CMS Seeks $13.6M Contractor for 5-Year TEAM Model Implementation and Monitoring
Contract Overview
Contract Amount: $13,626,450 ($13.6M)
Contractor: Acumen LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2025-01-03
End Date: 2027-01-02
Contract Duration: 729 days
Daily Burn Rate: $18.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Healthcare
Official Description: THE CENTERS FOR MEDICARE & MEDICAID SERVICES (CMS), THROUGH THE CENTER FOR MEDICARE AND MEDICAID INNOVATION (INNOVATION CENTER), SEEKS A CONTRACTOR TO IMPLEMENT AND MONITOR THE TRANSFORMING EPISODE ACCOUNTABILITY MODEL (TEAM). TEAM WILL BE A 5-YEAR M
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $13.6 million to ACUMEN LLC for work described as: THE CENTERS FOR MEDICARE & MEDICAID SERVICES (CMS), THROUGH THE CENTER FOR MEDICARE AND MEDICAID INNOVATION (INNOVATION CENTER), SEEKS A CONTRACTOR TO IMPLEMENT AND MONITOR THE TRANSFORMING EPISODE ACCOUNTABILITY MODEL (TEAM). TEAM WILL BE A 5-YEAR M Key points: 1. The Transforming Episode Accountability Model (TEAM) aims to improve healthcare quality and reduce costs by incentivizing value-based care. 2. This contract focuses on research and development in social sciences and humanities, specifically within the healthcare sector. 3. Competition is full and open, suggesting a robust price discovery process. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.
Value Assessment
Rating: fair
The contract is a Delivery Order with a Cost Plus Fixed Fee structure. Benchmarking is difficult without specific details on the fixed fee percentage and the total estimated cost for the contractor's services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The TEAM model aims to reduce overall healthcare spending by shifting focus to value, potentially saving taxpayer money in the long run through improved patient outcomes and reduced waste.
Public Impact
Patients may experience changes in how their healthcare is delivered and billed as providers adapt to the TEAM model's incentives. Healthcare providers will need to adjust their operational and billing practices to align with the episode-based accountability framework. The success of the TEAM model could lead to broader adoption of value-based care initiatives across Medicare and Medicaid. Increased focus on care coordination and patient outcomes is expected as providers are financially rewarded for quality.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize higher costs if the fixed fee is not carefully calibrated.
- The duration of the contract (729 days) is substantial, requiring sustained oversight.
- Potential for scope creep in R&D projects if not tightly managed.
Positive Signals
- Full and open competition suggests a competitive bidding process, likely leading to a fair price.
- The TEAM model itself is designed to drive efficiency and cost savings in healthcare.
- CMS's involvement indicates a strategic initiative with potential for significant positive impact on healthcare delivery.
Sector Analysis
This contract falls within the Research and Development in the Social Sciences and Humanities sector, specifically applied to healthcare. Spending benchmarks for similar R&D contracts within CMS or other federal health agencies would be relevant for comparison.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved or had opportunities to participate.
Oversight & Accountability
The Centers for Medicare and Medicaid Services (CMS) and the Center for Medicare and Medicaid Innovation (Innovation Center) are responsible for oversight. Robust monitoring and evaluation plans will be crucial to ensure the contractor meets performance objectives and taxpayer funds are used effectively.
Related Government Programs
- Research and Development in the Social Sciences and Humanities
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to higher costs if not managed properly.
- The R&D nature of the contract introduces inherent uncertainty in outcomes.
- Long contract duration requires sustained oversight and adaptability.
- Potential for challenges in accurately measuring and attributing cost savings and quality improvements to the TEAM model.
Tags
research-and-development-in-the-social-s, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $13.6 million to ACUMEN LLC. THE CENTERS FOR MEDICARE & MEDICAID SERVICES (CMS), THROUGH THE CENTER FOR MEDICARE AND MEDICAID INNOVATION (INNOVATION CENTER), SEEKS A CONTRACTOR TO IMPLEMENT AND MONITOR THE TRANSFORMING EPISODE ACCOUNTABILITY MODEL (TEAM). TEAM WILL BE A 5-YEAR M
Who is the contractor on this award?
The obligated recipient is ACUMEN 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 $13.6 million.
What is the period of performance?
Start: 2025-01-03. End: 2027-01-02.
What is the estimated total cost of the contract, and how does the fixed fee component compare to industry standards for similar R&D services?
The provided data indicates an award amount of $13,626,450, but this may represent the estimated cost or ceiling. The fixed fee percentage is not specified. A detailed review of the contract's financial structure and comparison with benchmarks for R&D services in the healthcare sector is necessary to assess value for money and ensure the fixed fee is reasonable and aligns with performance incentives.
What are the key performance indicators (KPIs) for the TEAM model implementation, and how will contractor performance be measured against these metrics?
The contract details do not specify the KPIs for the TEAM model or the contractor's performance measurement. Effective oversight requires clearly defined, measurable, achievable, relevant, and time-bound (SMART) KPIs related to healthcare quality improvements, cost reductions, and operational efficiency. Regular performance reviews and audits will be essential to ensure accountability and successful program outcomes.
How will the contractor's work on the TEAM model contribute to CMS's broader goals of value-based care and healthcare cost containment?
The contractor is expected to implement and monitor the TEAM model, which is designed to incentivize providers to deliver high-quality, cost-effective care for specific medical episodes. By successfully executing this model, the contractor will directly contribute to CMS's strategic objectives of shifting from fee-for-service to value-based payment systems, ultimately aiming to improve patient outcomes and reduce overall healthcare expenditures for the federal government.
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
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 500 AIRPORT BLVD STE 100, BURLINGAME, CA, 94010
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $56,924,483
Exercised Options: $13,626,450
Current Obligation: $13,626,450
Actual Outlays: $5,958,821
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75FCMC20D0002
IDV Type: IDC
Timeline
Start Date: 2025-01-03
Current End Date: 2027-01-02
Potential End Date: 2033-01-02 00:00:00
Last Modified: 2026-01-02
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