DHHS awards $15.9M contract to Michigan Peer Review Organization for public health programs

Contract Overview

Contract Amount: $15,906,524 ($15.9M)

Contractor: Michigan Peer Review Organization

Awarding Agency: Department of Health and Human Services

Start Date: 2008-08-01

End Date: 2011-11-15

Contract Duration: 1,201 days

Daily Burn Rate: $13.2K/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 CONTRACT FOR THE STATE OF MICHIGAN

Place of Performance

Location: FARMINGTON HILLS, OAKLAND County, MICHIGAN, 48335

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.9 million to MICHIGAN PEER REVIEW ORGANIZATION for work described as: 9TH SOW QIO CONTRACT FOR THE STATE OF MICHIGAN Key points: 1. Contract awarded on a cost-plus-award-fee basis, allowing for flexibility but requiring careful oversight of costs and performance. 2. The contract duration of 1201 days suggests a significant, ongoing need for the services provided. 3. Awarded to a single entity, raising questions about the extent of competition and potential for cost efficiencies. 4. The contract falls under 'Administration of Public Health Programs,' indicating a focus on essential health services. 5. The absence of a specific Product Service Code (PSC) might indicate a unique or specialized service offering.

Value Assessment

Rating: fair

The total award amount of $15.9 million over approximately three years for public health program administration is difficult to benchmark without specific details on the services rendered. As a cost-plus-award-fee contract, the final cost is contingent on performance, which can lead to variability. Comparing this to similar contracts for public health program administration across different states or agencies would be necessary for a more precise value assessment. The lack of a specific PSC code also hinders direct comparison to established market rates for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source procurement. This means that the Department of Health and Human Services identified a specific contractor, the Michigan Peer Review Organization, as the only source capable of fulfilling the requirement. The reasons for this sole-source determination are not provided, but it typically implies unique capabilities, proprietary technology, or a critical need that cannot be met by other vendors. The lack of competition means that price discovery through a bidding process was bypassed.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. Without a competitive bidding process, it is harder to ensure that the government is receiving the best possible value for its investment.

Public Impact

Beneficiaries include citizens of Michigan who rely on public health programs administered under this contract. Services delivered likely encompass the administration and oversight of various public health initiatives within the state. The geographic impact is concentrated within Michigan, affecting state-level public health operations. Workforce implications may include the employment of personnel by the Michigan Peer Review Organization to carry out contract duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive opportunities and potentially increases costs for taxpayers.
Cost-plus-award-fee structure requires robust oversight to ensure cost control and prevent overspending.
Lack of detailed service description makes it challenging to assess performance metrics and value for money.

Positive Signals

Award to an established organization (Michigan Peer Review Organization) suggests potential for continuity and expertise in public health administration.
Contract duration indicates a sustained commitment to public health services in Michigan.
The focus on public health programs aligns with critical government responsibilities.

Sector Analysis

This contract falls within the broader 'Healthcare' and 'Public Administration' sectors. The market for health program administration services is diverse, involving government agencies, non-profit organizations, and private contractors. Benchmarking comparable spending would involve looking at other state-level contracts for similar public health program management, which can vary significantly based on state size, population, and the specific programs being administered. The Michigan Peer Review Organization's role suggests a focus on quality assessment and program integrity within the healthcare system.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The focus appears to be on a larger, established entity capable of managing significant public health programs.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (DHHS) and its relevant sub-agency, the Centers for Medicare and Medicaid Services (CMS). As a cost-plus-award-fee contract, rigorous financial and performance monitoring is crucial. Transparency would depend on DHHS's reporting practices regarding contract performance and expenditures. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the contract's execution.

Related Government Programs

State Public Health Programs
Healthcare Administration Contracts
Centers for Medicare and Medicaid Services (CMS) Contracts
Public Health Services

Risk Flags

Sole-source award may limit competition and increase costs.
Cost-plus-award-fee structure requires diligent oversight to manage expenses.
Lack of detailed service description hinders performance assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.9 million to MICHIGAN PEER REVIEW ORGANIZATION. 9TH SOW QIO CONTRACT FOR THE STATE OF MICHIGAN

Who is the contractor on this award?

The obligated recipient is MICHIGAN PEER REVIEW ORGANIZATION.

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 $15.9 million.

What is the period of performance?

Start: 2008-08-01. End: 2011-11-15.

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

The provided data indicates the contract is for 'Administration of Public Health Programs' (nd: 'Administration of Public Health Programs') by the Michigan Peer Review Organization (co: 'MICHIGAN PEER REVIEW ORGANIZATION') for the Department of Health and Human Services (ag: 'Department of Health and Human Services'), specifically through the Centers for Medicare and Medicaid Services (sa: 'Centers for Medicare and Human Services'). However, the specific public health programs are not detailed in the provided data. These could range from disease prevention and health promotion initiatives to quality improvement programs for healthcare services within Michigan. A deeper dive into the contract's statement of work would be required to identify the precise programs.

What is the typical cost structure for similar public health administration contracts?

The cost structure for public health administration contracts can vary widely depending on the scope of services, the duration, and the specific agency. Contracts can be fixed-price, cost-reimbursement (like cost-plus-award-fee), or time-and-materials. Cost-plus-award-fee contracts, like this one, allow for reimbursement of costs plus an additional fee based on performance against predetermined objectives. This structure aims to incentivize efficiency and effectiveness. Benchmarking requires comparing contracts with similar service scopes, geographic areas, and contractor types. Without more specific details on the services rendered by the Michigan Peer Review Organization, a precise comparison to typical cost structures is challenging, but the cost-plus-award-fee model is common for complex service contracts where performance is a key metric.

What is the track record of the Michigan Peer Review Organization in managing federal contracts?

The Michigan Peer Review Organization (MPRO) has a history of serving as a Quality Improvement Organization (QIO) for Medicare beneficiaries in Michigan. This contract, identified as the '9TH SOW QIO CONTRACT FOR THE STATE OF MICHIGAN,' suggests a long-standing relationship and repeated awards for similar services. MPRO's role as a QIO involves reviewing the quality of care provided to Medicare beneficiaries, identifying areas for improvement, and implementing initiatives to enhance healthcare outcomes. Their continued selection for these contracts indicates a level of performance and expertise recognized by federal health agencies, although specific performance metrics from past contracts would provide a more comprehensive assessment.

How does the $15.9 million award compare to historical spending on similar services in Michigan?

The $15.9 million award represents the total value of this specific contract over its duration. To compare this to historical spending, one would need to examine previous contracts awarded to MPRO or other entities for similar QIO or public health administration services in Michigan. The data indicates this is the '9TH SOW QIO CONTRACT,' implying a series of such contracts. Analyzing the award amounts of the previous eight SOWs and any other related contracts for public health administration in Michigan over the years would provide context on whether this $15.9 million represents an increase, decrease, or stable level of investment in these services. Without access to historical contract databases, a direct comparison is not possible from the provided data alone.

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

The primary risk associated with a sole-source award for public health administration is the potential for reduced competition, which can lead to higher costs for taxpayers and potentially less innovation. Without competing bids, there is less pressure on the contractor to offer the most competitive pricing or the most efficient service delivery methods. Furthermore, a sole-source award can create vendor lock-in, making it difficult to switch to a different provider even if performance issues arise or better alternatives become available. Ensuring robust oversight and performance management becomes even more critical in sole-source situations to mitigate these risks and ensure value for money.

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

Address: 2670 HAGGERTY RD, NOVI, MI, 48374

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

Financial Breakdown

Contract Ceiling: $15,906,524

Exercised Options: $15,906,524

Current Obligation: $15,906,524

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline