HHS awards $21.4M hospital engagement contract to Washington State Hospital Association for management consulting
Contract Overview
Contract Amount: $21,394,098 ($21.4M)
Contractor: Washington State Hospital Association
Awarding Agency: Department of Health and Human Services
Start Date: 2011-12-09
End Date: 2014-12-08
Contract Duration: 1,095 days
Daily Burn Rate: $19.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 44
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: HOSPITAL ENGAGEMENT CONTRACTOR
Place of Performance
Location: SEATTLE, KING County, WASHINGTON, 98119, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Health and Human Services obligated $21.4 million to WASHINGTON STATE HOSPITAL ASSOCIATION for work described as: HOSPITAL ENGAGEMENT CONTRACTOR Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition suggests a competitive bidding process. 3. Potential for high impact on healthcare delivery and patient outcomes. 4. Contract aligns with federal goals to improve hospital performance and efficiency. 5. Administrative management services are critical for healthcare system operations. 6. Fixed-price contract type may offer cost certainty for the government.
Value Assessment
Rating: good
The contract value of $21.4 million over three years for hospital engagement and management consulting services appears to be within a reasonable range for a federal contract of this nature. Benchmarking against similar contracts for administrative management services in the healthcare sector would provide a more precise assessment, but the price per year ($7.1 million) is not immediately indicative of overpayment. The fixed-price nature of the contract also suggests an effort to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 44 bids suggests a robust competitive environment, which typically leads to better pricing and value for the government. A high number of bidders generally implies that the market has sufficient capacity and interest in providing these services.
Taxpayer Impact: A competitive bidding process with numerous offers generally benefits taxpayers by driving down costs and encouraging innovation from contractors seeking to win the award.
Public Impact
The primary beneficiaries are hospitals within Washington State, who will receive support and guidance. Services delivered include administrative management and general management consulting to improve hospital operations. The geographic impact is focused on Washington State, potentially improving healthcare access and quality for its residents. Workforce implications may include enhanced training and development for hospital administrative staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if engagement objectives are not clearly defined and managed.
- Reliance on a single association may limit the diversity of approaches and solutions.
Positive Signals
- Focus on improving hospital engagement aligns with federal healthcare objectives.
- Contract duration provides stability for implementing long-term improvements.
- Fixed-price contract encourages cost efficiency from the contractor.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. The healthcare consulting market is substantial, driven by ongoing reforms, the need for operational efficiency, and regulatory compliance. This contract with the Washington State Hospital Association likely aims to leverage regional expertise to address specific challenges faced by hospitals in that state, potentially serving as a model for other state-level initiatives.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. As a large contract awarded to a state hospital association, the direct impact on small businesses may be limited unless the association actively engages them as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight for this contract would typically be managed by the Centers for Medicare and Medicaid Services (CMS), a division of HHS. Accountability measures would be defined in the contract's statement of work, performance standards, and reporting requirements. Transparency is generally facilitated through contract award databases and public reporting, though specific performance details may be proprietary.
Related Government Programs
- Hospital Preparedness Program
- Healthcare Quality Improvement Programs
- State Health Improvement Plans
Risk Flags
- Potential for conflicts of interest between association advocacy and federal requirements.
- Reliance on a single entity may limit innovation and diverse solutions.
Tags
healthcare, hhs, cms, administrative-management-consulting, management-consulting, washington-state, full-and-open-competition, firm-fixed-price, state-government-contractor, health-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $21.4 million to WASHINGTON STATE HOSPITAL ASSOCIATION. HOSPITAL ENGAGEMENT CONTRACTOR
Who is the contractor on this award?
The obligated recipient is WASHINGTON STATE HOSPITAL ASSOCIATION.
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 $21.4 million.
What is the period of performance?
Start: 2011-12-09. End: 2014-12-08.
What specific performance metrics were established to measure the success of the hospital engagement and management consulting services?
The contract details would specify key performance indicators (KPIs) related to hospital operational efficiency, patient satisfaction, quality of care improvements, and financial management. These metrics would likely be tracked through regular reporting by the Washington State Hospital Association to CMS. Examples could include reductions in readmission rates, improvements in patient safety scores, or enhanced revenue cycle management. The effectiveness of the contract hinges on the clear definition and rigorous monitoring of these KPIs throughout the contract period.
How does the cost of this contract compare to similar federal contracts for hospital management consulting services?
A direct comparison requires access to a database of similar federal contracts, including their scope, duration, and specific services rendered. However, the average annual cost of approximately $7.1 million for comprehensive hospital engagement and management consulting across a state is not inherently excessive, considering the complexity of healthcare systems and the potential for significant cost savings or quality improvements. Benchmarking against contracts awarded to large consulting firms or other state hospital associations would provide a more robust assessment of value for money.
What is the track record of the Washington State Hospital Association in managing federal contracts of this nature?
Information regarding the Washington State Hospital Association's specific track record with federal contracts of this magnitude and type would typically be found in their past performance evaluations or through federal procurement databases. As a state-level association, they likely have experience in managing programs and initiatives relevant to healthcare policy and operations. Assessing their past performance would involve reviewing any documented successes, challenges, and adherence to contractual obligations in previous government engagements.
What are the potential risks associated with engaging a single state hospital association for this broad contract?
Potential risks include a lack of diverse perspectives if the association's approach becomes standardized, potential conflicts of interest if the association's advocacy roles clash with federal objectives, and the risk that the association may not possess the specialized expertise required for all aspects of management consulting. Furthermore, if the association's capacity is stretched, it could impact the quality and timeliness of service delivery. Mitigation strategies would involve clear performance expectations and robust oversight from CMS.
How will the effectiveness of the consulting services be evaluated to ensure taxpayer funds are used efficiently?
The effectiveness will be evaluated through a combination of performance metrics outlined in the contract, regular progress reports submitted by the contractor, and potentially site visits or audits conducted by CMS. Key performance indicators (KPIs) related to improved hospital operations, patient outcomes, and financial efficiencies will be central to this evaluation. Feedback from participating hospitals and independent assessments may also contribute to determining the overall value and impact of the services provided.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: APP111513
Offers Received: 44
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 300 ELLIOTT AVE W STE 300, SEATTLE, WA, 98119
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: $21,394,098
Exercised Options: $21,394,098
Current Obligation: $21,394,098
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2011-12-09
Current End Date: 2014-12-08
Potential End Date: 2014-12-08 00:00:00
Last Modified: 2015-04-13
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