HHS awards $116M contract for hospital innovation improvement, facing no small business participation
Contract Overview
Contract Amount: $116,398,849 ($116.4M)
Contractor: Health Research and Educational Trust
Awarding Agency: Department of Health and Human Services
Start Date: 2016-09-28
End Date: 2020-03-31
Contract Duration: 1,280 days
Daily Burn Rate: $90.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 16
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: HOSPITAL INNOVATION IMPROVEMENT NETWORK CONTRACT - IGF::CT::IGF
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60606
State: Illinois Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $116.4 million to HEALTH RESEARCH AND EDUCATIONAL TRUST for work described as: HOSPITAL INNOVATION IMPROVEMENT NETWORK CONTRACT - IGF::CT::IGF Key points: 1. Contract value of $116.4M awarded to Health Research and Educational Trust. 2. Full and open competition was utilized. 3. No small business participation was noted. 4. The contract falls under administrative management and general management consulting services.
Value Assessment
Rating: fair
The contract value of $116.4M is substantial for administrative management consulting. Benchmarking against similar large-scale health innovation contracts is necessary to assess pricing effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method aims to ensure the government receives competitive pricing.
Taxpayer Impact: The significant contract value means taxpayer funds are being allocated to health innovation initiatives, with the expectation of improved healthcare outcomes.
Public Impact
Aims to improve hospital efficiency and patient care through innovation. Potential for widespread impact on healthcare delivery across the nation. Funding supports research and development in healthcare management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation may limit diverse perspectives and innovation.
- Contract duration of over 3 years requires ongoing monitoring for effectiveness.
Positive Signals
- Full and open competition suggests a fair and competitive award process.
- Focus on innovation in healthcare can lead to long-term system improvements.
Sector Analysis
This contract falls within the administrative management and general management consulting services sector, specifically targeting healthcare. Benchmarks for similar large-scale health innovation contracts are typically in the tens to hundreds of millions of dollars.
Small Business Impact
The contract explicitly states no small business participation (ss: false, sb: false). This indicates that small businesses were either not involved in the bidding process or were not selected for this significant award.
Oversight & Accountability
The contract is managed by the Centers for Medicare and Medicaid Services (CMS), a key agency within HHS. Oversight would focus on the achievement of innovation goals and efficient use of funds.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- No small business participation.
- Large contract value requires careful monitoring.
- Potential for limited innovation if only one large entity is involved.
- Long contract duration may lead to scope creep or evolving needs.
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, il, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $116.4 million to HEALTH RESEARCH AND EDUCATIONAL TRUST. HOSPITAL INNOVATION IMPROVEMENT NETWORK CONTRACT - IGF::CT::IGF
Who is the contractor on this award?
The obligated recipient is HEALTH RESEARCH AND EDUCATIONAL TRUST.
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 $116.4 million.
What is the period of performance?
Start: 2016-09-28. End: 2020-03-31.
What specific innovation metrics are being tracked to measure the success of this contract?
The contract details do not specify the exact innovation metrics. However, typical metrics for such contracts would include improvements in patient outcomes, reductions in healthcare costs, enhanced operational efficiency within hospitals, and the successful implementation of new healthcare technologies or processes.
What are the potential risks associated with a large, multi-year contract for innovation without small business involvement?
Risks include a potential lack of diverse perspectives and agile solutions that small businesses often bring. There's also a risk of vendor lock-in or reduced competition in future related procurements if the incumbent contractor becomes deeply embedded. Ensuring continued innovation and cost-effectiveness over the contract's duration requires diligent oversight.
How does this contract align with broader federal goals for healthcare improvement and cost containment?
This contract aligns with federal goals by investing in innovation aimed at improving healthcare quality and potentially reducing long-term costs. The focus on hospital efficiency and patient care directly addresses key objectives of agencies like CMS. Success in this contract could serve as a model for broader healthcare system reforms.
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) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HHSM5002016RFP0026
Offers Received: 16
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: American Hospital Association (UEI: 051064566)
Address: 155 N WACKER DR STE 400, CHICAGO, IL, 60606
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $116,398,849
Exercised Options: $116,398,849
Current Obligation: $116,398,849
Subaward Activity
Number of Subawards: 317
Total Subaward Amount: $3,379,465,815
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-09-28
Current End Date: 2020-03-31
Potential End Date: 2020-03-31 00:00:00
Last Modified: 2019-12-23
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