TELLIGEN, INC. awarded $79M for Medicare Quality Improvement Program in Iowa
Contract Overview
Contract Amount: $79,024,256 ($79.0M)
Contractor: Telligen, Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2008-08-01
End Date: 2011-11-01
Contract Duration: 1,187 days
Daily Burn Rate: $66.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Healthcare
Official Description: MEDICARE QOP PROGRAM FOR THE STATE OF IOWA
Place of Performance
Location: WEST DES MOINES, POLK County, IOWA, 50266
State: Iowa Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $79.0 million to TELLIGEN, INC for work described as: MEDICARE QOP PROGRAM FOR THE STATE OF IOWA Key points: 1. Contract awarded through a sole-source procurement, raising questions about potential cost efficiencies. 2. The contract duration of nearly 3.5 years suggests a significant, ongoing need for these services. 3. Performance is tied to award fees, indicating a focus on achieving specific quality outcomes. 4. The 'Other Management Consulting Services' NAICS code suggests a broad scope of work. 5. Geographic focus on Iowa implies tailored quality improvement initiatives for the state's Medicare beneficiaries.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without detailed performance metrics and comparable sole-source procurements. The cost-plus award fee structure allows for flexibility but requires careful monitoring to ensure costs remain reasonable and aligned with performance. The awarded amount of approximately $79 million over 1187 days suggests an average annual spend of roughly $22 million, which needs to be assessed against the scope and impact of the quality improvement activities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not openly competed. This limits the opportunity for multiple vendors to propose solutions and potentially drive down costs through competitive bidding. The rationale for a sole-source award should be thoroughly documented to ensure it was justified and that the government received fair value.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the benefit of competition is forgone. It also reduces transparency in the procurement process.
Public Impact
Beneficiaries: Iowa's Medicare beneficiaries are the primary recipients of improved healthcare quality and services. Services Delivered: The contract supports quality improvement initiatives aimed at enhancing patient care, safety, and outcomes within the Medicare program. Geographic Impact: The program's impact is concentrated within the state of Iowa. Workforce Implications: While not directly creating new jobs, the contract supports the existing healthcare workforce by providing resources and guidance for quality enhancement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement limits competitive pricing.
- Cost-plus award fee structure requires diligent oversight to manage costs effectively.
- Lack of public competition data makes value-for-money assessment difficult.
Positive Signals
- Focus on quality improvement suggests a commitment to enhancing healthcare outcomes.
- Award fee structure incentivizes contractor performance.
- Long-term contract indicates a sustained effort in addressing Medicare quality in Iowa.
Sector Analysis
This contract falls within the broader healthcare services sector, specifically focusing on quality improvement and consulting for government healthcare programs. The market for such services is substantial, driven by federal and state mandates to improve healthcare efficiency and patient outcomes. Comparable spending benchmarks would typically involve other state-level quality improvement organizations (QIOs) or similar public health consulting contracts, though direct comparisons are difficult due to unique state needs and sole-source awards.
Small Business Impact
There is no indication that this contract involved small business set-asides or subcontracting opportunities. As a sole-source award to TELLIGEN, INC., the focus was likely on the prime contractor's capabilities rather than broader small business engagement. Further analysis would be needed to determine if any subcontracting occurred.
Oversight & Accountability
Oversight for this contract would primarily reside with the Centers for Medicare and Medicaid Services (CMS). The cost-plus award fee structure necessitates robust performance monitoring and financial oversight to ensure that funds are used appropriately and that quality improvement goals are met. Transparency is limited due to the sole-source nature of the award, but performance reports and audits would serve as key accountability measures.
Related Government Programs
- Medicare Quality Improvement Organizations (QIOs)
- State Health Improvement Programs
- Healthcare Consulting Services
- Federal Healthcare Quality Initiatives
Risk Flags
- Sole-source procurement
- Potential for cost inefficiencies due to lack of competition
- Broad NAICS code requires detailed scope review
Tags
healthcare, medicare, quality-improvement, consulting, iowa, department-of-health-and-human-services, centers-for-medicare-and-medicaid-services, definitive-contract, cost-plus-award-fee, sole-source, management-consulting
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $79.0 million to TELLIGEN, INC. MEDICARE QOP PROGRAM 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 $79.0 million.
