HHS awards $28.8M contract to Health Services Advisory Group for hospital innovation improvement

Contract Overview

Contract Amount: $28,849,984 ($28.8M)

Contractor: Health Services Advisory Group, Inc.

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: $22.5K/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: PHOENIX, MARICOPA County, ARIZONA, 85016

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.8 million to HEALTH SERVICES ADVISORY GROUP, INC. for work described as: HOSPITAL INNOVATION IMPROVEMENT NETWORK CONTRACT - IGF::CT::IGF Key points: 1. Contract value of $28.8M over 4 years. 2. Competition was full and open. 3. Risk appears moderate given fixed-price contract. 4. Sector is healthcare administration and consulting.

Value Assessment

Rating: good

The contract value of $28.8M over approximately 4 years suggests a reasonable annual spend. Benchmarking against similar administrative management contracts would provide further context on pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.

Public Impact

Supports hospital innovation and improvement initiatives. Aims to enhance healthcare delivery and patient outcomes. Contract duration of over 3 years suggests a significant project scope.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, specifically focused on healthcare. Spending in this area often supports government initiatives to improve service delivery and efficiency.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if small businesses were excluded or if the contract was not suitable for them.

Oversight & Accountability

Oversight would typically be managed by the Centers for Medicare and Medicaid Services (CMS). The firm fixed-price nature provides some cost control, but performance monitoring is crucial for innovation projects.

Related Government Programs

Risk Flags

Tags

administrative-management-and-general-ma, department-of-health-and-human-services, az, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.8 million to HEALTH SERVICES ADVISORY GROUP, INC.. HOSPITAL INNOVATION IMPROVEMENT NETWORK CONTRACT - 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 $28.8 million.

What is the period of performance?

Start: 2016-09-28. End: 2020-03-31.

What specific innovation metrics are being tracked to ensure value for money?

The provided data does not detail specific innovation metrics. Effective oversight would require clear, measurable objectives tied to the contract's goals, such as improved patient outcomes, cost reductions, or enhanced operational efficiency within hospitals participating in the network.

What is the risk associated with the firm fixed-price contract type for an innovation project?

While a firm fixed-price contract offers cost certainty, it can pose a risk for innovation projects where the scope and outcomes are inherently uncertain. The contractor may be incentivized to limit scope to protect profit, potentially stifling true innovation, or face significant losses if unforeseen challenges arise.

How effectively does this contract address the Centers for Medicare and Medicaid Services' strategic goals?

The contract's effectiveness hinges on its alignment with CMS's strategic goals for improving healthcare quality and efficiency. Success would be measured by demonstrable advancements in hospital practices, patient care, and cost-effectiveness resulting from the funded innovation initiatives.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative 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: Health Services Holdings, Inc. (UEI: 196578053)

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: $28,849,984

Exercised Options: $28,849,984

Current Obligation: $28,849,984

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: 2019-08-29

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