HHS awarded $39.5M to Island Peer Review Organization for QIO 10th Scope services

Contract Overview

Contract Amount: $39,549,969 ($39.5M)

Contractor: Island Peer Review Organization Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2011-07-29

End Date: 2014-07-31

Contract Duration: 1,098 days

Daily Burn Rate: $36.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: QIO 10TH SCOPE

Place of Performance

Location: NEW HYDE PARK, NASSAU County, NEW YORK, 11042

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $39.5 million to ISLAND PEER REVIEW ORGANIZATION INC for work described as: QIO 10TH SCOPE Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Limited competition may have impacted overall value for money. 3. Contract duration and type present moderate performance risks. 4. Services align with CMS's mission to improve healthcare quality. 5. This contract falls within the broader healthcare consulting services sector.

Value Assessment

Rating: fair

The total award of $39.5 million over approximately three years for Quality Improvement Organization (QIO) services suggests a significant investment. Benchmarking against similar QIO contracts is challenging without more specific service details, but the per-year cost of roughly $13 million falls within a plausible range for large-scale healthcare quality initiatives. The Cost Plus Fixed Fee (CPFF) contract type introduces some risk of cost overruns if not managed tightly, but also allows for flexibility in scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that only one vendor was deemed capable of performing the required services. While sole-source awards can be efficient for specialized needs, they limit the potential for competitive bidding, which typically drives down prices and fosters innovation. The absence of competition means that the government did not benefit from multiple proposals and price negotiations.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive pressure. Without competing bids, it's difficult to ascertain if the fixed fee accurately reflects the market value for these services.

Public Impact

Beneficiaries include Medicare beneficiaries who receive improved quality of care through QIO initiatives. Services delivered focus on quality improvement, patient safety, and healthcare efficiency. Geographic impact is national, as QIOs serve Medicare beneficiaries across the United States. Workforce implications include employment for healthcare professionals and administrative staff within the contractor organization and potentially within healthcare facilities implementing improvements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
CPFF contract type can lead to cost overruns if not rigorously managed.
Lack of competition may reduce incentives for innovation and efficiency improvements.

Positive Signals

Contract supports critical healthcare quality improvement initiatives for Medicare beneficiaries.
Long-standing relationship with a specialized organization may ensure continuity of essential services.
Defined contract duration provides a clear timeframe for service delivery and performance evaluation.

Sector Analysis

This contract falls within the Healthcare Services sector, specifically focusing on quality improvement and consulting for government healthcare programs. The market for QIO services is specialized, often involving organizations with deep expertise in healthcare regulations and quality metrics. Comparable spending benchmarks would typically be other QIO contracts or large-scale healthcare consulting engagements managed by federal agencies.

Small Business Impact

There is no indication that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. As a sole-source award to a specific organization, it is unlikely to have been structured to promote small business participation. The primary focus appears to be on the direct delivery of specialized services by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Medicare and Medicaid Services (CMS), the awarding agency. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure that costs are reasonable and that the fixed fee is justified. Transparency would be enhanced through regular reporting requirements and potential audits by CMS or the HHS Inspector General.

Related Government Programs

Quality Improvement Organization (QIO) Program
Medicare Quality Initiatives
Healthcare Consulting Services
Federal Healthcare Contracts

Risk Flags

Sole-source award limits competitive pricing.
CPFF contract type requires diligent cost oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $39.5 million to ISLAND PEER REVIEW ORGANIZATION INC. QIO 10TH SCOPE

Who is the contractor on this award?

The obligated recipient is ISLAND PEER REVIEW ORGANIZATION 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 $39.5 million.

What is the period of performance?

Start: 2011-07-29. End: 2014-07-31.

What is the specific scope of work for the QIO 10th Scope contract?

The specific scope of work for the QIO 10th Scope contract, awarded to Island Peer Review Organization Inc., is not detailed in the provided data. However, Quality Improvement Organizations (QIOs) generally work under contract with the Centers for Medicare & Medicaid Services (CMS) to improve the quality of care for Medicare beneficiaries. Their activities typically include reviewing the quality of care, addressing beneficiary complaints, and implementing initiatives to improve healthcare outcomes, patient safety, and efficiency. The '10th Scope' likely refers to a specific iteration or phase of the QIO program, suggesting a defined set of objectives and performance measures for that period.

How does the $39.5 million award compare to previous QIO contracts?

Direct comparison of the $39.5 million award to previous QIO contracts is difficult without knowing the specific scope and duration of those prior contracts. The QIO program has evolved over time, with contract scopes and funding levels changing with each iteration. However, $39.5 million over approximately three years (July 2011 to July 2014) represents an average annual value of roughly $13 million. This figure should be benchmarked against other QIO contracts awarded during similar timeframes and with comparable geographic or functional responsibilities to assess its relative scale.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract like this one?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, such as the one awarded to Island Peer Review Organization Inc., center on cost control and profit margins. For the government, the risk is that the actual costs incurred by the contractor may exceed initial estimates, potentially leading to a higher overall price than anticipated, even with a fixed fee. Effective management and oversight are crucial to ensure that costs are reasonable and allocable. For the contractor, the risk lies in underestimating costs, which could reduce their profit margin below expectations, as the fee is fixed regardless of the final cost incurred.

What is the significance of this contract being awarded on a sole-source basis?

A sole-source award signifies that the government determined, after market research or a specific justification, that only one responsible source was available or capable of meeting the requirement. For this QIO 10th Scope contract, it implies that Island Peer Review Organization Inc. was uniquely qualified or that the circumstances of the procurement did not allow for full and open competition. While this can ensure specialized expertise is utilized, it eliminates the potential benefits of competition, such as lower prices and a wider range of innovative solutions that could have emerged from multiple bidders.

What performance metrics or outcomes are typically expected from QIO contracts?

Typical performance metrics and outcomes for QIO contracts focus on measurable improvements in healthcare quality, patient safety, and efficiency for Medicare beneficiaries. These often include reducing hospital-acquired conditions, improving care transitions, increasing the use of preventive services, addressing beneficiary grievances effectively, and ensuring appropriate use of diagnostic and treatment services. Performance is usually evaluated against specific goals and benchmarks set forth in the contract, with potential incentives or penalties tied to achieving these targets.

How does this contract fit into the broader federal strategy for healthcare quality improvement?

This contract is a direct component of the federal strategy to enhance the quality of healthcare services delivered to Medicare beneficiaries. The QIO program is a cornerstone of CMS's efforts to drive quality improvement across the healthcare system. By contracting with organizations like Island Peer Review Organization Inc., CMS aims to leverage specialized expertise to identify areas for improvement, implement evidence-based interventions, and monitor progress towards national healthcare quality goals, ultimately contributing to better health outcomes and more efficient use of healthcare resources.

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

Solicitation ID: CMS10THSOW

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1979 MARCUS AVE STE 105, NEW HYDE PARK, NY, 11042

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: $39,549,971

Exercised Options: $39,549,971

Current Obligation: $39,549,969

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline