HHS Awards $30M for ECQM Development to Mathematica Inc. Amidst Concerns of Limited Competition

Contract Overview

Contract Amount: $29,983,119 ($30.0M)

Contractor: Mathematica Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2019-08-26

End Date: 2024-08-26

Contract Duration: 1,827 days

Daily Burn Rate: $16.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: ELECTRONIC CLINICAL QUALITY MEASURES (ECQM) DEVELOPMENT AND MAINTENANCE FOR ELIGIBLE CLINICIANS TO MIDS

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $30.0 million to MATHEMATICA INC. for work described as: ELECTRONIC CLINICAL QUALITY MEASURES (ECQM) DEVELOPMENT AND MAINTENANCE FOR ELIGIBLE CLINICIANS TO MIDS Key points: 1. Contract awarded to Mathematica Inc. for $29.98M for ECQM development and maintenance. 2. The contract falls under 'Other Scientific and Technical Consulting Services' (NAICS 541690). 3. Concerns exist regarding the limited competition and potential impact on taxpayer value. 4. The sector is Healthcare IT, focusing on clinical quality measures for eligible clinicians.

Value Assessment

Rating: questionable

The contract's value of $29.98M over five years for consulting services requires careful benchmarking against similar ECQM development contracts. Without specific per-unit cost data, assessing value for money is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under a limited competition, raising questions about price discovery and whether the government secured the best possible price. The impact of limited competition on achieving optimal value for taxpayer funds is a key concern.

Taxpayer Impact: The limited competition may result in higher costs for taxpayers compared to a fully open and competitive process.

Public Impact

Impacts eligible clinicians by providing tools for quality measurement. Affects the development of healthcare quality standards. Potential for increased healthcare costs due to non-optimal pricing. Ensures continued maintenance of critical clinical quality measures.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The healthcare IT sector, particularly concerning clinical quality measures, is vital for improving patient care and system efficiency. Spending benchmarks for similar consulting services can vary widely, making direct comparisons difficult without detailed scope.

Small Business Impact

The data indicates this contract was not awarded to small businesses, suggesting a lack of opportunity for SMBs in this specific procurement. Further analysis would be needed to determine if smaller firms could have competed effectively.

Oversight & Accountability

Oversight is crucial to ensure Mathematica Inc. delivers on ECQM development and maintenance effectively and efficiently. Regular performance reviews and cost audits are necessary given the limited competition.

Related Government Programs

Risk Flags

Tags

other-scientific-and-technical-consultin, department-of-health-and-human-services, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $30.0 million to MATHEMATICA INC.. ELECTRONIC CLINICAL QUALITY MEASURES (ECQM) DEVELOPMENT AND MAINTENANCE FOR ELIGIBLE CLINICIANS TO MIDS

Who is the contractor on this award?

The obligated recipient is MATHEMATICA 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 $30.0 million.

What is the period of performance?

Start: 2019-08-26. End: 2024-08-26.

What specific factors led to the limited competition for this ECQM development contract, and were alternatives explored?

The limited competition for this ECQM development contract likely stems from specific technical expertise or existing contract vehicles. A thorough review should confirm if alternative approaches, such as broader solicitations or phased procurements, were considered to maximize competition and ensure the best value for taxpayer funds.

How does the per-unit cost of ECQM development and maintenance under this contract compare to industry benchmarks or previous contracts?

Without explicit per-unit cost data, a direct comparison is difficult. However, given the limited competition, there's a risk that the pricing may not be as competitive as it could be in a fully open market. Benchmarking against similar government or private sector contracts for ECQM services is essential to assess value.

What mechanisms are in place to ensure the effectiveness and efficiency of ECQM development and maintenance services provided by Mathematica Inc. under this contract?

Mechanisms for ensuring effectiveness and efficiency should include clear performance metrics, regular progress reporting, and independent quality assurance reviews. The Centers for Medicare and Medicaid Services (CMS) should actively monitor deliverables and contractor performance to ensure alignment with program goals and taxpayer expectations.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesOther 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: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mathematica Inc

Address: 600 ALEXANDER PARK, PRINCETON, NJ, 08540

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,534,065

Exercised Options: $29,983,119

Current Obligation: $29,983,119

Actual Outlays: $18,913,534

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 75FCMC18D0032

IDV Type: IDC

Timeline

Start Date: 2019-08-26

Current End Date: 2024-08-26

Potential End Date: 2024-08-26 00:00:00

Last Modified: 2023-09-18

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