HHS awarded $25.3M to Yale New Haven Health Services for consulting, with a 1749-day duration

Contract Overview

Contract Amount: $25,329,766 ($25.3M)

Contractor: Yale NEW Haven Health Services Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2014-09-30

End Date: 2019-07-15

Contract Duration: 1,749 days

Daily Burn Rate: $14.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: IGF::CL::IGF AWARD OF MIDS TORP 141192

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 $25.3 million to YALE NEW HAVEN HEALTH SERVICES CORPORATION for work described as: IGF::CL::IGF AWARD OF MIDS TORP 141192 Key points: 1. The contract's value of $25.3 million over nearly five years suggests a significant investment in specialized consulting services. 2. Competition dynamics for this contract are not detailed, but the award type indicates a structured procurement process. 3. The duration of the contract (1749 days) implies a long-term need for the services provided. 4. Performance context is limited without specific deliverables or outcomes, but the agency and contractor suggest a focus on healthcare operations or policy. 5. The sector positioning is within healthcare consulting, a critical area for government health programs. 6. The cost-plus-fixed-fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can incentivize efficiency but requires careful oversight.

Value Assessment

Rating: fair

Benchmarking the value of this $25.3 million contract is challenging without specific details on the services rendered. However, the duration of nearly five years suggests a substantial, ongoing need. The CPFF structure means costs are reimbursed, plus a fixed fee, which can be reasonable if costs are well-managed and the fee is appropriate for the scope. Comparing it to similar large-scale healthcare consulting contracts would provide better context for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This suggests a robust process aimed at securing competitive pricing and the best value. The number of bidders is not specified, but the 'full and open' designation implies a market capable of supporting multiple interested parties for these consulting services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services.

Public Impact

The primary beneficiaries are likely the Centers for Medicare and Medicaid Services (CMS) and potentially other parts of the Department of Health and Human Services (HHS), receiving expert advice. The services delivered are categorized as 'Other Scientific and Technical Consulting Services,' suggesting a broad scope that could include policy analysis, operational improvements, or technical guidance. The geographic impact is primarily national, given the scope of CMS operations, though specific project locations may vary. Workforce implications could include the engagement of specialized consultants and potential knowledge transfer to government staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored, as the contractor is reimbursed for costs incurred.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the consulting services provided.
The long contract duration (nearly 5 years) may indicate a lack of flexibility or potential for vendor lock-in if not managed proactively.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process that should yield fair pricing.
The contractor, Yale New Haven Health Services Corporation, is a known entity in the healthcare sector, implying relevant expertise.
The contract is managed by the Centers for Medicare and Medicaid Services (CMS), a key agency with significant oversight capabilities.

Sector Analysis

This contract falls within the healthcare consulting sector, a vital segment supporting government health programs like Medicare and Medicaid. The market for such services is substantial, driven by the complexity of healthcare policy, regulation, and operations. Comparable spending benchmarks would involve analyzing other large consulting contracts awarded by HHS or similar agencies for strategic advice and technical support.

Small Business Impact

There is no indication that this contract involved small business set-asides, as the contractor is a large healthcare system. Subcontracting opportunities for small businesses are not explicitly mentioned but could exist depending on the specific consulting tasks assigned. The impact on the small business ecosystem is likely minimal for this particular award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Medicare and Medicaid Services (CMS), the awarding agency. Accountability measures would be tied to the contract's performance clauses and the fixed fee structure. Transparency is facilitated by the public nature of federal contract awards, though detailed project specifics may be proprietary.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration may pose risks if needs evolve or services become obsolete.
Limited public information on specific deliverables and performance outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $25.3 million to YALE NEW HAVEN HEALTH SERVICES CORPORATION. IGF::CL::IGF AWARD OF MIDS TORP 141192

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 $25.3 million.

What is the period of performance?

Start: 2014-09-30. End: 2019-07-15.

What specific types of consulting services did Yale New Haven Health Services Corporation provide under this contract?

The contract is broadly categorized under 'Other Scientific and Technical Consulting Services' (NAICS code 541690). While specific deliverables are not detailed in the provided data, this category typically encompasses a wide range of expert advisory services. For a contract with CMS, these services could include analysis of healthcare regulations, development of operational strategies for Medicare or Medicaid programs, assessment of healthcare delivery models, technical guidance on health IT systems, or support for policy development and implementation. The Cost Plus Fixed Fee (CPFF) structure suggests that the contractor was reimbursed for allowable costs incurred in performing these services, plus a predetermined fixed fee for their efforts. Further details would likely be found in the contract's statement of work.

How does the $25.3 million award compare to typical spending on similar consulting services by HHS?

Comparing the $25.3 million award to typical HHS spending requires access to broader federal procurement data. However, $25.3 million over nearly five years ($5.06 million annually on average) for specialized healthcare consulting is substantial but not unusual for a large agency like HHS, particularly for complex programs like Medicare and Medicaid. Large consulting engagements for strategic planning, policy analysis, or system implementation often run into the tens of millions of dollars. To provide a precise comparison, one would need to benchmark against contracts with similar NAICS codes (e.g., 541611 - Administrative Management and General Management Consulting Services, or 541690 - Other Scientific and Technical Consulting Services) awarded by HHS or its sub-agencies over comparable periods.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to a fixed-price contract, as their costs are reimbursed. While the fixed fee provides a profit ceiling, the contractor is still guaranteed to cover their expenses. For a $25.3 million contract over nearly five years, this necessitates rigorous oversight from the agency to ensure that all costs are reasonable, allocable, and allowable. Scope creep is another risk; if the scope of work expands without proper modification and adjustment of the fee or ceiling, costs can escalate. Additionally, the long duration increases the risk of the services becoming outdated or misaligned with evolving agency needs if not actively managed and reviewed.

What does the 'full and open competition' designation imply about the contractor selection process and potential value for taxpayers?

The 'full and open competition' designation signifies that the contract was awarded after a process where all responsible sources were permitted to submit a bid or proposal. This is generally the preferred method of procurement as it maximizes competition, theoretically leading to the best possible price and quality for the government. It implies that the agency did not restrict the field of potential contractors. For taxpayers, this means that the government likely explored a range of options and providers, increasing the likelihood that the selected contractor, Yale New Haven Health Services Corporation, offered a competitive price and a strong technical approach. It reduces the risk of favoritism and promotes market efficiency.

How has HHS spending on 'Other Scientific and Technical Consulting Services' trended over the past decade?

Analyzing the trend of HHS spending on 'Other Scientific and Technical Consulting Services' (NAICS 541690) over the past decade would require accessing historical federal procurement databases like USAspending.gov. Generally, spending in this category can fluctuate based on agency priorities, specific program needs, and the availability of internal expertise. Given the increasing complexity of healthcare policy, regulatory changes (e.g., Affordable Care Act implementation and subsequent modifications), and the push for technological advancements in healthcare, it is plausible that HHS has maintained or potentially increased its reliance on external consulting services in this domain. However, specific trends would need empirical data analysis to confirm.

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: 4

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: $25,329,766

Exercised Options: $25,329,766

Current Obligation: $25,329,766

Actual Outlays: $100,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201313018I

IDV Type: IDC

Timeline