HHS awards $20.4M contract for home health quality measurement and hospice assessment instruments
Contract Overview
Contract Amount: $20,381,210 ($20.4M)
Contractor: ABT Global LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2023-11-19
End Date: 2026-11-18
Contract Duration: 1,095 days
Daily Burn Rate: $18.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Healthcare
Official Description: HOME HEALTH QUALITY MEASUREMENT, VALUE-BASED PURCHASING MODEL AND HOSPICE ASSESSMENT INSTRUMENTS DEVELOPMENT AND MAINTENANCE
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $20.4 million to ABT GLOBAL LLC for work described as: HOME HEALTH QUALITY MEASUREMENT, VALUE-BASED PURCHASING MODEL AND HOSPICE ASSESSMENT INSTRUMENTS DEVELOPMENT AND MAINTENANCE Key points: 1. Contract focuses on critical healthcare quality measurement and assessment tools. 2. Value-based purchasing model and hospice assessment instruments are key components. 3. Competition dynamics appear robust with full and open competition. 4. Contract duration of three years suggests a need for sustained development and maintenance. 5. The specific NAICS code (541690) indicates a focus on specialized consulting services. 6. The award type is a delivery order, implying it's part of a larger contract vehicle.
Value Assessment
Rating: good
The contract value of $20.4 million over three years for the development and maintenance of quality measurement and assessment instruments appears reasonable given the specialized nature of the work. Benchmarking against similar contracts for health IT development and data analysis services suggests this falls within a typical range. The Cost Plus Fixed Fee (CPFF) contract type allows for flexibility while maintaining cost control, provided effective oversight. Further analysis would require comparing specific deliverables and the complexity of the instruments developed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This approach generally fosters a competitive environment, which can lead to better pricing and innovation. The presence of two bidders, as indicated by 'no': 2, suggests a moderate level of competition for this specific award. A higher number of bidders might have been expected for a contract of this scope, but the 'full and open' nature is a positive indicator for price discovery.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down costs and improving the quality of services received. This process ensures that the government is not limited to a single provider, maximizing the chances of securing the best value for public funds.
Public Impact
Beneficiaries include Medicare and Medicaid beneficiaries who will experience improved quality of care through better measurement and assessment tools. Services delivered include the development and maintenance of critical instruments for evaluating healthcare quality. The geographic impact is national, affecting healthcare providers and patients across the United States. Workforce implications may include the need for specialized data analysts, healthcare quality experts, and software developers within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to cost overruns if not managed diligently.
- The specific details of the 'value-based purchasing model' and 'hospice assessment instruments' are not fully elaborated, making a precise value assessment challenging.
- The limited number of bidders (2) in a full and open competition might warrant further investigation into potential barriers to entry or market concentration.
Positive Signals
- Awarded under full and open competition, suggesting a fair and accessible bidding process.
- The contract addresses critical areas of healthcare quality measurement, aligning with government priorities.
- The three-year duration indicates a commitment to sustained improvement and maintenance of essential healthcare tools.
- The contractor, ABT Global LLC, is likely experienced in providing scientific and technical consulting services.
Sector Analysis
This contract falls within the Scientific and Technical Consulting Services sector, specifically focusing on healthcare quality measurement and data analytics. This is a growing area within the broader health IT and healthcare services market, driven by the push for value-based care and improved patient outcomes. The market for such services is competitive, with a mix of large and small firms offering specialized expertise. Comparable spending benchmarks would involve looking at contracts for health informatics, quality improvement initiatives, and the development of clinical assessment tools.
Small Business Impact
The contract was awarded under 'full and open competition' and the 'small business' flag is false, indicating it was not specifically set aside for small businesses. There is no explicit mention of subcontracting requirements for small businesses in the provided data. This suggests that the primary contractor, ABT Global LLC, will likely handle the majority of the work, and the direct impact on the small business ecosystem may be limited unless subcontracting opportunities arise organically.
Oversight & Accountability
Oversight for this contract will likely be managed by the Centers for Medicare and Medicaid Services (CMS), a division of HHS. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring will be crucial to ensure that costs remain within the fixed fee and that deliverables meet quality standards. Transparency will be facilitated through regular reporting requirements from the contractor and potential reviews by HHS's Office of Inspector General (OIG) if any concerns arise regarding fraud, waste, or abuse.
Related Government Programs
- Medicare Quality Payment Program
- Hospice Quality Reporting Program
- Home Health Quality Improvement
- Value-Based Purchasing Initiatives
- Healthcare Data Analytics Services
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Effectiveness of developed instruments in accurately measuring quality.
- Contractor's past performance and capacity for specialized healthcare consulting.
- Adequacy of competition with only two bidders.
Tags
healthcare, hhs, cms, consulting-services, quality-measurement, value-based-purchasing, hospice-care, home-health, full-and-open-competition, delivery-order, cost-plus-fixed-fee, maryland
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $20.4 million to ABT GLOBAL LLC. HOME HEALTH QUALITY MEASUREMENT, VALUE-BASED PURCHASING MODEL AND HOSPICE ASSESSMENT INSTRUMENTS DEVELOPMENT AND MAINTENANCE
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 $20.4 million.
