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
- Limited competition
- Lack of clear per-unit cost benchmarks
- Potential for inflated pricing
Positive Signals
- Ensures continued development of ECQMs
- Supports healthcare quality initiatives
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
- Other Scientific and Technical Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Limited competition may lead to higher costs.
- Lack of transparency in pricing structure.
- Potential for vendor lock-in.
- Risk of suboptimal technical solutions due to limited market exploration.
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 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: 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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