HHS awards $18.76M contract to Oklahoma Foundation for Medical Quality Inc for QIO services

Contract Overview

Contract Amount: $18,759,588 ($18.8M)

Contractor: Oklahoma Foundation for Medical Quality Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2008-08-01

End Date: 2011-11-02

Contract Duration: 1,188 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: 9TH SOW QIO BASE CONTRACT FOR OKLAHOMA

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73134

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $18.8 million to OKLAHOMA FOUNDATION FOR MEDICAL QUALITY INC for work described as: 9TH SOW QIO BASE CONTRACT FOR OKLAHOMA Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract value of $18.76M over approximately 3.3 years indicates moderate spending for this type of service. 3. The use of a Cost Plus Fixed Fee (CPFF) contract type requires careful monitoring of costs to ensure value. 4. This contract falls under the Administration of Public Health Programs, a critical sector for healthcare delivery.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure necessitates close oversight to ensure costs remain reasonable and do not escalate beyond the fixed fee. Benchmarking against similar QIO contracts would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the CPFF structure means the government bears the cost risk, and the fixed fee must be justified.

Taxpayer Impact: Taxpayer funds are used for public health program administration. Competitive bidding aims to secure fair pricing, but the CPFF structure requires vigilance to prevent cost overruns.

Public Impact

Ensures continued operation of Quality Improvement Organizations (QIOs) in Oklahoma. Supports Medicare beneficiaries by overseeing quality of care. Contributes to the administration of federal public health programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type requires robust cost monitoring.
Potential for cost creep if not managed effectively.
Need to ensure performance metrics are met to justify the fixed fee.

Positive Signals

Awarded through full and open competition.
Supports essential public health functions.
Established contract duration provides stability.

Sector Analysis

This contract is within the public health administration sector, specifically for Quality Improvement Organization (QIO) services. Spending in this area is crucial for Medicare and Medicaid oversight and patient care quality improvement. Benchmarks for similar QIO contracts vary based on region and scope.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Further investigation would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The Centers for Medicare and Medicaid Services (CMS) is responsible for overseeing this contract. Robust oversight is essential, particularly with a CPFF contract, to ensure adherence to scope, budget, and performance standards.

Related Government Programs

Administration of Public Health Programs
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Potential for cost overruns.
Need for strong performance monitoring.
Reliance on contractor's cost reporting accuracy.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.8 million to OKLAHOMA FOUNDATION FOR MEDICAL QUALITY INC. 9TH SOW QIO BASE CONTRACT FOR OKLAHOMA

Who is the contractor on this award?

The obligated recipient is OKLAHOMA FOUNDATION FOR MEDICAL QUALITY 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 $18.8 million.

What is the period of performance?

Start: 2008-08-01. End: 2011-11-02.

How does the fixed fee compare to the typical fixed fees for similar QIO contracts, and does it adequately incentivize efficient performance?

Assessing the adequacy of the fixed fee requires benchmarking against comparable contracts. A fee that is too high represents poor value, while one that is too low might disincentivize optimal performance or lead to quality compromises. Detailed analysis of the contractor's proposed costs and profit margins relative to industry standards is necessary to determine if the fee is fair and aligns incentives effectively.

What are the key performance indicators (KPIs) for this contract, and how effectively are they being monitored to mitigate performance risks?

Effective monitoring of KPIs is crucial for a CPFF contract to ensure the contractor is meeting quality and efficiency targets. CMS should have established metrics related to patient outcomes, provider compliance, and operational efficiency. Regular performance reviews and data analysis are vital to identify any deviations from expected performance and to implement corrective actions promptly, thereby mitigating risks to program effectiveness and taxpayer investment.

Given the CPFF structure, what mechanisms are in place to ensure cost reasonableness and prevent scope creep beyond the defined SOW?

With a CPFF contract, robust financial oversight is paramount. Mechanisms should include detailed cost reporting requirements, regular audits of expenditures, and a strict change control process for any modifications to the Statement of Work (SOW). The contracting officer must diligently review all costs submitted by the contractor to ensure they are allowable, allocable, and reasonable, preventing unnecessary spending and ensuring the project stays within its intended scope.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 14000 QUAIL SPRINGS PKWY #400, OKLAHOMA CITY, OK, 73134

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

Financial Breakdown

Contract Ceiling: $18,759,588

Exercised Options: $18,759,588

Current Obligation: $18,759,588

Actual Outlays: $-202,319

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline