HHS awards $4.78M contract for Medicare learning network product development and quality assurance

Contract Overview

Contract Amount: $4,776,108 ($4.8M)

Contractor: Rainmakers Strategic Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-11-15

End Date: 2026-11-30

Contract Duration: 1,111 days

Daily Burn Rate: $4.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: MEDICARE LEARNING NETWORK PRODUCT DEVELOPMENT AND QUALITY ASSURANCE PROGRAM

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85023

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.8 million to RAINMAKERS STRATEGIC SOLUTIONS LLC for work described as: MEDICARE LEARNING NETWORK PRODUCT DEVELOPMENT AND QUALITY ASSURANCE PROGRAM Key points: 1. Contract focuses on administrative management and consulting services for Medicare. 2. Awarded via full and open competition, suggesting broad market engagement. 3. Delivery order under a larger contract vehicle, indicating potential for follow-on work. 4. Contract duration extends through November 2026, providing long-term support. 5. Pricing mechanism is Time and Materials, which requires careful monitoring for cost control. 6. Small business participation is not explicitly mandated, but subcontracting opportunities may exist.

Value Assessment

Rating: fair

The contract value of $4.78 million for product development and quality assurance services appears moderate for a federal program of this nature. Benchmarking against similar contracts for administrative management and consulting services within the Centers for Medicare and Medicaid Services (CMS) would be necessary for a definitive value assessment. The Time and Materials (T&M) pricing structure, while common, can lead to cost overruns if not managed diligently, potentially impacting the overall value for money.

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 specific number of bidders is not provided, but this approach generally fosters a competitive environment, which can lead to better pricing and service offerings. The agency's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, driving down prices through competitive pressure and increasing the likelihood of selecting the best value solution.

Public Impact

Beneficiaries include Medicare beneficiaries who may experience improved program quality and product development. Services delivered will support the Medicare Learning Network's initiatives. Geographic impact is national, given the scope of Medicare. Workforce implications may include consulting and administrative roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost escalation if not closely monitored.
Lack of specific small business set-aside may limit direct opportunities for smaller firms.
Performance metrics and quality assurance details are not fully detailed in the provided data.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Long contract duration suggests a stable and ongoing need for these services.
Focus on product development and quality assurance aligns with program improvement goals.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, a broad category encompassing advisory and assistance services. The federal government is a significant consumer of these services, particularly within health and human services agencies like CMS, to manage complex programs, improve operational efficiency, and ensure quality. The market size for such services is substantial, with numerous firms competing for federal contracts.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While this does not preclude small businesses from participating as subcontractors, it means the primary award was not specifically targeted to them. The impact on the small business ecosystem will depend on the prime contractor's subcontracting plans and the availability of relevant opportunities within the scope of work.

Oversight & Accountability

Oversight for this contract will likely be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures would typically be defined within the contract's statement of work, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance data may be less publicly accessible.

Related Government Programs

Medicare Program Integrity
Healthcare Quality Improvement Programs
Federal Consulting Services
CMS Administrative Support Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for robust government oversight to manage contractor effort.
Clarity of performance standards and deliverables is crucial for success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.8 million to RAINMAKERS STRATEGIC SOLUTIONS LLC. MEDICARE LEARNING NETWORK PRODUCT DEVELOPMENT AND QUALITY ASSURANCE PROGRAM

Who is the contractor on this award?

The obligated recipient is RAINMAKERS STRATEGIC SOLUTIONS 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 $4.8 million.

What is the period of performance?

Start: 2023-11-15. End: 2026-11-30.

What is the track record of Rainmakers Strategic Solutions LLC with federal contracts, particularly within the Department of Health and Human Services?

Information regarding the specific track record of Rainmakers Strategic Solutions LLC with federal contracts, especially within the Department of Health and Human Services (HHS) and the Centers for Medicare and Medicaid Services (CMS), is not detailed in the provided data. A comprehensive assessment would require reviewing the company's past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any history of disputes or corrective actions. Understanding their experience with similar service types (administrative management, quality assurance, product development) and their performance on prior government engagements is crucial for evaluating their capability to successfully execute this current contract.

How does the $4.78 million contract value compare to similar contracts for Medicare learning network product development and quality assurance?

The $4.78 million contract value for the Medicare Learning Network Product Development and Quality Assurance Program is a moderate figure within the context of federal health IT and program management services. To benchmark this value effectively, one would need to compare it against historical awards for similar services provided to CMS or other agencies managing large healthcare programs. Factors such as contract duration (3 years in this case), scope of work complexity, and the specific deliverables (product development, quality assurance) are critical. Without access to a database of comparable contracts, it's difficult to definitively state if this represents excellent, fair, or concerning value. However, given the specialized nature of Medicare program support, this amount seems plausible for a multi-year effort.

What are the primary risks associated with a Time and Materials (T&M) contract for these services?

The primary risk associated with a Time and Materials (T&M) contract, such as this one for Medicare learning network services, is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. If the scope of work is not well-defined, or if project management is weak, the contractor may incur more hours or use more costly materials than anticipated, leading to expenditures exceeding initial estimates. This necessitates robust oversight from the government to monitor labor hours, material costs, and overall project progress to ensure efficiency and prevent overspending. The government must actively manage the contractor's effort to mitigate these risks.

How effective are the current oversight mechanisms for ensuring the quality and value of services delivered under this contract?

The provided data does not detail the specific oversight mechanisms in place for this contract. However, standard federal contracting practices dictate that oversight is typically provided by the Contracting Officer's Representative (COR) and the Contracting Officer (CO). The COR is responsible for monitoring contractor performance, ensuring compliance with the contract terms, and verifying that services meet quality standards. The effectiveness of these mechanisms hinges on the COR's diligence, the clarity of the contract's performance standards, and the reporting requirements stipulated. Regular progress meetings, performance reviews, and audits are common tools used to ensure quality and value. The Centers for Medicare and Medicaid Services (CMS) generally has established procedures for contract oversight.

What are the historical spending patterns for administrative management and consulting services within CMS?

Historical spending patterns for administrative management and general management consulting services within the Centers for Medicare and Medicaid Services (CMS) are substantial, reflecting the agency's complex operational needs. CMS manages vast healthcare programs, requiring significant support for program development, quality assurance, policy analysis, and operational efficiency improvements. While specific figures for this exact contract type are not provided, CMS consistently awards numerous contracts in the professional services category, often in the hundreds of millions or billions of dollars annually across various service areas. Spending in this category is driven by legislative mandates, evolving healthcare policies, and the need for expert advice to manage programs like Medicare and Medicaid effectively.

What is the significance of this contract being a 'Delivery Order'?

The designation of this award as a 'Delivery Order' (aw: DELIVERY ORDER) signifies that it is a task order issued under a pre-existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means that the foundational contract, including terms, conditions, and potentially ceiling prices, was previously established through a competitive process. The delivery order itself then specifies the exact goods or services to be provided, the quantity, and the delivery schedule for this particular instance. This approach allows agencies to procure services more efficiently once a broader contract is in place, often streamlining the acquisition process for subsequent needs.

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

Solicitation ID: 240198

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 18444 N 25TH AVE STE 420, PHOENIX, AZ, 85023

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $8,293,861

Exercised Options: $4,776,108

Current Obligation: $4,776,108

Actual Outlays: $3,217,099

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS10F053BA

IDV Type: FSS

Timeline