HHS awards $25.4M contract to Mathematica Inc. for value-based learning, with 4 bidders

Contract Overview

Contract Amount: $25,357,353 ($25.4M)

Contractor: Mathematica Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-17

End Date: 2025-03-27

Contract Duration: 1,652 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: VALUE BASED LEARNING CONTRACT

Place of Performance

Location: PRINCETON, MERCER County, NEW JERSEY, 08540

State: New Jersey Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $25.4 million to MATHEMATICA INC. for work described as: VALUE BASED LEARNING CONTRACT Key points: 1. Contract focuses on research and development in social sciences and humanities, indicating a knowledge-building objective. 2. Full and open competition suggests a robust market for these specialized services. 3. The contract duration of over 1600 days points to a long-term investment in learning and development. 4. Cost Plus Fixed Fee pricing structure may incentivize contractor efficiency while managing costs. 5. The award to Mathematica Inc., a known entity in research, suggests a focus on established expertise. 6. The contract's value, while significant, needs to be benchmarked against similar R&D initiatives.

Value Assessment

Rating: good

The contract value of $25.4 million over approximately 4.5 years appears reasonable for a research and development initiative in social sciences. Benchmarking against similar contracts for value-based learning or social science research by federal agencies like HHS or other health-focused bodies would provide a clearer picture of value for money. The Cost Plus Fixed Fee (CPFF) structure, while offering flexibility, requires careful monitoring to ensure costs remain controlled and that the fixed fee is appropriate for the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with four bidders participating. This indicates a healthy level of market interest and a competitive environment for these specialized research services. The presence of multiple bidders generally supports price discovery and can lead to more favorable terms for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among contractors.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) is the primary beneficiary, aiming to improve value-based learning. The contract will deliver research and development services in the social sciences and humanities. The geographic impact is centered in New Jersey, where Mathematica Inc. is located. The contract supports a workforce skilled in research, data analysis, and social science expertise.

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.
Scope creep could increase costs beyond the initial $25.4 million if not strictly controlled.
Ensuring the research outcomes directly translate into actionable improvements for value-based learning is critical.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
Contractor, Mathematica Inc., has a track record in research and analysis, implying expertise.
Long contract duration allows for in-depth research and development, potentially yielding significant insights.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on social sciences and humanities (NAICS code 541720). This sector is crucial for informing policy and program development across various government agencies. Comparable spending benchmarks would involve looking at other federal R&D contracts in social sciences, particularly those related to healthcare policy, program evaluation, and learning initiatives. The market for such specialized research is often characterized by a mix of large research institutions and specialized consulting firms.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While Mathematica Inc. is a large business, the competitive nature of the award means that opportunities for small business subcontracting may exist, depending on Mathematica's approach to fulfilling the contract requirements. Further analysis would be needed to determine if subcontracting plans include provisions for small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS), specifically the Centers for Medicare and Medicaid Services (CMS). Mechanisms likely include regular progress reports, performance reviews, and financial audits. Transparency is generally maintained through contract award databases and public reporting requirements. The Inspector General's office within HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Value-Based Purchasing Programs
Healthcare Research and Development
Social Science Research Grants
CMS Program Evaluation Contracts
Federal R&D Spending

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Measuring R&D Impact
Long-term Project Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $25.4 million to MATHEMATICA INC.. VALUE BASED LEARNING CONTRACT

Who is the contractor on this award?

The obligated recipient is MATHEMATICA 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 $25.4 million.

What is the period of performance?

Start: 2020-09-17. End: 2025-03-27.

What is Mathematica Inc.'s track record with federal contracts, particularly within HHS or CMS?

Mathematica Inc. has a significant history of contracting with federal agencies, including extensive work with HHS and CMS. They are a well-established research firm specializing in health policy, social policy, and program evaluation. Their past performance often involves large-scale data analysis, survey research, and the development of evidence-based recommendations for government programs. Reviewing their contract history would likely reveal numerous awards for similar research and development initiatives, providing a basis for assessing their capability and reliability in executing this current contract. Specific details on past performance metrics, such as on-time delivery and adherence to budget, would be crucial for a comprehensive evaluation.

How does the $25.4 million value compare to similar federal contracts for value-based learning R&D?

The $25.4 million contract value for value-based learning R&D needs to be contextualized against similar federal procurements. Contracts in this domain can vary widely based on scope, duration, and the specific research methodologies employed. For instance, contracts focused on large-scale data analytics, longitudinal studies, or the development of complex simulation models might command higher values. Conversely, smaller, more focused research projects or pilot programs would likely be awarded at lower amounts. Benchmarking against contracts awarded by CMS or other agencies like the Agency for Healthcare Research and Quality (AHRQ) for similar R&D objectives would provide a more precise comparison. The duration of this contract (over 1600 days) suggests a substantial, long-term research effort, which is reflected in its overall value.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of R&D?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract for R&D is the potential for cost overruns if the contractor's actual costs exceed initial estimates, although the government is only obligated to pay the agreed-upon fixed fee. The contractor bears the risk of costs exceeding the estimate, but they are incentivized to control costs to maximize their profit (the fixed fee). For the government, the risk lies in ensuring that the fixed fee is appropriately negotiated and that the contractor maintains rigorous cost controls. Scope creep is another significant risk; if the project's objectives expand beyond the initial agreement without proper modification and negotiation of the fee, costs can escalate indirectly. Effective oversight and clear definition of work are crucial to mitigate these risks.

How will the success or effectiveness of this 'value-based learning' contract be measured?

The effectiveness of this 'value-based learning' contract will likely be measured through a combination of performance metrics and deliverables outlined in the contract statement of work. Key performance indicators (KPIs) could include the successful completion of research phases, the quality and validity of data analysis, the development of actionable insights and recommendations, and the timely delivery of reports and other research outputs. The ultimate measure of success would be the extent to which the 'learning' derived from the R&D contributes to the improvement of value-based healthcare models and initiatives managed by CMS. This could involve demonstrating measurable improvements in healthcare quality, cost-efficiency, or patient outcomes resulting from the application of the research findings.

What is the historical spending trend for R&D in social sciences and humanities at HHS/CMS?

Historical spending trends for R&D in social sciences and humanities at HHS/CMS generally show a consistent, albeit sometimes fluctuating, investment. These agencies rely on social science research to inform policy, evaluate program effectiveness, and understand population health behaviors. Spending in this area is often tied to specific initiatives, such as healthcare reform, public health campaigns, or the development of new payment models like value-based care. While specific dollar amounts can vary year-to-year based on budgetary priorities and emerging needs, there is a sustained recognition of the importance of social science research in achieving the department's mission. Analyzing historical contract awards and grant data would reveal patterns in funding levels and areas of focus within this broad R&D category.

What does the presence of 4 bidders signify for the government's ability to secure competitive pricing?

The presence of four bidders in a full and open competition is a positive indicator for the government's ability to secure competitive pricing. A larger number of bidders generally increases the likelihood that multiple companies will offer their best pricing to win the contract. This competitive pressure can drive down costs and encourage innovation. With four bidders, there is a reasonable chance of receiving diverse proposals and price points, allowing the contracting agency to compare offers effectively and select the one that provides the best overall value. While more bidders can sometimes lead to even greater price competition, four is often considered a healthy number for specialized R&D services.

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: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 600 ALEXANDER PARK, PRINCETON, NJ, 08540

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

Financial Breakdown

Contract Ceiling: $31,525,112

Exercised Options: $25,357,353

Current Obligation: $25,357,353

Actual Outlays: $19,300,323

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75FCMC19D0091

IDV Type: IDC

Timeline