HHS awards $7M for health care fraud prevention outreach, with IPG DXTRA Inc. leading the campaign

Contract Overview

Contract Amount: $6,999,976 ($7.0M)

Contractor: IPG Dxtra, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-24

End Date: 2026-09-15

Contract Duration: 356 days

Daily Burn Rate: $19.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: HEALTH CARE FRAUD PREVENTION OUTREACH AND EDUCATION CAMPAIGN TASK ORDER UNDER THE NATIONAL EDUCATION CAMPAIGN AND OUTREACH CONTRACT (NEC) INDEFINITE DELIVERY, INDEFINITE QUANTITY (IDIQ)

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10022

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $7.0 million to IPG DXTRA, INC. for work described as: HEALTH CARE FRAUD PREVENTION OUTREACH AND EDUCATION CAMPAIGN TASK ORDER UNDER THE NATIONAL EDUCATION CAMPAIGN AND OUTREACH CONTRACT (NEC) INDEFINITE DELIVERY, INDEFINITE QUANTITY (IDIQ) Key points: 1. The contract focuses on public education and outreach to prevent health care fraud. 2. This task order is part of a larger IDIQ contract, suggesting potential for follow-on work. 3. The award uses a Time and Materials pricing structure, which can pose cost control challenges. 4. The duration of the task order is approximately one year, aligning with campaign timelines. 5. The geographic scope appears to be national, given the nature of the campaign. 6. The contract value is significant, indicating a substantial investment in fraud prevention awareness.

Value Assessment

Rating: fair

The contract value of approximately $7 million for a one-year outreach campaign appears reasonable for a national effort. However, the Time and Materials (T&M) pricing structure warrants scrutiny. T&M contracts can lead to cost overruns if not closely managed, as they reimburse the contractor for actual labor hours and material costs. Benchmarking against similar public health awareness campaigns would provide a clearer picture of value for money, but such data is not readily available. The contract's value is also relatively small compared to the overall budget for fraud prevention programs within CMS.

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 had the opportunity to bid. This competitive process is generally favorable for price discovery and ensuring the government receives competitive offers. The presence of 9 bidders suggests a healthy level of interest in this type of work, which can drive down costs and improve the quality of proposals.

Taxpayer Impact: A full and open competition process for this contract is beneficial for taxpayers as it increases the likelihood of securing services at a competitive price, maximizing the impact of the allocated funds for fraud prevention.

Public Impact

The primary beneficiaries are Medicare and Medicaid beneficiaries, who will receive information to help them identify and report potential fraud. The campaign aims to educate the public on common fraud schemes and reporting mechanisms. The geographic impact is national, targeting all individuals covered by Medicare and Medicaid programs. The contract supports the government's broader mission to reduce health care fraud, waste, and abuse. The initiative could lead to increased reporting of fraudulent activities, potentially saving taxpayer dollars in the long run.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost escalation if not rigorously monitored.
The effectiveness of outreach campaigns can be difficult to measure directly in terms of fraud reduction.
Reliance on a single task order under an IDIQ may not fully leverage competitive pressures for all aspects of the campaign.

Positive Signals

Awarded through full and open competition, ensuring a competitive bidding process.
The contractor, IPG DXTRA, Inc., is likely experienced in advertising and outreach campaigns.
The campaign addresses a critical area of government spending: preventing health care fraud.

Sector Analysis

The advertising and public relations industry is a significant sector supporting government outreach and education initiatives. This contract falls within the NAICS code 541810 (Advertising Agencies). The market for government advertising contracts is competitive, with many firms specializing in public health campaigns and government communications. The value of this specific task order is modest within the broader context of federal advertising spending, but it represents a focused investment in a critical area of public service.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is IPG DXTRA, Inc., there is no explicit information on subcontracting plans for small businesses within this task order. Further analysis would be needed to determine if small businesses are involved in the execution of this campaign.

Oversight & Accountability

Oversight for this contract will likely be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. The Time and Materials (T&M) nature of the contract necessitates close monitoring of labor hours and costs to ensure compliance with the contract terms and prevent overspending. Transparency will depend on CMS's reporting practices regarding campaign performance and expenditures.

