DHHS Awards $28.9M Contract to Quality Insights of Pennsylvania for Public Health Programs

Contract Overview

Contract Amount: $28,862,712 ($28.9M)

Contractor: Quality Insights of Pennsylvania, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-02-12

End Date: 2008-07-31

Contract Duration: 170 days

Daily Burn Rate: $169.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Healthcare

Official Description: QUALITY IMPROVEMENT ORGANIZATION

Place of Performance

Location: HARRISBURG, DAUPHIN County, PENNSYLVANIA, 17110

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.9 million to QUALITY INSIGHTS OF PENNSYLVANIA, INC. for work described as: QUALITY IMPROVEMENT ORGANIZATION Key points: 1. The contract value of $28.9M is significant for the specified period. 2. The contract was not available for competition, raising questions about price discovery. 3. The risk associated with a sole-source award needs careful consideration. 4. This falls under the Healthcare sector, specifically public health administration.

Value Assessment

Rating: questionable

The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed tightly. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded sole-source, indicating a lack of competition. This method limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the absence of competitive bidding.

Public Impact

Taxpayers may be overpaying due to the lack of competition. The effectiveness of public health programs relies on efficient resource allocation. Transparency in sole-source contracts is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Award Fee contract type
Limited competition

Positive Signals

Focus on public health administration

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on the administration of public health programs. Benchmarks for similar quality improvement organization contracts are difficult to ascertain due to the sole-source nature.

Small Business Impact

The provided data does not indicate any specific provisions or considerations for small businesses in this contract award.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value and that the services are effectively delivered.

Related Government Programs

Administration of Public Health Programs
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Lack of competition
Potential for overpayment
Limited transparency
Contract duration and value

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.9 million to QUALITY INSIGHTS OF PENNSYLVANIA, INC.. QUALITY IMPROVEMENT ORGANIZATION

Who is the contractor on this award?

The obligated recipient is QUALITY INSIGHTS OF PENNSYLVANIA, 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 $28.9 million.

What is the period of performance?

Start: 2008-02-12. End: 2008-07-31.

What was the justification for awarding this contract sole-source?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other responsible sources. Without further documentation, it's impossible to determine the specific rationale behind this decision, but it limits the government's ability to explore alternative solutions and potentially secure better pricing through competition.

How was the 'award fee' component determined and controlled to ensure cost-effectiveness?

The Cost Plus Award Fee structure allows for reimbursement of costs plus a fee that is contingent upon meeting performance objectives. The government must have robust mechanisms in place to define these objectives clearly, monitor performance rigorously, and ensure the award fee is only granted for exceptional service, thereby controlling overall expenditure.

What metrics were used to evaluate the effectiveness of the Quality Improvement Organization's services?

The effectiveness of the Quality Improvement Organization's services would likely be measured by improvements in healthcare quality, patient safety, and cost efficiency within the programs they support. Specific metrics would depend on the program's goals, but could include reduced readmission rates, improved patient outcomes, or enhanced adherence to clinical guidelines.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Quality Insights, Inc

Address: 3001 CHESTERFIELD AVE, CHARLESTON, WV, 25304

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $28,862,712

Exercised Options: $28,862,712

Current Obligation: $28,862,712

Actual Outlays: $75,749

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline