HHS awarded $33.2M for DME demonstration services, with C2C Innovative Solutions Inc. managing the project

Contract Overview

Contract Amount: $33,234,133 ($33.2M)

Contractor: C2C Innovative Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2015-09-30

End Date: 2019-09-30

Contract Duration: 1,461 days

Daily Burn Rate: $22.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE AWARD FEE

Sector: Healthcare

Official Description: IGF::CL::IGF QUALIFIED INDEPENDENT CONTRACTOR (QIC) DME DEMONSTRATION

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32202

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $33.2 million to C2C INNOVATIVE SOLUTIONS, INC. for work described as: IGF::CL::IGF QUALIFIED INDEPENDENT CONTRACTOR (QIC) DME DEMONSTRATION Key points: 1. The contract aimed to demonstrate improved outcomes and cost efficiencies in Durable Medical Equipment (DME) services. 2. Performance was tied to specific metrics, suggesting a focus on measurable results and value for money. 3. The fixed-price award fee structure incentivizes contractor performance while managing cost risks. 4. The contract duration of 1461 days indicates a substantial, long-term project. 5. The award was made under full and open competition, suggesting a robust market for these services. 6. The contract's focus on DME demonstration implies a strategic effort to innovate within healthcare delivery.

Value Assessment

Rating: good

The contract value of $33.2 million over approximately four years for a specialized demonstration project appears reasonable. Benchmarking against similar large-scale healthcare demonstration contracts is challenging due to their unique nature. However, the fixed-price award fee structure suggests an attempt to control costs while incentivizing performance, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. This competitive process is expected to drive better pricing and service quality as contractors vie for the award. The number of bidders is not specified, but the open competition suggests a healthy market for these specialized administrative and management consulting services.

Taxpayer Impact: Taxpayers benefit from a competitive process that typically leads to more cost-effective solutions and a wider array of innovative approaches to healthcare demonstrations.

Public Impact

Beneficiaries of the demonstration project likely include Medicare beneficiaries who use Durable Medical Equipment, aiming for improved access and quality of care. The services delivered focus on the administrative and management aspects of a demonstration project, rather than direct patient care. The geographic impact is primarily within Florida, as indicated by the 'ST' and 'SN' fields, suggesting a localized demonstration. Workforce implications could include roles in project management, data analysis, and administrative support for the demonstration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in demonstration projects if not tightly managed.
Reliance on contractor's ability to effectively manage and execute a complex demonstration.
Ensuring data integrity and accurate reporting from the demonstration is crucial for its success.

Positive Signals

Fixed-price award fee structure aligns contractor incentives with performance goals.
Full and open competition suggests a robust market and potential for innovation.
Focus on demonstration implies a forward-looking approach to improving healthcare services.

Sector Analysis

This contract falls within the professional services sector, specifically administrative management and general management consulting. The market for such services in healthcare is substantial, driven by the complexity of federal programs like Medicare and the need for specialized expertise in program design, implementation, and evaluation. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of demonstration projects, but the overall federal spending on healthcare consulting services runs into billions annually.

Small Business Impact

The data indicates that small business participation was not a primary focus, as 'ss' (small business set-aside) is false and 'sb' (small business) is false. This suggests the contract was awarded based on best value to the government without specific set-aside requirements. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, C2C Innovative Solutions, Inc., but are not mandated by the contract structure.

Oversight & Accountability

Oversight for this contract would typically be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures are embedded in the fixed-price award fee structure, linking payment to performance. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of the demonstration's progress and outcomes may be internal to CMS.

Related Government Programs

Medicare Part B DME Benefit
CMS Innovation Center Initiatives
Healthcare Demonstration Projects
Durable Medical Equipment Services

Risk Flags

Potential for performance issues if demonstration metrics are not clearly defined or achievable.
Risk of cost overruns if the fixed-price component does not adequately cover all project expenses.
Dependence on contractor's expertise for successful demonstration design and execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $33.2 million to C2C INNOVATIVE SOLUTIONS, INC.. IGF::CL::IGF QUALIFIED INDEPENDENT CONTRACTOR (QIC) DME DEMONSTRATION

Who is the contractor on this award?

The obligated recipient is C2C INNOVATIVE SOLUTIONS, 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 $33.2 million.

What is the period of performance?

Start: 2015-09-30. End: 2019-09-30.

What was the specific objective of the DME demonstration project managed by C2C Innovative Solutions, Inc.?

The specific objective of the Durable Medical Equipment (DME) demonstration project was to test and evaluate innovative approaches to the delivery and management of DME services. The goal was likely to identify methods that could improve patient outcomes, enhance beneficiary access to necessary equipment, and potentially reduce overall healthcare costs associated with DME. Such demonstrations are crucial for the Centers for Medicare and Medicaid Services (CMS) to gather evidence before implementing widespread policy changes or new service models across the Medicare program.

How did the fixed-price award fee structure influence contractor performance?

The fixed-price award fee (FP-AF) structure is designed to provide a baseline payment for services rendered (fixed-price component) while offering additional incentive payments based on the achievement of specific performance objectives (award fee component). For C2C Innovative Solutions, Inc., this meant that their overall earnings were tied not just to completing the contracted tasks but also to excelling in predefined areas, such as meeting quality metrics, efficiency targets, or innovation goals within the DME demonstration. This incentivizes the contractor to go beyond minimum requirements and actively seek ways to deliver superior value and achieve the demonstration's intended outcomes.

What are the potential risks associated with managing a large-scale healthcare demonstration project like this?

Managing a large-scale healthcare demonstration project presents several risks. These include the potential for unforeseen challenges in implementation, difficulties in accurately measuring outcomes due to complex patient populations or external factors, and the risk of 'scope creep' where project objectives expand beyond initial plans. There's also a risk related to data integrity and analysis, ensuring that the collected data accurately reflects the demonstration's impact. Furthermore, stakeholder buy-in, including from beneficiaries, providers, and suppliers, can be a challenge. Finally, the transition from a demonstration phase to potential broader policy implementation carries its own set of risks if the findings are not robust or scalable.

Can the $33.2 million contract value be benchmarked against similar federal healthcare demonstration projects?

Benchmarking the $33.2 million contract value against similar federal healthcare demonstration projects is challenging due to the highly specific and often unique nature of each initiative. Demonstration projects are typically designed to test novel concepts or address particular gaps in care or payment models, making direct comparisons difficult. While other large-scale demonstrations funded by CMS or other agencies might have similar or higher price tags, the scope, duration, and specific objectives of each project vary significantly. A more meaningful comparison would involve analyzing the cost per beneficiary served or the cost relative to the potential savings or improvements targeted by the demonstration, rather than just the total contract value.

What does the 'Administrative Management and General Management Consulting Services' NAICS code imply about the contractor's role?

The North American Industry Classification System (NAICS) code 541611, 'Administrative Management and General Management Consulting Services,' indicates that C2C Innovative Solutions, Inc. was primarily engaged in providing expertise and advice on management and administrative issues. For this contract, it suggests their role involved planning, organizing, and overseeing the operational aspects of the DME demonstration project. This could include tasks such as strategic planning, process improvement, organizational structuring, performance measurement system design, and general project management, rather than direct provision of medical equipment or services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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: 1

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Parent Company: TMF Health Quality Institute

Address: 532 RIVERSIDE AVE, JACKSONVILLE, FL, 32202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,234,133

Exercised Options: $33,234,133

Current Obligation: $33,234,133

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSM500200400005I

IDV Type: IDC

Timeline