research Triangle Institute. Contract includes multiple delivery orders, suggesting flexibility in tasking.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) can lead to cost overruns if not managed carefully.
Long contract duration may present risks if requirements evolve significantly.
Reliance on a single awardee for multiple delivery orders.

Positive Signals

Full and open competition promotes fairness and potentially better pricing.
Focus on R&D in critical health areas.
CMS is a major agency, indicating significant program importance.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on social sciences and humanities applied to healthcare. Spending in this area is crucial for evidence-based policy and program improvement within agencies like CMS.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The contract was awarded through full and open competition, which may or may not have included small business participation as subcontractors.

Oversight & Accountability

The contract is managed by the Centers for Medicare and Medicaid Services (CMS), a large agency with established oversight mechanisms. The multi-year nature and fixed-fee component suggest ongoing performance monitoring is expected.

Related Government Programs

Research and Development in the Social Sciences and Humanities
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type carries inherent risk of cost escalation.
Long contract duration (over 6 years) increases exposure to changing requirements and market conditions.
Potential for scope creep if delivery orders are not tightly managed.
Lack of specific small business participation targets mentioned.
Reliance on a single prime contractor for a broad range of R&D tasks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $127.7 million to RESEARCH TRIANGLE INSTITUTE. PATIENT CARE FIRST - PAYMENT, OPERATIONS, MANAGEMENT AND QUALITY (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 $127.7 million.

What is the period of performance?

Start: 2019-08-19. End: 2026-02-18.

What specific research areas will be prioritized under this POM-Q contract, and how will their outcomes directly benefit Medicare and Medicaid beneficiaries?

The POM-Q contract aims to support research in patient care, operations, management, and quality within CMS. Specific priorities will likely be defined through task orders, focusing on areas like improving healthcare access, reducing costs, enhancing patient safety, and optimizing program administration for beneficiaries. The outcomes are expected to inform policy decisions and operational improvements, ultimately leading to better healthcare services and experiences for millions.

Given the Cost Plus Fixed Fee structure, what are the primary mechanisms in place to mitigate the risk of cost overruns and ensure efficient use of taxpayer funds?

CMS will likely employ rigorous oversight, including regular reviews of contractor expenditures, performance metrics, and progress reports. Clear task order definitions, milestone tracking, and negotiation of fair fixed fees based on realistic cost estimates are crucial. The agency's contracting officers will be responsible for ensuring the contractor adheres to the scope of work and budget, with potential penalties or adjustments for deviations.

How will the success and effectiveness of the research conducted under this contract be measured and evaluated to ensure it meets its intended objectives?

Effectiveness will be measured through defined deliverables, research quality assessments, and the impact of findings on CMS policies and programs. Key performance indicators (KPIs) will likely be established within each delivery order, focusing on research rigor, timeliness, and the actionable nature of the results. Independent reviews or expert panels may also be utilized to validate the quality and relevance of the research outcomes.

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: TORPRMADA20190017

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: $127,710,410

Exercised Options: $127,710,410

Current Obligation: $127,710,410

Actual Outlays: $78,456,325

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $25,339,425

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