HHS Awards $54.6M Task Order to Superior Health Quality Alliance for QIN-QIO Services

Contract Overview

Contract Amount: $54,561,085 ($54.6M)

Contractor: Superior Health Quality Alliance 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: $29.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: QUALITY INNOVATION NETWORK/QUALITY IMPROVEMENT ORGANIZATIONS (QIN-QIO) TASK ORDER

Place of Performance

Location: MADISON, DANE County, WISCONSIN, 53713

State: Wisconsin Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $54.6 million to SUPERIOR HEALTH QUALITY ALLIANCE INC for work described as: QUALITY INNOVATION NETWORK/QUALITY IMPROVEMENT ORGANIZATIONS (QIN-QIO) TASK ORDER Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract value of $54.6M over 5 years indicates significant investment in quality improvement. 3. The 'Other Management Consulting Services' NAICS code suggests a broad scope of work. 4. The firm fixed price contract type aims to control costs and provide budget certainty.

Value Assessment

Rating: good

The contract value of $54.6M over 5 years, averaging approximately $10.9M annually, appears reasonable for comprehensive quality improvement initiatives. Benchmarking against similar large-scale federal contracts for consulting services would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for the selection of the most capable offeror. This method is expected to yield fair market value.

Taxpayer Impact: Taxpayer funds are being utilized for a program aimed at improving healthcare quality and efficiency, potentially leading to long-term cost savings in the Medicare and Medicaid programs.

Public Impact

Enhances quality of care for Medicare beneficiaries. Aims to reduce healthcare costs through improved efficiency. Supports federal initiatives for healthcare system improvement. Provides valuable data and insights into healthcare performance. Impacts patient outcomes and safety across various healthcare settings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in 'Other Management Consulting Services'.
Reliance on a single awardee for a large task order.
Ensuring effective performance monitoring over the 5-year period.

Positive Signals

Clear objective to improve healthcare quality.
Firm fixed price contract for cost control.
Awarded through full and open competition.
Long-term engagement allows for sustained impact.

Sector Analysis

This contract falls under management consulting services, specifically focused on healthcare quality improvement. Federal spending in this sector is substantial, driven by the need to enhance efficiency and outcomes within government healthcare programs like Medicare and Medicaid.

Small Business Impact

The data does not indicate specific provisions or set-asides for small businesses in this particular task order. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Centers for Medicare and Medicaid Services (CMS) is responsible for overseeing this contract. Robust oversight mechanisms will be crucial to ensure the contractor meets performance objectives and delivers value for taxpayer money.

Related Government Programs

Other Management Consulting Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Potential for performance issues impacting quality improvement goals.
Risk of cost overruns if scope is not tightly managed.
Dependency on a single contractor for critical services.
Ensuring long-term sustainability and impact of quality initiatives.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $54.6 million to SUPERIOR HEALTH QUALITY ALLIANCE INC. QUALITY INNOVATION NETWORK/QUALITY IMPROVEMENT ORGANIZATIONS (QIN-QIO) TASK ORDER

Who is the contractor on this award?

The obligated recipient is SUPERIOR HEALTH QUALITY ALLIANCE 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 $54.6 million.

What is the period of performance?

Start: 2019-11-08. End: 2024-11-07.

How effectively will the QIN-QIO program translate into measurable improvements in patient outcomes and cost savings for Medicare?

The effectiveness hinges on the contractor's ability to implement evidence-based quality improvement strategies and facilitate adoption across diverse healthcare providers. Success will be measured by key performance indicators related to patient safety, chronic disease management, and reduction in preventable hospitalizations. Continuous monitoring and adaptive management by CMS are essential to ensure the program delivers tangible value and achieves its intended cost-saving objectives.

What are the primary risks associated with the 'Other Management Consulting Services' scope and how are they being mitigated?

Key risks include scope creep, unclear deliverables, and potential for contractor performance issues. Mitigation strategies likely involve detailed performance work statements, regular progress reviews, and clearly defined milestones. The firm fixed price contract also incentivizes the contractor to manage costs effectively. CMS oversight will be critical in identifying and addressing any deviations from the planned scope or performance standards.

Does the $54.6M award represent a competitive price for the scope of services provided over five years?

The award value appears within a reasonable range for a large-scale, multi-year federal contract focused on comprehensive quality improvement initiatives. However, a definitive assessment requires benchmarking against similar contracts for management consulting services in the healthcare sector, considering the specific deliverables and the contractor's demonstrated capabilities. The full and open competition process suggests that the price was deemed competitive at the time of award.

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: 2909 LANDMARK PLACE, MADISON, WI, 53713

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: $54,561,085

Exercised Options: $54,561,085

Current Obligation: $54,561,085

Actual Outlays: $40,887,735

Subaward Activity

Number of Subawards: 38

Total Subaward Amount: $108,912,111

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75FCMC19D0057

IDV Type: IDC

Timeline