HHS awards $91M contract to Westat, Inc. for Medicare Beneficiary Survey research
Contract Overview
Contract Amount: $91,030,797 ($91.0M)
Contractor: Westat, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2009-02-28
End Date: 2014-11-26
Contract Duration: 2,097 days
Daily Burn Rate: $43.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: MEDICARE CURRENT BENEFICIARY SURVEY
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $91.0 million to WESTAT, INC. for work described as: MEDICARE CURRENT BENEFICIARY SURVEY Key points: 1. Contract awarded to Westat, Inc. for a significant value of $91M. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is substantial at 2097 days. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 5. The NAICS code 541720 indicates a focus on Research and Development in Social Sciences and Humanities.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type, while allowing flexibility, carries inherent risks of cost escalation. Benchmarking against similar R&D contracts in social sciences is difficult without more specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being utilized efficiently, though the Cost Plus Fixed Fee structure warrants monitoring for cost control.
Public Impact
Impacts Medicare beneficiaries by gathering crucial data on their experiences and needs. Provides valuable insights for policy decisions and program improvements within CMS. Supports the ongoing research and development efforts of the Department of Health and Human Services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure may lead to higher costs than anticipated.
- Long contract duration could present challenges in adapting to evolving research needs.
- Lack of specific performance metrics makes it difficult to assess effectiveness upfront.
Positive Signals
- Awarded through full and open competition, ensuring a broad vendor pool.
- Significant investment in understanding Medicare beneficiary needs.
- Contract supports critical research for a major federal program.
Sector Analysis
This contract falls within the Research and Development in Social Sciences and Humanities sector. Spending in this area is crucial for informing public policy and program effectiveness, with benchmarks varying widely based on project scope and duration.
Small Business Impact
The data provided does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight would typically involve regular reporting from Westat, Inc. to CMS, with performance reviews and financial audits to ensure contract compliance and proper use of funds.
Related Government Programs
- Research and Development in the Social Sciences and Humanities
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (2097 days).
- Potential for scope creep without clear performance metrics.
- Limited information on small business participation.
Tags
research-and-development-in-the-social-s, department-of-health-and-human-services, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $91.0 million to WESTAT, INC.. MEDICARE CURRENT BENEFICIARY SURVEY
Who is the contractor on this award?
The obligated recipient is WESTAT, 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 $91.0 million.
What is the period of performance?
Start: 2009-02-28. End: 2014-11-26.
What specific research questions will the Medicare Current Beneficiary Survey address, and how will the findings directly inform policy changes?
The survey aims to gather comprehensive data on beneficiary satisfaction, healthcare access, utilization patterns, and perceived quality of care. The findings are intended to inform CMS policy development, program adjustments, and resource allocation decisions to better serve the Medicare population. This includes identifying gaps in care, evaluating the impact of new initiatives, and understanding beneficiary perspectives on healthcare reforms.
What are the primary risks associated with the Cost Plus Fixed Fee contract structure for this long-term research project, and how will CMS mitigate them?
The primary risk is potential cost overruns if the contractor's costs exceed initial estimates, as the fixed fee is guaranteed regardless of final cost. CMS can mitigate this through robust oversight, detailed cost tracking, regular performance reviews, and clearly defined deliverables. Establishing realistic cost ceilings and requiring justification for any significant cost increases are also crucial mitigation strategies.
How will the effectiveness of the Medicare Current Beneficiary Survey be measured, given its long duration and focus on qualitative and quantitative data collection?
Effectiveness will be measured by the quality and timeliness of data delivered, the survey's ability to capture nuanced beneficiary experiences, and the actionable insights derived from the findings. CMS will likely assess the survey's impact through its utility in informing policy decisions, its contribution to understanding beneficiary needs, and its adherence to research best practices. Independent reviews of the methodology and reporting will also contribute to assessing effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Social Sciences and Humanities
Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1650 RESEARCH BLVD RM RE164, ROCKVILLE, MD, 20850
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $91,030,797
Exercised Options: $91,030,797
Current Obligation: $91,030,797
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2009-02-28
Current End Date: 2014-11-26
Potential End Date: 2022-12-06 00:00:00
Last Modified: 2022-12-06
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