CMS Awards $147.6M Contract for Medicare Innovation Support to Mathematica Inc
Contract Overview
Contract Amount: $14,761,099 ($14.8M)
Contractor: Mathematica Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2019-09-23
End Date: 2025-09-22
Contract Duration: 2,191 days
Daily Burn Rate: $6.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: THE CENTERS FOR MEDICARE AND MEDICAID SERVICES (CMS), THROUGH THE CENTER FOR MEDICARE&MEDICAID INNOVATION (CMMI), SEEKS A CONTRACTOR TO PROVIDE IMPLEMENTATION SUPPORT, DATA COLLECTION, MONITORING, TECHNICAL ASSISTANCE, AND REPORTING FOR THE MAT
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $14.8 million to MATHEMATICA INC. for work described as: THE CENTERS FOR MEDICARE AND MEDICAID SERVICES (CMS), THROUGH THE CENTER FOR MEDICARE&MEDICAID INNOVATION (CMMI), SEEKS A CONTRACTOR TO PROVIDE IMPLEMENTATION SUPPORT, DATA COLLECTION, MONITORING, TECHNICAL ASSISTANCE, AND REPORTING FOR THE MAT Key points: 1. Contract focuses on implementation support, data collection, and technical assistance for Medicare innovation initiatives. 2. Mathematica Inc. is the sole awardee, indicating a specific expertise or established relationship. 3. The contract's duration of nearly 6 years suggests a long-term commitment to these innovation efforts. 4. Research and Development in Social Sciences and Humanities is the primary sector, highlighting a focus on policy and program evaluation.
Value Assessment
Rating: good
The contract is a Delivery Order under a larger contract, making direct price comparisons difficult. However, the Cost Plus Fixed Fee structure suggests that costs are monitored, and the fixed fee component provides some predictability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which generally promotes competitive pricing. However, as a Delivery Order, the specific pricing was likely negotiated within the framework of the parent contract.
Taxpayer Impact: The investment supports Medicare innovation, aiming to improve healthcare quality and reduce costs, which could lead to significant long-term taxpayer savings if successful.
Public Impact
Enhances Medicare's ability to test and implement new healthcare delivery models. Aims to improve patient outcomes and reduce healthcare spending through evidence-based innovation. Supports the development and evaluation of programs designed to benefit millions of Medicare beneficiaries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in a Cost Plus Fixed Fee contract if not closely managed.
- Dependence on a single contractor for critical implementation support.
Positive Signals
- Focus on innovation could lead to significant long-term cost savings for Medicare.
- Long contract duration allows for sustained support and evaluation of complex initiatives.
- Full and open competition initially suggests a competitive pricing environment.
Sector Analysis
This contract falls within the Research and Development in Social Sciences and Humanities sector, specifically supporting healthcare policy and program innovation. Spending benchmarks in this niche area are difficult to establish due to the specialized nature of CMMI initiatives.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific award, as Mathematica Inc. is a large business. Future subcontracts could potentially involve small businesses, but it's not explicitly stated.
Oversight & Accountability
The contract is managed by the Centers for Medicare and Medicaid Services (CMS), a key agency within HHS. Oversight would involve monitoring contractor performance, costs, and adherence to program goals to ensure accountability and effective use of funds.
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
- Contract duration is long, increasing exposure to changing healthcare landscape.
- Cost Plus Fixed Fee structure requires diligent oversight to prevent cost overruns.
- Sole awardee may limit market responsiveness if issues arise.
- Success is dependent on the efficacy of the innovation models themselves.
Tags
research-and-development-in-the-social-s, 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 $14.8 million to MATHEMATICA INC.. THE CENTERS FOR MEDICARE AND MEDICAID SERVICES (CMS), THROUGH THE CENTER FOR MEDICARE&MEDICAID INNOVATION (CMMI), SEEKS A CONTRACTOR TO PROVIDE IMPLEMENTATION SUPPORT, DATA COLLECTION, MONITORING, TECHNICAL ASSISTANCE, AND REPORTING FOR THE MAT
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 $14.8 million.
What is the period of performance?
Start: 2019-09-23. End: 2025-09-22.
What is the expected return on investment for the Medicare innovation programs supported by this contract?
The expected return on investment is tied to the success of the various Medicare innovation models being implemented and evaluated. If these models lead to demonstrable improvements in quality of care, patient outcomes, and reductions in unnecessary healthcare expenditures, the ROI could be substantial. CMS aims to achieve savings through more efficient care delivery and better management of chronic conditions.
What are the primary risks associated with Mathematica Inc. providing implementation support for CMMI initiatives?
Key risks include potential delays in implementation due to the complexity of healthcare systems, challenges in data collection and analysis accuracy, and the possibility of innovation models not achieving their intended outcomes. There's also a risk that the fixed fee component might not adequately cover unforeseen complexities, or conversely, that costs could escalate if not managed tightly under the Cost Plus structure.
How effectively will this contract contribute to the overall goals of the Center for Medicare & Medicaid Innovation?
This contract is designed to be a core component of CMMI's operational strategy, providing essential support for testing and scaling innovative healthcare practices. Its effectiveness will be measured by the successful implementation of pilot programs, the quality of data collected for evaluation, and the technical assistance provided to participants. Ultimately, its success hinges on whether the supported innovations lead to measurable improvements in healthcare value.
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: TORPRMADA20190024
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
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: $14,761,099
Exercised Options: $14,761,099
Current Obligation: $14,761,099
Actual Outlays: $10,542,345
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
Start Date: 2019-09-23
Current End Date: 2025-09-22
Potential End Date: 2025-09-22 00:00:00
Last Modified: 2025-11-17
More Contracts from Mathematica Inc.
- Learning Collaboratives to Support the Development of High Performing State Health Coverage Programs — $105.6M (Department of Health and Human Services)
- / Comprehensive Primary Care Plus (CPC+) Evaluation Contract — $98.9M (Department of Health and Human Services)
- Macbis Data Analytics — $76.4M (Department of Health and Human Services)
- Macbis — $76.3M (Department of Health and Human Services)
- Technical Assistance and Analytic Support for the Medicaid and Chip Quality Measurement and Improvement Program — $64.6M (Department of Health and Human Services)
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →