HHS awarded $24.9M to Washington State Hospital Association for innovation improvement, with 16 bids received

Contract Overview

Contract Amount: $24,912,399 ($24.9M)

Contractor: Washington State Hospital Association

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: $19.5K/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: SEATTLE, KING County, WASHINGTON, 98104

State: Washington Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.9 million to WASHINGTON STATE HOSPITAL ASSOCIATION for work described as: HOSPITAL INNOVATION IMPROVEMENT NETWORK CONTRACT - IGF::CT::IGF Key points: 1. The contract focused on administrative and management consulting services to foster healthcare innovation. 2. A firm-fixed-price contract type suggests predictable costs for the government. 3. The duration of the contract (1280 days) indicates a substantial, long-term project. 4. The award was made under full and open competition, implying a broad search for qualified contractors. 5. The North American Industry Classification System (NAICS) code 541611 points to a focus on management consulting. 6. The contract was awarded to a single entity, the Washington State Hospital Association. 7. The contract's value is significant within the administrative management consulting sector. 8. The geographic location of the awardee is Washington state.

Value Assessment

Rating: good

The contract value of $24.9 million over approximately 3.5 years for administrative and management consulting services appears reasonable given the scope. Benchmarking against similar large-scale innovation improvement contracts is challenging without more specific service details. However, the firm-fixed-price structure suggests that the government aimed to control costs upfront. The number of bids received (16) indicates a competitive environment that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The solicitation attracted 16 bids, indicating a healthy level of interest and competition for this type of service. A robust competitive process generally leads to better price discovery and a wider range of innovative solutions being considered by the government.

Taxpayer Impact: The high number of bidders suggests that taxpayers benefited from competitive pricing and potentially more effective solutions due to the diverse proposals received.

Public Impact

The primary beneficiaries are likely healthcare providers in Washington state, who would receive support and resources for innovation. The services delivered would focus on improving healthcare delivery, efficiency, and patient outcomes through innovative approaches. The geographic impact is primarily focused on Washington state, where the Washington State Hospital Association is based and operates. Workforce implications could include training and development for healthcare professionals involved in innovation initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if innovation goals are not clearly defined and managed.
Dependence on the specific expertise and capacity of the Washington State Hospital Association.
Risk of innovation initiatives not translating into widespread, sustainable improvements across the healthcare system.

Positive Signals

Awarded through full and open competition, suggesting a strong initial vetting process.
Firm-fixed-price contract type helps manage cost certainty for the government.
The Washington State Hospital Association's established presence may indicate relevant expertise and existing networks.
A significant number of bids (16) points to a competitive market for these services.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, specifically applied to healthcare innovation. This sector is crucial for driving efficiency and effectiveness in public services. The market size for healthcare consulting is substantial, with numerous firms offering specialized services. This contract represents a significant investment by the Centers for Medicare and Medicaid Services (CMS) in fostering innovation within a specific state's hospital system.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it mention subcontracting plans. Given the nature of the awardee (Washington State Hospital Association) and the contract's focus, it is likely that the primary work was performed by the association or its direct partners, rather than through extensive subcontracting to small businesses. Further analysis would be needed to determine if small businesses were indirectly involved or if opportunities were missed.

Oversight & Accountability

Oversight for this contract would typically be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures would be tied to the performance metrics and deliverables outlined in the contract. Transparency is generally facilitated through contract award databases and public reporting, though specific project details might be proprietary. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Healthcare Innovation Initiatives
Hospital Quality Improvement Programs
Administrative Management Consulting Services
Centers for Medicare and Medicaid Services Contracts

Risk Flags

Contract Duration
Awardee Type
Service Type

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.9 million to WASHINGTON STATE HOSPITAL ASSOCIATION. HOSPITAL INNOVATION IMPROVEMENT NETWORK CONTRACT - IGF::CT::IGF

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 $24.9 million.

What is the period of performance?

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

What specific innovation projects were undertaken by the Washington State Hospital Association under this contract?

The contract aimed to support the Hospital Innovation Improvement Network (HIIN) initiative, which focused on improving the quality, safety, and affordability of healthcare. Specific projects likely involved the development and implementation of best practices in areas such as patient safety, care coordination, population health management, and cost reduction. The Washington State Hospital Association, as a large healthcare advocacy group, would have facilitated knowledge sharing, technical assistance, and performance measurement among its member hospitals to drive these innovations. Detailed project outcomes would typically be documented in progress reports and final evaluations submitted to CMS.

How does the $24.9 million award compare to similar federal contracts for healthcare innovation?

Comparing this $24.9 million award requires context on the scope and duration. Federal contracts for healthcare innovation can vary widely. Some might be smaller, research-focused grants, while others could be larger, system-wide implementation contracts. This contract, awarded over approximately 3.5 years to a state hospital association, suggests a significant investment in a regional approach to innovation. It's likely comparable to other large-scale cooperative agreements or contracts aimed at improving healthcare delivery across a defined network or state, particularly those managed by CMS or other health-focused agencies. Without specific details on the deliverables and the number of participating entities, a precise benchmark is difficult.

What were the key performance indicators (KPIs) for this contract?

While specific KPIs are not detailed in the provided data, contracts for healthcare innovation typically focus on measurable improvements in patient outcomes, cost efficiency, and quality of care. For the Hospital Innovation Improvement Network (HIIN) contract, likely KPIs would include reductions in hospital-acquired conditions, readmission rates, mortality rates, and patient safety incidents. Additionally, metrics related to the adoption of new care models, patient engagement, and the overall cost of care within participating hospitals would be crucial. The Washington State Hospital Association would have been responsible for tracking and reporting on these indicators to CMS.

What is the track record of the Washington State Hospital Association in managing large federal contracts?

The Washington State Hospital Association (WSHA) is a well-established organization representing hospitals and health systems in Washington state. While specific details on their track record managing large federal contracts are not provided here, their role as a central coordinating body for healthcare initiatives suggests experience in program management, stakeholder engagement, and potentially grant administration. Their deep understanding of the state's healthcare landscape and existing relationships with providers would be assets in managing such a contract. Further investigation into their past federal awards and performance would provide a clearer picture of their capabilities.

Were there any identified risks or challenges during the contract period, and how were they addressed?

Potential risks for a contract of this nature could include challenges in achieving widespread adoption of innovations across diverse hospital settings, resistance to change, difficulties in data collection and reporting, and ensuring equitable distribution of benefits. Addressing these would typically involve proactive project management, strong communication channels between CMS and WSHA, technical assistance tailored to member hospitals' needs, and adaptive strategies to overcome implementation hurdles. The firm-fixed-price nature might also create pressure to manage scope tightly. Specific risk mitigation strategies would be detailed in WSHA's project plans and progress reports to CMS.

How did this contract contribute to the broader goals of the Centers for Medicare and Medicaid Services (CMS)?

This contract directly supported CMS's strategic goals of improving healthcare quality, affordability, and patient outcomes. By funding the Hospital Innovation Improvement Network (HIIN) through the Washington State Hospital Association, CMS aimed to foster a collaborative environment where hospitals could share best practices and implement evidence-based innovations. This approach aligns with CMS's broader efforts to transition from a fee-for-service model to value-based care, incentivizing providers to focus on quality and efficiency rather than volume. The contract served as a mechanism to drive systemic improvements within a significant healthcare market.

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

Address: 999 3RD AVE STE 1400, SEATTLE, WA, 98104

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: $24,912,399

Exercised Options: $24,912,399

Current Obligation: $24,912,399

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline