HHS awards $6.8M contract for quality rating system development to ABT Global LLC
Contract Overview
Contract Amount: $6,815,901 ($6.8M)
Contractor: ABT Global LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2023-08-31
End Date: 2026-08-31
Contract Duration: 1,096 days
Daily Burn Rate: $6.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Healthcare
Official Description: DEVELOPING QUALITY RATING SYSTEMS
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $6.8 million to ABT GLOBAL LLC for work described as: DEVELOPING QUALITY RATING SYSTEMS Key points: 1. Contract focuses on developing quality rating systems, a critical component for healthcare program oversight. 2. ABT Global LLC, the contractor, has a track record in management consulting services. 3. The contract duration of approximately three years suggests a need for sustained development and implementation. 4. The administrative management and general management consulting services category indicates a focus on process improvement and strategic planning. 5. The contract was awarded under full and open competition, suggesting a robust selection process.
Value Assessment
Rating: fair
The contract value of $6.8 million over approximately three years for developing quality rating systems appears to be within a reasonable range for such specialized services. Benchmarking against similar contracts for system development and consulting in the healthcare sector would provide a clearer picture of value for money. However, without specific details on the scope of work and deliverables, a definitive assessment of cost-effectiveness is challenging. The Time and Materials pricing model introduces some risk of cost overruns if not managed diligently.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. This approach generally fosters a competitive environment, encouraging vendors to offer their best pricing and solutions to secure the contract. The presence of a single award for this delivery order suggests that ABT Global LLC presented the most advantageous offer based on the evaluation criteria.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, maximizing the value of federal investments.
Public Impact
Beneficiaries include Medicare and Medicaid beneficiaries who will be impacted by improved quality rating systems. Services delivered include the development and refinement of quality rating systems for healthcare programs. The geographic impact is national, affecting all states and territories served by Medicare and Medicaid. Workforce implications may include the need for specialized analysts and IT professionals within CMS to manage and utilize the new systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in a development project.
- Reliance on a single contractor for a critical system development.
- Time and Materials contract type can lead to cost unpredictability if not closely monitored.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Contract duration allows for thorough development and implementation.
- Focus on quality rating systems aligns with CMS's mission to improve healthcare quality.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. The market for healthcare consulting and IT development services is substantial, driven by the complexity of healthcare regulations and the ongoing need for system modernization. Comparable spending benchmarks would involve analyzing other contracts for similar system development and consulting services within federal health agencies.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary focus was on securing the best overall solution from any qualified vendor, rather than specifically promoting small business participation in this particular award.
Oversight & Accountability
Oversight for this contract would typically be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures are embedded in the contract's performance work statement and delivery schedules. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Medicare Quality Payment Program
- Medicaid Quality Improvement
- Healthcare Information Technology Services
- Federal Consulting Services
Risk Flags
- Time and Materials pricing model requires diligent oversight to manage costs.
- Lack of specific performance metrics in the provided data makes value assessment difficult.
- Contractor's specific experience with quality rating system development needs further investigation.
Tags
healthcare, hhs, cms, consulting, it-development, quality-ratings, full-and-open-competition, time-and-materials, administrative-management, delivery-order, medium-value
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $6.8 million to ABT GLOBAL LLC. DEVELOPING QUALITY RATING SYSTEMS
Who is the contractor on this award?
The obligated recipient is ABT GLOBAL LLC.
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 $6.8 million.
What is the period of performance?
Start: 2023-08-31. End: 2026-08-31.
What is the specific scope of work for ABT Global LLC in developing these quality rating systems?
The provided data indicates the contract is for 'DEVELOPING QUALITY RATING SYSTEMS' under NAICS code 541611 (Administrative Management and General Management Consulting Services). While the exact deliverables are not detailed, it implies the contractor will be responsible for designing, developing, and potentially implementing methodologies, algorithms, and reporting frameworks for assessing the quality of healthcare providers and programs under CMS. This could involve data analysis, system architecture design, user interface development, and documentation. The Time and Materials (T&M) pricing structure suggests that the scope may evolve, requiring close management to control costs and ensure alignment with CMS objectives.
How does the $6.8 million contract value compare to similar federal contracts for quality rating system development?
Directly comparing the $6.8 million value without a detailed scope of work and contract duration is challenging. However, federal contracts for developing complex IT systems and providing specialized consulting services within the healthcare sector can range from hundreds of thousands to tens of millions of dollars. The duration of this contract (approximately 3 years) and its focus on quality rating systems suggest that $6.8 million is a moderate investment. To provide a precise benchmark, one would need to analyze contracts with similar objectives, complexity, and contractor experience awarded by agencies like CMS, ONC, or AHRQ over the past few years.
What are the key performance indicators (KPIs) or success metrics for this contract?
The provided data does not specify the key performance indicators (KPIs) or success metrics for this contract. Typically, for a contract focused on developing quality rating systems, KPIs would likely include the timely delivery of system components, the accuracy and reliability of the developed rating algorithms, the usability and user satisfaction with the system's interface, and the successful integration with existing CMS data infrastructure. Performance would also be assessed based on adherence to budget, quality of documentation, and the system's ability to meet defined functional and non-functional requirements as outlined in the Performance Work Statement (PWS).
What is ABT Global LLC's track record with federal contracts, particularly within the Department of Health and Human Services?
The data identifies ABT Global LLC as the contractor. While specific details of their past performance are not provided, their selection for this contract suggests they have a relevant track record in administrative management and general management consulting services. Federal procurement databases (like SAM.gov or FPDS) would contain more comprehensive information on ABT Global LLC's contract history, including past performance ratings, types of services rendered, and agencies served. A thorough review of these databases would be necessary to fully assess their experience and suitability for developing complex healthcare quality rating systems.
What are the potential risks associated with a Time and Materials (T&M) contract for system development?
A Time and Materials (T&M) contract, like the one used here, carries inherent risks, primarily related to cost control. Since the contractor is reimbursed for direct labor hours at specified rates and for the cost of materials, there is a potential for cost overruns if the project scope expands or if labor hours are not managed efficiently. This necessitates robust oversight from the government to monitor progress, control scope, and ensure that the hours billed are reasonable and allocable to the contract's objectives. Without strong government project management, T&M contracts can be less cost-effective than fixed-price contracts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
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: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 6130 EXECUTIVE BOULEVARD, ROCKVILLE, MD, 20852
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $11,641,358
Exercised Options: $6,815,901
Current Obligation: $6,815,901
Actual Outlays: $4,700,941
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $1,735,862
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00F252CA
IDV Type: FSS
Timeline
Start Date: 2023-08-31
Current End Date: 2026-08-31
Potential End Date: 2028-08-31 00:00:00
Last Modified: 2026-02-23
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