HHS awards $19.1M contract to Mathematica Inc. for data support, capacity, and quality improvement in HMRF programs

Contract Overview

Contract Amount: $19,139,838 ($19.1M)

Contractor: Mathematica Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-30

End Date: 2025-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: SUPPORTING NFORM, DATA CAPACITY, AND CQI IN HMRF PROGRAMS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.1 million to MATHEMATICA INC. for work described as: SUPPORTING NFORM, DATA CAPACITY, AND CQI IN HMRF PROGRAMS Key points: 1. Contract focuses on critical data, capacity building, and quality improvement for Health and Human Services programs. 2. Mathematica Inc. selected through full and open competition, suggesting a robust bidding process. 3. The contract duration of 1825 days (5 years) indicates a long-term need for these services. 4. Cost-plus-fixed-fee pricing structure requires careful monitoring to ensure cost efficiency. 5. The contract's value is significant within the administrative management consulting services sector. 6. Performance will be assessed through delivery orders, allowing for phased execution and oversight.

Value Assessment

Rating: good

The contract value of $19.1 million over five years for administrative management and general management consulting services appears reasonable given the scope. Benchmarking against similar contracts for data support and program improvement in federal health agencies would provide a more precise value-for-money assessment. The cost-plus-fixed-fee structure necessitates diligent oversight to manage costs effectively, but it allows for flexibility in addressing evolving program needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages contractors to offer their best value. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified vendors for these specialized services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, maximizing the value of federal dollars spent.

Public Impact

Beneficiaries include the Department of Health and Human Services (HHS) and the specific HMRF programs receiving data support and quality improvement. Services delivered encompass enhancing data capacity, providing technical assistance, and improving the quality of Health and Medical Research Facilities (HMRF) programs. The geographic impact is primarily national, supporting federal programs administered across the United States. Workforce implications may include the need for specialized data analysts, program managers, and consultants within HHS and potentially within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not managed tightly.
The long duration of the contract requires sustained performance monitoring.
Dependence on a single contractor for critical data support could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive selection process.
The contract addresses essential needs for data capacity and quality improvement in vital health programs.
The five-year term suggests a stable, long-term partnership for sustained program support.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This sector is characterized by firms providing expertise in organizational efficiency, strategic planning, and operational improvement. The federal government is a significant consumer of these services, particularly within health and human services agencies, to manage complex programs and data. The market size for federal IT and management consulting is substantial, with agencies continually seeking to enhance data analytics and program effectiveness.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. Mathematica Inc. is a large business. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal unless subcontracting opportunities arise organically.

Oversight & Accountability

Oversight will likely be managed by the Office of the Assistant Secretary for Administration (ASA) within HHS, which awarded the contract. Performance will be monitored through delivery orders, ensuring that work aligns with program objectives. Accountability measures will be tied to the successful completion of tasks outlined in the delivery orders and adherence to the fixed fee. Transparency is facilitated by the contract's public award notice, though detailed performance metrics are typically internal.

Related Government Programs

HHS Data Analytics Support Contracts
Federal Health Program Management Consulting
Health Information Technology Services
Government Program Evaluation Services

Risk Flags

Cost Overrun Risk (CPFF)
Performance Dependency
Long-Term Contract Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.1 million to MATHEMATICA INC.. SUPPORTING NFORM, DATA CAPACITY, AND CQI IN HMRF PROGRAMS

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 (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $19.1 million.

What is the period of performance?

Start: 2020-09-30. End: 2025-09-29.

What is Mathematica Inc.'s track record with federal health contracts, particularly those involving data capacity and quality improvement?

Mathematica Inc. has a significant track record with federal agencies, including extensive work with the Department of Health and Human Services (HHS) and other health-related entities. They specialize in research, analysis, and technical assistance for health and human services programs. Their experience often includes program evaluation, data analysis, survey design, and policy research. For contracts involving data capacity and quality improvement, Mathematica has a history of supporting large-scale federal initiatives, often focusing on improving health outcomes, program efficiency, and evidence-based decision-making. Their past performance in similar roles suggests a strong capability to meet the requirements of this HMRF program contract.

How does the $19.1 million contract value compare to similar federal contracts for data support and program improvement?

The $19.1 million contract value over five years, averaging approximately $3.8 million annually, is a substantial but not extraordinary figure for comprehensive data support, capacity building, and quality improvement services within a major federal agency like HHS. Similar large-scale contracts supporting federal health programs can range from several million to tens or even hundreds of millions of dollars, depending on the scope, duration, and complexity. Contracts focused solely on data analytics might be smaller, while those encompassing broad program management, research, and technical assistance, like this one, tend to be larger. This contract appears to be within the expected range for a multi-year, high-impact federal health initiative.

What are the primary risks associated with this cost-plus-fixed-fee contract, and how are they mitigated?

The primary risk with a Cost-Plus-Fixed-Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If costs escalate beyond initial projections, the government may end up paying more than anticipated. Mitigation strategies include rigorous oversight by the contracting officer's representative (COR), detailed review of all incurred costs, clear definition of allowable expenses, and strong performance management. The fixed fee incentivizes the contractor to control costs to maximize their profit margin, but the government must remain vigilant in monitoring expenditures and ensuring that the work performed aligns with the contract's objectives and budget.

How effective is the chosen procurement method (full and open competition) in ensuring value for money for this type of service?

Full and open competition is generally considered the most effective method for ensuring value for money when procuring complex professional services like administrative management and general management consulting. It allows the government to solicit proposals from the widest possible pool of qualified vendors, fostering a competitive environment that drives down prices and encourages innovation. By evaluating proposals based on both technical merit and cost, the agency can select the offer that provides the best overall value. While it requires more upfront effort in terms of solicitation and evaluation, the potential for cost savings and superior service quality typically outweighs these initial investments for significant contracts.

What is the historical spending pattern for similar data support and program improvement services within HHS or related agencies?

HHS and related agencies historically spend significant amounts on data analytics, program evaluation, and management consulting services to support their vast array of health and human services programs. Spending in these areas fluctuates based on agency priorities, legislative mandates, and the lifecycle of specific programs. Agencies often issue multiple contracts, ranging from small, targeted task orders to large, multi-year prime contracts, to address diverse needs. The trend has been towards increasing investment in data infrastructure, analytics capabilities, and evidence-based program improvement initiatives to enhance efficiency and outcomes, making contracts like this a consistent part of federal spending.

What are the potential implications of this contract on the specific HMRF programs it supports?

This contract is expected to have significant positive implications for the Health and Medical Research Facilities (HMRF) programs. By providing enhanced data capacity, the contractor can help these programs collect, manage, and analyze data more effectively, leading to better insights and informed decision-making. Improved technical assistance and quality improvement initiatives should streamline operations, enhance program delivery, and potentially lead to better health outcomes or research findings. The long-term nature of the contract suggests a commitment to sustained support, enabling the HMRF programs to build robust data-driven capabilities and achieve their strategic goals over time.

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

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: $19,670,383

Exercised Options: $19,139,838

Current Obligation: $19,139,838

Actual Outlays: $16,513,953

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSP233201500035I

IDV Type: IDC

Timeline