HHS awards $12.3M contract to Arkansas Foundation for Medical Care for Quality Improvement
Contract Overview
Contract Amount: $12,326,097 ($12.3M)
Contractor: Arkansas Foundation for Medical Care Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2008-02-07
End Date: 2008-07-31
Contract Duration: 175 days
Daily Burn Rate: $70.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Healthcare
Official Description: TAS::75 0511::TAS QUALITY IMPROVEMENT ORGANIZATION FOR THE STATE OF ARKANSAS
Place of Performance
Location: FORT SMITH, SEBASTIAN County, ARKANSAS, 72908
State: Arkansas Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $12.3 million to ARKANSAS FOUNDATION FOR MEDICAL CARE INC for work described as: TAS::75 0511::TAS QUALITY IMPROVEMENT ORGANIZATION FOR THE STATE OF ARKANSAS Key points: 1. Significant contract value for a single awardee. 2. Limited competition raises questions about price discovery. 3. Potential for cost overruns given 'Cost Plus Award Fee' structure. 4. Focus on public health programs within the healthcare sector.
Value Assessment
Rating: fair
The contract value of $12.3M for a 5-month period appears high for administrative services. Benchmarking against similar public health program administration contracts is difficult without more detailed scope information.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits competitive pressure on pricing and may not ensure the most cost-effective solution for taxpayers.
Taxpayer Impact: The lack of competition could lead to higher costs than a competed contract, impacting taxpayer funds allocated to public health initiatives.
Public Impact
Ensures continued operation of vital quality improvement programs in Arkansas. Supports healthcare access and quality for Medicare beneficiaries in the state. Potential for reduced oversight effectiveness due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Short contract duration with high value
Positive Signals
- Supports essential public health services
- Established contractor with prior experience
Sector Analysis
This contract falls within the Healthcare sector, specifically focusing on the administration of public health programs. Spending benchmarks for similar QIO contracts vary widely based on scope and duration.
Small Business Impact
The data does not indicate any specific provisions or considerations for small business participation in this contract.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is meeting performance expectations and that costs are reasonable and allocable.
Related Government Programs
- Administration of Public Health Programs
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Sole-source award limits price competition.
- Cost-plus contract type can incentivize spending.
- High value for a short contract duration.
- Lack of transparency on performance metrics and award fee determination.
Tags
administration-of-public-health-programs, department-of-health-and-human-services, ar, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $12.3 million to ARKANSAS FOUNDATION FOR MEDICAL CARE INC. TAS::75 0511::TAS QUALITY IMPROVEMENT ORGANIZATION FOR THE STATE OF ARKANSAS
Who is the contractor on this award?
The obligated recipient is ARKANSAS FOUNDATION FOR MEDICAL CARE 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 $12.3 million.
What is the period of performance?
Start: 2008-02-07. End: 2008-07-31.
What is the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically must demonstrate that only one source can meet the requirement, or that urgency or other factors preclude full and open competition. Without this justification, it's difficult to assess if taxpayers received fair value or if a more competitive process could have yielded better pricing or innovation.
How is the 'Cost Plus Award Fee' structure being managed to control costs and incentivize performance?
The Cost Plus Award Fee (CPAF) structure allows for reimbursement of costs plus a fee that is based on performance. Effective management requires clear performance metrics, regular evaluations, and a robust process for determining the award fee. Without transparency into these elements, there's a risk that the fee could be awarded without commensurate performance, increasing overall costs to the government.
What are the key performance indicators (KPIs) for this contract, and how is performance being measured?
Understanding the KPIs and measurement methods is crucial for assessing contract effectiveness. For a Quality Improvement Organization, KPIs might include improvements in patient outcomes, reduction in errors, or efficiency gains in healthcare delivery. Without clearly defined and tracked KPIs, it's challenging to determine if the $12.3M investment is achieving its intended public health goals and delivering value for taxpayer money.
Industry Classification
NAICS: Public Administration › Administration of Human Resource Programs › Administration of Public Health Programs
Product/Service Code: MEDICAL SERVICES › DEPENDENT MEDICARE SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 401 W CAPITOL STE 450, LITTLE ROCK, AR, 72201
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $12,326,097
Exercised Options: $12,326,097
Current Obligation: $12,326,097
Actual Outlays: $44,275
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2008-02-07
Current End Date: 2008-07-31
Potential End Date: 2008-07-31 00:00:00
Last Modified: 2023-01-31
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