HHS awards $43M for Oncology Care Model research, with 4 orders and a 2025 end date
Contract Overview
Contract Amount: $42,950,612 ($43.0M)
Contractor: ABT Global LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2015-12-28
End Date: 2025-06-27
Contract Duration: 3,469 days
Daily Burn Rate: $12.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: Healthcare
Official Description: IGF::OT::IGF EVALUATION OF THE ONCOLOGY CARE MODEL
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $43.0 million to ABT GLOBAL LLC for work described as: IGF::OT::IGF EVALUATION OF THE ONCOLOGY CARE MODEL Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes contractor performance. 3. The duration of the contract is over 10 years, indicating a long-term commitment. 4. The contract is for Research and Development in Social Sciences and Humanities, a broad category. 5. The award amount of $42.95 million is substantial for R&D in this sector. 6. The contract has already seen 4 delivery orders, showing active tasking.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific deliverables or comparable R&D contracts in the oncology care space. The Cost Plus Award Fee structure allows for flexibility but can lead to higher costs if performance targets are not well-defined or achieved. The total award amount of $42.95 million over its lifespan suggests a significant investment in understanding and improving oncology care models.
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 had the opportunity to submit proposals. This competitive process is generally expected to yield fair pricing and innovative solutions. The number of bidders is not specified, but the open competition suggests a healthy market for these services.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the significant investment in oncology care research.
Public Impact
Patients undergoing cancer treatment may benefit from improved care models developed through this research. Healthcare providers could see enhanced operational efficiencies and patient outcomes. The research aims to advance the understanding and implementation of effective oncology care strategies. The geographic impact is likely national, given the scope of Medicare and CMS initiatives. The workforce implications could include advancements in healthcare administration and research roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can sometimes lead to cost overruns if award criteria are not strictly managed.
- The broad nature of 'Research and Development in Social Sciences and Humanities' may require close monitoring to ensure focus and relevance to oncology care.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- The Cost Plus Award Fee structure incentivizes contractor performance and achievement of specific goals.
- The long contract duration indicates a sustained commitment to improving oncology care models.
Sector Analysis
This contract falls within the broader healthcare sector, specifically focusing on research and development related to care delivery models. The market for health services research is substantial, driven by continuous efforts to improve patient outcomes, reduce costs, and enhance efficiency within the healthcare system. Comparable spending benchmarks would typically involve other large-scale R&D initiatives by government agencies like HHS or NIH focused on health policy and delivery.
Small Business Impact
The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. Therefore, the direct impact on the small business ecosystem is unclear from this information alone. Further analysis would be needed to determine if small businesses are involved as subcontractors or if the prime contractor has a history of engaging with small businesses.
Oversight & Accountability
Oversight for this contract would primarily reside with the Centers for Medicare and Medicaid Services (CMS), an agency within the Department of Health and Human Services (HHS). The Inspector General of HHS is responsible for auditing and investigating potential fraud, waste, and abuse within HHS programs, including contracts like this one. Transparency would be facilitated through contract award notices and potentially through public reporting of research findings.
Related Government Programs
- Oncology Care Model
- Medicare Payment Advisory Commission (MedPAC)
- National Cancer Institute (NCI)
- Agency for Healthcare Research and Quality (AHRQ)
Risk Flags
- Long contract duration may lead to evolving relevance of research objectives.
- Cost Plus Award Fee structure requires diligent performance monitoring to ensure value.
Tags
healthcare, research-and-development, health-and-human-services, centers-for-medicare-and-medicaid-services, cost-plus-award-fee, full-and-open-competition, delivery-order, maryland, large-contract, oncology-care-model
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $43.0 million to ABT GLOBAL LLC. IGF::OT::IGF EVALUATION OF THE ONCOLOGY CARE MODEL
Who is the contractor on this award?
The obligated recipient is ABT GLOBAL LLC.
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 $43.0 million.
What is the period of performance?
Start: 2015-12-28. End: 2025-06-27.
What is the specific nature of the research being conducted under this contract for the Oncology Care Model?
The contract is broadly categorized under 'Research and Development in the Social Sciences and Humanities' (NAICS 541720) and specifically supports the Oncology Care Model (OCM). While the exact research deliverables are not detailed in the provided data, the OCM itself is designed to improve the quality and lower the cost of cancer care. Therefore, the research likely focuses on evaluating the effectiveness of different care delivery and payment strategies within the OCM, analyzing patient outcomes, provider participation, cost savings, and identifying best practices. This could involve data analysis, qualitative studies, economic modeling, and policy recommendations to further refine and expand the OCM or similar initiatives.
How does the Cost Plus Award Fee (CPAF) structure influence contractor performance and cost for this contract?
The Cost Plus Award Fee (CPAF) contract structure allows the contractor (ABT GLOBAL LLC) to be reimbursed for allowable costs plus a fee that is composed of a fixed base fee and an award amount. The award amount is determined by the government based on the contractor's performance against pre-defined criteria and objectives. This structure incentivizes the contractor to meet or exceed performance expectations to maximize their fee. For taxpayers, it means that while costs are reimbursed, the total expenditure can vary based on performance. Effective oversight and clearly defined award criteria are crucial to ensure that the government obtains high-quality services at a reasonable cost and that the award fee truly reflects exceptional performance rather than just meeting minimum requirements.
What is the historical spending pattern for contracts related to the Oncology Care Model by the Centers for Medicare and Medicaid Services?
The provided data focuses on a single contract awarded in 2015 with a long duration and significant value. To understand historical spending patterns for the Oncology Care Model (OCM) by CMS, one would need to analyze a broader dataset of OCM-related contracts over time. This would include examining the number of contracts awarded, their durations, award amounts, and the types of services procured (e.g., research, technical assistance, data analysis, program evaluation). Analyzing trends in spending, such as increases or decreases in contract values or shifts in the types of services sought, would provide insight into CMS's evolving strategy and investment in the OCM and similar value-based care initiatives.
What are the potential risks associated with a long-duration contract like this for R&D in healthcare?
Long-duration contracts, such as this 10-year award, carry several potential risks, especially in a rapidly evolving field like healthcare R&D. One risk is technological obsolescence; the research methods or technologies employed at the start of the contract might become outdated by its end. Another risk is scope creep, where the project's objectives may expand beyond the original intent, leading to increased costs and delays. Furthermore, market dynamics and healthcare policy can shift significantly over a decade, potentially making the original research goals less relevant or requiring substantial adaptation. Finally, maintaining consistent contractor performance and engagement over such a long period can be challenging, requiring robust oversight and periodic re-evaluation of objectives and performance metrics.
How does the 'Research and Development in the Social Sciences and Humanities' classification impact the oversight and evaluation of this contract?
The classification 'Research and Development in the Social Sciences and Humanities' (NAICS 541720) indicates that the contract's focus is on non-biological, non-physical sciences, often involving human behavior, societal structures, and policy analysis. This impacts oversight by requiring evaluators with expertise in social science research methodologies, qualitative analysis, and policy evaluation, rather than purely scientific or technical expertise. Evaluating performance might involve assessing the rigor of research design, the validity of data collection and analysis, the relevance of findings to policy objectives, and the clarity of reporting. The 'award fee' component would be tied to achieving specific research milestones, quality of insights, and impact on policy recommendations related to oncology care models.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Social Sciences and Humanities
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
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 55 WHEELER ST, CAMBRIDGE, MA, 02138
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $42,950,612
Exercised Options: $42,950,612
Current Obligation: $42,950,612
Actual Outlays: $9,394,263
Subaward Activity
Number of Subawards: 34
Total Subaward Amount: $34,817,778
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSM500201400026I
IDV Type: IDC
Timeline
Start Date: 2015-12-28
Current End Date: 2025-06-27
Potential End Date: 2025-06-27 00:00:00
Last Modified: 2025-11-04
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