HHS awards $7.97M contract for physician payment model advisory services to National Opinion Research Center

Contract Overview

Contract Amount: $7,968,386 ($8.0M)

Contractor: National Opinion Research Center

Awarding Agency: Department of Health and Human Services

Start Date: 2023-07-14

End Date: 2026-07-13

Contract Duration: 1,095 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: TECHNICAL AND OPERATIONAL SUPPORT FOR THE PHYSICIAN-FOCUSED PAYMENT MODEL TECHNICAL ADVISORY COMMITTEE (PTAC)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $8.0 million to NATIONAL OPINION RESEARCH CENTER for work described as: TECHNICAL AND OPERATIONAL SUPPORT FOR THE PHYSICIAN-FOCUSED PAYMENT MODEL TECHNICAL ADVISORY COMMITTEE (PTAC) Key points: 1. Contract focuses on administrative and management consulting for a key healthcare payment advisory committee. 2. Awarded via full and open competition, suggesting a broad search for qualified vendors. 3. The contract duration of 1095 days indicates a need for sustained technical and operational support. 4. Pricing structure is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 5. The specific NAICS code (541611) points to a specialized consulting market. 6. Geographic location of performance is Washington D.C., a common hub for federal advisory services.

Value Assessment

Rating: good

The contract value of approximately $7.97 million over three years for specialized advisory services appears reasonable given the scope. Benchmarking against similar contracts for technical advisory committees or policy support within HHS would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) structure, while common for complex services, necessitates diligent monitoring to ensure costs remain aligned with the fixed fee and project objectives. Without specific per-unit cost data, a direct comparison is challenging, but the overall award size suggests a significant undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the government sought proposals from all responsible sources. The number of bidders is not specified, but the competitive nature of the award process generally supports price discovery and encourages vendors to offer their best terms. This approach aims to ensure the government receives high-quality services at a competitive price by leveraging the widest possible pool of qualified contractors.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it promotes a more efficient use of funds by fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

The Physician-Focused Payment Model Technical Advisory Committee (PTAC) benefits from enhanced technical and operational support. Services delivered will likely involve research, analysis, and recommendations related to physician payment models. The geographic impact is primarily federal, centered in Washington D.C., but the policy outcomes can affect healthcare providers nationwide. Workforce implications include specialized consulting roles within the National Opinion Research Center, contributing to the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to prevent cost overruns.
The specialized nature of the services may limit the pool of truly qualified bidders in future competitions.
Dependence on a single award for this critical advisory function could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a broad market search.
The contract duration suggests a stable, long-term need for these services.
National Opinion Research Center has a history of conducting research and providing analysis for government entities.

Sector Analysis

This contract falls within the professional services sector, specifically administrative management and general management consulting. The market for such services is substantial, driven by government needs for policy analysis, technical support, and program evaluation. Comparable spending often involves contracts for research, advisory services, and program management within health and human services agencies. The Physician-Focused Payment Model Technical Advisory Committee (PTAC) plays a crucial role in shaping healthcare reimbursement, making sustained expert support essential.

Small Business Impact

The contract does not indicate any specific small business set-aside. Given the specialized nature of the services and the prime contractor's likely capabilities, it is possible that subcontracting opportunities for small businesses may exist, particularly in areas like data analysis, research support, or administrative tasks. However, the primary focus appears to be on the prime contractor's expertise. Further analysis of subcontracting plans would be needed to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Office of the Assistant Secretary for Financial Resources within HHS, given their role in contract administration. The Cost Plus Fixed Fee structure necessitates close monitoring of expenditures against the fixed fee and adherence to the Statement of Work. Transparency is expected through regular reporting from the contractor. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Physician Payment Value Modifier
Medicare Access and CHIP Reauthorization Act (MACRA)
Center for Medicare & Medicaid Innovation (CMMI) initiatives
Healthcare Policy Research Contracts
Health Economics Consulting Services

Risk Flags

Cost Plus Fixed Fee contract requires diligent oversight.
Potential for cost overruns if not managed effectively.
Specialized nature of services may limit future competition.
Dependence on contractor performance for critical advisory function.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $8.0 million to NATIONAL OPINION RESEARCH CENTER. TECHNICAL AND OPERATIONAL SUPPORT FOR THE PHYSICIAN-FOCUSED PAYMENT MODEL TECHNICAL ADVISORY COMMITTEE (PTAC)

Who is the contractor on this award?

The obligated recipient is NATIONAL OPINION RESEARCH CENTER.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Financial Resources).

What is the total obligated amount?

The obligated amount is $8.0 million.

What is the period of performance?

Start: 2023-07-14. End: 2026-07-13.

What is the track record of the National Opinion Research Center (NORC) in performing similar federal contracts, particularly within the healthcare sector?

The National Opinion Research Center (NORC) at the University of Chicago has a long-standing history of conducting research and providing analytical services for various federal agencies, including the Department of Health and Human Services (HHS). Their expertise spans a wide range of social science research, program evaluation, and policy analysis. Within the healthcare sector, NORC has been involved in numerous projects related to health policy, healthcare delivery systems, and patient outcomes. For instance, they have conducted studies on Medicare and Medicaid programs, physician behavior, and the impact of health reforms. Their experience often involves complex data analysis, survey design and implementation, and stakeholder engagement, which are relevant to the technical and operational support required for the Physician-Focused Payment Model Technical Advisory Committee (PTAC). While specific details of past performance on contracts of identical scope and value are not provided here, NORC's general profile suggests a strong capability to undertake this type of work.

How does the awarded value of $7.97 million compare to similar contracts for advisory services supporting federal technical committees?

The awarded value of approximately $7.97 million over three years for technical and operational support to the Physician-Focused Payment Model Technical Advisory Committee (PTAC) appears to be within a reasonable range for specialized federal advisory services. Contracts supporting similar policy-focused committees or technical advisory groups within agencies like HHS, CMS, or NIH often range from a few million to tens of millions of dollars, depending on the complexity, duration, and scope of work. Factors influencing cost include the level of expertise required, the extent of research and analysis, the number of deliverables, and the duration of the contract. Given that PTAC advises on physician payment models, a critical and complex area of healthcare policy, sustained expert support is necessary. Benchmarking against contracts for policy analysis, program evaluation, or technical assistance within the broader health sector suggests that this award is commensurate with the anticipated services.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for services like those provided to the Physician-Focused Payment Model Technical Advisory Committee (PTAC) revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' component means the government reimburses allowable costs incurred by the contractor. The main risk for the government is that the contractor may have less incentive to control costs rigorously, as higher costs directly translate to higher overall contract value (reimbursed costs plus fixed fee). This can lead to cost overruns if not managed diligently. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee remains profitable. Effective risk mitigation requires robust government oversight, detailed cost tracking, clear definition of allowable costs, and regular performance reviews to ensure the contractor is operating efficiently and effectively within the scope of work.

What is the expected impact of this contract on the development and implementation of physician payment models in the US?

This contract is expected to have a significant positive impact on the development and implementation of physician payment models in the United States. The Physician-Focused Payment Model Technical Advisory Committee (PTAC) is a key body established under the Medicare Access and CHIP Reauthorization Act (MACRA) of 2015. Its mandate is to provide recommendations to the Secretary of Health and Human Services on physician-led models for value-based payment. By providing essential technical and operational support, this contract enables PTAC to effectively research, analyze, and evaluate proposed payment models. This support is crucial for ensuring that the models are well-designed, evidence-based, and practical for physicians to implement. Ultimately, the work facilitated by this contract contributes to the broader goals of improving healthcare quality, patient outcomes, and reducing costs within the Medicare program and potentially influencing private payer models.

How has federal spending on administrative and management consulting services for healthcare policy evolved over the past five years?

Federal spending on administrative and management consulting services for healthcare policy has generally seen a steady increase over the past five years, driven by legislative mandates, evolving healthcare delivery systems, and the push towards value-based care. Agencies such as the Department of Health and Human Services (HHS), Centers for Medicare & Medicaid Services (CMS), and the National Institutes of Health (NIH) consistently procure external expertise for policy analysis, program evaluation, strategic planning, and technical assistance. The complexity of healthcare reform, the implementation of the Affordable Care Act (ACA) provisions, and initiatives like MACRA have fueled demand for specialized consulting. While specific figures fluctuate annually based on budget appropriations and emerging priorities, the trend indicates a sustained reliance on external consultants to navigate the intricate landscape of healthcare policy and regulation. Contracts like the one awarded to NORC for PTAC support are indicative of this ongoing investment in expert advisory services.

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: 1155 E 60TH ST, CHICAGO, IL, 60637

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

Financial Breakdown

Contract Ceiling: $13,526,761

Exercised Options: $7,968,386

Current Obligation: $7,968,386

Actual Outlays: $5,791,344

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSP233201500048I

IDV Type: IDC

Timeline