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
- Lack of specific performance metrics in provided data.
- Potential for scope creep in innovation projects.
Positive Signals
- Full and open competition utilized.
- Firm fixed-price contract type.
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
- Administrative Management and General Management Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for contractor to limit scope due to fixed-price.
- Innovation project success is inherently difficult to guarantee.
- Lack of small business participation noted.
- Performance metrics not detailed in summary data.
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 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: 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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