HHS awards $35.1M for Quality Assurance Surveillance Plan services, with a 20% higher per-unit cost than benchmark

Contract Overview

Contract Amount: $35,131,045 ($35.1M)

Contractor: Myers & Stauffer LC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-03-01

End Date: 2027-02-28

Contract Duration: 1,460 days

Daily Burn Rate: $24.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: QUALITY ASSURANCE SURVEILLANCE PLAN (QASP), INTERN AND RESIDENT INFORMATION SYSTEM (IRIS), TRAINING, SUPPORT (QITS)

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64112

State: Missouri Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $35.1 million to MYERS & STAUFFER LC for work described as: QUALITY ASSURANCE SURVEILLANCE PLAN (QASP), INTERN AND RESIDENT INFORMATION SYSTEM (IRIS), TRAINING, SUPPORT (QITS) Key points: 1. Contract value of $35.1M over 4 years for QASP, IRIS, training, and support. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Time and Materials, which can pose cost control risks. 4. The award was a Delivery Order, indicating it's part of a larger indefinite-delivery contract. 5. The contractor, MYERS & STAUFFER LC, has experience in accounting and auditing services. 6. The contract is for services in Missouri, with a specific focus on Medicare and Medicaid. 7. The contract duration is 1460 days, aligning with the end date. 8. No small business set-aside was applied to this contract.

Value Assessment

Rating: fair

The contract's total value of $35.1M for QASP, IRIS, training, and support appears substantial. Benchmarking against similar contracts for quality assurance and surveillance services is crucial. The provided data indicates a per-unit cost that is approximately 20% higher than the benchmark of $2,406,200, raising concerns about value for money. While the services are essential for CMS operations, the elevated per-unit cost warrants further investigation into the specific deliverables and market rates for these specialized services.

Cost Per Unit: $24,062,000

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The fact that there were two bidders suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for ensuring fair pricing and access for a wide range of contractors, the limited number of bidders (two) might indicate potential barriers to entry or a specialized market. This level of competition could still lead to price discovery, but a higher number of bidders would typically provide stronger assurance of optimal pricing.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it aims to secure the best possible price through a wide selection of potential providers. However, with only two bidders, taxpayers may not be realizing the full cost savings that could be achieved with a more robust competitive landscape.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) through enhanced oversight. Services delivered include quality assurance surveillance, intern and resident information systems, training, and support. Geographic impact is primarily within Missouri, where the contractor is located and services are likely performed. Workforce implications may involve specialized personnel for quality assurance and data management within CMS or its contractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials contract type.
Per-unit cost is 20% higher than the benchmark, indicating potential value-for-money concerns.
Limited competition with only two bidders could impact price negotiation.
The specific nature of QASP and IRIS services may require specialized expertise, potentially limiting the pool of qualified bidders.

Positive Signals

Awarded under full and open competition, allowing for a broad range of potential contractors.
The contractor, MYERS & STAUFFER LC, is an established firm with relevant experience in accounting and auditing.
The contract addresses critical functions for CMS operations, ensuring quality oversight.
The delivery order structure suggests it fits within a broader strategic framework for CMS.

Sector Analysis

The North American Industry Classification System (NAICS) code 541211, 'Offices of Certified Public Accountants,' falls within the professional, scientific, and technical services sector. This sector is characterized by a high degree of specialization and expertise. The market for government contracting in this area is substantial, with agencies like CMS relying heavily on accounting and auditing firms for oversight and compliance. Comparable spending benchmarks are essential for evaluating the cost-effectiveness of such contracts, especially given the specialized nature of quality assurance and information system support.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'sb': false parameter. The primary contractor, MYERS & STAUFFER LC, is likely a large business given the contract value. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract appears minimal, although the contractor's overall subcontracting practices would need further review to assess broader implications.

Oversight & Accountability

Oversight for this contract would primarily fall under the Centers for Medicare and Medicaid Services (CMS). As a delivery order under a larger contract, specific oversight mechanisms would be detailed in the parent contract's terms and conditions. Transparency is generally facilitated through contract award databases like FPDS. Accountability measures would involve performance reviews and adherence to the Quality Assurance Surveillance Plan (QASP). The Inspector General for the Department of Health and Human Services would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Centers for Medicare and Medicaid Services (CMS) Operations Support
Healthcare Quality Improvement Programs
Government Auditing and Accounting Services
Information System Development and Support Contracts
Federal Training and Development Programs

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Per-unit cost significantly higher than benchmark.
Limited competition (2 bidders) may impact price discovery.
Lack of small business subcontracting details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $35.1 million to MYERS & STAUFFER LC. QUALITY ASSURANCE SURVEILLANCE PLAN (QASP), INTERN AND RESIDENT INFORMATION SYSTEM (IRIS), TRAINING, SUPPORT (QITS)

Who is the contractor on this award?

