Telligen, Inc. awarded $115M for Iowa's Quality Improvement Organization services over 4 years

Contract Overview

Contract Amount: $115,102,544 ($115.1M)

Contractor: Telligen, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2008-02-12

End Date: 2012-09-21

Contract Duration: 1,683 days

Daily Burn Rate: $68.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: QUALITY IMPROVEMENT ORGANIZATION FOR THE STATE OF IOWA

Place of Performance

Location: WEST DES MOINES, DALLAS County, IOWA, 50266

State: Iowa Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $115.1 million to TELLIGEN, INC for work described as: QUALITY IMPROVEMENT ORGANIZATION FOR THE STATE OF IOWA Key points: 1. Contract value appears reasonable given the duration and scope of public health program administration. 2. Sole-source award limits direct comparison of pricing and efficiency against market alternatives. 3. Performance period of over four years suggests a stable, long-term need for these services. 4. The contract falls within the broad category of public health administration, a critical government function. 5. Geographic focus on Iowa indicates a localized but significant impact on state healthcare quality.

Value Assessment

Rating: fair

The contract's total value of over $115 million spread across more than four years suggests an average annual expenditure of approximately $28 million. Without specific performance metrics or comparable contracts for similar state-level QIO services, a precise value-for-money assessment is challenging. However, the cost-plus-fixed-fee structure implies that costs are reimbursed, with a predetermined fee, which can incentivize efficiency but also carries risks if cost projections are inaccurate. Benchmarking against other state QIO contracts would be necessary for a more robust comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances prevent a competitive process. The lack of competition means that pricing and service terms were negotiated directly with Telligen, Inc., potentially limiting opportunities for cost savings that might arise from a bidding process.

Taxpayer Impact: Sole-source awards can sometimes lead to higher costs for taxpayers as the benefit of competitive pressure on pricing is absent. Transparency in negotiation is crucial to ensure fair value.

Public Impact

Beneficiaries include healthcare providers and patients within the state of Iowa, who receive improved quality of care through the QIO's initiatives. Services delivered focus on administering public health programs, likely involving quality monitoring, data analysis, and implementation of best practices in healthcare. The geographic impact is concentrated within Iowa, affecting its healthcare system and the health outcomes of its residents. Workforce implications may include employment opportunities for healthcare professionals, analysts, and administrative staff within Telligen, Inc. and potentially within healthcare facilities implementing QIO recommendations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

Quality Improvement Organizations (QIOs) are a cornerstone of the Centers for Medicare & Medicaid Services' (CMS) efforts to improve healthcare quality, safety, and efficiency. This contract falls within the broader health services and public health administration sector. The market for such services is often characterized by specialized expertise and established relationships with government agencies. Comparable spending benchmarks would typically involve analyzing other state-level QIO contracts or similar public health program management contracts awarded by federal or state entities.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this specific contract is not readily available in the provided data. As a sole-source award, the typical mechanisms for promoting small business participation through competition may not have been applicable. Further investigation into Telligen, Inc.'s subcontracting practices would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Centers for Medicare & Medicaid Services (CMS), a division of HHS. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency would depend on the public availability of performance reports and audits, which are not detailed here. The Inspector General of HHS would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Risk Flags

Tags

healthcare, hhs, medicare, medicaid, quality-improvement, public-health, iowa, definitive-contract, sole-source, cost-plus-fixed-fee, administration-of-public-health-programs

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $115.1 million to TELLIGEN, INC. QUALITY IMPROVEMENT ORGANIZATION FOR THE STATE OF IOWA

Who is the contractor on this award?

The obligated recipient is TELLIGEN, 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 $115.1 million.

What is the period of performance?

Start: 2008-02-12. End: 2012-09-21.

What specific quality improvement initiatives were undertaken by Telligen, Inc. under this contract in Iowa?

The provided data does not detail the specific quality improvement initiatives undertaken by Telligen, Inc. for the state of Iowa under this contract. Quality Improvement Organizations typically engage in activities such as reviewing healthcare provider performance, implementing evidence-based practices, reducing healthcare-associated infections, improving patient safety, and promoting chronic disease management. For a comprehensive understanding, one would need to consult program reports, performance evaluations, or specific deliverables outlined in the contract's statement of work. These initiatives are crucial for enhancing the overall quality and efficiency of healthcare services for Medicare beneficiaries and the broader population within the state.

How does the $115 million contract value compare to national spending on Quality Improvement Organizations?

The $115 million contract value for Iowa's Quality Improvement Organization services over approximately four years represents a significant investment. To benchmark this against national spending, one would need to aggregate data from all state QIO contracts administered by CMS. National QIO spending involves numerous contracts across all states and territories, with varying scopes and durations. While this specific contract is substantial for a single state, it forms part of a larger federal program. A comparative analysis would require examining the total annual federal expenditure on QIOs and then calculating the average contract value or per-state spending to contextualize Iowa's allocation relative to the national program's scale and budget.

What are the key performance indicators (KPIs) used to evaluate Telligen, Inc.'s success in this contract?

The provided data does not specify the key performance indicators (KPIs) used to evaluate Telligen, Inc.'s success. Typically, QIO contracts include performance metrics related to improvements in specific healthcare quality measures, such as reductions in hospital readmission rates, improvements in patient safety incident reporting, enhanced management of chronic conditions, and increased patient satisfaction scores. These KPIs are usually defined in the contract's statement of work and are monitored through regular reporting and reviews by CMS. Without access to these specific metrics and performance reports, a thorough assessment of the contractor's effectiveness is not possible.

What is the historical spending trend for Quality Improvement Organization services in Iowa prior to this contract?

Historical spending data for Quality Improvement Organization (QIO) services in Iowa prior to this $115 million contract is not provided. Understanding past expenditures would offer valuable context for assessing the current contract's value and scope. Trends might reveal whether spending has increased, decreased, or remained stable over time, potentially influenced by changes in healthcare policy, program requirements, or the number of QIOs serving the state. To analyze historical spending, one would need to access previous contract awards and their values for QIO services in Iowa, likely through federal procurement databases or HHS/CMS historical records.

Given the sole-source nature, what due diligence was performed by HHS/CMS to ensure fair pricing and value?

While the data indicates a sole-source award, the specific due diligence performed by HHS/CMS to ensure fair pricing and value is not detailed. For sole-source procurements, agencies typically conduct market research to confirm the necessity of a sole-source justification and may engage in price analysis techniques. This could involve comparing proposed costs to historical prices paid for similar services, analyzing the contractor's cost elements, or using independent government cost estimates. The 'Cost Plus Fixed Fee' (CPFF) contract type suggests that while costs are reimbursed, a fixed fee is negotiated, implying some level of negotiation around both cost projections and the fee itself to ensure reasonable value.

Industry Classification

NAICS: Public AdministrationAdministration of Human Resource ProgramsAdministration of Public Health Programs

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&DSPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6000 WESTOWN PKWY STE 350E, WEST DES MOINES, IA, 50266

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $115,102,544

Exercised Options: $115,102,544

Current Obligation: $115,102,544

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline

Start Date: 2008-02-12

Current End Date: 2012-09-21

Potential End Date: 2012-09-28 00:00:00

Last Modified: 2022-08-31

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