HHS awards $18.17M contract to Health Services Advisory Group for Arizona QIO services
Contract Overview
Contract Amount: $18,171,625 ($18.2M)
Contractor: Health Services Advisory Group, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2008-08-01
End Date: 2011-11-16
Contract Duration: 1,202 days
Daily Burn Rate: $15.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Healthcare
Official Description: 9TH SOW QIO BASE CONTRACT FOR ARIZONA
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85016
State: Arizona Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $18.2 million to HEALTH SERVICES ADVISORY GROUP, INC. for work described as: 9TH SOW QIO BASE CONTRACT FOR ARIZONA Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. The contract spans over 3 years, indicating a significant long-term commitment. 3. Focus on public health programs suggests a critical service area. 4. The 'Cost Plus Award Fee' structure can incentivize performance but may lead to higher costs.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee, which can be less predictable in final cost compared to fixed-price contracts. Benchmarking is difficult without specific per-unit cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited or sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: Limited competition may result in higher costs for taxpayers compared to a fully competitive process.
Public Impact
Ensures continued administration of public health programs in Arizona. Impacts beneficiaries of Medicare and Medicaid services in the state. Supports the Centers for Medicare and Medicaid Services' operational goals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Supports essential public health services
- Potential for performance incentives
Sector Analysis
This contract falls under public health administration, a critical sector for government services. Benchmarks for similar QIO contracts are not readily available, making direct comparison difficult.
Small Business Impact
The data indicates that small business participation was not a stated factor in this contract award, and the prime contractor is not a small business.
Oversight & Accountability
Oversight would typically be managed by the Centers for Medicare and Medicaid Services. The 'Award Fee' component suggests performance monitoring is in place, but details on accountability mechanisms are not provided.
Related Government Programs
- Administration of Public Health Programs
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Limited competition
- Cost-plus contract type
- Lack of transparency in award justification
- Potential for cost creep
- No small business set-aside identified
Tags
administration-of-public-health-programs, department-of-health-and-human-services, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $18.2 million to HEALTH SERVICES ADVISORY GROUP, INC.. 9TH SOW QIO BASE CONTRACT FOR ARIZONA
Who is the contractor on this award?
The obligated recipient is HEALTH SERVICES ADVISORY GROUP, 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 $18.2 million.
What is the period of performance?
Start: 2008-08-01. End: 2011-11-16.
What is the specific value proposition of using Health Services Advisory Group, Inc. for these services compared to potential alternatives?
Without competitive bidding, it is difficult to ascertain the specific value proposition. The 'Award Fee' structure suggests a focus on performance incentives, implying the government believes this vendor can achieve specific quality metrics. However, the lack of competition prevents a direct cost-benefit analysis against other potential providers.
What are the primary risks associated with a limited competition, cost-plus award fee contract for public health administration?
The primary risks include potential cost overruns due to the cost-plus nature, reduced incentive for cost efficiency without competitive pressure, and the possibility that the chosen vendor may not be the most innovative or cost-effective solution available. Ensuring robust oversight is crucial to mitigate these risks.
How effectively does this contract ensure the efficient delivery of public health programs in Arizona?
The effectiveness hinges on the vendor's performance and the government's oversight. The 'Award Fee' mechanism is designed to incentivize efficiency and quality. However, the limited competition means there's no market validation of efficiency. The long duration suggests a need for sustained, effective program delivery.
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: Health Services Holdings, Inc. (UEI: 196578053)
Address: 1600 E NORTHERN AVE STE 100, PHOENIX, AZ, 85020
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $18,171,625
Exercised Options: $18,171,625
Current Obligation: $18,171,625
Actual Outlays: $114,768
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2008-08-01
Current End Date: 2011-11-16
Potential End Date: 2011-11-16 00:00:00
Last Modified: 2022-02-09
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