HHS awards $96.7M task order to Island Peer Review Organization for Quality Innovation Network services
Contract Overview
Contract Amount: $96,698,677 ($96.7M)
Contractor: Island Peer Review Organization Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2019-11-08
End Date: 2025-03-07
Contract Duration: 1,946 days
Daily Burn Rate: $49.7K/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: NEW HYDE PARK, NASSAU County, NEW YORK, 11042
State: New York Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $96.7 million to ISLAND PEER REVIEW ORGANIZATION INC for work described as: QUALITY INNOVATION NETWORK/QUALITY IMPROVEMENT ORGANIZATIONS (QIN-QIO) TASK ORDER Key points: 1. The contract represents a significant investment in quality improvement initiatives within the healthcare sector. 2. Competition dynamics suggest a robust bidding process, potentially leading to favorable pricing. 3. Performance is monitored over a multi-year period, allowing for assessment of sustained impact. 4. The services are critical for enhancing healthcare quality and patient outcomes across Medicare and Medicaid. 5. This award positions the contractor as a key player in federal healthcare quality improvement efforts.
Value Assessment
Rating: good
The contract's value of $96.7 million over approximately five years appears reasonable given the scope of services for quality improvement and innovation within the Centers for Medicare and Medicaid Services (CMS). Benchmarking against similar large-scale quality improvement contracts managed by HHS would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that cost risks are largely borne by the contractor, which can be a positive indicator for the government if performance is met.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This task order was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 16 bids suggests a healthy level of competition for this significant contract. A competitive bidding process generally leads to better price discovery and can result in more cost-effective solutions for the government.
Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by fostering a market-driven approach to selecting the best value provider for these critical healthcare quality improvement services.
Public Impact
Beneficiaries include Medicare and Medicaid enrollees who will experience improved healthcare quality and patient safety. Services delivered focus on enhancing the effectiveness, efficiency, and economy of healthcare services. The geographic impact is nationwide, as QIN-QIOs operate across all states and territories. The contract supports a specialized workforce of healthcare quality improvement professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if performance metrics are not tightly managed.
- Reliance on a single contractor for a critical, long-term service could pose a risk if performance degrades.
- Ensuring consistent quality across all contracted activities over the multi-year period.
Positive Signals
- Awarded under full and open competition, indicating strong market interest and potential for best value.
- Firm-fixed-price contract type shifts cost risk to the contractor.
- Long-term duration allows for sustained impact and relationship building for quality improvement.
Sector Analysis
This contract falls within the Management Consulting Services sector, specifically focusing on healthcare quality improvement. The federal government, through CMS, is a major purchaser of such services to drive efficiency and effectiveness in its healthcare programs. Comparable spending benchmarks would involve looking at other large-scale contracts awarded for quality improvement initiatives, health IT integration, and program management within HHS and other federal health agencies.
Small Business Impact
The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is Island Peer Review Organization Inc., there is no explicit information on subcontracting plans for small businesses within the provided data. Further analysis would be needed to determine if small businesses are involved in the subcontracting chain and their overall impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract is likely managed by the Centers for Medicare and Medicaid Services (CMS), a division of HHS. Performance monitoring, adherence to contract terms, and quality assurance would be key oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Quality Improvement Organizations (QIOs)
- Medicare Quality Payment Program
- Medicaid Innovation Accelerator Program
- Healthcare Quality and Research Services
- Federal Healthcare Consulting Contracts
Risk Flags
- Long-term contract duration requires sustained performance monitoring.
- Firm-fixed-price nature necessitates careful oversight to ensure quality is maintained.
- Reliance on a single entity for critical quality improvement functions.
Tags
healthcare, hhs, cms, quality-improvement, consulting-services, full-and-open-competition, delivery-order, firm-fixed-price, new-york, management-consulting, medicare, medicaid
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $96.7 million to ISLAND PEER REVIEW ORGANIZATION INC. QUALITY INNOVATION NETWORK/QUALITY IMPROVEMENT ORGANIZATIONS (QIN-QIO) TASK ORDER
Who is the contractor on this award?
The obligated recipient is ISLAND PEER REVIEW ORGANIZATION 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 $96.7 million.
What is the period of performance?
Start: 2019-11-08. End: 2025-03-07.
