HHS awards $37.5M for quality measure development and support, with Acumen LLC as prime

Contract Overview

Contract Amount: $37,542,123 ($37.5M)

Contractor: Acumen LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-04

End Date: 2023-09-03

Contract Duration: 1,460 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: MEASURE AND INSTRUMENT DEVELOPMENT AND SUPPORT (MIDS); QUALITY MEASURE&ASSESSMENT INSTRUMENT DEVELOPMENT AND MAINTENANCE AND QUALITY REPORTING PROGRAM (QRP) SUPPORT FOR THE LONG-TERM CARE HOSPITAL (LTCH), INPATIENT REHABILITATION FACILITY (IRF

Place of Performance

Location: BURLINGAME, SAN MATEO County, CALIFORNIA, 94010

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $37.5 million to ACUMEN LLC for work described as: MEASURE AND INSTRUMENT DEVELOPMENT AND SUPPORT (MIDS); QUALITY MEASURE&ASSESSMENT INSTRUMENT DEVELOPMENT AND MAINTENANCE AND QUALITY REPORTING PROGRAM (QRP) SUPPORT FOR THE LONG-TERM CARE HOSPITAL (LTCH), INPATIENT REHABILITATION FACILITY (IRF Key points: 1. Contract focuses on developing and maintaining quality measures for specific healthcare facilities. 2. The contract value represents a significant investment in healthcare quality improvement initiatives. 3. Acumen LLC, the prime contractor, has a role in supporting critical CMS programs. 4. The contract duration spans nearly four years, indicating a long-term need for these services. 5. The services provided are essential for monitoring and improving patient care outcomes. 6. This award falls under 'Other Scientific and Technical Consulting Services', highlighting the specialized nature of the work.

Value Assessment

Rating: good

The contract value of $37.5 million over approximately four years suggests a substantial investment in quality measurement. Benchmarking this against similar contracts for measure development and support is challenging without more specific data on the scope and complexity of the measures. However, the duration and the nature of the services indicate a need for sustained expertise. The pricing structure (Time and Materials) can sometimes lead to cost overruns if not carefully managed, but it also offers flexibility for evolving requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 5 bids suggests a reasonably competitive environment for this type of specialized service. A competitive process generally helps ensure that the government receives fair pricing and that the most capable contractor is selected.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages a wider pool of contractors to vie for government work, potentially leading to better value.

Public Impact

Beneficiaries include patients in Long-Term Care Hospitals (LTCH) and Inpatient Rehabilitation Facilities (IRF) who will experience improved quality of care through standardized measures. Services delivered include the development, maintenance, and reporting of quality measures and assessment instruments. The geographic impact is national, as CMS quality measures affect healthcare providers across the United States. Workforce implications include the need for specialized data analysts, healthcare quality experts, and IT professionals within Acumen LLC and potentially within CMS for oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases due to Time and Materials pricing structure if not closely monitored.
Reliance on a single contractor for critical quality measure development could pose a risk if performance falters.
The complexity of healthcare quality measures requires continuous adaptation to evolving medical practices and policies.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contract duration of nearly four years indicates a stable and ongoing need for these essential services.
Acumen LLC's role in supporting CMS quality programs highlights their alignment with national healthcare improvement goals.

Sector Analysis

This contract operates within the Health Information Technology and Healthcare Consulting sector. The market for quality measure development and support is driven by regulatory requirements from agencies like CMS, which mandate standardized reporting to ensure patient safety and care quality. Spending in this area is substantial, as effective quality measurement is crucial for value-based purchasing and public reporting initiatives. Comparable spending benchmarks would typically involve other contracts focused on health informatics, data analytics for healthcare, and regulatory compliance consulting.

Small Business Impact

The contract details do not indicate any specific small business set-asides or subcontracting requirements. As a full and open competition award, it is possible that small businesses could have bid directly or participated as subcontractors. However, without explicit set-aside provisions, the direct impact on the small business ecosystem is not guaranteed and would depend on Acumen LLC's subcontracting strategy.

Oversight & Accountability

Oversight is likely managed by the Centers for Medicare and Medicaid Services (CMS) program officials and contracting officers. Accountability measures would be tied to the delivery of specific, measurable quality outcomes and adherence to contract milestones. Transparency is facilitated through contract award databases and public reporting of quality measures themselves, though the internal workings of the development process may be less visible.

Related Government Programs

Quality Payment Program (QPP)
Hospital Inpatient Quality Reporting (IQR) Program
Physician Quality Reporting System (PQRS)
Meaningful Use / Promoting Interoperability Programs
Healthcare Data Analytics Services

Risk Flags

Potential for cost overruns due to T&M pricing.
Scope creep if requirements are not clearly defined and managed.
Dependence on contractor expertise for critical measure development.
Timeliness of deliverables impacting reporting cycles.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $37.5 million to ACUMEN LLC. MEASURE AND INSTRUMENT DEVELOPMENT AND SUPPORT (MIDS); QUALITY MEASURE&ASSESSMENT INSTRUMENT DEVELOPMENT AND MAINTENANCE AND QUALITY REPORTING PROGRAM (QRP) SUPPORT FOR THE LONG-TERM CARE HOSPITAL (LTCH), INPATIENT REHABILITATION FACILITY (IRF

Who is the contractor on this award?

