HHS awards $167M contract to Iowa Healthcare Collaborative for substance use disorder prevention and treatment

Contract Overview

Contract Amount: $16,720,330 ($16.7M)

Contractor: Iowa Healthcare Collaborative

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-29

End Date: 2026-03-31

Contract Duration: 2,009 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO EXECUTE PROVISION SECTION 6052 OF THE SUBSTANCE USE-DISORDER PREVENTION THAT PROMOTES OPIOID RECOVERY AND TREATMENT FOR PATIENTS AND COMMUNITIES ACT (SUPPORT ACT, P.L. 115-271). SECTION 6052 OF THE SUPPORT ACT AUT

Place of Performance

Location: DES MOINES, POLK County, IOWA, 50309

State: Iowa Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.7 million to IOWA HEALTHCARE COLLABORATIVE for work described as: THE PURPOSE OF THIS TASK ORDER IS TO EXECUTE PROVISION SECTION 6052 OF THE SUBSTANCE USE-DISORDER PREVENTION THAT PROMOTES OPIOID RECOVERY AND TREATMENT FOR PATIENTS AND COMMUNITIES ACT (SUPPORT ACT, P.L. 115-271). SECTION 6052 OF THE SUPPORT ACT AUT Key points: 1. Contract focuses on implementing provisions of the SUPPORT Act for opioid recovery. 2. The firm-fixed-price contract spans over five years, indicating a long-term commitment. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. The task order is managed by the Centers for Medicare and Medicaid Services (CMS). 5. The contractor, Iowa Healthcare Collaborative, is based in Iowa. 6. The contract value is substantial, reflecting the scale of the public health initiative.

Value Assessment

Rating: good

The contract value of $167 million over approximately five years suggests a significant investment in substance use disorder initiatives. Benchmarking this against similar public health programs managed by CMS would provide further context on value for money. The firm-fixed-price structure aims to control costs, but the effectiveness of the services delivered will be the ultimate measure of value. Without specific performance metrics or comparisons to similar contracts, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders were likely considered. This process is designed to foster price discovery and ensure that the government receives competitive offers. The number of bidders (10) suggests a healthy level of interest and competition for this type of public health service contract.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices and encouraging innovative solutions, leading to more efficient use of public funds.

Public Impact

Patients and communities affected by substance use disorders are the primary beneficiaries. The contract aims to promote opioid recovery and treatment services. The geographic impact is likely national, given the scope of the SUPPORT Act, though specific implementation may be localized. The contract supports public health infrastructure and potentially creates or sustains jobs in the healthcare and consulting sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if program objectives are not clearly defined and managed.
Ensuring equitable distribution of services across diverse geographic and demographic populations.
Measuring the long-term effectiveness and impact of the implemented programs.
Dependency on the contractor's expertise and ability to adapt to evolving public health needs.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Long-term contract duration allows for sustained program implementation and impact.
Focus on a critical public health issue (substance use disorders) aligns with national priorities.
Firm-fixed-price contract provides cost certainty for the government.

Sector Analysis

This contract falls within the management consulting services sector, specifically focused on public health initiatives. The market for health consulting is substantial, driven by government funding for programs like those addressing substance use disorders. Comparable spending benchmarks would involve looking at other large federal contracts awarded for similar public health program management and implementation, particularly those related to the SUPPORT Act or other major health legislation.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract. However, the contractor may engage small businesses as subcontractors to fulfill specific aspects of the task order, contributing to the broader small business ecosystem. Further analysis would be needed to determine subcontracting plans and their impact.

Oversight & Accountability

Oversight is likely managed by the Centers for Medicare and Medicaid Services (CMS) program officials. Accountability measures would be tied to performance metrics outlined in the contract. Transparency can be assessed through publicly available contract data and reports, though detailed operational transparency may be limited. Inspector General jurisdiction would apply if any fraud or mismanagement is suspected.

Related Government Programs

Substance Use Disorder Prevention Programs
Opioid Crisis Response Initiatives
Public Health Service Contracts
Healthcare Management Consulting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Potential for performance issues if contractor lacks specialized expertise in SUD treatment modalities.
Risk of cost overruns if not managed tightly under the firm-fixed-price structure.
Challenges in measuring long-term, population-level impact of prevention and treatment programs.
Geographic disparities in service access and quality could arise.
Dependence on evolving legislative and regulatory landscape for SUD treatment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.7 million to IOWA HEALTHCARE COLLABORATIVE. THE PURPOSE OF THIS TASK ORDER IS TO EXECUTE PROVISION SECTION 6052 OF THE SUBSTANCE USE-DISORDER PREVENTION THAT PROMOTES OPIOID RECOVERY AND TREATMENT FOR PATIENTS AND COMMUNITIES ACT (SUPPORT ACT, P.L. 115-271). SECTION 6052 OF THE SUPPORT ACT AUT

Who is the contractor on this award?

