HHS awards $79M for Quality Innovation Network/Quality Improvement Organizations task order to Health Services Advisory Group, Inc
Contract Overview
Contract Amount: $79,079,481 ($79.1M)
Contractor: Health Services Advisory Group, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2019-11-08
End Date: 2024-11-07
Contract Duration: 1,826 days
Daily Burn Rate: $43.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 16
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: QUALITY INNOVATION NETWORK/QUALITY IMPROVEMENT ORGANIZATIONS (QIN-QIO) TASK ORDER
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85016
State: Arizona Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $79.1 million to HEALTH SERVICES ADVISORY GROUP, INC. for work described as: QUALITY INNOVATION NETWORK/QUALITY IMPROVEMENT ORGANIZATIONS (QIN-QIO) TASK ORDER Key points: 1. The contract value of $79.1 million over five years suggests a significant investment in quality improvement initiatives. 2. The task order was awarded under full and open competition, indicating a potentially competitive bidding process. 3. The fixed-price contract type aims to control costs by establishing a set price for services. 4. The duration of 1826 days (approximately 5 years) allows for sustained effort in quality improvement. 5. The contract is managed by the Centers for Medicare and Medicaid Services (CMS), focusing on healthcare quality. 6. The North American Industry Classification System (NAICS) code 541618 points to 'Other Management Consulting Services', suggesting a broad scope of work.
Value Assessment
Rating: good
The contract value of $79.1 million for a 5-year period averages approximately $15.8 million per year. Benchmarking this against similar large-scale quality improvement contracts managed by CMS is crucial for a precise value-for-money assessment. However, the fixed-price nature of the award suggests an effort to manage costs effectively. The number of bids received (16) indicates a healthy level of interest, which can contribute to competitive pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This task order was awarded under full and open competition, with 16 bids received. This indicates a robust bidding environment where multiple qualified contractors had the opportunity to compete for the work. A higher number of bidders generally suggests a greater likelihood of competitive pricing and a wider range of innovative solutions being considered by the agency.
Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it fosters a competitive market, potentially leading to better pricing and more efficient service delivery for the government.
Public Impact
Beneficiaries include Medicare and Medicaid beneficiaries who will experience improved healthcare quality and outcomes. Services delivered likely encompass a range of quality improvement activities, data analysis, and technical assistance to healthcare providers. The geographic impact is national, as QIN-QIOs operate across all states and territories to improve healthcare quality. Workforce implications may include the employment of consultants, data analysts, healthcare quality experts, and administrative staff by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in 'Other Management Consulting Services' if not clearly defined.
- Ensuring consistent quality of services across all QIN-QIO regions requires strong oversight.
- Measuring the direct impact of QIN-QIO activities on patient outcomes can be complex.
Positive Signals
- The fixed-price contract type incentivizes cost control and predictable spending.
- Full and open competition with 16 bidders suggests a competitive market and potential for value.
- The long-term nature of the contract allows for sustained focus on quality improvement goals.
Sector Analysis
The healthcare sector, particularly the segment focused on quality improvement and consulting services, is a significant area of federal spending. CMS contracts with QIN-QIOs to drive improvements in healthcare delivery and patient outcomes across Medicare and Medicaid. This contract fits within the broader strategy of enhancing healthcare value and efficiency. Comparable spending benchmarks would involve analyzing other large-scale contracts for quality improvement initiatives within HHS and other federal health agencies.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this task order. Analysis of subcontracting opportunities for small businesses would require further investigation into the contractor's utilization plans and the nature of the services procured. Without explicit set-asides, the direct impact on the small business ecosystem is not immediately apparent, though prime contractors may engage small businesses for specialized support.
Oversight & Accountability
Oversight for this contract is likely managed by the Centers for Medicare and Medicaid Services (CMS). Accountability measures would be embedded in the contract's performance standards and deliverables. Transparency is generally facilitated through contract award databases and public reporting requirements for federal spending. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract.
Related Government Programs
- Medicare Quality Improvement Program
- Medicaid Quality Improvement
- Healthcare Consulting Services
- Federal Health IT Initiatives
Risk Flags
- Long-term fixed-price contract may not adapt to changing healthcare landscape.
- Measuring direct impact on patient outcomes can be challenging.
- Ensuring consistent quality across diverse healthcare settings requires robust oversight.
