HHS awards $31.8M for hospital quality reporting outreach, with 3 bidders competing

Contract Overview

Contract Amount: $31,866,259 ($31.9M)

Contractor: Health Services Advisory Group, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2014-06-13

End Date: 2019-06-15

Contract Duration: 1,828 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: IGF::CL::IGF AWARD OF TASK ORDER ENTITLED "HOSPITAL INPATIENT VALUE INCENTIVES AND QUALITY REPORTING OUTREACH AND EDUCATION SUPPORT (VIQRC)".

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33609

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $31.9 million to HEALTH SERVICES ADVISORY GROUP, INC. for work described as: IGF::CL::IGF AWARD OF TASK ORDER ENTITLED "HOSPITAL INPATIENT VALUE INCENTIVES AND QUALITY REPORTING OUTREACH AND EDUCATION SUPPORT (VIQRC)". Key points: 1. Contract value represents a significant investment in healthcare quality improvement initiatives. 2. Competition dynamics suggest a moderately contested market for these specialized consulting services. 3. Performance period of over 5 years indicates a long-term need for sustained support. 4. The contract's focus on outreach and education highlights a strategic approach to engaging healthcare providers. 5. Sector positioning is within healthcare consulting, a field with substantial federal spending.

Value Assessment

Rating: good

The contract value of $31.8 million over approximately five years for outreach and education support for hospital quality reporting appears reasonable given the scope. Benchmarking against similar contracts for large-scale federal health program support suggests this is within expected ranges. The cost-plus-fixed-fee structure allows for flexibility while providing a defined profit margin for the contractor. Further analysis would require detailed cost breakdowns and comparison to specific, comparable task orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all eligible responsible sources were permitted to submit offers. With three bidders, the competition level was moderate, suggesting that while multiple firms were interested, the market may not be saturated with providers for this specific niche. This level of competition generally supports fair pricing and encourages contractors to offer competitive terms.

Taxpayer Impact: A full and open competition with multiple bidders helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Healthcare providers, particularly hospitals, benefit from improved guidance and resources on quality reporting requirements. The services delivered aim to enhance the accuracy and completeness of data submitted to CMS, supporting national healthcare quality initiatives. Geographic impact is nationwide, as the outreach and education efforts are intended to reach hospitals across the United States. Workforce implications include potential support for consultants and subject matter experts in healthcare policy and IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in outreach and education activities if not tightly managed.
Reliance on contractor expertise for interpreting and disseminating complex regulatory information.
Ensuring equitable reach and effectiveness of outreach across diverse hospital types and locations.

Positive Signals

Clear objective of improving hospital quality reporting, aligning with CMS strategic goals.
Contract structure allows for adaptation to evolving reporting requirements.
Full and open competition suggests a robust selection process.

Sector Analysis

This contract falls within the broader healthcare consulting sector, specifically focusing on health information and quality improvement programs. The market for such services is substantial, driven by federal mandates and the increasing complexity of healthcare regulations. Comparable spending benchmarks would include other large federal contracts supporting CMS initiatives, such as electronic health record adoption, value-based purchasing programs, and public health outreach. The size of this contract is significant within its niche.

Small Business Impact

The contract was not set aside for small businesses, and the prime contractor, Health Services Advisory Group, Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. This suggests that the primary focus was on securing the best overall solution from a qualified pool of offerors, rather than specifically promoting small business participation through set-asides for this particular award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Medicare and Medicaid Services (CMS), the contracting agency. As a delivery order under a larger contract vehicle, it is subject to the terms and conditions of that vehicle, as well as standard federal acquisition regulations. Accountability measures would be tied to performance metrics and deliverables outlined in the task order. Transparency is generally maintained through contract award databases, though specific performance details may be proprietary.

Related Government Programs

Medicare Quality Payment Program (QPP)
Hospital Inpatient Quality Reporting (IQR) Program
Centers for Medicare and Medicaid Services (CMS) Outreach and Education Initiatives
Healthcare Consulting Services

Risk Flags

Potential for outdated information due to evolving healthcare regulations.
Risk of inconsistent outreach effectiveness across diverse provider types.
Dependence on contractor's ability to interpret and communicate complex requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $31.9 million to HEALTH SERVICES ADVISORY GROUP, INC.. IGF::CL::IGF AWARD OF TASK ORDER ENTITLED "HOSPITAL INPATIENT VALUE INCENTIVES AND QUALITY REPORTING OUTREACH AND EDUCATION SUPPORT (VIQRC)".

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 $31.9 million.

What is the period of performance?

Start: 2014-06-13. End: 2019-06-15.

What is the track record of Health Services Advisory Group, Inc. with federal contracts, particularly with CMS?

Health Services Advisory Group, Inc. (HSAG) has a significant history of working with federal agencies, notably the Centers for Medicare and Medicaid Services (CMS). Their portfolio includes numerous contracts related to quality improvement, data analysis, and program support within the healthcare sector. HSAG has been involved in various initiatives aimed at enhancing healthcare quality, patient safety, and program integrity. Their experience often encompasses managing large-scale data reporting, conducting outreach to providers, and providing technical assistance. Reviewing their past performance on similar CMS contracts, such as those involving quality reporting or value-based purchasing, would provide further insight into their capabilities and reliability in executing complex federal healthcare initiatives.

How does the cost-plus-fixed-fee (CPFF) contract type influence value for money in this context?

The Cost-Plus-Fixed-Fee (CPFF) contract type means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is well-defined but there's some uncertainty in the exact costs. For value for money, it balances the government's need to cover necessary expenses with the contractor's incentive to control costs to protect their fixed profit margin. If costs exceed estimates, the contractor's profit is unaffected, but they may face scrutiny if costs are deemed unreasonable. Effective oversight by CMS is crucial to ensure that costs are allowable and reasonable, thereby maximizing the value derived from the taxpayer's investment in this outreach and education support.

What are the primary risks associated with a long-term contract for healthcare outreach and education?

Primary risks associated with a long-term contract for healthcare outreach and education include the potential for evolving regulatory landscapes, which could render initial strategies or materials outdated. There's also a risk of contractor performance degradation over time if motivation wanes or if key personnel depart. Furthermore, ensuring consistent and effective communication across a diverse range of healthcare providers nationwide presents logistical challenges. Another risk is the potential for misinterpretation or ineffective dissemination of complex quality reporting requirements, leading to non-compliance or suboptimal participation by providers. Finally, budget fluctuations or shifts in federal priorities could impact the sustained funding and focus of the program.

How does this contract contribute to the overall effectiveness of CMS's quality improvement programs?

This contract directly contributes to the effectiveness of CMS's quality improvement programs by ensuring that healthcare providers receive clear, consistent, and timely information regarding reporting requirements and best practices. Effective outreach and education can lead to improved data accuracy, better adherence to quality standards, and ultimately, enhanced patient care outcomes. By supporting programs like the Hospital Inpatient Value Incentives and Quality Reporting (VIQR) initiative, this contract helps CMS achieve its goals of promoting transparency, accountability, and value in healthcare delivery. The success of such programs hinges on the ability of providers to understand and implement complex regulations, a process facilitated by dedicated support services like those procured under this contract.

What historical spending patterns exist for similar federal contracts supporting healthcare quality reporting?

Historical spending patterns for federal contracts supporting healthcare quality reporting reveal a consistent and significant investment by agencies like CMS. These contracts often span multiple years and involve substantial dollar values, reflecting the complexity and national scale of healthcare quality initiatives. Spending is typically allocated towards program management, data analysis, technical assistance, and extensive outreach efforts to a wide array of healthcare providers. The trend has been towards increasing emphasis on value-based care and performance measurement, necessitating ongoing support for reporting and education. While specific figures vary by program and contract vehicle, the overall pattern indicates a sustained federal commitment to improving healthcare quality through data-driven initiatives.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: RFPCMSMIDS20130001

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Health Services Holdings, Inc.

Address: 3133 E CAMELBACK RD, 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: $31,866,259

Exercised Options: $31,866,259

Current Obligation: $31,866,259

Actual Outlays: $19,386

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201313007I

IDV Type: IDC

Timeline