HHS awards $148M for Hispanic health insurance outreach, with Elevation, Ltd. as prime

Contract Overview

Contract Amount: $148,150,000 ($148.2M)

Contractor: Elevation, Ltd.

Awarding Agency: Department of Health and Human Services

Start Date: 2020-07-10

End Date: 2026-07-09

Contract Duration: 2,190 days

Daily Burn Rate: $67.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: HISPANIC HEALTH INSURANCE MARKETPLACE PUBLIC EDUCATION AND OUTREACH

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20007

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $148.2 million to ELEVATION, LTD. for work described as: HISPANIC HEALTH INSURANCE MARKETPLACE PUBLIC EDUCATION AND OUTREACH Key points: 1. Contract value represents a significant investment in targeted public health communication. 2. The contract's duration suggests a long-term strategy for sustained outreach efforts. 3. The use of Time and Materials pricing may introduce cost variability. 4. The agency's reliance on a single awardee for this critical function warrants scrutiny. 5. Performance will be key to ensuring taxpayer funds achieve desired health literacy outcomes. 6. Geographic focus on the District of Columbia may limit broader national impact.

Value Assessment

Rating: fair

The total award of $148.15 million over six years for public education and outreach is substantial. Benchmarking this against similar large-scale public health campaigns is challenging due to the specific target demographic and scope. The Time and Materials (T&M) pricing structure, while offering flexibility, can lead to less predictable costs compared to fixed-price contracts. Without detailed cost breakdowns, it's difficult to definitively assess value for money, but the scale suggests significant resource allocation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that there were 5 bids suggests a reasonable level of interest in this significant contract. However, the award going to a single entity for the entire duration and scope implies a concentrated effort by the selected contractor.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. The presence of multiple bidders suggests that the government sought the best value, potentially leading to more efficient use of taxpayer funds.

Public Impact

Hispanic communities across the nation will benefit from increased access to information about health insurance options. The contract aims to deliver public education and outreach services to improve health literacy and insurance enrollment. While the contract is managed from Washington D.C., the outreach is intended for a national Hispanic population. The initiative is expected to support jobs in advertising, marketing, and public relations sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not closely monitored.
The long duration of the contract may reduce flexibility for the agency to adapt to changing needs.
Concentration of a large award to a single entity could limit future competition opportunities.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The significant funding indicates a commitment to addressing a critical public health need.
The contract duration allows for sustained and impactful outreach campaigns.

Sector Analysis

This contract falls within the advertising and public relations sector, specifically focusing on government outreach and public health campaigns. The market for large-scale government communications contracts is competitive, often involving specialized agencies. The $148 million award is substantial for a single contract in this space, reflecting the importance and scale of the targeted outreach to the Hispanic community.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. It is unclear if Elevation, Ltd. has plans for small business subcontracting. Further investigation would be needed to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight will likely be managed by the Centers for Medicare and Medicaid Services (CMS) within HHS. Accountability measures would typically involve performance metrics, reporting requirements, and adherence to contract terms. Transparency is generally maintained through contract award databases and public reporting, though specific details of the outreach activities may not be fully public.

Related Government Programs

Affordable Care Act Outreach and Enrollment
Health Insurance Marketplace Advertising
Public Health Communication Campaigns
Minority Health Initiatives

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for robust monitoring of contractor performance and resource utilization.
Ensuring effective national reach despite potential administrative focus.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $148.2 million to ELEVATION, LTD.. HISPANIC HEALTH INSURANCE MARKETPLACE PUBLIC EDUCATION AND OUTREACH

Who is the contractor on this award?

The obligated recipient is ELEVATION, LTD..

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 $148.2 million.

What is the period of performance?

Start: 2020-07-10. End: 2026-07-09.

What is the track record of Elevation, Ltd. in managing large federal public health outreach contracts?

Information regarding Elevation, Ltd.'s specific track record with large federal public health outreach contracts is not detailed in the provided data. A comprehensive review would require examining past performance evaluations, previous federal awards, and client testimonials. Understanding their experience with similar demographics, communication strategies, and scale of operations is crucial for assessing their capability to successfully execute this $148 million contract over its six-year duration. Further research into their portfolio and past government dealings would be necessary to provide a definitive assessment.

How does the $148 million award compare to historical spending on similar Hispanic health insurance outreach initiatives?

Direct historical spending comparisons for 'Hispanic health insurance marketplace public education and outreach' are difficult without specific historical contract data. However, the Affordable Care Act (ACA) has historically seen significant federal investment in outreach and enrollment efforts, often in the hundreds of millions of dollars annually, to reach diverse populations. This $148 million award, spread over six years, suggests a sustained and substantial commitment to engaging the Hispanic community, potentially aligning with or exceeding previous targeted efforts depending on the specific scope and intensity of the campaigns funded.

What are the primary risks associated with a Time and Materials contract of this magnitude?

The primary risks associated with a Time and Materials (T&M) contract of this magnitude, like the $148.15 million award to Elevation, Ltd., revolve around cost control and predictability. T&M contracts pay the contractor for the actual cost of labor and materials, plus a fee. This structure can lead to cost overruns if the scope of work expands, if labor hours are not efficiently managed, or if material costs increase unexpectedly. For the government, this means less certainty about the final project cost compared to fixed-price contracts. Robust oversight, detailed tracking of hours and expenses, and clear definition of 'materials' are critical to mitigate these risks and ensure value for taxpayer money.

What specific performance metrics will be used to evaluate the success of this outreach program?

While the specific performance metrics are not detailed in the provided award data, typical evaluations for public health outreach and education contracts focus on measurable outcomes. These often include metrics such as the number of individuals reached, increased awareness levels within the target demographic (measured through surveys), website traffic and engagement, calls to helplines, and ultimately, increases in health insurance enrollment or retention rates among the Hispanic population. The contract likely includes a Performance Work Statement (PWS) outlining these Key Performance Indicators (KPIs) and the methods for tracking and reporting on them.

How does the geographic focus on the District of Columbia impact the national outreach goals?

The data indicates the contract's administrative location is in the District of Columbia (DC), but the nature of the contract ('Hispanic Health Insurance Marketplace Public Education and Outreach') implies a national scope for the outreach itself. The mention of 'ST: DC' and 'SN: DISTRICT OF COLUMBIA' likely refers to the contractor's location or the primary administrative point, not the exclusive service area. Effective national outreach would require a strategy that extends beyond DC, utilizing various media and community engagement channels relevant to Hispanic populations across the United States and its territories. The contract's success will hinge on its ability to reach the intended national audience effectively, regardless of the administrative hub.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Advertising, Public Relations, and Related Services › Advertising Agencies

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: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1027 33RD ST NW STE 260, WASHINGTON, DC, 20007

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $169,650,000

Exercised Options: $148,150,000

Current Obligation: $148,150,000

Actual Outlays: $131,371,545

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F0406T

IDV Type: FSS

Timeline