Health Services Advisory Group awarded $34.7M for Florida public health program administration

Contract Overview

Contract Amount: $34,764,109 ($34.8M)

Contractor: Health Services Advisory Group, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-08-01

End Date: 2011-11-25

Contract Duration: 1,211 days

Daily Burn Rate: $28.7K/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 FLORIDA

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33609

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $34.8 million to HEALTH SERVICES ADVISORY GROUP, INC. for work described as: 9TH SOW QIO BASE CONTRACT FOR FLORIDA Key points: 1. Contract focuses on administration of public health programs in Florida. 2. The contract type is Cost Plus Award Fee, indicating performance incentives. 3. Duration of the contract is over 1000 days, suggesting a long-term need. 4. The award was not competed, raising questions about price discovery. 5. The contractor, Health Services Advisory Group, Inc., has a history with this type of service. 6. The contract is a definitive contract, typically used for complex or long-term requirements.

Value Assessment

Rating: fair

The contract value of $34.7 million over approximately three years for public health program administration in Florida appears to be within a reasonable range for such services. However, without specific benchmarks for the scope of services delivered and the complexity of the programs managed, a precise value-for-money assessment is challenging. The Cost Plus Award Fee structure allows for potential adjustments based on performance, which can incentivize efficiency. Comparing this to similar contracts for state-level public health administration would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other potential bidders. 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 the government did not benefit from the price discovery that typically occurs in a competitive bidding environment, potentially leading to higher costs than might have been achieved otherwise.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without multiple offers, there is less assurance that the price reflects the lowest possible cost for the services rendered.

Public Impact

Residents of Florida benefit from the administration of essential public health programs. Services delivered likely include program management, operational support, and policy implementation for health initiatives. The geographic impact is concentrated within the state of Florida. The contract supports administrative functions, indirectly impacting the public health workforce through program oversight and management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Performance metrics and award fee structure need close monitoring to ensure value.
Scope creep could increase costs beyond the initial estimate if not managed effectively.

Positive Signals

Cost Plus Award Fee structure incentivizes contractor performance.
Long contract duration suggests a stable and ongoing need for these services.
Focus on public health administration addresses critical societal needs.

Sector Analysis

This contract falls within the broader government services sector, specifically focusing on public health administration. The market for such services involves specialized firms capable of managing complex health programs. Comparable spending benchmarks would typically be found in contracts awarded by state and federal health agencies for similar program management and administrative support. The size of this contract, approximately $34.7 million, is significant for a single state-level program administration effort.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this contract is not readily available. As a sole-source award, the primary focus was likely on the capabilities of the selected contractor rather than opportunities for small business participation. Further investigation would be needed to determine if any small business subcontracting goals were established or met.

Oversight & Accountability

Oversight for this contract would typically be managed by the Centers for Medicare and Medicaid Services (CMS) within the Department of Health and Human Services. Accountability measures would be tied to the performance standards outlined in the Cost Plus Award Fee contract. Transparency is generally maintained through contract databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Public Health Program Management
Healthcare Administration Services
State Health Department Support
Federal Health Grants Administration

Risk Flags

Sole-source award limits price competition.
Cost Plus Award Fee requires careful performance monitoring.
Long contract duration necessitates sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $34.8 million to HEALTH SERVICES ADVISORY GROUP, INC.. 9TH SOW QIO BASE CONTRACT FOR FLORIDA

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 $34.8 million.

What is the period of performance?

Start: 2008-08-01. End: 2011-11-25.

What specific public health programs are being administered under this contract?

The provided data indicates the contract is for the '9TH SOW QIO BASE CONTRACT FOR FLORIDA' and falls under 'Administration of Public Health Programs.' While the specific programs are not detailed, QIO (Quality Improvement Organization) contracts typically involve activities related to improving the quality of care, patient safety, and healthcare efficiency. For Florida, this could encompass a range of initiatives managed by the Centers for Medicare and Medicaid Services (CMS), such as monitoring healthcare provider performance, managing beneficiary complaints, and implementing quality improvement projects within the state's healthcare system.

How does the $34.7 million cost compare to similar public health administration contracts in other states?

Direct comparison of the $34.7 million cost to similar contracts in other states is challenging without detailed scope and service level agreements. However, the duration of over 1000 days suggests a substantial, long-term engagement. Contracts for state-level public health program administration can vary significantly based on the size of the state's population, the complexity of its healthcare system, and the specific programs being managed. A value of approximately $10-12 million per year for comprehensive administration services in a large state like Florida is not inherently unreasonable, but a detailed benchmark analysis against contracts with identical service requirements would be necessary for a definitive assessment.

What are the key performance indicators (KPIs) tied to the 'Award Fee' component of this contract?

The 'Award Fee' component of a Cost Plus Award Fee (CPAF) contract is designed to incentivize the contractor to exceed minimum performance requirements. While the specific KPIs for this contract are not detailed in the provided data, they typically relate to measurable outcomes and service delivery standards. For public health program administration, KPIs could include metrics such as program enrollment rates, beneficiary satisfaction scores, efficiency in processing claims or applications, adherence to regulatory compliance, successful implementation of quality improvement initiatives, and timely reporting. The government assesses performance against these KPIs, and the contractor earns an award fee based on the level of achievement.

What is the track record of Health Services Advisory Group, Inc. in administering federal health contracts?

Health Services Advisory Group, Inc. (HSAG) has a significant track record in administering federal and state health contracts, particularly those related to quality improvement and healthcare oversight. They have served as a Quality Improvement Organization (QIO) for various states and federal agencies for many years. Their experience often involves managing complex healthcare data, conducting reviews of healthcare providers, and implementing programs aimed at enhancing patient care and safety. The '9TH SOW QIO BASE CONTRACT FOR FLORIDA' suggests a continuation or expansion of their established role in the state, indicating a level of trust and proven capability with the contracting agency.

What are the risks associated with a sole-source award for public health services?

The primary risk associated with a sole-source award for public health services is the potential for inflated costs due to the lack of competitive pressure. Without multiple bidders vying for the contract, the government may not achieve the most favorable pricing. Additionally, sole-source awards can sometimes limit innovation, as the government is reliant on the single contractor's approach rather than benefiting from diverse solutions proposed by a competitive field. There's also a risk of complacency from the contractor, although the CPAF structure aims to mitigate this through performance incentives. Ensuring robust oversight and clear performance metrics becomes even more critical in sole-source situations.

How has federal spending on public health program administration evolved over the years, and where does this contract fit?

Federal spending on public health program administration has generally seen fluctuations driven by national health priorities, legislative changes (like the Affordable Care Act), and public health emergencies. Spending often increases during crises (e.g., pandemics) and for specific initiatives like disease prevention or healthcare access expansion. This $34.7 million contract, awarded in 2008 and ending in 2011, represents a specific allocation for program administration within Florida during that period. It fits within the broader category of federal grants and contracts supporting state-level health operations, contributing to the overall federal investment in public health infrastructure and service 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: 3133 E CAMELBACK RD STE 100, PHOENIX, AZ, 85016

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

Financial Breakdown

Contract Ceiling: $34,764,109

Exercised Options: $34,764,109

Current Obligation: $34,764,109

Actual Outlays: $-327,074

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline