HHS Extends Joint Replacement Care Contract by 3 Years, Valued at $9.1M
Contract Overview
Contract Amount: $9,100,206 ($9.1M)
Contractor: Mathematica Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2022-03-21
End Date: 2026-06-30
Contract Duration: 1,562 days
Daily Burn Rate: $5.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Healthcare
Official Description: COMPREHENSIVE CARE FOR JOINT REPLACEMENT (CJR) 3-YEAR EXTENSION PAYMENT RECONCILIATION
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $9.1 million to MATHEMATICA INC. for work described as: COMPREHENSIVE CARE FOR JOINT REPLACEMENT (CJR) 3-YEAR EXTENSION PAYMENT RECONCILIATION Key points: 1. Contract focuses on research and development for joint replacement care. 2. MATHEMATICA INC. is the sole awardee for this extension. 3. The contract's value is $9.1 million over its extended term. 4. This extension aims to reconcile payments for the CJR model.
Value Assessment
Rating: good
The contract is a Cost Plus Fixed Fee type, which allows for flexibility in pricing based on actual costs incurred plus a predetermined fee. Benchmarking against similar R&D contracts in healthcare is difficult without more specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. The specific pricing mechanisms within a Cost Plus Fixed Fee structure are subject to negotiation and oversight to ensure fair pricing.
Taxpayer Impact: The $9.1 million expenditure is for research and development aimed at improving healthcare delivery, potentially leading to long-term cost savings and better patient outcomes, thus representing a strategic investment for taxpayers.
Public Impact
Enhances research into improving joint replacement patient care and outcomes. Supports the ongoing evaluation and refinement of the Comprehensive Care for Joint Replacement model. Potential for cost savings in healthcare through optimized treatment pathways. Ensures continued development of evidence-based practices in orthopedic care.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed tightly.
- Limited transparency on specific cost drivers within the R&D activities.
- Dependence on a single contractor for a critical research area.
Positive Signals
- Awarded through full and open competition.
- Extension of an existing program indicates successful past performance.
- Focus on improving patient outcomes and healthcare efficiency.
Sector Analysis
This contract falls under Research and Development in Social Sciences and Humanities, specifically within the healthcare sector. Spending benchmarks for R&D in healthcare vary widely, but this amount is moderate for a multi-year federal research initiative.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The primary contractor, MATHEMATICA INC., is a large research organization, suggesting limited direct opportunities for small businesses unless they are subcontractors.
Oversight & Accountability
The Centers for Medicare and Medicaid Services (CMS) is responsible for overseeing this contract. The Cost Plus Fixed Fee structure necessitates robust oversight to ensure costs are reasonable and the fixed fee is justified.
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 contract type.
- Potential for cost overruns.
- Limited direct small business participation.
- Dependence on a single contractor.
- Research scope creep risk.
Tags
research-and-development-in-the-social-s, department-of-health-and-human-services, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $9.1 million to MATHEMATICA INC.. COMPREHENSIVE CARE FOR JOINT REPLACEMENT (CJR) 3-YEAR EXTENSION PAYMENT RECONCILIATION
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 $9.1 million.
What is the period of performance?
Start: 2022-03-21. End: 2026-06-30.
What specific research objectives will be pursued during this 3-year extension, and how do they align with current healthcare priorities?
The extension likely focuses on refining payment reconciliation processes for the CJR model and potentially exploring new data analytics to identify further improvements in joint replacement care. Alignment with healthcare priorities would involve reducing costs, improving quality of care, and enhancing patient satisfaction in orthopedic procedures.
How will the effectiveness of the research conducted under this contract be measured to ensure taxpayer value?
Effectiveness will likely be measured through key performance indicators (KPIs) related to the CJR model's financial performance, patient outcomes (e.g., readmission rates, complication rates), and the successful implementation of any recommended policy or payment adjustments. Regular reporting and independent evaluations will be crucial.
What are the potential risks associated with extending this contract, particularly concerning cost control and research scope creep?
Risks include potential cost overruns inherent in Cost Plus Fixed Fee contracts if expenditures are not closely monitored. Scope creep is also a risk if research objectives expand beyond the initial intent without proper change control. Ensuring clear deliverables and rigorous oversight are key mitigation strategies.
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: RESEARCH AND DEVELOPMENT › N – Health R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
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: $9,100,206
Exercised Options: $9,100,206
Current Obligation: $9,100,206
Actual Outlays: $8,359,084
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
Start Date: 2022-03-21
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-03-20
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