HHS awards $49M for symptom management measures, with 3 bidders competing

Contract Overview

Contract Amount: $49,134,373 ($49.1M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2014-09-01

End Date: 2019-08-31

Contract Duration: 1,825 days

Daily Burn Rate: $26.9K/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 " DEVELOPMENT AND MAINTENANCE OF SYMPTOM MANAGEMENT MEASURES ".

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $49.1 million to RESEARCH TRIANGLE INSTITUTE for work described as: IGF::CL::IGF AWARD OF TASK ORDER ENTITLED " DEVELOPMENT AND MAINTENANCE OF SYMPTOM MANAGEMENT MEASURES ". Key points: 1. Value for money appears reasonable given the multi-year duration and fixed-fee structure. 2. Strong competition with three bidders suggests a healthy market for these services. 3. Performance risk is moderate, typical for long-term research and development contracts. 4. This contract supports critical healthcare research within the Centers for Medicare and Medicaid Services. 5. The sector positioning is within scientific and technical consulting services for healthcare.

Value Assessment

Rating: good

The contract's total value of approximately $49 million over five years suggests a significant investment in developing and maintaining symptom management measures. Benchmarking against similar contracts for health services research and technical consulting indicates that the pricing is within a reasonable range, especially considering the specialized nature of the work. The cost-plus-fixed-fee (CPFF) contract type allows for flexibility while providing cost control incentives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three distinct bidders vying for the opportunity. The presence of multiple bidders indicates a competitive marketplace for these specialized services, which generally leads to better price discovery and potentially more innovative solutions. The agency's ability to attract three qualified offers suggests that the solicitation was well-defined and the requirements were accessible to a range of potential contractors.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by fostering a competitive environment that drives down costs and improves the quality of services received.

Public Impact

Beneficiaries include patients who will experience improved symptom management through better-defined measures. Services delivered include the development, maintenance, and refinement of critical healthcare quality measures. The geographic impact is national, as CMS operates across the United States. Workforce implications include employment for researchers, data analysts, and subject matter experts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term R&D contracts.
Ensuring continued relevance of measures over the contract duration.
Managing the complexity of a CPFF contract type.

Positive Signals

Strong competition indicates market validation of the requirement.
Fixed fee component provides cost predictability.
Multi-year award allows for sustained effort and expertise development.

Sector Analysis

This contract falls within the broader scientific and technical consulting services sector, specifically focusing on healthcare research and development. The market for health services research is substantial, driven by government initiatives to improve healthcare quality, efficiency, and patient outcomes. Comparable spending benchmarks in this area often involve significant investments in data analysis, measure development, and policy research, making the $49 million award size consistent with the scope of work.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. However, the prime contractor, Research Triangle Institute, may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the small business ecosystem. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight is likely managed by the Centers for Medicare and Medicaid Services (CMS) program officials, who would monitor progress, deliverables, and adherence to the contract terms. The cost-plus-fixed-fee structure necessitates careful financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract award databases and public reporting, though specific performance metrics may not be publicly disclosed.

Related Government Programs

Healthcare Quality Improvement Programs
Medicare Payment Advisory Commission (MedPAC) Research
Agency for Healthcare Research and Quality (AHRQ) Initiatives

Risk Flags

Potential for cost overruns in CPFF contracts.
Ensuring continued relevance and accuracy of measures over time.
Complexity of managing long-term R&D projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $49.1 million to RESEARCH TRIANGLE INSTITUTE. IGF::CL::IGF AWARD OF TASK ORDER ENTITLED " DEVELOPMENT AND MAINTENANCE OF SYMPTOM MANAGEMENT MEASURES ".

Who is the contractor on this award?

The obligated recipient is RESEARCH TRIANGLE INSTITUTE.

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 $49.1 million.

What is the period of performance?

Start: 2014-09-01. End: 2019-08-31.

What is the track record of Research Triangle Institute (RTI) in similar healthcare research contracts?

Research Triangle Institute (RTI) has a well-established track record in conducting health services research, program evaluation, and technical assistance for government agencies, including CMS and other components of the Department of Health and Human Services (HHS). They have a history of managing large, complex contracts involving data analysis, survey development, and the creation of measurement tools. Their experience in areas related to healthcare quality, patient outcomes, and health policy suggests they are well-equipped to handle the requirements of this contract. Specific past performance reviews and award histories would provide more granular detail on their success rates and client satisfaction in comparable projects.

How does the $49 million award compare to other contracts for developing healthcare quality measures?

The $49 million award for the development and maintenance of symptom management measures over a five-year period represents a significant but not unprecedented investment in this area. Contracts for developing and refining healthcare quality measures can vary widely in cost depending on their complexity, the scope of research required, and the number of stakeholders involved. Larger, multi-faceted measure development initiatives or those requiring extensive data infrastructure and validation can easily reach tens of millions of dollars. Given that this contract involves ongoing maintenance and potential updates, the total value appears aligned with the substantial and long-term nature of such critical healthcare infrastructure work.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, particularly for research and development (R&D) like this, revolve around cost control and scope definition. For the government, the risk is that actual costs could exceed initial estimates, although the fixed fee provides a ceiling on the contractor's profit. For the contractor, the risk is that they might underestimate the effort required, leading to reduced profit margins if costs escalate beyond what the fixed fee can cover. Effective management and clear communication are crucial to mitigate these risks, ensuring that the project stays within budget and meets its objectives without excessive cost overruns or contractor financial strain.

How effective are symptom management measures in improving patient care?

Symptom management measures are crucial tools for improving patient care by providing standardized ways to assess, track, and report on patient experiences with symptoms. By quantifying symptom severity, frequency, and impact, these measures allow healthcare providers to better understand patient needs, tailor treatment plans, and evaluate the effectiveness of interventions. When effectively developed and implemented, they can lead to more proactive symptom control, reduced patient suffering, improved quality of life, and potentially fewer hospital readmissions. The ongoing development and maintenance funded by this contract are essential to ensure these measures remain relevant, accurate, and useful in a constantly evolving healthcare landscape.

What has been the historical spending trend for similar HHS contracts related to healthcare quality measurement?

Historical spending by HHS, particularly through agencies like CMS and AHRQ, on healthcare quality measurement and improvement initiatives has been substantial and generally increasing over time. Federal investments in developing standardized quality metrics, performance benchmarks, and patient outcome tracking systems are a core component of healthcare reform efforts aimed at improving value and accountability. While specific figures for 'symptom management measures' might be granular, the overall trend shows a consistent and significant allocation of resources towards developing the infrastructure and tools necessary to measure and enhance the quality of care delivered across Medicare and Medicaid programs.

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

Address: 3040 CORNWALLIS RD, RESEARCH TRIANGLE PARK, NC, 27709

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: $49,134,373

Exercised Options: $49,134,373

Current Obligation: $49,134,373

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $2,140,286

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201313015I

IDV Type: IDC

Timeline