HHS awards Mathematica Inc. $5.56M for LTSS analysis and reporting, with a 2-year term

Contract Overview

Contract Amount: $5,563,955 ($5.6M)

Contractor: Mathematica Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-18

End Date: 2026-09-17

Contract Duration: 729 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: 75FCMC19D0091/75FCMC24F0194 LONG TERM SERVICES AND SUPPORTS (LTSS) ANALYSIS, PUBLIC REPORTING, AND MEASURES MAINTENANCE AND DEVELOPMENT

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.6 million to MATHEMATICA INC. for work described as: 75FCMC19D0091/75FCMC24F0194 LONG TERM SERVICES AND SUPPORTS (LTSS) ANALYSIS, PUBLIC REPORTING, AND MEASURES MAINTENANCE AND DEVELOPMENT Key points: 1. Contract focuses on critical Long Term Services and Supports (LTSS) analysis, vital for program planning and beneficiary support. 2. Mathematica Inc. has a history of performing complex research and analysis for federal agencies. 3. The contract's Cost Plus Fixed Fee (CPFF) structure requires careful monitoring of costs to ensure value. 4. This award represents a small portion of overall federal spending on LTSS programs. 5. The contract duration of 729 days allows for comprehensive project execution. 6. Performance will be assessed against defined metrics for reporting and analysis quality.

Value Assessment

Rating: good

The contract value of $5.56 million over two years for specialized analysis and reporting appears reasonable given the complexity of LTSS. Benchmarking against similar federal contracts for research and analysis services suggests this is within a typical range. The CPFF pricing structure necessitates diligent oversight to ensure costs remain aligned with the scope of work and do not escalate beyond anticipated levels. The fixed fee component provides some predictability for the contractor's profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is designed to foster price discovery and ensure the government receives the best value. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging a wider pool of contractors to offer their services.

Public Impact

Beneficiaries of LTSS programs will benefit from improved analysis and reporting, leading to better-informed policy decisions. The Centers for Medicare and Medicaid Services (CMS) will receive enhanced data and insights to manage and improve LTSS. The contract supports the development and maintenance of critical measures for assessing the quality and effectiveness of LTSS. Workforce implications are likely limited to the research and analytical staff employed by Mathematica Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns under the CPFF structure if not closely managed.
Reliance on a single contractor for critical analysis may limit diverse perspectives.
Scope creep could increase costs beyond the initial award amount.

Positive Signals

Mathematica Inc. has a strong reputation in social science research and analysis.
The contract is for a well-defined scope of work related to essential healthcare services.
Full and open competition suggests a competitive pricing environment.

Sector Analysis

This contract falls within the Research and Development in the Social Sciences and Humanities sector (NAICS 541720). This sector encompasses a wide range of analytical and research services crucial for understanding societal trends and informing policy. Federal spending in this area supports evidence-based decision-making across various agencies. Comparable spending benchmarks would involve other contracts for policy analysis, program evaluation, and data reporting services within health and human services.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, the direct impact on small businesses is likely minimal unless they are subcontractors to Mathematica Inc. The subcontracting plan, if any, would determine the extent of small business involvement.

Oversight & Accountability

Oversight will be provided by the Centers for Medicare and Medicaid Services (CMS), likely through a designated Contracting Officer's Representative (COR). The CPFF structure requires diligent financial oversight to monitor expenditures against the fixed fee and ensure adherence to the contract's scope. Transparency will be maintained through regular reporting requirements from Mathematica Inc. and potential public release of the analyzed data and reports.

Related Government Programs

Medicare Program
Medicaid Program
Long Term Care Services
Health Services Research
Federal Health IT Initiatives

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing requires diligent oversight to manage potential cost escalations.
The contract's success is dependent on the quality of analysis and reporting provided by the contractor.
Changes in federal policy or priorities could impact the scope or relevance of the analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.6 million to MATHEMATICA INC.. 75FCMC19D0091/75FCMC24F0194 LONG TERM SERVICES AND SUPPORTS (LTSS) ANALYSIS, PUBLIC REPORTING, AND MEASURES MAINTENANCE AND DEVELOPMENT

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 $5.6 million.

