CMS awards $16.9M contract to ABT Global LLC for Integrated Care for Kids (INCK) initiative evaluation

Contract Overview

Contract Amount: $16,930,072 ($16.9M)

Contractor: ABT Global LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2020-08-18

End Date: 2027-08-17

Contract Duration: 2,555 days

Daily Burn Rate: $6.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: THE CENTER FOR MEDICARE&MEDICAID INNOVATION (CMMI) OF THE CENTERS FOR MEDICARE&MEDICAID SERVICES (CMS) SEEKS THE SERVICES OF A QUALIFIED VENDOR TO CONDUCT AN EVALUATION OF THE INTEGRATED CARE FOR KIDS (INCK) INITIATIVE. INCK IS A STATE PA

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.9 million to ABT GLOBAL LLC for work described as: THE CENTER FOR MEDICARE&MEDICAID INNOVATION (CMMI) OF THE CENTERS FOR MEDICARE&MEDICAID SERVICES (CMS) SEEKS THE SERVICES OF A QUALIFIED VENDOR TO CONDUCT AN EVALUATION OF THE INTEGRATED CARE FOR KIDS (INCK) INITIATIVE. INCK IS A STATE PA Key points: 1. Contract awarded via full and open competition, suggesting a robust market search. 2. ABT Global LLC, the contractor, will provide research and development services. 3. The contract duration is over 7 years, indicating a long-term evaluation scope. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 5. The award is a delivery order under a larger contract, implying potential for follow-on work. 6. The focus on the INCK initiative suggests a commitment to improving pediatric care models.

Value Assessment

Rating: good

The contract value of $16.9 million over approximately 7 years for a comprehensive program evaluation appears reasonable. Benchmarking against similar large-scale program evaluations by CMS or other federal health agencies would provide further context. The Cost Plus Fixed Fee (CPFF) structure, while allowing for flexibility, requires careful monitoring to ensure cost efficiency. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the scope suggests a significant undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This process typically fosters a competitive environment, potentially leading to better pricing and service quality. The data indicates 6 bidders participated, which is a healthy number for this type of specialized research and development service. The level of competition suggests that the government received a range of proposals and was able to select the most advantageous offer.

Taxpayer Impact: A competitive bidding process for program evaluations ensures that taxpayer funds are used efficiently by driving down costs and encouraging innovation among contractors. This approach helps prevent overpayment and ensures the government secures the best possible expertise for critical initiatives like INCK.

Public Impact

The primary beneficiaries are children and families participating in or served by the Integrated Care for Kids (INCK) initiative. The services delivered include rigorous evaluation and research to assess the effectiveness of the INCK program. The geographic impact is tied to the states and communities where the INCK initiative is implemented. Workforce implications may include employment for researchers, analysts, and support staff at ABT Global LLC and potentially within participating state agencies. The evaluation findings will inform future policy decisions and program improvements for pediatric healthcare delivery models.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely managed.
Ensuring the evaluation methodology is robust and unbiased to provide accurate insights into INCK's effectiveness.
Maintaining consistent communication and data sharing between the contractor and CMS throughout the long contract duration.

Positive Signals

Awarded through full and open competition, indicating a fair and competitive process.
Contractor ABT Global LLC has experience in government contracting and research.
The long duration allows for comprehensive data collection and analysis of the INCK initiative.
The focus on a specific, impactful healthcare initiative demonstrates a commitment to improving care.

Sector Analysis

This contract falls within the Research and Development in the Social Sciences and Humanities sector, specifically focusing on healthcare program evaluation. The market for such services is competitive, with numerous firms specializing in health policy analysis, program evaluation, and data analytics. Federal agencies like CMS frequently procure these services to assess the efficacy and efficiency of innovative healthcare models. Comparable spending benchmarks would involve looking at other large-scale program evaluations conducted by HHS or similar agencies, which can range from a few million to tens of millions of dollars depending on scope and duration.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. While ABT Global LLC is the prime contractor, there is no explicit information regarding subcontracting plans with small businesses. The impact on the small business ecosystem is therefore likely minimal unless ABT Global LLC voluntarily engages small businesses for specialized support services.

Oversight & Accountability

Oversight for this contract will primarily reside with the Centers for Medicare and Medicaid Services (CMS), the awarding agency. As a delivery order under a larger contract, specific oversight mechanisms would be detailed in the contract's terms and conditions. Accountability measures would include performance reviews, milestone tracking, and adherence to the Cost Plus Fixed Fee guidelines. Transparency is generally maintained through contract award databases and public reporting, though detailed evaluation methodologies and findings may be proprietary or subject to release schedules.

