HHS awards $27.5M contract for ACO model evaluation, with a 2,646-day performance period

Contract Overview

Contract Amount: $27,497,410 ($27.5M)

Contractor: National Opinion Research Center

Awarding Agency: Department of Health and Human Services

Start Date: 2016-09-08

End Date: 2023-12-07

Contract Duration: 2,646 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF NEXT GENERATION ACCOUNTABLE CARE ORGANIZATION MODEL EVALUATION

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $27.5 million to NATIONAL OPINION RESEARCH CENTER for work described as: IGF::OT::IGF NEXT GENERATION ACCOUNTABLE CARE ORGANIZATION MODEL EVALUATION Key points: 1. Contract value represents a significant investment in understanding healthcare delivery models. 2. The extended performance period suggests a long-term evaluation or phased approach. 3. The contractor has a substantial history with federal research and data analysis. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight. 5. The broad NAICS code indicates a wide scope of potential research activities. 6. The contract was awarded under full and open competition, suggesting a robust bidding process.

Value Assessment

Rating: good

The contract value of $27.5 million over approximately seven years (2,646 days) for a comprehensive evaluation of an accountable care organization model appears reasonable given the scope and duration. Benchmarking against similar large-scale program evaluations by CMS or other health agencies would provide further context, but the investment aligns with the complexity of assessing healthcare system performance. The Cost Plus Fixed Fee (CPFF) structure, while common for research and development, necessitates diligent monitoring to ensure costs remain aligned with the fixed fee and project objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is expected to yield a fair price and ensure the selection of a contractor with the best capabilities for the complex task of evaluating an ACO model. The presence of four bidders (no=4) suggests a healthy level of interest and competition for this significant federal research contract.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring that the government receives the best value for its investment. It also promotes transparency and fairness in the award process.

Public Impact

Beneficiaries include Medicare and potentially other beneficiaries of improved healthcare delivery models. Services delivered include rigorous evaluation, data analysis, and reporting on the effectiveness of Accountable Care Organizations. Geographic impact is national, as ACO models are implemented across the United States. Workforce implications may include employment for researchers, data analysts, and subject matter experts within the contracting organization and potentially within CMS for oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
The long duration of the contract (2,646 days) requires sustained focus and adaptability.
The broad scope of 'Research and Development in the Social Sciences and Humanities' may present challenges in defining specific deliverables and success metrics.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contractor, National Opinion Research Center (NORC), has extensive experience in large-scale research and evaluation.
The contract aims to evaluate a critical healthcare delivery model (ACOs) with potential for significant public health impact.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on social sciences and humanities applied to healthcare policy. The market for health services research and program evaluation is substantial, with significant government spending directed towards understanding and improving healthcare delivery. Comparable spending benchmarks would involve looking at other large-scale evaluations of federal health initiatives, such as those conducted by NIH, AHRQ, or other CMS programs. The National Opinion Research Center (NORC) is a well-established entity in this space, often competing for and winning large federal research grants and contracts.

Small Business Impact

There is no indication that this contract included a small business set-aside (ss=false, sb=false). Given the nature of the work, which requires specialized research expertise and capacity for large-scale data analysis, it is less likely to be broken down into smaller components suitable for small business subcontracting unless specific data collection or niche analytical tasks are identified. The primary focus is on the core research capabilities of the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Medicare and Medicaid Services (CMS), the awarding agency. As a Cost Plus Fixed Fee contract, CMS would be responsible for monitoring expenditures to ensure they align with the approved costs and the fixed fee. Performance reviews, milestone tracking, and adherence to research protocols would be key oversight mechanisms. Transparency is facilitated through reporting requirements mandated by the contract. While no specific Inspector General (IG) jurisdiction is mentioned, the HHS OIG generally has oversight over HHS programs and contracts, including those managed by CMS.

Related Government Programs

Accountable Care Organization (ACO) Programs
Medicare Innovation Center (CMMI) Initiatives
Health Services Research Grants
Program Evaluation Contracts
Healthcare Policy Analysis

Risk Flags

Cost Overruns Risk (CPFF)
Scope Creep Risk
Long-Term Project Management Challenges
Data Integrity and Security
Adaptability to Healthcare Policy Changes

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $27.5 million to NATIONAL OPINION RESEARCH CENTER. IGF::OT::IGF NEXT GENERATION ACCOUNTABLE CARE ORGANIZATION MODEL EVALUATION

Who is the contractor on this award?

The obligated recipient is NATIONAL OPINION RESEARCH CENTER.

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 $27.5 million.

What is the period of performance?

Start: 2016-09-08. End: 2023-12-07.

What is the track record of the National Opinion Research Center (NORC) with federal contracts, particularly in healthcare evaluation?