What is the historical spending pattern for Quality Innovation Network/Quality Improvement Organizations (QIN-QIO) task orders awarded by CMS?
Historical spending on QIN-QIO task orders by CMS has been substantial, reflecting the ongoing federal commitment to improving healthcare quality for Medicare beneficiaries. These task orders are typically awarded through competitive processes and can range from tens to hundreds of millions of dollars over their performance periods. The specific amounts vary year to year based on program needs, contract renewals, and the number of active task orders. For instance, prior to this $96.7 million award, CMS would have had numerous other active contracts supporting QIN-QIO functions, with aggregate spending potentially reaching billions over several fiscal years. Analyzing past awards provides context for the current contract's scale and indicates a consistent demand for these services.
How does the awarded amount of $96.7 million compare to the typical value of similar federal contracts for healthcare quality improvement services?
The $96.7 million awarded to Island Peer Review Organization Inc. for Quality Innovation Network/Quality Improvement Organization (QIN-QIO) services is a significant but not unprecedented figure for large-scale federal healthcare contracts. Contracts of this nature, especially those managed by CMS and spanning multiple years, often fall within this range or even exceed it. For example, other major federal initiatives focused on healthcare quality, patient safety, or health IT implementation have seen contract values in the tens to hundreds of millions of dollars. The firm-fixed-price structure and the full and open competition suggest that CMS sought competitive bids to ensure value for this substantial investment. Comparing this to other QIN-QIO contracts or similar quality improvement programs within HHS would reveal if this award represents a premium, a standard rate, or a cost-saving measure.
What are the key performance indicators (KPIs) typically used to evaluate the success of QIN-QIO contracts?
Key performance indicators for QIN-QIO contracts generally focus on measurable improvements in healthcare quality, patient safety, and efficiency for Medicare beneficiaries. Common KPIs include reductions in hospital-acquired conditions, improvements in chronic disease management (e.g., better diabetes control, reduced heart failure readmissions), increased patient safety event reporting, enhanced care coordination, and improved patient experience scores. Performance is often measured against established benchmarks and targets set by CMS. The success of the contractor is evaluated based on their ability to help healthcare providers (hospitals, physician practices, etc.) meet these targets through technical assistance, data analysis, and implementation support. Contractual performance reviews would detail specific metrics and outcomes achieved.
What is the track record of Island Peer Review Organization Inc. in managing large federal healthcare contracts?
Island Peer Review Organization Inc. has a history of serving as a Quality Improvement Organization (QIO) for the Centers for Medicare & Medicaid Services (CMS). As a designated QIO, their core function involves working with healthcare providers to improve the quality, safety, and efficiency of care for Medicare beneficiaries. Their experience likely includes managing data, providing technical assistance, conducting quality assessments, and reporting on performance metrics. While specific details on the dollar value and duration of all their past contracts are not provided here, their selection as a QIN-QIO contractor for a task order valued at $96.7 million suggests a demonstrated capability and a positive track record in fulfilling the complex requirements of federal healthcare quality improvement initiatives.
What are the potential risks associated with a long-term, firm-fixed-price contract for quality improvement services?
A long-term, firm-fixed-price contract for quality improvement services, like this $96.7 million award, presents several potential risks. For the government, a primary risk is that the fixed price might become uncompetitive over time if market rates decrease or if the contractor's efficiency increases significantly, leading to a less favorable value proposition. There's also a risk that the contractor might cut corners on service quality to maintain profitability if not rigorously overseen. For the contractor, the risk lies in underestimating the effort required or facing unforeseen challenges in achieving quality improvements, potentially leading to financial losses. Effective risk mitigation requires robust performance monitoring, clear communication channels, and well-defined performance metrics to ensure accountability and value throughout the contract's duration.
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
Address: 1979 MARCUS AVE STE 105, NEW HYDE PARK, NY, 11042
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $96,698,677
Exercised Options: $96,698,677
Current Obligation: $96,698,677
Actual Outlays: $57,860,415
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75FCMC19D0029
IDV Type: IDC
Timeline
Start Date: 2019-11-08
Current End Date: 2025-03-07
Potential End Date: 2025-03-07 00:00:00
Last Modified: 2024-11-04
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