Tags
healthcare, hhs, cms, management-consulting, quality-improvement, full-and-open-competition, firm-fixed-price, delivery-order, arizona, national-impact
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $79.1 million to HEALTH SERVICES ADVISORY GROUP, INC.. QUALITY INNOVATION NETWORK/QUALITY IMPROVEMENT ORGANIZATIONS (QIN-QIO) TASK ORDER
Who is the contractor on this award?
The obligated recipient is HEALTH SERVICES ADVISORY GROUP, 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 $79.1 million.
What is the period of performance?
Start: 2019-11-08. End: 2024-11-07.
What is the historical spending pattern for Quality Innovation Network/Quality Improvement Organizations (QIN-QIO) contracts by CMS?
CMS has a long-standing history of funding QIN-QIOs to improve healthcare quality for Medicare beneficiaries. Historically, these programs have involved significant federal investment, with task orders and contracts awarded over multiple years. Annual spending can fluctuate based on program priorities, contract renewals, and the number of active QIO contracts. For instance, prior contract cycles have seen multi-billion dollar investments across the network. Analyzing historical data reveals a consistent commitment to this model of quality improvement, though specific dollar amounts per contract and per year vary significantly based on the scope and duration of each award. The current $79 million award is one component of this ongoing federal effort.
How does the pricing of this contract compare to similar management consulting services procured by the federal government?
The average annual value of this contract is approximately $15.8 million ($79.1M / 5 years). Benchmarking this against other 'Other Management Consulting Services' (NAICS 541618) procured by the federal government requires access to detailed pricing data for comparable contracts. Factors such as the specific expertise required, the scale of the project, and the duration significantly influence pricing. Given the specialized nature of healthcare quality improvement and the large scope managed by CMS, this contract's value may be within a reasonable range for such services. However, a definitive comparison would necessitate analyzing the labor rates, overhead, and profit margins of similar large-scale federal consulting contracts.
What are the key performance indicators (KPIs) used to measure the success of the QIN-QIO program under this contract?
While specific KPIs are not detailed in the award data, QIN-QIO programs typically focus on measurable improvements in healthcare quality and patient safety. Common KPIs often include reductions in hospital-acquired conditions, improvements in chronic disease management, increased patient safety event reporting, enhanced care coordination, and higher patient satisfaction scores. Performance is usually assessed against established benchmarks and targets set by CMS. The success of this contract would be evaluated based on the contractor's ability to meet or exceed these predefined quality metrics and contribute to the overall goals of the Medicare Quality Improvement Program.
What is the track record of Health Services Advisory Group, Inc. in performing similar federal contracts?
Health Services Advisory Group, Inc. (HSAG) has a substantial track record with federal agencies, particularly in healthcare quality improvement. As a long-standing participant in the QIN-QIO program, HSAG has experience managing complex projects aimed at enhancing healthcare delivery and patient outcomes. Their prior performance with CMS and other health-related entities would be a key factor in their selection for this task order. Federal procurement databases often contain past performance reviews and award histories that can provide insights into their reliability, quality of work, and ability to meet contractual obligations on similar large-scale healthcare initiatives.
What are the potential risks associated with a 5-year fixed-price contract for management consulting services in the healthcare sector?
A significant risk with a long-term, fixed-price contract in a dynamic sector like healthcare is the potential for the contractor to face cost overruns if unforeseen challenges arise or if the scope of work expands beyond initial estimates without adequate price adjustments. Conversely, the government risks paying a premium if the contractor's actual costs are significantly lower than anticipated. Another risk is ensuring the contractor remains innovative and responsive to evolving healthcare regulations and best practices over the 5-year period. Effective contract management and clear performance metrics are crucial to mitigate these risks and ensure value for money.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services
Product/Service Code: MEDICAL SERVICES › DEPENDENT MEDICARE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 190319
Offers Received: 16
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Health Services Holdings, Inc.
Address: 3133 EAST CAMELBACK RS STE 100, PHOENIX, AZ, 85016
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $79,079,481
Exercised Options: $79,079,481
Current Obligation: $79,079,481
Actual Outlays: $59,796,333
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75FCMC19D0026
IDV Type: IDC
Timeline
Start Date: 2019-11-08
Current End Date: 2024-11-07
Potential End Date: 2024-11-07 00:00:00
Last Modified: 2024-04-25
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