HHS awarded $14M+ for Part D Enhanced Medication Therapy Management, with Acumen LLC as contractor
Contract Overview
Contract Amount: $14,074,234 ($14.1M)
Contractor: Acumen LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2016-09-20
End Date: 2023-02-19
Contract Duration: 2,343 days
Daily Burn Rate: $6.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Healthcare
Official Description: IGF::OT::IGF EVALUATION OF THE PART-D ENHANCED MEDICATION THERAPY MANAGEMENT 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 $14.1 million to ACUMEN LLC for work described as: IGF::OT::IGF EVALUATION OF THE PART-D ENHANCED MEDICATION THERAPY MANAGEMENT MODEL Key points: 1. Contract value exceeds $14 million over its period of performance. 2. Acumen LLC, the sole contractor, has managed this initiative since 2016. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. Performance period spans over 6 years, indicating a long-term engagement. 5. The North American Industry Classification System (NAICS) code suggests a focus on research and development. 6. This contract is categorized under the Health and Human Services sector.
Value Assessment
Rating: fair
The contract's total value of over $14 million for research and development in medication therapy management over more than six years suggests a significant investment. Benchmarking this against similar contracts is challenging without more specific details on the scope of work and deliverables. However, the Cost Plus Fixed Fee (CPFF) contract type introduces inherent risks for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee, potentially leading to higher final costs than anticipated if not managed tightly. The absence of readily available comparative pricing data makes a definitive value-for-money assessment difficult.
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. While the specific number of bidders is not detailed, full and open competition generally fosters a more competitive environment, which can lead to better pricing and innovation. The fact that it was competed openly suggests that the agency sought the best value through a broad solicitation process.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices and encourages a wider range of solutions.
Public Impact
Beneficiaries of Medicare Part D are expected to benefit from improved medication therapy management services. The services delivered aim to enhance the effectiveness and efficiency of medication use for beneficiaries. The geographic impact is national, as it pertains to Medicare Part D, a federal program. The contract supports research and development, potentially leading to advancements in healthcare delivery models. Workforce implications may include roles in research, analysis, and program management within the healthcare sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize cost increases if not rigorously monitored.
- Long performance period (over 6 years) requires sustained oversight to ensure continued value and relevance.
- Limited public detail on specific performance metrics and outcomes makes independent assessment of success challenging.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- Focus on enhancing medication therapy management aligns with goals to improve patient outcomes and reduce healthcare costs.
- Contract duration indicates a sustained commitment to addressing a critical area of healthcare.
Sector Analysis
This contract falls within the Health and Human Services sector, specifically focusing on research and development related to Medicare Part D. The market for healthcare consulting and research services is substantial, with numerous firms specializing in program evaluation, policy analysis, and operational improvements for government health programs. Spending in this area is driven by the need to optimize healthcare delivery, manage costs, and improve patient outcomes within complex federal programs like Medicare.
Small Business Impact
Information regarding small business set-asides or subcontracting plans is not explicitly provided for this contract. As the contract was awarded under full and open competition, the primary focus was likely on securing the best overall proposal rather than specific small business participation goals. Further investigation into subcontracting reports, if available, would be necessary to determine the extent of small business involvement.
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's office for HHS is responsible for auditing and investigating potential fraud, waste, and abuse within HHS programs. Transparency regarding specific performance metrics, deliverables, and financial expenditures would be crucial for comprehensive oversight and accountability.
Related Government Programs
- Medicare Part D Prescription Drug Benefit
- Medication Therapy Management Programs
- Healthcare Research and Development Contracts
- Federal Health Program Evaluation
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Long contract duration necessitates ongoing monitoring for relevance and effectiveness.
- Limited public information on specific deliverables and outcomes hinders independent assessment.
Tags
healthcare, medicare-part-d, medication-therapy-management, research-and-development, department-of-health-and-human-services, centers-for-medicare-and-medicaid-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, acumen-llc, maryland, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $14.1 million to ACUMEN LLC. IGF::OT::IGF EVALUATION OF THE PART-D ENHANCED MEDICATION THERAPY MANAGEMENT MODEL
Who is the contractor on this award?
The obligated recipient is ACUMEN 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 $14.1 million.
What is the period of performance?
Start: 2016-09-20. End: 2023-02-19.
What specific services or research outcomes has Acumen LLC delivered under this contract?
The contract, identified as IGF::OT::IGF EVALUATION OF THE PART-D ENHANCED MEDICATION THERAPY MANAGEMENT MODEL, focuses on the evaluation of the Part D Enhanced Medication Therapy Management (MTM) model. While specific deliverables are not detailed in the provided data, the nature of the contract suggests that Acumen LLC has been responsible for conducting research, analysis, and providing reports related to the effectiveness, efficiency, and potential improvements of MTM services under Medicare Part D. This could include data analysis, stakeholder interviews, literature reviews, and the development of recommendations for program enhancement. The contract's duration and value indicate a substantial scope of work in evaluating and potentially refining how MTM services are delivered to Medicare beneficiaries.
How does the Cost Plus Fixed Fee (CPFF) structure impact the overall cost-effectiveness of this contract?
The Cost Plus Fixed Fee (CPFF) contract structure reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. While this structure can be beneficial for complex projects where the scope is not fully defined at the outset, it carries inherent risks for cost control. The contractor has less incentive to minimize costs compared to fixed-price contracts, as their profit (the fixed fee) remains constant regardless of the actual costs incurred. Effective management by the contracting agency is crucial to monitor allowable costs rigorously and ensure that the project stays within budget. Without strong oversight, CPFF contracts can lead to cost overruns, potentially making them less cost-effective than other contract types if not managed diligently.
What is the historical spending trend for this specific contract or similar MTM evaluation contracts?
The provided data indicates a total award of $14,074,233.82 for this specific contract, with a performance period from September 20, 2016, to February 19, 2023, spanning approximately 6.4 years. This averages to roughly $2.2 million per year. Without access to historical federal procurement databases or specific reports on MTM evaluations, it is difficult to establish a precise historical spending trend for this contract or comparable ones. However, the consistent funding over several years suggests a sustained commitment by CMS to evaluating and improving Part D MTM services. Trends in federal healthcare spending often reflect evolving policy priorities, budget allocations, and the perceived value of specific program interventions.
What are the key performance indicators (KPIs) used to measure the success of Acumen LLC's work on this contract?
The provided data does not explicitly list the Key Performance Indicators (KPIs) used to measure the success of Acumen LLC's work under this contract. Typically, for a contract focused on evaluating a medication therapy management model, KPIs would likely revolve around the quality and timeliness of research deliverables, the depth and accuracy of data analysis, the clarity and actionability of recommendations provided, and adherence to project milestones. Success would also be measured by the impact of their findings on subsequent CMS policy or program adjustments related to Part D MTM. The contracting officer's representative (COR) and the contracting officer would be responsible for monitoring performance against defined metrics outlined in the contract's statement of work.
Are there any known performance issues or contractor disputes associated with Acumen LLC on this or similar federal contracts?
The provided data does not contain information regarding performance issues or contractor disputes related to Acumen LLC for this specific contract or similar federal contracts. A comprehensive assessment would require reviewing contract performance reports, past performance questionnaires, and any official records of disputes or contract modifications. Acumen LLC has been the sole contractor for this initiative since its inception in 2016, which might suggest a generally satisfactory performance, or it could reflect the specific nature of the research and evaluation required. However, without access to detailed performance histories, it is impossible to definitively state whether there have been any significant issues.
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: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 500 AIRPORT BLVD STE 365, BURLINGAME, CA, 94010
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,074,234
Exercised Options: $14,074,234
Current Obligation: $14,074,234
Actual Outlays: $2,903,937
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSM500201400027I
IDV Type: IDC
Timeline
Start Date: 2016-09-20
Current End Date: 2023-02-19
Potential End Date: 2023-02-19 00:00:00
Last Modified: 2026-02-05
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