Related Government Programs

Center for Medicare & Medicaid Innovation (CMMI) Initiatives
State Innovation Models (SIM) Initiative
Accountable Care Organizations (ACOs)
Health Care Payment and Delivery System Reforms
Pediatric Health Services Research

Risk Flags

Cost Overrun Risk (CPFF Contract)
Data Integrity and Bias in Evaluation
Long-Term Project Management Complexity
Ensuring Actionable Insights from Findings

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.9 million to ABT GLOBAL LLC. THE CENTER FOR MEDICARE&MEDICAID INNOVATION (CMMI) OF THE CENTERS FOR MEDICARE&MEDICAID SERVICES (CMS) SEEKS THE SERVICES OF A QUALIFIED VENDOR TO CONDUCT AN EVALUATION OF THE INTEGRATED CARE FOR KIDS (INCK) INITIATIVE. INCK IS A STATE PA

Who is the contractor on this award?

The obligated recipient is ABT GLOBAL LLC.

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 $16.9 million.

What is the period of performance?

Start: 2020-08-18. End: 2027-08-17.

What is the track record of ABT Global LLC in conducting similar federal health program evaluations?

ABT Global LLC has a history of performing various services for federal agencies, including research and analysis. While specific details on their past performance for large-scale, multi-year health program evaluations comparable to INCK are not provided in this summary, their selection suggests they met the qualifications outlined in the solicitation. A deeper dive into their contract history with agencies like HHS, CMS, or others would reveal their experience with similar methodologies, reporting requirements, and stakeholder engagement crucial for an initiative like INCK. Their ability to manage complex, long-term projects and deliver high-quality research findings is a key factor in assessing their suitability.

How does the $16.9 million contract value compare to similar program evaluations by CMS?

The $16.9 million contract value for a 7-year evaluation of the Integrated Care for Kids (INCK) initiative is substantial, reflecting the complexity and duration of the program. To benchmark this, one would need to compare it with other large-scale, multi-year evaluations of significant federal health programs managed by CMS or CMMI. For instance, evaluations of Accountable Care Organization (ACO) models or other state-based innovation grants often involve similar investment levels. Without specific comparable contract data readily available, it's difficult to definitively state if this is high or low. However, given the scope of evaluating a national initiative aimed at improving pediatric care coordination across multiple states, the investment appears aligned with the expected effort.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for program evaluation?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to ABT Global LLC for the INCK evaluation, is the potential for cost overruns. While the 'fixed fee' component provides a ceiling for the contractor's profit, the 'cost plus' aspect means the government reimburses the contractor for allowable costs incurred. If the contractor's costs exceed initial estimates, the government bears that burden. This necessitates robust oversight from CMS to ensure that all costs are reasonable, allocable, and necessary for the evaluation. Another risk is that the contractor might not be sufficiently incentivized to control costs aggressively, as their fee is fixed regardless of the final cost, although the risk of not being reimbursed for excessive costs remains.

How will the success of the INCK initiative evaluation be measured?

The success of the INCK initiative evaluation, conducted by ABT Global LLC, will likely be measured against several key performance indicators (KPIs) and deliverables outlined in the contract. These would typically include the timely submission of high-quality interim and final evaluation reports, adherence to the approved research methodology, and the validity and reliability of the data collected and analyzed. Furthermore, the evaluation's ultimate success hinges on its ability to provide actionable insights that inform CMS and CMMI's decisions regarding the future of the INCK program and similar pediatric care models. The clarity and measurability of the evaluation's objectives, as defined in the contract Statement of Work, are crucial for assessing its success.

What is the historical spending trend for program evaluations by CMS in the healthcare sector?

CMS historically spends significant amounts on program evaluations to assess the effectiveness and efficiency of its vast array of healthcare programs. Spending in this area can fluctuate based on the number of new initiatives launched, the complexity of existing programs, and congressional mandates for evaluation. Over the past decade, CMS has increasingly focused on value-based care models and innovative delivery systems, necessitating robust evaluations. While specific annual spending figures for 'program evaluations' as a distinct category can be difficult to isolate from broader research and development or contract services budgets, it represents a consistent and substantial investment. The $16.9 million for the INCK evaluation is indicative of the scale of resources CMS dedicates to understanding the impact of its key initiatives.

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

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6130 EXECUTIVE BOULEVARD, ROCKVILLE, MD, 20852

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

Financial Breakdown

Contract Ceiling: $20,200,138

Exercised Options: $16,930,072

Current Obligation: $16,930,072

Actual Outlays: $11,154,943

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $2,176,581

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75FCMC19D0080

IDV Type: IDC

Timeline