HHS awards $29.4M for ECQM development, with Mathematica Inc. as prime contractor

Contract Overview

Contract Amount: $29,441,154 ($29.4M)

Contractor: Mathematica Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2014-06-19

End Date: 2019-06-18

Contract Duration: 1,825 days

Daily Burn Rate: $16.1K/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 "ELECTRONIC CLINICAL QUALITY MEASURES (ECQM) DEVELOPMENT AND MAINTENANCE FOR ELIGIBLE PROFESSIONALS".

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $29.4 million to MATHEMATICA INC. for work described as: IGF::CL::IGF AWARD OF TASK ORDER ENTITLED "ELECTRONIC CLINICAL QUALITY MEASURES (ECQM) DEVELOPMENT AND MAINTENANCE FOR ELIGIBLE PROFESSIONALS". Key points: 1. Contract focuses on critical quality measurement for healthcare providers. 2. Long-term engagement suggests ongoing need for these services. 3. Cost-plus-fixed-fee structure allows for flexibility but requires careful oversight. 4. Competition was robust, indicating potential for fair pricing. 5. Performance period spans five years, aligning with program evolution. 6. Geographic concentration in DC may reflect agency proximity.

Value Assessment

Rating: good

The contract's value of $29.4 million over five years for ECQM development and maintenance appears reasonable given the specialized nature of the work. Benchmarking against similar contracts for health IT development and consulting services suggests that this award falls within expected ranges. The cost-plus-fixed-fee structure, while common for complex R&D, necessitates diligent monitoring to ensure costs remain aligned with the fixed fee and project scope. Without specific per-unit cost data for ECQM modules, a direct price comparison is difficult, but the overall award size is consistent with the scope of developing and maintaining quality measures for a large federal agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a competitive environment, which typically drives better pricing and innovation. The level of competition is a positive signal for price discovery, as it allows the agency to select the most advantageous offer based on both technical merit and cost. The agency's decision to pursue full and open competition aligns with best practices for maximizing value and ensuring a broad base of potential contractors can participate.

Taxpayer Impact: Taxpayers benefit from a competitive process that is likely to result in a more cost-effective solution for developing and maintaining essential clinical quality measures.

Public Impact

Eligible healthcare professionals and their patients benefit from improved quality measurement tools. The Centers for Medicare and Medicaid Services (CMS) receives support for its quality improvement initiatives. The contract supports the development and maintenance of electronic clinical quality measures (ECQMs). Workforce implications are likely within the health IT and healthcare consulting sectors, particularly for Mathematica Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not managed tightly.
The long duration of the contract requires sustained oversight to ensure continued relevance and effectiveness of ECQMs.
Dependence on a single contractor for critical quality measure development could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, indicating a healthy market and potential for value.
The contract addresses a core function of CMS, supporting national healthcare quality initiatives.
Mathematica Inc. is a known entity in government contracting, suggesting a degree of reliability.

Sector Analysis

This contract falls within the Health Information Technology (Health IT) and Healthcare Consulting sector. This sector is characterized by significant government spending aimed at improving healthcare delivery, efficiency, and quality through technology and data. The market for developing and maintaining clinical quality measures is specialized, requiring expertise in both clinical practice and health informatics. Comparable spending benchmarks in this area often involve significant investments in software development, data analysis, and regulatory compliance, reflecting the complexity of modern healthcare systems.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The prime contractor, Mathematica Inc., is a large business. This means that the direct economic impact on the small business ecosystem from this specific award is likely minimal, unless Mathematica Inc. voluntarily engages small businesses as subcontractors for specialized tasks not covered by their core competencies.

Oversight & Accountability

Oversight for this contract would primarily fall under the Centers for Medicare and Medicaid Services (CMS), the agency administering the award. As a cost-plus-fixed-fee contract, rigorous financial oversight is crucial to ensure that costs incurred are reasonable and allocable to the contract's objectives, and that the fixed fee is earned appropriately. Transparency is facilitated through contract reporting requirements. While no specific Inspector General (IG) jurisdiction is mentioned, the HHS OIG generally has oversight over CMS programs and contracts, investigating fraud, waste, and abuse.