Related Government Programs

National Education Campaign and Outreach Contract (NEC) IDIQ
Centers for Medicare and Medicaid Services (CMS) Fraud Prevention Programs
Department of Health and Human Services (HHS) Public Awareness Initiatives

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Difficulty in directly measuring the ROI of public awareness campaigns.
Dependence on contractor's ability to effectively reach and engage diverse populations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $7.0 million to IPG DXTRA, INC.. HEALTH CARE FRAUD PREVENTION OUTREACH AND EDUCATION CAMPAIGN TASK ORDER UNDER THE NATIONAL EDUCATION CAMPAIGN AND OUTREACH CONTRACT (NEC) INDEFINITE DELIVERY, INDEFINITE QUANTITY (IDIQ)

Who is the contractor on this award?

The obligated recipient is IPG DXTRA, 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 $7.0 million.

What is the period of performance?

Start: 2025-09-24. End: 2026-09-15.

What is the track record of IPG DXTRA, Inc. in handling similar federal outreach campaigns?

Information regarding IPG DXTRA, Inc.'s specific track record with federal outreach campaigns, particularly those focused on health care fraud prevention, is not detailed in the provided data. A comprehensive review would require examining past performance evaluations, contract history, and any publicly available project portfolios. Federal agencies typically assess past performance as a key factor in contract awards. Understanding their experience with similar government communication strategies, audience engagement techniques, and reporting requirements would be crucial for evaluating their capability to execute this task order effectively. Without this specific data, it's difficult to definitively assess their suitability beyond the fact that they were selected through a competitive process.

How does the $7 million cost compare to similar federal health care fraud prevention outreach campaigns?

Direct comparisons for this specific $7 million task order are challenging without access to detailed spending data on comparable federal health care fraud prevention outreach campaigns. However, the value appears to be a significant investment for a one-year national campaign. Factors influencing cost include the scope of the target audience, the complexity of the messaging, the chosen media channels (e.g., digital, print, broadcast), and the duration of the campaign. The Centers for Medicare and Medicaid Services (CMS) likely benchmarked this against previous similar efforts or industry standards for public health communication. The Time and Materials (T&M) pricing structure also introduces variability, meaning the final cost could differ from the initial estimate.

What are the primary risks associated with a Time and Materials (T&M) contract for an outreach campaign?

The primary risk associated with a Time and Materials (T&M) contract for an outreach campaign is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual hours worked and materials used. If project scope creeps, inefficiencies arise, or the contractor's labor rates are high, the total cost can exceed initial estimates. For an outreach campaign, this could mean spending more on personnel time or resources than anticipated, potentially reducing the overall reach or impact for the allocated budget. Effective oversight, detailed work breakdown structures, and clear performance metrics are essential to mitigate these risks and ensure value for money.

How will the effectiveness of this health care fraud prevention outreach campaign be measured?

The effectiveness of this health care fraud prevention outreach campaign will likely be measured through a combination of metrics, although specific Key Performance Indicators (KPIs) are not detailed in the provided data. Typical measures for such campaigns include reach (e.g., number of impressions, website visits, social media engagement), message recall or comprehension among the target audience, and, most importantly, an increase in reported instances of suspected health care fraud. CMS will likely track calls to hotlines, online reports, and potentially analyze trends in fraud investigations and recoveries that can be attributed, in part, to increased public awareness. The contractor's ability to demonstrate these outcomes will be critical for performance evaluation.

What is the historical spending trend for health care fraud prevention outreach by CMS?

Historical spending trends for health care fraud prevention outreach by CMS are not provided in the current data. However, CMS consistently allocates significant resources to combatting health care fraud, waste, and abuse, which includes public awareness and education components. The scale of these outreach efforts can fluctuate based on emerging fraud schemes, legislative priorities, and budget allocations. This $7 million task order represents a specific investment within a broader strategy. To understand historical trends, one would need to analyze multi-year budget documents, contract databases, and program performance reports from CMS and HHS.

What are the potential implications of this contract on the broader fight against health care fraud?

This contract has the potential to significantly impact the broader fight against health care fraud by empowering beneficiaries with knowledge. By educating individuals on common fraud tactics (e.g., billing for services not rendered, upcoding, identity theft), the campaign aims to increase vigilance and encourage reporting. A more informed public can act as a crucial line of defense, identifying suspicious activities that might otherwise go unnoticed. Increased reporting can lead to more investigations, successful prosecutions, and ultimately, the recovery of taxpayer dollars lost to fraudulent schemes. This proactive, educational approach complements enforcement actions and aims to create a deterrent effect.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Advertising, Public Relations, and Related Services › Advertising Agencies

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: 9

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 909 3RD AVE FL 7, NEW YORK, NY, 10022

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,999,897

Exercised Options: $6,999,976

Current Obligation: $6,999,976

Actual Outlays: $254,907

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75FCMC25DJ007

IDV Type: IDC

Timeline