The obligated recipient is IOWA HEALTHCARE COLLABORATIVE.

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 $16.7 million.

What is the period of performance?

Start: 2020-09-29. End: 2026-03-31.

What is the specific track record of the Iowa Healthcare Collaborative in managing large-scale public health initiatives, particularly those related to substance use disorders?

The Iowa Healthcare Collaborative (IHC) is a non-profit organization focused on improving healthcare quality, affordability, and accessibility in Iowa. While specific details on their track record managing federal contracts of this magnitude are not provided in the summary data, their mission aligns with public health improvement. A deeper dive into IHC's past performance, including previous government contracts, partnerships, and demonstrated success in implementing health programs, would be necessary to fully assess their capability for this task order. Their experience with state-level initiatives and collaborations within Iowa's healthcare system would be relevant indicators of their potential effectiveness.

How does the $167 million contract value compare to other federal spending on substance use disorder prevention and treatment programs?

The $167 million awarded to the Iowa Healthcare Collaborative represents a significant investment in addressing substance use disorders, particularly in the context of the SUPPORT Act. To benchmark this value, one would need to examine aggregate federal spending across various agencies (e.g., SAMHSA, NIH, HHS) dedicated to SUD prevention and treatment. Comparing this single contract's value to the total budget allocated for similar initiatives provides context. For instance, if total federal spending on SUD is in the billions, this contract represents a notable portion, but not the entirety, of the effort. Conversely, if it's a disproportionately large award compared to other similar contracts, it might warrant further scrutiny regarding scope or necessity.

What are the primary performance metrics and risk indicators associated with this contract, and how are they being monitored?

The provided data does not explicitly detail the performance metrics or risk indicators for this contract. However, typical metrics for such public health initiatives would likely include measures of treatment access, patient outcomes (e.g., reduction in opioid use, recovery rates), community engagement, and adherence to program guidelines. Risk indicators could encompass challenges in patient recruitment, provider engagement, data reporting accuracy, or unforeseen shifts in public health needs. Monitoring would typically be conducted by CMS program officials through regular progress reports, site visits, data analysis, and performance reviews against contractually defined milestones and objectives.

What is the expected impact of this contract on the broader healthcare sector, beyond direct substance use disorder treatment?

This contract, by focusing on substance use disorder prevention and treatment, is expected to have a ripple effect across the broader healthcare sector. Improved management of SUD can lead to reduced emergency room visits, fewer hospital readmissions, and decreased strain on primary care providers who often encounter patients with co-occurring conditions. Furthermore, the implementation of programs funded by this contract may necessitate increased collaboration between healthcare providers, mental health specialists, and community support services, potentially strengthening integrated care models. It could also drive innovation in telehealth and digital health solutions for SUD management, influencing technology adoption within the sector.

How does the 'Other Management Consulting Services' classification (NAICS 541618) accurately reflect the scope of work for this substance use disorder initiative?

The NAICS code 541618, 'Other Management Consulting Services,' is a broad classification that can encompass a wide range of advisory and assistance services. For a contract focused on implementing provisions of the SUPPORT Act for substance use disorder prevention and treatment, this code likely covers strategic planning, program design, policy analysis, operational efficiency improvements, and potentially technical assistance to healthcare providers or community organizations. While it doesn't specifically denote 'public health' or 'healthcare consulting,' it serves as an umbrella for the management and strategic expertise required to execute complex legislative mandates like the SUPPORT Act. The specific details within the task order would further define the precise nature of the consulting services provided.

What historical spending patterns exist within HHS or CMS for similar large-scale public health task orders, and how does this award compare?

HHS and CMS frequently award large task orders and contracts for public health initiatives, particularly those addressing critical national health issues. Historical spending patterns reveal significant investments in areas like chronic disease management, health IT infrastructure, and emergency preparedness. For substance use disorders specifically, federal funding has increased substantially following the opioid crisis. Comparing this $167 million award requires examining the total budget allocated to SUD programs within HHS/CMS over time and identifying other major contracts. This award appears substantial, reflecting the priority placed on the SUPPORT Act's objectives, and aligns with the trend of increased federal investment in combating the opioid epidemic.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: MEDICAL SERVICES › SPECIALIZED TECHNICAL/ MEDICAL SUPPORT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 E GRAND AVE STE 360, DES MOINES, IA, 50309

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: $16,720,330

Exercised Options: $16,720,330

Current Obligation: $16,720,330

Actual Outlays: $12,203,266

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75FCMC19D0028

IDV Type: IDC

Timeline