The National Opinion Research Center (NORC) at the University of Chicago has a long and extensive history of conducting large-scale research and evaluation projects for various U.S. federal agencies, including the Department of Health and Human Services (HHS), Centers for Medicare and Medicaid Services (CMS), National Institutes of Health (NIH), and others. Their expertise spans a wide range of social science disciplines, with a significant focus on healthcare policy, program evaluation, survey research, and data analysis. NORC has been involved in numerous studies related to healthcare delivery systems, patient outcomes, health disparities, and the effectiveness of federal health programs. Their track record suggests a strong capability to manage complex, multi-year research endeavors like the ACO model evaluation, often handling substantial budgets and diverse stakeholder engagement.

How does the $27.5 million contract value compare to similar federal healthcare program evaluations?

The $27.5 million contract value for the "NEXT GENERATION ACCOUNTABLE CARE ORGANIZATION MODEL EVALUATION" over approximately seven years (2,646 days) is substantial but falls within the expected range for comprehensive, multi-faceted evaluations of major federal healthcare initiatives. Large-scale program evaluations conducted by CMS or other health-focused agencies often involve significant investments due to the complexity of data collection, analysis, stakeholder engagement, and the need for rigorous methodologies to assess program impact. For instance, evaluations of other CMMI models, large public health campaigns, or national health surveys can command similar or even higher budgets depending on their scope, duration, and data requirements. The value reflects the depth of research required to understand the nuances of ACO performance and its impact on healthcare quality and costs.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude ($27.5 million) and long duration (2,646 days) revolve around cost control and scope creep. For the government, the risk is that the contractor may incur costs exceeding initial projections, even with a fixed fee, if efficiencies are not realized or if unforeseen challenges arise. The CPFF structure incentivizes the contractor to incur costs to achieve the fixed fee, potentially leading to less cost-consciousness than other contract types if not rigorously overseen. For the contractor, the risk lies in accurately estimating the costs to perform the work within the fixed fee, especially over a long period where market conditions, labor rates, and research complexities can change. Effective oversight by the agency is crucial to mitigate these risks by closely monitoring expenditures, ensuring adherence to the statement of work, and managing any necessary contract modifications.

What does the 'Research and Development in the Social Sciences and Humanities' (NAICS 541720) classification imply for the scope of this contract?

The NAICS code 541720, 'Research and Development in the Social Sciences and Humanities,' indicates that this contract is focused on systematic study and investigation in fields such as economics, sociology, psychology, political science, anthropology, history, and related areas. For this specific contract evaluating ACO models, it implies the research will likely involve analyzing social and economic factors influencing healthcare delivery, understanding behavioral aspects of providers and patients within ACOs, assessing policy impacts, and potentially examining the societal implications of these models. The scope is broad, encompassing theoretical and applied research, data collection through surveys, interviews, and existing datasets, and the development of analytical frameworks to understand complex human and societal phenomena related to healthcare.

Given the 'FULL AND OPEN COMPETITION' award, what does the number of bidders (4) suggest about the market for this type of research?

The fact that this contract was awarded under 'FULL AND OPEN COMPETITION' with four bidders suggests a moderately competitive market for large-scale healthcare program evaluations. Four bidders indicate that there are multiple entities with the requisite expertise, capacity, and resources to undertake such a significant research endeavor. This level of competition is generally considered healthy, as it provides the government with options and encourages bidders to offer competitive pricing and innovative approaches. However, it also implies that the market might not be saturated with highly specialized firms for this niche, or that the barriers to entry (e.g., past performance requirements, security clearances, established relationships) might limit the pool to a select group of experienced contractors. The government likely benefited from comparing distinct proposals and cost structures.

What are the potential implications of the 2,646-day performance period for the evaluation's findings?

The extended performance period of 2,646 days (approximately 7.25 years) for the ACO model evaluation has several implications. Firstly, it allows for a longitudinal study, enabling the researchers to track the evolution of ACO performance over an extended timeframe, capturing both short-term effects and long-term trends. This is crucial for understanding the sustainability and adaptability of ACO models. Secondly, it permits the incorporation of multiple phases or iterations of the evaluation, potentially allowing for adjustments based on interim findings or changes in the healthcare landscape. Thirdly, it necessitates robust project management and sustained funding commitment from the agency. Finally, the long duration suggests the evaluation aims to capture a comprehensive picture, including potential lagged impacts and the full lifecycle of the ACO model's implementation and effects.

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 FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1155 E 60TH ST, CHICAGO, IL, 60637

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: $27,497,410

Exercised Options: $27,497,410

Current Obligation: $27,497,410

Actual Outlays: $6,802,378

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $9,249,472

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201400035I

IDV Type: IDC

Timeline