What is the period of performance?
Start: 2008-08-01. End: 2011-11-01.
What specific quality improvement initiatives were undertaken under this contract, and what were their measurable outcomes?
The contract aimed to improve the quality of care for Medicare beneficiaries in Iowa. Specific initiatives likely included efforts to reduce hospital readmissions, improve patient safety, enhance chronic disease management, and promote preventive care. Measurable outcomes would typically be tracked through various quality metrics reported by CMS, such as changes in mortality rates, complication rates, patient satisfaction scores, and adherence to clinical best practices. Without access to detailed performance reports and the specific deliverables outlined in the contract, a precise accounting of initiatives and their quantifiable impact is not possible from the provided data.
How does the annual cost of this contract compare to similar Medicare Quality Improvement Programs in other states?
Comparing the annual cost of this contract, approximately $22 million ($79M / 3.5 years), to similar programs in other states is challenging due to several factors. Firstly, the contract was sole-source, limiting direct cost comparisons with competitively bid programs. Secondly, the scope and specific objectives of quality improvement programs can vary significantly by state based on their unique healthcare needs, demographics, and existing infrastructure. While QIO contracts are generally standardized to some extent, state-specific initiatives and performance targets can influence overall cost. A comprehensive benchmark would require analyzing the scope of work, performance metrics, and contract types (e.g., fixed-price, cost-plus) for multiple state QIO programs.
What is TELLIGEN, INC.'s track record in managing federal healthcare contracts, particularly those focused on quality improvement?
TELLIGEN, INC. has a history of working with government agencies, including CMS, on quality improvement initiatives. As a designated Quality Improvement Organization (QIO) for multiple states, their core business involves implementing programs to enhance healthcare quality and patient safety for Medicare beneficiaries. Their track record would be assessed based on their performance in previous contracts, including their ability to meet performance targets, manage budgets effectively, and comply with federal regulations. Information on past performance evaluations, awards, or sanctions, if publicly available, would provide further insight into their capabilities and reliability in managing such complex federal healthcare contracts.
What are the primary risks associated with a sole-source contract of this magnitude and duration?
The primary risks associated with a sole-source contract of this magnitude ($79M) and duration (nearly 3.5 years) include potential lack of cost competitiveness, reduced innovation, and contractor complacency. Without the pressure of competition, the contractor may have less incentive to find the most cost-effective solutions or to continuously improve their service delivery. There's also a risk that the government may not be getting the best possible value for its investment compared to what could be achieved through a competitive bidding process. Furthermore, reliance on a single contractor can create program continuity risks if the contractor faces financial difficulties or operational issues.
How does the 'Other Management Consulting Services' classification impact the understanding of the contract's scope and deliverables?
The classification of 'Other Management Consulting Services' (NAICS 541618) indicates a broad scope that extends beyond highly specialized healthcare consulting. This suggests the contract likely encompasses a wide range of activities, including strategic planning, operational efficiency improvements, program management, data analysis, and potentially policy development related to Medicare quality. While this classification provides flexibility, it also means that the specific deliverables and the expertise required might be diverse. Understanding the contract's true scope necessitates a review of the detailed statement of work, which would specify the exact consulting services to be provided and the expected outcomes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services
Product/Service Code: MEDICAL SERVICES › DEPENDENT MEDICARE SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 1776 WESTLAKES PKWY, WEST DES MOINES, IA, 50266
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $79,024,256
Exercised Options: $79,024,256
Current Obligation: $79,024,256
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-08-01
Current End Date: 2011-11-01
Potential End Date: 2011-11-01 00:00:00
Last Modified: 2022-10-25
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