Related Government Programs

Electronic Health Records (EHR) Incentive Programs
Quality Payment Program (QPP)
Meaningful Use Program
Health Information Exchange (HIE) initiatives
Healthcare Data Analytics Services

Risk Flags

Cost-Plus-Fixed-Fee Contract Type
Long-Term Contract Duration
Specialized Technical Expertise Required

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $29.4 million to MATHEMATICA INC.. IGF::CL::IGF AWARD OF TASK ORDER ENTITLED "ELECTRONIC CLINICAL QUALITY MEASURES (ECQM) DEVELOPMENT AND MAINTENANCE FOR ELIGIBLE PROFESSIONALS".

Who is the contractor on this award?

The obligated recipient is MATHEMATICA 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 $29.4 million.

What is the period of performance?

Start: 2014-06-19. End: 2019-06-18.

What is the specific nature of the 'Electronic Clinical Quality Measures (ECQM) Development and Maintenance' being performed under this contract?

The contract focuses on the creation, refinement, and ongoing support of ECQMs, which are standardized measures used to assess the quality of healthcare services provided by eligible professionals and organizations. This involves defining specific clinical processes and outcomes, developing the logic and data requirements for these measures to be captured electronically within Electronic Health Record (EHR) systems, and ensuring these measures remain relevant and accurate over time. The work supports CMS's broader initiatives to improve healthcare quality, patient safety, and cost-effectiveness by enabling the systematic collection and reporting of quality data.

How does the cost-plus-fixed-fee (CPFF) contract structure influence the contractor's incentives and the government's oversight requirements?

A CPFF structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used for research and development or services where the scope is not fully defined at the outset. It incentivizes the contractor to complete the work efficiently to maximize their fixed profit margin, but it also places a significant burden on the government to meticulously monitor costs to prevent overruns and ensure that expenditures are reasonable and directly related to the contract's objectives. Robust government oversight is essential to manage risks associated with this contract type.

What is Mathematica Inc.'s track record with similar federal contracts, particularly within the healthcare and health IT sectors?

Mathematica Inc. has a substantial history of performing work for federal agencies, including HHS and CMS. They are well-regarded for their expertise in health policy research, program evaluation, and health IT. Their portfolio often includes projects related to quality measurement, healthcare analytics, and the development of systems that support federal health programs. While specific performance details for this exact task order are not provided, their general track record suggests they possess the necessary qualifications and experience to undertake complex projects like ECQM development and maintenance.

How does the $29.4 million award compare to historical spending on ECQM development and maintenance by CMS or similar agencies?

The $29.4 million awarded over five years represents an average annual expenditure of approximately $5.88 million for ECQM development and maintenance. This figure appears to be within a reasonable range for a specialized, long-term federal contract of this nature. CMS and other agencies within HHS invest significantly in quality improvement infrastructure. While direct historical comparisons for this specific service line are complex due to evolving program requirements and contracting vehicles, this award size is consistent with the ongoing need for expert support in maintaining and advancing national quality measurement systems.

What are the potential risks associated with relying on a single contractor for the development and maintenance of critical clinical quality measures?

The primary risks associated with relying on a single contractor for critical ECQM development and maintenance include potential disruptions to service if the contractor underperforms or faces financial instability, a lack of competitive pressure to innovate or improve efficiency over time, and a potential loss of institutional knowledge if the contract transitions. To mitigate these risks, the government typically employs strong contract management, performance monitoring, and contingency planning. Regular reviews and clear performance standards are crucial to ensure the contractor remains aligned with agency goals and maintains high-quality output.

What is the expected impact of these ECQMs on healthcare providers and the broader healthcare system?

The ECQMs developed and maintained under this contract are designed to help healthcare providers systematically track and improve the quality of care they deliver. By enabling electronic capture of quality data, these measures reduce the administrative burden associated with manual reporting and provide more timely insights into performance. For the broader healthcare system, widespread adoption and use of standardized ECQMs facilitate comparisons across providers, support value-based purchasing initiatives, and ultimately contribute to better patient outcomes and more efficient healthcare delivery.

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: Mathematica Inc

Address: 1100 1ST ST NE FL 12, WASHINGTON, DC, 20024

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,441,154

Exercised Options: $29,441,154

Current Obligation: $29,441,154

Actual Outlays: $2,048

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201313011I

IDV Type: IDC

Timeline