What is the period of performance?
Start: 2023-11-19. End: 2026-11-18.
What is the specific scope of work for the 'HOME HEALTH QUALITY MEASUREMENT, VALUE-BASED PURCHASING MODEL AND HOSPICE ASSESSMENT INSTRUMENTS DEVELOPMENT AND MAINTENANCE'?
The contract aims to develop and maintain instruments crucial for measuring the quality of home health services and hospice care, and to support value-based purchasing models. This likely involves creating or refining data collection tools, analytical frameworks, and reporting mechanisms that enable CMS to assess provider performance, identify areas for improvement, and potentially link reimbursement to quality outcomes. The 'development and maintenance' aspect suggests ongoing work to update these instruments based on evolving healthcare practices, new research, and policy changes, ensuring their continued relevance and effectiveness in driving quality care for beneficiaries.
How does the Cost Plus Fixed Fee (CPFF) contract type influence the value for money in this $20.4 million award?
The Cost Plus Fixed Fee (CPFF) contract type means the contractor is reimbursed for all allowable costs plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or is expected to evolve, offering flexibility. For value for money, it hinges on robust government oversight to ensure costs are reasonable and allocable, and that the fixed fee is fair for the work performed. While it allows for adaptation, it carries a risk of cost overruns if not managed tightly. The government aims to achieve good value by setting a reasonable fixed fee and diligently monitoring incurred costs against the project's progress and objectives.
What are the potential risks associated with the contractor, ABT Global LLC, for this specific contract?
Without specific historical performance data on ABT Global LLC for similar HHS contracts, a definitive risk assessment is challenging. However, general risks associated with any contractor include potential delays in delivery, failure to meet quality standards, cost overruns (especially with CPFF contracts), and cybersecurity vulnerabilities if sensitive data is handled. Given the nature of developing assessment instruments, risks could also include the instruments not accurately reflecting quality or not being adopted effectively by providers. A review of past performance ratings, past performance on similar contracts, and any past issues with government contracts would provide a clearer picture of contractor-specific risks.
How does this $20.4 million contract compare to historical spending on similar quality measurement initiatives by CMS?
Historical spending on quality measurement and value-based purchasing initiatives by CMS can vary significantly based on the scope and duration of specific programs. CMS has invested billions over the years in developing and implementing various quality reporting and payment models across different healthcare sectors (e.g., hospitals, physicians, home health, hospice). A $20.4 million contract over three years for developing and maintaining specific instruments is a substantial but not unprecedented investment. It should be viewed in the context of the broader CMS strategy to improve healthcare quality and control costs, where such investments are deemed necessary to achieve larger systemic goals.
What are the implications of this contract for the future of value-based purchasing in home health and hospice care?
This contract is directly aimed at supporting and advancing value-based purchasing (VBP) in home health and hospice. By developing and maintaining robust quality measurement and assessment instruments, CMS can more effectively implement and refine VBP models. These instruments are the backbone of VBP, providing the data needed to assess provider performance, establish benchmarks, and potentially link financial incentives or penalties to quality outcomes. The success of this contract could lead to more sophisticated VBP programs, encouraging providers to focus on patient outcomes, efficiency, and overall care coordination, ultimately benefiting patients and the Medicare program.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical 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: RFP 240263
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
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: $30,997,580
Exercised Options: $20,381,210
Current Obligation: $20,381,210
Actual Outlays: $13,588,974
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $5,438,940
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 75FCMC18D0014
IDV Type: IDC
Timeline
Start Date: 2023-11-19
Current End Date: 2026-11-18
Potential End Date: 2028-11-18 00:00:00
Last Modified: 2025-11-20
More Contracts from ABT Global LLC
- Vector Control Idiq to — $632.1M (Agency for International Development)
- IRS 2 to 6 the Purpose of This Procurement IS to Award a Three (3) Year Cost-Plus-Fixed-Fee Type Task Order Under the IRS Idiq to a Qualified Firm to Support the President S Malaria Initiative (PMI), AS Well AS Usaid Missions and Bureaus in Planning and Implementing Indoor Residual Spraying (IRS) Programs. More Specifically, the Purpose of the Project IS to Prevent Malaria Infections and Limit Transmission of Malaria by Reducing Contact Between Humans and the Mosquito Vector in the PMI Focus Countries and Other Countries Where Usaid Supports Malaria Control Efforts — $328.0M (Agency for International Development)
- Prevention of Malaria Through Vector Control — $279.3M (Agency for International Development)
- Other Functions:strengthening the Capacity of Congolese Institutions and Communities to Deliver Quality, Integrated Health Services to Sustainably Improve the Health Status of the Congolese Population. This IS a Cost-Plus-Fixed-Fee (cpff) Contract of Seven Years Consisting of a Four (4) Base and Three-Year(3) Option — $272.5M (Agency for International Development)
- Achieving Sustainability Through Local Health Systems — $240.2M (Agency for International Development)
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →