HHS awards $19.2M for MIDS Outpatient Quality Program support, with a 4-year duration

Contract Overview

Contract Amount: $19,228,591 ($19.2M)

Contractor: Health Services Advisory Group, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2019-07-25

End Date: 2023-07-25

Contract Duration: 1,461 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: MIDS OUTPATIENT QUALITY PROGRAM SYSTEMS AND STAKEHOLDER SUPPORT TASK ORDER

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85016

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.2 million to HEALTH SERVICES ADVISORY GROUP, INC. for work described as: MIDS OUTPATIENT QUALITY PROGRAM SYSTEMS AND STAKEHOLDER SUPPORT TASK ORDER Key points: 1. Contract value of $19.2M over four years suggests a moderate annual spend. 2. The contract type (Time and Materials) can pose cost control challenges if not managed closely. 3. Competition was full and open, indicating a potentially competitive bidding process. 4. The task order was awarded to Health Services Advisory Group, Inc. 5. The North American Industry Classification System (NAICS) code 541690 points to consulting services. 6. The contract duration of 1461 days (4 years) allows for sustained support. 7. The award was a delivery order under a larger contract vehicle.

Value Assessment

Rating: fair

The total award of $19.2M over four years averages to approximately $4.8M annually. Benchmarking this against similar contracts for IT systems and stakeholder support within the Department of Health and Human Services (HHS) is difficult without more specific service details. However, the Time and Materials (T&M) pricing structure, while flexible, carries inherent risks for cost overruns if not meticulously monitored. The absence of a fixed price or capped T&M elements raises concerns about predictable spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The fact that it was a delivery order implies it was placed against an existing indefinite-delivery indefinite-quantity (IDIQ) contract. While the specific number of bidders for this particular delivery order is not provided, full and open competition generally promotes a wider range of proposals and potentially more competitive pricing.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, potentially leading to better value for money.

Public Impact

Beneficiaries include healthcare providers participating in the MIDS Outpatient Quality Program. Services delivered likely involve technical support, data analysis, and stakeholder engagement for quality improvement initiatives. The geographic impact is primarily within Arizona (AZ), where the contractor is based. Workforce implications may include the need for specialized consultants in healthcare quality and IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing structure can lead to cost escalation without strict oversight.
Limited transparency on the specific deliverables and performance metrics for this task order.
Potential for scope creep given the T&M nature of the contract.
The contract is a delivery order, meaning its specific terms might be influenced by the parent IDIQ contract.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The four-year duration allows for continuity of services and program development.
Contractor is based in Arizona, potentially supporting regional healthcare initiatives.

Sector Analysis

This contract falls within the broader Scientific and Technical Consulting Services sector, specifically related to healthcare quality programs. The market for such services is substantial, driven by government initiatives to improve healthcare outcomes and efficiency. Comparable spending often involves IT system development, data analytics, and program management support for federal health agencies. The $19.2M award over four years represents a significant, albeit focused, investment in supporting a specific quality program.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. Given the nature of the services (complex consulting for a federal quality program) and the total award value, it is likely that larger, established firms were the primary bidders. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Centers for Medicare and Medicaid Services (CMS), a division of HHS. Accountability measures would be tied to the performance work statement and deliverables outlined in the task order. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports are often internal. The HHS Office of Inspector General (OIG) would have jurisdiction for investigating fraud, waste, or abuse related to this contract.

Related Government Programs

Medicare Quality Payment Program
Healthcare Information Technology Services
Federal Health Consulting Contracts
CMS Program Support

Risk Flags

Time and Materials pricing structure
Potential for cost overruns
Scope creep risk
Limited detail on specific deliverables

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.2 million to HEALTH SERVICES ADVISORY GROUP, INC.. MIDS OUTPATIENT QUALITY PROGRAM SYSTEMS AND STAKEHOLDER SUPPORT TASK ORDER

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 $19.2 million.

What is the period of performance?

Start: 2019-07-25. End: 2023-07-25.

What specific services are included under the MIDS Outpatient Quality Program Systems and Stakeholder Support Task Order?

The provided data indicates the contract is for 'MIDS OUTPATIENT QUALITY PROGRAM SYSTEMS AND STAKEHOLDER SUPPORT TASK ORDER' and falls under 'Other Scientific and Technical Consulting Services'. While specific details are not enumerated, this suggests the services likely encompass technical assistance for program systems, data management, analysis related to outpatient quality metrics, and support for various stakeholders involved in the program. This could include developing reports, facilitating communication, providing training, and ensuring the smooth operation of program-related IT infrastructure. The Time and Materials pricing structure implies a need for flexibility in service delivery, potentially adapting to evolving program needs or unforeseen technical challenges.

How does the $19.2M contract value compare to similar HHS contracts for quality program support?

Direct comparison of the $19.2M contract value for the MIDS Outpatient Quality Program Systems and Stakeholder Support Task Order is challenging without granular data on similar contracts. However, the annual average of approximately $4.8M suggests a significant but not exceptionally large investment for a federal health program support contract. HHS frequently awards contracts in the multi-million dollar range for IT systems, data analytics, and program management. The value is moderate within the context of large federal health IT procurements, but its specific efficiency depends heavily on the scope and impact of the quality improvements achieved.

What are the primary risks associated with the Time and Materials (T&M) contract type used for this award?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the final price is not fixed upfront. The government pays for the actual labor hours and materials used, plus a fixed fee or percentage. Without stringent oversight, monitoring of labor hours, and well-defined ceilings, contractors may incur higher costs than anticipated. Scope creep is another significant risk; if the project requirements are not clearly defined or managed, the contractor may perform more work than initially intended, driving up costs. For this $19.2M contract, effective management and clear performance metrics are crucial to mitigate these T&M-related risks.

What is the track record of Health Services Advisory Group, Inc. with federal contracts, particularly within HHS?

Health Services Advisory Group, Inc. (HSAG) has a history of receiving federal contracts, including significant awards from the Department of Health and Human Services (HHS). While the specific details of their past performance on contracts similar to the MIDS Outpatient Quality Program task order are not provided here, HSAG is known for providing healthcare consulting, quality improvement, and data analysis services. Their experience often involves working with state Medicaid agencies and federal programs aimed at enhancing healthcare quality and performance. A deeper dive into their contract history, including past performance evaluations and any reported issues, would be necessary for a comprehensive assessment.

How does the competition level (full and open) impact the value proposition for taxpayers on this contract?

Awarding the contract under 'full and open competition' generally benefits taxpayers by fostering a competitive environment. This means multiple vendors were eligible to bid, increasing the likelihood that the government receives proposals offering the best combination of price, technical approach, and past performance. A wider pool of bidders typically drives down prices as companies compete for the award. For this $19.2M task order, the full and open competition suggests that taxpayers are likely benefiting from a more cost-effective solution compared to a sole-source or limited competition award, assuming the evaluation process was robust and fair.

What are the potential performance challenges or indicators of success for this contract?

Potential performance challenges for this contract include managing the complexities of outpatient quality metrics, ensuring effective stakeholder engagement across diverse groups, and maintaining the reliability and usability of associated IT systems. Given the Time and Materials structure, a key indicator of success will be the contractor's ability to deliver high-quality services within budget expectations, demonstrating cost efficiency. Success will also be measured by tangible improvements in outpatient quality metrics, positive feedback from stakeholders, and the seamless operation of program systems. The four-year duration allows for sustained effort, making long-term program impact a critical success factor.

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: 2

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: $19,228,591

Exercised Options: $19,228,591

Current Obligation: $19,228,591

Actual Outlays: $14,012,879

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