What is the period of performance?

Start: 2024-09-18. End: 2026-09-17.

What is Mathematica Inc.'s track record with federal contracts, particularly in healthcare and social science research?

Mathematica Inc. has a substantial track record of performing complex research, data analysis, and program evaluation for numerous federal agencies, including the Department of Health and Human Services (HHS), the Centers for Medicare & Medicaid Services (CMS), and the Department of Labor. Their expertise spans areas such as healthcare policy, health economics, social welfare programs, and education. They have been awarded numerous contracts, many of which involve developing and analyzing program measures, conducting evaluations, and providing policy recommendations. This extensive experience suggests a strong capability to handle the requirements of the LTSS analysis and reporting contract.

How does the $5.56 million contract value compare to similar federal contracts for LTSS analysis and reporting?

The $5.56 million contract value for a two-year period for Long Term Services and Supports (LTSS) analysis, public reporting, and measures maintenance and development is within a reasonable range for specialized federal research and analysis contracts. While exact comparisons are difficult without knowing the specific scope and deliverables of other contracts, similar engagements for complex data analysis, policy research, and reporting within the healthcare sector often range from several hundred thousand to millions of dollars, depending on the duration, complexity, and contractor expertise. The value appears commensurate with the specialized nature of the work and the reputation of the contractor.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract, and how are they mitigated?

The primary risk with a CPFF contract is the potential for cost overruns if the contractor's actual costs exceed estimates, although their profit is fixed. This can occur due to unforeseen complexities, scope creep, or inefficient performance. Mitigation strategies employed by the government typically include rigorous oversight by the Contracting Officer's Representative (COR), detailed review of incurred costs, performance monitoring against milestones, and clear definition of contract scope. Mathematica Inc.'s established reputation and the fixed fee component incentivize them to manage costs efficiently to maintain profitability, while the government's oversight ensures accountability.

How effective is the 'full and open competition' approach in ensuring value for taxpayers on this contract?

The 'full and open competition' approach is generally considered highly effective in ensuring value for taxpayers. By allowing any qualified vendor to bid, it maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. This process allows the government to compare multiple proposals based on both technical merit and cost, leading to the selection of the best overall value. For this LTSS analysis contract, it means that taxpayers benefit from a potentially more cost-effective solution and a higher quality of service than might be achieved through less competitive procurement methods.

What is the historical spending pattern for LTSS analysis and reporting by the Centers for Medicare and Medicaid Services (CMS)?

Historical spending by CMS on Long Term Services and Supports (LTSS) analysis and reporting has been substantial, reflecting the critical importance of these programs to millions of Americans. While specific figures for 'analysis and reporting' contracts fluctuate annually based on program needs and research priorities, CMS consistently invests significant resources in evaluating program effectiveness, developing quality measures, and ensuring the sustainability of LTSS. This $5.56 million award is part of a broader, ongoing commitment to understanding and improving LTSS, which represents a significant portion of federal healthcare spending.

What are the potential implications of this contract for the development and maintenance of LTSS quality measures?

This contract is directly aimed at supporting the development and maintenance of LTSS quality measures. This implies that Mathematica Inc. will be involved in refining existing measures, potentially developing new ones based on emerging needs or data, and ensuring the accuracy and reliability of the data used to report on these measures. High-quality measures are essential for CMS to monitor the performance of LTSS providers, identify areas for improvement, and ensure that beneficiaries receive high-quality care. The work under this contract will directly contribute to the evidence base used for policy decisions and program oversight in the LTSS domain.

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

Solicitation ID: RMADA2-TORP-2024-0019

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: $14,226,674

Exercised Options: $5,563,955

Current Obligation: $5,563,955

Actual Outlays: $2,827,189

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