HHS awards $32.6M contract to Mathematica Inc. for CAHPS research, raising questions on value

Contract Overview

Contract Amount: $32,654,953 ($32.7M)

Contractor: Mathematica Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2012-07-20

End Date: 2017-07-19

Contract Duration: 1,825 days

Daily Burn Rate: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: EVALUATION/CAHPS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $32.7 million to MATHEMATICA INC. for work described as: EVALUATION/CAHPS Key points: 1. Contract awarded to a single vendor, raising potential competition concerns. 2. The contract spans five years, indicating a significant investment in research. 3. The use of Time and Materials pricing could lead to cost overruns. 4. The sector is R&D in Social Sciences, a niche area for federal spending.

Value Assessment

Rating: questionable

The contract value of $32.6 million over five years for CAHPS research appears high without clear benchmarks. The Time and Materials pricing structure introduces risk for cost escalation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the specific award type (Delivery Order) and the vendor's role need further scrutiny to ensure competitive pricing was achieved.

Taxpayer Impact: Taxpayer funds are being used for research, the value of which depends on the quality and impact of the findings.

Public Impact

Impacts patient experience surveys (CAHPS) used nationwide. Potential for improved healthcare quality measurement and reporting. Research findings could influence healthcare policy and provider performance evaluations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development in Social Sciences and Humanities sector. Federal spending in this area often focuses on policy analysis, program evaluation, and understanding societal trends. Benchmarks are difficult to establish due to the specialized nature of the research.

Small Business Impact

The provided data does not indicate any specific provisions or set-asides for small businesses. This contract appears to be awarded to a large business, with no direct benefit to small businesses evident.

Oversight & Accountability

Oversight would typically be managed by the Centers for Medicare and Medicaid Services (CMS). The effectiveness of oversight depends on clear performance metrics, regular reporting, and independent evaluation of deliverables.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-social-s, department-of-health-and-human-services, dc, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $32.7 million to MATHEMATICA INC.. EVALUATION/CAHPS

Who is the contractor on this award?

The obligated recipient is MATHEMATICA INC..

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 $32.7 million.

What is the period of performance?

Start: 2012-07-20. End: 2017-07-19.

What specific deliverables are expected from this $32.6 million contract, and how will their value be measured?

The contract focuses on CAHPS research, likely involving survey design, data analysis, and reporting. Value measurement would depend on the quality of insights generated, their impact on healthcare policy, and the potential for cost savings or quality improvements in healthcare delivery. Specific deliverables and their success metrics should be detailed in the contract's statement of work.

Given the Time and Materials pricing, what mechanisms are in place to control costs and prevent scope creep?

Time and Materials contracts inherently carry a risk of cost escalation. Effective cost control relies on robust oversight, clearly defined task orders, strict adherence to the ceiling price, and regular performance reviews. The government contracting officer must actively manage the scope and ensure that all work performed is necessary and within the contract's objectives.

How will the research conducted under this contract be validated to ensure its scientific rigor and applicability?

Validation typically involves peer review of research methodologies and findings, independent replication of results where feasible, and assessment by subject matter experts. The contract should outline requirements for data integrity, statistical analysis, and the presentation of findings to ensure scientific soundness and practical relevance for healthcare policy and practice.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch 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: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mathematica Inc

Address: 600 ALEXANDER PARK, PRINCETON, NJ, 08540

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,654,953

Exercised Options: $32,654,953

Current Obligation: $32,654,953

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSM500201000026I

IDV Type: IDC

Timeline

Start Date: 2012-07-20

Current End Date: 2017-07-19

Potential End Date: 2017-07-19 00:00:00

Last Modified: 2023-04-21

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