HHS awards $17.7M for Quality Measures Management, with Mathematica Inc. as prime contractor

Contract Overview

Contract Amount: $17,686,668 ($17.7M)

Contractor: Mathematica Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2019-02-01

End Date: 2024-08-03

Contract Duration: 2,010 days

Daily Burn Rate: $8.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: THE PURPOSE OF THIS ACTION IS TO AWARD NEW COMPETITIVE CONTRACT ENTITLED, QUALITY MEASURES MANAGEMENT AND SUPPORT FOR THE QUALITY PAYMENT PROGRAM (QMMS).

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $17.7 million to MATHEMATICA INC. for work described as: THE PURPOSE OF THIS ACTION IS TO AWARD NEW COMPETITIVE CONTRACT ENTITLED, QUALITY MEASURES MANAGEMENT AND SUPPORT FOR THE QUALITY PAYMENT PROGRAM (QMMS). Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these services. 2. The contract duration of 2010 days (approx. 5.5 years) indicates a long-term need for quality measures management. 3. Delivery Order type suggests this is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 5. The contract's focus on the Quality Payment Program highlights its importance in healthcare policy implementation. 6. The prime contractor, Mathematica Inc., has a significant role in shaping healthcare quality initiatives.

Value Assessment

Rating: good

The total award amount of $17.7 million over approximately 5.5 years suggests a moderate annual spend for quality measures management. Benchmarking against similar contracts for healthcare policy support and data management would be necessary for a precise value-for-money assessment. However, the competitive award mechanism provides a degree of confidence in the pricing. The Time and Materials (T&M) contract type, while offering flexibility, can sometimes lead to cost overruns if not closely monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and allowed to bid. The presence of 5 bidders (as suggested by 'no': 5) is a healthy sign of market engagement. This level of competition generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from competitive bidding through potentially lower prices and a wider range of service offerings. The government can leverage competition to secure the best value for public funds.

Public Impact

Beneficiaries of this contract include healthcare providers participating in the Quality Payment Program, who will receive support and guidance on quality measures. The services delivered are crucial for the effective implementation and management of healthcare quality initiatives. The geographic impact is likely nationwide, given the scope of the Centers for Medicare and Medicaid Services (CMS) programs. Workforce implications may include employment for consultants, data analysts, and policy experts within Mathematica Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can pose a risk of cost escalation if not managed diligently.
The long duration of the contract requires ongoing performance monitoring to ensure continued value.
Dependence on a single prime contractor for critical quality measure management could be a concentration risk.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
The contract supports a significant federal healthcare program (Quality Payment Program), aligning with national health policy goals.
The prime contractor, Mathematica Inc., is a well-established entity in health policy research and analysis.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The market for healthcare consulting services is substantial, driven by complex regulatory environments and the continuous need for program evaluation and improvement. Comparable spending benchmarks would involve analyzing other contracts awarded by CMS and other federal health agencies for similar policy support, data analytics, and program management functions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a delivery order under a larger IDIQ, it's possible that subcontracting opportunities may exist, but this information is not detailed in the provided data. The primary focus appears to be on large business prime contractors capable of managing complex federal programs.

Oversight & Accountability

Oversight for this contract would typically reside with the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures are usually embedded within the contract's performance work statement (PWS), with defined deliverables and performance standards. Transparency is facilitated through contract award databases like FPDS-NG, though detailed performance reports are often internal.

Related Government Programs

Quality Payment Program (QPP)
Medicare Part B
Healthcare Information and Management Systems
Federal Health IT Programs
Healthcare Policy Analysis

Risk Flags

Long contract duration may require scope adjustments due to evolving healthcare policies.
Time and Materials contract type necessitates vigilant cost control and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.7 million to MATHEMATICA INC.. THE PURPOSE OF THIS ACTION IS TO AWARD NEW COMPETITIVE CONTRACT ENTITLED, QUALITY MEASURES MANAGEMENT AND SUPPORT FOR THE QUALITY PAYMENT PROGRAM (QMMS).

