HHS awarded $21.6M to Yale New Haven Health Services for consulting, spanning over 4 years

Contract Overview

Contract Amount: $21,639,210 ($21.6M)

Contractor: Yale NEW Haven Health Services Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2009-09-30

End Date: 2013-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $14.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: MIDS TASK ORDER AWARD 90914

Place of Performance

Location: NEW HAVEN, NEW HAVEN County, CONNECTICUT, 06510

State: Connecticut Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.6 million to YALE NEW HAVEN HEALTH SERVICES CORPORATION for work described as: MIDS TASK ORDER AWARD 90914 Key points: 1. The contract's value appears reasonable given the duration and the nature of consulting services. 2. Competition dynamics were favorable, with multiple bidders indicating a healthy market. 3. Performance risks seem manageable, though long-term consulting can present integration challenges. 4. This contract aligns with CMS's ongoing need for expert advice in healthcare operations. 5. The IT consulting sector is highly competitive, suggesting potential for value. 6. The cost-plus-fixed-fee structure allows for flexibility while maintaining cost control.

Value Assessment

Rating: good

The $21.6 million award for a 4-year consulting contract with Yale New Haven Health Services Corporation appears to be within a reasonable range for the services provided. Benchmarking against similar large-scale healthcare consulting engagements suggests that the overall value is competitive. The cost-plus-fixed-fee (CPFF) pricing structure, while offering flexibility, requires careful monitoring to ensure costs remain aligned with the fixed fee component and deliverable value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors had the opportunity to bid. With 3 bidders identified, the level of competition suggests a robust marketplace for these specialized consulting services. This competition is generally beneficial for price discovery and can lead to more favorable terms for the government.

Taxpayer Impact: The competitive nature of this award likely resulted in a more cost-effective solution for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and potentially healthcare providers and beneficiaries through improved program administration. Services delivered likely encompass strategic planning, operational efficiency improvements, and policy analysis within CMS. The geographic impact is national, given CMS's role in administering federal healthcare programs. Workforce implications may involve leveraging external expertise to supplement internal CMS capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term consulting engagements.
Ensuring alignment of contractor's recommendations with evolving federal healthcare policies.
Managing the transition of knowledge and implementation of recommendations post-contract.

Positive Signals

Award to a known entity (Yale New Haven Health Services) suggests established capabilities.
Competitive award process indicates potential for strong performance and value.
Fixed fee component provides a degree of cost certainty.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on healthcare consulting. The market for healthcare consulting is substantial, driven by the complexity of federal healthcare programs like Medicare and Medicaid. Comparable spending benchmarks for large federal consulting contracts can range from tens to hundreds of millions of dollars, depending on scope and duration.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor are there explicit mentions of subcontracting goals for small businesses. This suggests that the primary focus was on securing the best overall solution from a pool of qualified large businesses. The impact on the small business ecosystem is likely minimal unless Yale New Haven Health Services actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight would typically be managed by the Contracting Officer's Representative (COR) at CMS, responsible for monitoring performance, deliverables, and adherence to contract terms. Accountability measures are embedded in the CPFF structure, linking payment to performance and fixed fee achievement. Transparency is facilitated through contract award databases, though detailed performance reports are often internal.

Related Government Programs

Medicare Program Integrity
Medicaid Program Administration
Healthcare Policy Consulting
Health IT Consulting Services

Risk Flags

Potential for cost overruns due to CPFF structure if not closely monitored.
Risk of contractor recommendations not being fully implemented or becoming outdated.
Dependency on external expertise may limit internal knowledge growth.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.6 million to YALE NEW HAVEN HEALTH SERVICES CORPORATION. MIDS TASK ORDER AWARD 90914

Who is the contractor on this award?

The obligated recipient is YALE NEW HAVEN HEALTH SERVICES CORPORATION.

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 $21.6 million.

What is the period of performance?

Start: 2009-09-30. End: 2013-09-29.

What specific expertise does Yale New Haven Health Services Corporation bring to CMS for this contract?

Yale New Haven Health Services Corporation, as a major healthcare provider system, likely brings deep operational expertise in managing complex healthcare delivery, patient care coordination, and healthcare administration. For CMS, this could translate into insights on improving program efficiency, understanding provider challenges, enhancing beneficiary services, and advising on policy implementation from a practical, real-world perspective. Their experience in navigating regulatory environments and managing large-scale healthcare operations provides a valuable foundation for consulting services aimed at optimizing federal healthcare programs.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for similar consulting services?

The Cost-Plus-Fixed-Fee (CPFF) structure is common for complex services where the scope may evolve, offering flexibility. It differs from fixed-price contracts, which offer greater cost certainty but less flexibility, and cost-reimbursement contracts, which offer maximum flexibility but less cost control. For consulting, CPFF aims to incentivize the contractor to control costs to protect their fixed fee while allowing for necessary adjustments. However, it requires robust government oversight to ensure costs are reasonable and allocable, and that the fixed fee adequately compensates for the effort without being excessive.

What are the potential risks associated with a 4-year consulting contract of this magnitude?

A 4-year consulting contract of this magnitude carries several potential risks. Scope creep is a significant concern, where the project's objectives expand beyond the original agreement, potentially increasing costs and delaying timelines. There's also the risk of vendor lock-in, where the agency becomes overly reliant on the contractor's expertise, hindering internal capacity development. Furthermore, changes in federal administration or healthcare policy during the contract period could render the contractor's advice obsolete or require significant pivots. Ensuring continuous alignment with CMS's strategic goals and effective knowledge transfer to government personnel are critical risk mitigation strategies.

How does this contract's value compare to other federal spending on healthcare consulting?

The $21.6 million awarded to Yale New Haven Health Services Corporation for this 4-year contract represents a significant but not extraordinary investment in healthcare consulting. Federal agencies, particularly HHS and CMS, frequently award multi-million dollar contracts for specialized expertise in areas like health IT, policy analysis, program management, and operational efficiency. While specific benchmarks vary widely based on scope, duration, and complexity, this award appears to be within the typical range for large-scale, long-term consulting engagements supporting major federal healthcare initiatives. It reflects the substantial resources dedicated to ensuring the effective administration of complex programs like Medicare and Medicaid.

What is the historical spending pattern for similar consulting services by CMS?

CMS historically spends billions of dollars annually on a wide array of professional and technical services, including healthcare consulting. This spending is driven by the need for specialized expertise to manage, improve, and adapt its vast programs. Contracts for consulting services can range from short-term, project-specific engagements to long-term, broad-scope agreements similar to this one. Analyzing historical spending patterns reveals a consistent demand for external expertise to address evolving healthcare landscapes, regulatory changes, and technological advancements, making contracts like this a recurring component of CMS's operational budget.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 789 HOWARD AVE, NEW HAVEN, CT, 06519

Business Categories: Category Business, Corporate Entity Tax Exempt, Hospital, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,639,210

Exercised Options: $21,639,210

Current Obligation: $21,639,210

Actual Outlays: $100,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSM500200800025I

IDV Type: IDC

Timeline