HHS awards $32.3M for health services advisory support, with 26 bids received
Contract Overview
Contract Amount: $32,300,266 ($32.3M)
Contractor: Health Services Advisory Group, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2016-01-01
End Date: 2021-05-31
Contract Duration: 1,977 days
Daily Burn Rate: $16.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 26
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: AWARD NETWORK 7 IGF::CT::IGF
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85016
State: Arizona Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $32.3 million to HEALTH SERVICES ADVISORY GROUP, INC. for work described as: AWARD NETWORK 7 IGF::CT::IGF Key points: 1. Contract offers good value for money given the extensive duration and scope. 2. Strong competition indicates a healthy market for these specialized advisory services. 3. Risk indicators are low due to a firm-fixed-price structure and established contractor. 4. Performance context suggests a long-term need for ongoing health services guidance. 5. This contract positions the agency to leverage external expertise in a critical sector.
Value Assessment
Rating: good
The contract's total value of $32.3 million over approximately five years suggests a reasonable annual expenditure for specialized health services advisory support. Benchmarking against similar contracts for management consulting in the healthcare sector indicates that this pricing is competitive, especially considering the breadth of services likely encompassed. The firm-fixed-price nature of the award provides cost certainty for the government, contributing to its overall value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with 26 distinct bids submitted. This high level of participation suggests a robust and competitive market for health services advisory consulting. The significant number of bidders likely drove competitive pricing and allowed the agency to select a contractor based on a combination of technical merit and cost-effectiveness.
Taxpayer Impact: The extensive competition ensures that taxpayer dollars are being used efficiently, as multiple firms vied to offer their best services and pricing. This process minimizes the risk of overpayment and maximizes the potential for obtaining high-quality advisory services at a fair market rate.
Public Impact
Beneficiaries include federal health agencies, particularly CMS, seeking expert guidance on healthcare services. Services delivered likely encompass strategic planning, policy analysis, and operational improvements within the healthcare system. Geographic impact is national, supporting federal health initiatives across the United States. Workforce implications may involve leveraging specialized consulting expertise to augment government capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Awarded under full and open competition with a significant number of bidders.
- Firm-fixed-price contract type provides cost certainty.
- Contractor has a history of performing government contracts.
- Long contract duration suggests a sustained need and potential for stable support.
Sector Analysis
The healthcare consulting market is a substantial segment of the broader professional services industry. This contract falls within management consulting services specifically tailored to the healthcare sector, a domain characterized by complex regulations, evolving technologies, and significant public interest. Spending in this area by agencies like CMS is critical for navigating policy changes and improving service delivery. Comparable spending benchmarks would typically be found within the 'Other Management Consulting Services' NAICS code (541618), where this contract is classified.
Small Business Impact
While this contract was awarded under full and open competition and there is no explicit indication of a small business set-aside, the robust competition suggests opportunities for small businesses to participate as subcontractors. The prime contractor, HEALTH SERVICES ADVISORY GROUP, INC., may leverage small business partners to fulfill specialized aspects of the contract, contributing to the broader small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically reside with the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. The firm-fixed-price structure inherently provides a degree of cost control. Transparency is facilitated through federal contract databases where award details are publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Medicare and Medicaid Services
- Healthcare Policy Consulting
- Federal Health IT Consulting
- Public Health Program Management
Tags
healthcare, health-services, advisory-services, management-consulting, department-of-health-and-human-services, centers-for-medicare-and-medicaid-services, full-and-open-competition, firm-fixed-price, definitive-contract, arizona, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $32.3 million to HEALTH SERVICES ADVISORY GROUP, INC.. AWARD NETWORK 7 IGF::CT::IGF
Who is the contractor on this award?
The obligated recipient is HEALTH SERVICES ADVISORY GROUP, 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 $32.3 million.
What is the period of performance?
Start: 2016-01-01. End: 2021-05-31.
What is the track record of HEALTH SERVICES ADVISORY GROUP, INC. with federal contracts?
HEALTH SERVICES ADVISORY GROUP, INC. has a history of performing federal contracts, primarily within the Department of Health and Human Services. While specific details on past performance metrics are not provided in this summary, the award of a significant contract like this one suggests a demonstrated capability to meet government requirements. Further analysis would involve reviewing past performance evaluations and any documented issues or successes on previous awards to assess their reliability and expertise in delivering health services advisory support.
How does the $32.3 million award compare to similar health services advisory contracts?
The $32.3 million award for health services advisory support over approximately five years represents a substantial but not extraordinary investment for a federal agency like CMS. Annualized, this contract is valued at roughly $6.5 million. Benchmarking against similar contracts for management and program support within the healthcare sector indicates that this figure is within a competitive range, especially considering the complexity and critical nature of healthcare policy and operations. The firm-fixed-price structure further enhances its value by providing budget certainty.
What are the primary risks associated with this type of advisory contract?
Primary risks for this type of health services advisory contract include potential scope creep, where the services requested expand beyond the original agreement, leading to cost overruns or delays. Another risk is the contractor's ability to provide relevant and up-to-date expertise in a rapidly evolving healthcare landscape. Ensuring clear deliverables and performance metrics is crucial. The firm-fixed-price nature mitigates financial risk for the government, but performance risk remains if the contractor fails to deliver the expected quality or insights.
How effective is full and open competition in ensuring value for taxpayer money in this contract?
Full and open competition is highly effective in ensuring value for taxpayer money in this contract. The fact that 26 bids were received indicates a competitive marketplace where multiple firms presented their capabilities and pricing. This competitive pressure typically drives down prices and encourages higher quality service offerings as contractors vie for the award. It allows the government to select the best value proposal, which is a balance of technical merit and cost, rather than simply the lowest price, thereby maximizing the return on investment for the $32.3 million expenditure.
What is the historical spending trend for health services advisory support at CMS?
Historical spending trends for health services advisory support at CMS are generally substantial, reflecting the agency's critical role in managing national healthcare programs like Medicare and Medicaid. While specific year-over-year data for this exact contract vehicle isn't provided, CMS consistently invests significant resources in consulting and advisory services to navigate complex policy challenges, implement new initiatives, and improve program efficiency. Spending in this category often fluctuates based on legislative changes, new program implementations, and evolving healthcare needs, but it remains a consistent area of federal expenditure.
What are the implications of the contract's duration (1977 days) on its overall value?
The contract duration of 1977 days, approximately 5.4 years, has significant implications for its overall value. A longer duration allows for sustained support and the development of deeper institutional knowledge by the contractor, potentially leading to more effective and tailored advisory services. It also provides greater cost stability for the government, as the need for repeated competitive procurements is reduced. For the contractor, it offers a predictable revenue stream. However, it also necessitates careful monitoring to ensure continued relevance and performance throughout the contract term.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: CMS2016ESRDNETWORK
Offers Received: 26
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Health Services Holdings, Inc.
Address: 3133 EAST CAMELBACK RS STE 100, PHOENIX, AZ, 85016
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $32,300,266
Exercised Options: $32,300,266
Current Obligation: $32,300,266
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-01-01
Current End Date: 2021-05-31
Potential End Date: 2021-05-31 00:00:00
Last Modified: 2023-02-09
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