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 $17.7 million.

What is the period of performance?

Start: 2019-02-01. End: 2024-08-03.

What is the historical spending trend for Quality Measures Management and Support (QMMS) contracts awarded by CMS?

Analyzing historical spending for QMMS requires accessing detailed contract databases over several fiscal years. While this specific award is for $17.7 million, understanding the trend involves looking at prior awards for similar services, the total value of the IDIQ vehicle this delivery order falls under, and any potential fluctuations in funding based on policy changes or program needs. For instance, if the Quality Payment Program has seen increased emphasis or changes in its structure, spending on its management and support could rise or fall accordingly. Without access to historical data specific to this contract vehicle or closely related ones, it's difficult to establish a definitive trend. However, the sustained award suggests a consistent, albeit potentially fluctuating, need for these services.

How does the per-unit cost or hourly rate for this contract compare to industry benchmarks for management consulting services in healthcare?

Determining the precise per-unit cost or hourly rate requires detailed knowledge of the Time and Materials (T&M) CLINs (Contract Line Item Numbers) within this delivery order, including labor categories, rates, and estimated hours. The provided data does not include this granular detail. Generally, management consulting rates in the federal healthcare space can vary significantly based on the contractor's reputation, the complexity of the work, and the specific expertise required. Mathematica Inc. is a reputable firm, suggesting their rates might be at the higher end of the market spectrum. A comprehensive benchmark would involve comparing the negotiated labor rates against government-wide consulting schedules (like GSA MAS) or other recently awarded T&M contracts for similar services, considering factors like geographic location and required security clearances.

What are the key performance indicators (KPIs) used to evaluate Mathematica Inc.'s performance on this contract?

Key Performance Indicators (KPIs) for a contract like this, focused on Quality Measures Management and Support for the Quality Payment Program, would typically be defined in the Performance Work Statement (PWS). These KPIs are designed to measure the contractor's effectiveness in supporting CMS's objectives. Examples could include the timeliness and accuracy of reports generated on quality measure performance, the effectiveness of technical assistance provided to healthcare providers, the successful development and maintenance of data systems, and the achievement of specific program milestones related to quality improvement. The government would monitor these KPIs to ensure Mathematica Inc. is meeting its contractual obligations and contributing to the overall success of the Quality Payment Program.

What is the track record of Mathematica Inc. in managing similar federal contracts, particularly within the healthcare sector?

Mathematica Inc. has a well-established track record in managing large, complex federal contracts, particularly within the healthcare domain. They are a prominent research and policy organization known for its work with agencies like CMS, the National Institutes of Health (NIH), and the Department of Health and Human Services (HHS) more broadly. Their expertise often lies in program evaluation, data analysis, survey research, and policy development related to health insurance, healthcare delivery, and public health programs. Past performance on contracts related to Medicare, Medicaid, and other health initiatives would be a key factor in their selection for this QMMS contract, indicating a high level of confidence in their ability to deliver.

What are the potential risks associated with the long duration (over 5 years) of this contract?

The long duration of this contract presents several potential risks. Firstly, the healthcare landscape and regulatory environment are constantly evolving; a contract designed today might not perfectly align with future needs or policy shifts over a five-year period. This could lead to scope creep or the need for costly modifications. Secondly, maintaining consistent performance and innovation over such an extended period can be challenging for any contractor. There's a risk of complacency or a decline in service quality if performance management is not rigorous. Lastly, from a budgetary perspective, long-term commitments can tie up significant funds, potentially impacting flexibility for other emerging priorities. However, the competitive nature of the award and ongoing oversight aim to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management 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

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1100 1ST ST NE FL 12, WASHINGTON, DC, 20002

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

Financial Breakdown

Contract Ceiling: $17,686,668

Exercised Options: $17,686,668

Current Obligation: $17,686,668

Actual Outlays: $9,737,972

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA18D00BQ

IDV Type: FSS

Timeline