The obligated recipient is MYERS & STAUFFER LC.

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 $35.1 million.

What is the period of performance?

Start: 2023-03-01. End: 2027-02-28.

What is the specific nature of the 'INTERN AND RESIDENT INFORMATION SYSTEM (IRIS)' and how does it contribute to the overall contract objectives?

The Intern and Resident Information System (IRIS) likely refers to a system used by the Centers for Medicare and Medicaid Services (CMS) to manage information related to medical interns and residents, potentially for training program oversight, accreditation, or workforce planning. Its contribution to the contract objectives would be to provide the necessary data infrastructure and management capabilities to support CMS's regulatory and administrative functions concerning medical education and training. This could involve tracking program compliance, resident progress, and ensuring adherence to quality standards. The effectiveness of IRIS would be a key performance indicator for the contractor, directly impacting CMS's ability to oversee these critical aspects of the healthcare workforce.

How does the 'per-unit cost' of $24,062,000 compare to similar contracts for Quality Assurance Surveillance Plans (QASP) and related services?

The provided 'per-unit cost' of $24,062,000 is significantly higher than the benchmark of $2,406,200, representing a 20% increase. This suggests that the cost associated with this specific contract's deliverables, when annualized or normalized to a comparable unit, is substantially greater than the established benchmark. Without further context on what constitutes a 'unit' in this comparison (e.g., per year, per service type, per facility overseen), it's difficult to definitively assess value. However, a 20% deviation from a benchmark warrants scrutiny. It could indicate a more complex scope of work, higher labor costs, or potentially less competitive pricing compared to the benchmarked contracts. Further analysis would require understanding the composition of the benchmark and the specific services rendered under this contract.

What are the potential risks associated with a 'Time and Materials' contract type for these services?

Time and Materials (T&M) contracts, like the one awarded to MYERS & STAUFFER LC, carry inherent risks for the government, primarily concerning cost control. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and material costs incurred, plus a fixed fee or overhead. This structure can lead to cost overruns if the scope of work is not well-defined or if the contractor's efficiency is not closely monitored. For services like Quality Assurance Surveillance Plans (QASP) and information systems, where the exact effort might be difficult to predict, T&M can offer flexibility. However, it places a greater burden on the government to diligently track hours, validate costs, and manage the overall effort to prevent excessive spending. Robust oversight and clear task definitions are crucial to mitigate these risks.

Given the 'full-and-open' competition with only two bidders, what does this imply for the contractor's track record and the overall market for these services?

The fact that this contract was awarded under 'full-and-open' competition but only attracted two bidders suggests a potentially specialized or concentrated market for these specific services. It could indicate that only a limited number of firms possess the requisite expertise, certifications, or past performance history to successfully bid on such contracts. For the winning contractor, MYERS & STAUFFER LC, this implies they are among the few qualified entities capable of meeting the government's stringent requirements. While competition is present, the limited number of bidders might reduce the downward pressure on pricing compared to a scenario with numerous competitors. It also suggests that potential new entrants may face significant barriers to entry, such as high startup costs or the need for specialized accreditations.

How does the contract's duration of 1460 days (4 years) align with the typical lifecycle of QASP and IRIS systems within CMS?

A contract duration of 1460 days, equivalent to four years, is a standard term for many federal service contracts, including those involving complex information systems and ongoing surveillance activities. For Quality Assurance Surveillance Plans (QASP) and systems like IRIS, a multi-year engagement allows for continuity of operations, development, and refinement. CMS likely requires sustained support to effectively monitor healthcare providers, ensure compliance, and manage training-related data. A four-year period provides the contractor with stability to invest in resources and personnel, while allowing CMS to benefit from consistent service delivery. This duration suggests that the services are considered mission-critical and require long-term commitment rather than short-term, ad-hoc support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

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: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 700 W 47TH ST, KANSAS CITY, MO, 64112

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

Financial Breakdown

Contract Ceiling: $46,155,768

Exercised Options: $35,131,045

Current Obligation: $35,131,045

Actual Outlays: $26,435,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS23F0058V

IDV Type: FSS

Timeline