HHS Awards $59.3M Medicaid Demo Support Contract to Mathematica Inc. via Full and Open Competition

Contract Overview

Contract Amount: $59,324,521 ($59.3M)

Contractor: Mathematica Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-16

End Date: 2023-09-15

Contract Duration: 1,460 days

Daily Burn Rate: $40.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BASE AWARD - MEDICAID 1115 DEMONSTRATION SUPPORT CONTRACT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $59.3 million to MATHEMATICA INC. for work described as: BASE AWARD - MEDICAID 1115 DEMONSTRATION SUPPORT CONTRACT Key points: 1. Contract awarded to Mathematica Inc. for Medicaid demonstration support. 2. Significant value of $59.3 million over 4 years. 3. Procured through full and open competition, suggesting market availability. 4. Research and Development in Social Sciences and Humanities sector. 5. Cost Plus Fixed Fee contract type.

Value Assessment

Rating: good

The contract value of $59.3 million over 4 years averages to approximately $14.8 million annually. This appears reasonable for specialized support services in a complex area like Medicaid demonstrations, though direct per-unit cost comparisons are difficult without more granular data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering.

Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

Impacts Medicaid beneficiaries through improved demonstration programs. Supports federal and state efforts in healthcare policy implementation. Contributes to the body of knowledge in social sciences and humanities research related to healthcare.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize cost overruns if not managed carefully.
No small business participation noted, potentially missing opportunities for economic development.

Positive Signals

Awarded via full and open competition, suggesting robust market engagement.
Long-term contract (4 years) provides stability for program development.

Sector Analysis

This contract falls under Research and Development in the Social Sciences and Humanities (NAICS 541720). Spending in this sector can vary widely, but support for large federal programs like Medicaid demonstrations represents a significant investment in policy research and program evaluation.

Small Business Impact

The data indicates that small business participation was not a factor in this award (sb: false). This suggests that the prime contractor is not a small business, and there is no explicit mention of subcontracting to small businesses.

Oversight & Accountability

The Centers for Medicare and Medicaid Services (CMS) is responsible for overseeing this contract. The use of full and open competition and a fixed-fee structure are standard oversight mechanisms, but detailed performance metrics and reporting would be crucial for accountability.

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 contract type.
No explicit small business participation.
Potential for cost overruns without stringent oversight.
Research and Development sector can have long lead times for demonstrable impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $59.3 million to MATHEMATICA INC.. BASE AWARD - MEDICAID 1115 DEMONSTRATION SUPPORT CONTRACT

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 $59.3 million.

What is the period of performance?

Start: 2019-09-16. End: 2023-09-15.

What specific research and development activities are encompassed by this contract, and how do they directly benefit Medicaid beneficiaries?

The contract supports Medicaid 1115 Demonstration projects, which are state-specific initiatives aimed at improving healthcare access, quality, and cost-effectiveness. Activities likely include policy analysis, program design, evaluation, and technical assistance. These efforts aim to enhance the effectiveness of Medicaid programs, ultimately benefiting beneficiaries through better services and coverage options.

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

While CPFF contracts offer flexibility, they carry inherent risks of cost escalation. Effective oversight by CMS is critical, involving rigorous review of contractor expenditures, performance monitoring against defined milestones, and clear communication channels. Robust auditing and reporting requirements are essential to ensure costs remain reasonable and fixed fees are earned appropriately.

How will the outcomes of Mathematica Inc.'s research and development efforts be measured to ensure they contribute to meaningful improvements in Medicaid program effectiveness?

Success will likely be measured through key performance indicators (KPIs) tied to the objectives of the 1115 demonstrations. This could include metrics related to improved health outcomes for beneficiaries, increased access to care, reduced administrative costs, or successful implementation of innovative healthcare delivery models. Regular progress reports and independent evaluations will be crucial for assessing impact.

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: TORPRMADA20190030

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mathematica Inc

Address: 1100 1ST ST NE FL 12, WASHINGTON, DC, 20024

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

Financial Breakdown

Contract Ceiling: $59,324,521

Exercised Options: $59,324,521

Current Obligation: $59,324,521

Actual Outlays: $41,553,288

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201400034I

IDV Type: IDC

Timeline