HHS awards $53.5M for oncology care model, with 4 orders issued under a 2015 contract

Contract Overview

Contract Amount: $53,490,141 ($53.5M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2015-09-03

End Date: 2025-06-02

Contract Duration: 3,560 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: IGF::OT::IGF ONCOLOGY CARE MODEL IMPLEMENTATION AND MONITORING

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $53.5 million to RESEARCH TRIANGLE INSTITUTE for work described as: IGF::OT::IGF ONCOLOGY CARE MODEL IMPLEMENTATION AND MONITORING Key points: 1. Contract value represents a significant investment in improving cancer care delivery. 2. The contract's duration suggests a long-term commitment to the oncology care model. 3. Multiple delivery orders indicate ongoing program needs and phased implementation. 4. The 'Research and Development in the Social Sciences and Humanities' NAICS code suggests a focus on program evaluation and analysis. 5. The contractor, Research Triangle Institute, has a substantial role in this federal initiative. 6. The contract's cost-plus-fixed-fee structure requires careful monitoring of costs and performance.

Value Assessment

Rating: good

The total award of $53.5 million over its life is substantial for a program focused on care model implementation and monitoring. Benchmarking this against similar large-scale healthcare program management contracts is difficult without more specific details on the scope of services. However, the fixed-fee component suggests that the contractor's profit is capped, which can be a positive indicator for value if costs are managed effectively. The duration of the contract, spanning nearly a decade, also implies a sustained effort and potentially a well-established relationship, which can lead to efficiencies.

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 drive better pricing and innovation. The fact that there are four delivery orders suggests that the initial contract has been utilized for specific phases or tasks within the broader oncology care model initiative. The level of competition at the outset is a positive sign for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at the most favorable prices and encourages a wider pool of qualified contractors, potentially leading to better service quality.

Public Impact

Patients undergoing cancer treatment are the primary beneficiaries, through improved care coordination and outcomes. Healthcare providers participating in the oncology care model will receive support and resources for program implementation. The Centers for Medicare and Medicaid Services (CMS) benefits from enhanced data collection and analysis for program evaluation. The contract supports the development and refinement of innovative healthcare delivery models within the oncology sector. Geographic impact is likely nationwide, as the oncology care model aims to influence cancer care practices across Medicare beneficiaries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts require diligent oversight to ensure costs remain reasonable and do not escalate beyond expectations.
The long duration of the contract (nearly 10 years) necessitates ongoing performance monitoring to ensure continued relevance and effectiveness.
The specific nature of 'Research and Development in the Social Sciences and Humanities' might lead to challenges in defining and measuring tangible outputs compared to more technical R&D.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contractor, Research Triangle Institute, is a well-established research organization, implying expertise in managing complex research and demonstration projects.
The issuance of multiple delivery orders indicates continued need and satisfaction with the contractor's performance on the program.

Sector Analysis

This contract falls within the healthcare services and research sector, specifically focusing on the implementation and monitoring of a value-based care model for oncology. The market for healthcare research, program evaluation, and demonstration projects is substantial, with government agencies like HHS being major clients. Comparable spending benchmarks would typically involve other large-scale federal health program management and evaluation contracts, often awarded through competitive processes to specialized research organizations.

Small Business Impact

There is no explicit indication of small business set-asides for this particular contract. Given the nature of the work, which involves complex research, implementation, and monitoring of a national healthcare model, it is possible that subcontracting opportunities may exist for specialized services. However, the primary awardee, Research Triangle Institute, is a large research organization, suggesting the main contract is not specifically targeted at small businesses.

Oversight & Accountability

Oversight for this contract is primarily the responsibility of the Centers for Medicare and Medicaid Services (CMS), an agency within the Department of Health and Human Services. As a cost-plus-fixed-fee contract, CMS will monitor the contractor's expenditures to ensure they align with the fixed fee and the scope of work. Transparency is facilitated through the contract award process and reporting requirements. While no specific Inspector General jurisdiction is mentioned, the HHS Office of Inspector General (OIG) generally has oversight over HHS programs and contracts.

Related Government Programs

Medicare Quality Payment Program
Center for Medicare and Medicaid Innovation (CMMI) Initiatives
Oncology Care Model (OCM)
Value-Based Healthcare Programs
Healthcare Delivery System Reform

Risk Flags

Long contract duration may lead to outdated methodologies or reduced adaptability.
Cost-plus-fixed-fee requires diligent oversight to manage costs effectively.
Potential for scope creep if not clearly defined and managed across delivery orders.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $53.5 million to RESEARCH TRIANGLE INSTITUTE. IGF::OT::IGF ONCOLOGY CARE MODEL IMPLEMENTATION AND MONITORING

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 $53.5 million.

What is the period of performance?

Start: 2015-09-03. End: 2025-06-02.

What is the specific scope of work covered by the 'IGF ONCOLOGY CARE MODEL IMPLEMENTATION AND MONITORING' contract?

The contract, identified as 'IGF ONCOLOGY CARE MODEL IMPLEMENTATION AND MONITORING,' is designed to support the Centers for Medicare and Medicaid Services (CMS) in the implementation and ongoing monitoring of the Oncology Care Model (OCM). This model aims to improve the quality of care and reduce costs for Medicare beneficiaries undergoing cancer treatment. The scope likely includes activities such as data collection, performance analysis, provider support, technical assistance, and evaluation of the model's effectiveness. The NAICS code 541720 (Research and Development in the Social Sciences and Humanities) suggests a strong emphasis on research, analysis, and program evaluation rather than direct healthcare provision.

How does the cost-plus-fixed-fee (CPFF) contract structure impact value for money in this oncology care model initiative?

The Cost-Plus-Fixed-Fee (CPFF) structure means the contractor, Research Triangle Institute (RTI), is reimbursed for allowable costs incurred plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. For value for money, it's crucial that CMS rigorously oversees allowable costs and that the fixed fee is reasonable for the scope of work. This structure can be effective for R&D or services where the final cost is uncertain, but it requires strong government oversight to prevent cost overruns from impacting the overall value proposition.

What is the track record of Research Triangle Institute (RTI) in managing large federal health research contracts?

Research Triangle Institute (RTI) has a long-standing and extensive track record of managing complex federal research and technical assistance contracts, particularly within the health sector for agencies like HHS, CMS, and NIH. They are known for their expertise in health services research, program evaluation, survey methodology, and data analysis. RTI has been involved in numerous large-scale government initiatives, including studies on healthcare quality, access, and costs. Their experience suggests they are well-equipped to handle the demands of implementing and monitoring a significant program like the Oncology Care Model, providing a degree of confidence in their ability to perform.

How does the $53.5 million award compare to other federal investments in healthcare quality improvement programs?

The $53.5 million award for the Oncology Care Model implementation and monitoring is a significant investment, but it needs to be contextualized within the broader landscape of federal healthcare spending and quality improvement initiatives. CMS and other HHS agencies manage numerous programs aimed at improving healthcare quality and reducing costs, often involving multi-billion dollar budgets for overall program administration and beneficiary services. While this specific contract value is substantial for a single program's support services, it represents a fraction of the total federal expenditure on healthcare. Benchmarking requires comparing it to similar contracts for program management, research, and evaluation within CMS or other federal health agencies.

What are the potential risks associated with the long duration (2015-2025) of this contract?

The long duration of this contract, spanning a decade, presents several potential risks. Firstly, the healthcare landscape and best practices in oncology care can evolve rapidly; a contract established in 2015 might not fully align with the most current approaches by 2025 without significant modifications. Secondly, there's a risk of contractor complacency or reduced innovation over such an extended period. Thirdly, changes in administration or policy priorities could impact the program's direction or funding. Finally, long-term contracts can sometimes face challenges in adapting to unforeseen technological advancements or shifts in the healthcare market, potentially diminishing their long-term effectiveness if not actively managed and updated.

What is the significance of the 'Research and Development in the Social Sciences and Humanities' NAICS code for this contract?

The NAICS code 541720, 'Research and Development in the Social Sciences and Humanities,' is significant because it clarifies the primary nature of the work performed under this contract. It indicates that the focus is not on direct medical treatment or the development of new drugs/technologies, but rather on studying human society, behavior, and relationships, and applying research methods to understand and improve social programs and policies. For the Oncology Care Model, this means RTI's role likely involves analyzing patient outcomes, provider behaviors, cost data, and the overall impact of the model, using social science research methodologies to inform CMS's understanding and future policy decisions.

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: 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: $53,490,141

Exercised Options: $53,490,141

Current Obligation: $53,490,141

Actual Outlays: $7,768,493

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $8,536,905

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201400037I

IDV Type: IDC

Timeline