HHS Awards $10.3M Contract for Medicaid Financial Oversight to National Opinion Research Center

Contract Overview

Contract Amount: $10,278,306 ($10.3M)

Contractor: National Opinion Research Center

Awarding Agency: Department of Health and Human Services

Start Date: 2021-09-13

End Date: 2026-09-12

Contract Duration: 1,825 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MEDICAID FINANCIAL OVERSIGHT ANALYSIS

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.3 million to NATIONAL OPINION RESEARCH CENTER for work described as: MEDICAID FINANCIAL OVERSIGHT ANALYSIS Key points: 1. Contract value of $10.3M over 5 years. 2. National Opinion Research Center (NORC) is the contractor. 3. The contract falls under Research and Development in Social Sciences and Humanities. 4. CMS is the awarding agency, indicating a focus on healthcare financial management.

Value Assessment

Rating: good

The contract is a Cost Plus Fixed Fee type, which allows for cost reimbursement plus a fixed fee. This is common for R&D services where exact costs may be uncertain. Benchmarking against similar R&D contracts is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. The use of a Delivery Order under a larger contract framework implies that the specific task order was competitively selected.

Taxpayer Impact: Taxpayer funds are being used for essential financial oversight of the Medicaid program, aiming to ensure efficiency and proper management of federal resources.

Public Impact

Ensures financial integrity of the Medicaid program. Supports CMS in managing complex healthcare spending. Potential for improved efficiency in federal healthcare spending. NORC's expertise in social sciences research is leveraged for financial analysis.

Waste & Efficiency Indicators

Waste Risk Score: 100 / 10

Warning Flags

Cost Plus Fixed Fee structure can lead to cost overruns if not managed carefully.
Reliance on a single delivery order for critical oversight functions.
Potential for scope creep in R&D focused contracts.

Positive Signals

Full and open competition promotes fair pricing.
Long-term contract duration allows for sustained oversight.
Experienced contractor (NORC) in research and analysis.

Sector Analysis

This contract falls within the Research and Development in Social Sciences and Humanities sector, specifically applied to healthcare financial oversight. Spending benchmarks for this niche area are not readily available, but the value is moderate for a federal R&D contract.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. The primary contractor, NORC, is a large research organization.

Oversight & Accountability

The Centers for Medicare and Medicaid Services (CMS) is responsible for overseeing this contract. The contract's purpose is financial oversight, implying internal accountability mechanisms are in place.

Related Government Programs

Research and Development in the Social Sciences and Humanities
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Cost Plus Fixed Fee structure.
Potential for cost overruns.
Reliance on a single delivery order for critical function.
Scope creep in R&D contracts.
Limited visibility into specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.3 million to NATIONAL OPINION RESEARCH CENTER. MEDICAID FINANCIAL OVERSIGHT ANALYSIS

Who is the contractor on this award?

The obligated recipient is NATIONAL OPINION RESEARCH CENTER.

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 $10.3 million.

What is the period of performance?

Start: 2021-09-13. End: 2026-09-12.

What specific financial oversight activities will NORC conduct under this contract, and how will they contribute to improved Medicaid financial management?

The contract aims to provide financial oversight for the Medicaid program. Specific activities likely include data analysis, financial modeling, risk assessment, and reporting on program expenditures and financial performance. This work supports CMS in identifying inefficiencies, potential fraud, and ensuring compliance with financial regulations, ultimately contributing to better stewardship of taxpayer funds.

Given the Cost Plus Fixed Fee structure, what are the primary risks to the government regarding cost control and contractor performance?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may not have a strong incentive to control costs beyond the fixed fee, as costs are reimbursed. Performance risks include potential delays, quality issues, or failure to meet specific oversight objectives. Robust government oversight and clear performance metrics are crucial to mitigate these risks and ensure value for money.

How does the use of a full and open competition for this delivery order ensure effective price discovery and value for the government?

Full and open competition allows multiple qualified vendors to bid on the contract, fostering a competitive environment that drives down prices and encourages innovative solutions. This process ensures that the government receives the best possible value by selecting the offer that best balances cost, technical merit, and past performance. It provides a strong basis for price discovery and justification.

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

Solicitation ID: RMADA2-TORP-2021-0010

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1155 E 60TH ST, CHICAGO, IL, 60637

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: $10,830,575

Exercised Options: $10,278,306

Current Obligation: $10,278,306

Actual Outlays: $8,850,716

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75FCMC19D0092

IDV Type: IDC

Timeline