The obligated recipient is ACUMEN LLC.

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 $37.5 million.

What is the period of performance?

Start: 2019-09-04. End: 2023-09-03.

What is the historical spending trend for measure development and support services by CMS?

Analyzing historical spending trends for measure development and support by CMS requires access to detailed historical contract data. Generally, CMS spending in this area has been consistent and often increasing, driven by legislative mandates like the Affordable Care Act and subsequent initiatives aimed at shifting healthcare towards value-based care. Programs such as the Quality Payment Program (QPP) and various hospital quality reporting initiatives necessitate ongoing investment in the creation, refinement, and maintenance of quality measures. The total dollar amount awarded for these services can fluctuate year-to-year based on specific program needs, the complexity of new measures being developed, and the competitive landscape of contractors. Without specific historical data for this particular contract vehicle or related measure development efforts, it's difficult to provide precise figures, but the trend indicates sustained and significant federal investment in healthcare quality measurement.

How does Acumen LLC's performance on this contract compare to industry benchmarks for similar services?

Assessing Acumen LLC's performance on this specific contract against industry benchmarks requires detailed performance metrics, which are not publicly available in this data. However, general indicators of performance in measure development and support include timeliness of deliverables, accuracy and validity of developed measures, responsiveness to CMS feedback, and successful integration into reporting systems. Industry benchmarks often focus on factors like the number of measures developed per year, the cost per measure, and the successful adoption rate of measures by healthcare providers. Acumen LLC's continued role, if this is a follow-on contract or if they have other related contracts, could suggest satisfactory performance. A comprehensive review would involve examining past performance evaluations, any awards or penalties received, and client feedback if available through sources like the Contractor Performance Assessment Reporting System (CPARS).

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk associated with a Time and Materials (T&M) pricing structure for this contract is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not well-defined, or if project inefficiencies arise, the total cost can escalate beyond initial estimates. For CMS, this means a less predictable budget outcome. To mitigate this risk, robust oversight, detailed tracking of labor hours and material costs, and clear definition of work requirements are essential. The government must actively manage the contract to ensure that the hours billed and materials used are reasonable and directly related to the contract's objectives. Without diligent management, T&M contracts can become significantly more expensive than initially anticipated.

What is the strategic importance of this contract to the Centers for Medicare and Medicaid Services (CMS)?

This contract is strategically important to CMS as it directly supports the agency's core mission of ensuring the quality and efficiency of healthcare for Medicare and Medicaid beneficiaries. The development and maintenance of quality measures are fundamental to CMS's efforts to promote value-based care, improve patient outcomes, and enhance transparency in the healthcare system. These measures serve as the basis for various payment programs, public reporting initiatives, and performance assessments of healthcare providers. By investing in robust measure development and support, CMS can better incentivize providers to deliver high-quality, cost-effective care, identify areas for improvement, and hold the healthcare system accountable. The contract's focus on Long-Term Care Hospitals (LTCH) and Inpatient Rehabilitation Facilities (IRF) indicates a targeted effort to improve care in specific, critical healthcare settings.

How has the scope of measure development and support evolved over the life of this contract or similar contracts?

The scope of measure development and support has evolved significantly, driven by technological advancements, changes in healthcare delivery, and policy shifts towards value-based purchasing. Initially, measure development might have focused on basic process measures and outcome metrics. However, the scope has broadened to include more complex measures related to patient experience, care coordination, equity, and the use of health IT. There's an increasing emphasis on measures that are 'cross-setting' (applicable across different care environments) and 'patient-reported' (directly reflecting patient perspectives). Furthermore, the integration of electronic health records (EHRs) has enabled the development of more data-rich, electronically specified measures, reducing manual data collection burdens. This contract likely reflects this evolution, requiring sophisticated data analytics, stakeholder engagement, and adaptation to new regulatory frameworks like the Quality Payment Program (QPP).

What are the potential implications of this contract on the broader healthcare quality improvement landscape?

This contract has significant implications for the broader healthcare quality improvement landscape by providing the foundational tools (measures and instruments) that drive performance assessment and payment reform. The quality measures developed under this contract influence how hospitals and facilities are evaluated, reimbursed, and publicly recognized. This, in turn, incentivizes providers to adopt best practices, invest in quality initiatives, and improve patient care processes. Furthermore, the methodologies and standards established through this contract can inform the development of measures in other sectors or for different patient populations, contributing to a more cohesive national quality agenda. The success of these measures can lead to widespread adoption, fostering a culture of continuous improvement across the healthcare industry and ultimately benefiting patient safety and outcomes.

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: 500 AIRPORT BLVD STE 100, BURLINGAME, CA, 94010

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,542,123

Exercised Options: $37,542,123

Current Obligation: $37,542,123

Actual Outlays: $26,009,204

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 75FCMC18D0015

IDV Type: IDC

Timeline