HHS awards $19.7M for Accountable Health Communities, with Mathematica Inc. leading R&D efforts

Contract Overview

Contract Amount: $19,716,773 ($19.7M)

Contractor: Mathematica Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2017-05-17

End Date: 2023-11-17

Contract Duration: 2,375 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF ACCOUNTABLE HEALTH COMMUNITIES

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.7 million to MATHEMATICA INC. for work described as: IGF::OT::IGF ACCOUNTABLE HEALTH COMMUNITIES Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these services. 2. The contract duration of nearly 6.5 years indicates a long-term strategic investment by CMS. 3. Focus on Research and Development in Social Sciences and Humanities points to innovative approaches. 4. The cost-plus-fixed-fee structure allows for flexibility while managing contractor profit. 5. No small business set-aside was utilized, potentially limiting direct participation for smaller firms. 6. The contract's value is moderate within the broader R&D landscape.

Value Assessment

Rating: good

The contract's value of $19.7 million over 6.5 years appears reasonable for a research and development initiative of this scope. Benchmarking against similar large-scale R&D contracts within HHS or CMS would provide a more precise value-for-money assessment. The cost-plus-fixed-fee (CPFF) pricing structure is common for R&D where exact costs are difficult to predict, but it necessitates careful oversight to ensure efficiency and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 6 bidders (no is 6) suggests a competitive marketplace for these specialized R&D services. A competitive process generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from a competitive award process, which is expected to yield a fair price and high-quality services by leveraging the expertise of multiple interested parties.

Public Impact

The primary beneficiaries are likely healthcare providers and patients who will experience improved health outcomes through the Accountable Health Communities model. Services delivered include research, development, and potentially the implementation of strategies to improve population health and reduce healthcare costs. The geographic impact is national, as the Accountable Health Communities model aims to address health needs across the United States. Workforce implications may include the need for researchers, data analysts, and program managers within Mathematica Inc. and potentially partner organizations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in R&D projects if not managed tightly.
Reliance on a single prime contractor (Mathematica Inc.) for a significant R&D effort.
The CPFF structure requires diligent oversight to control costs effectively.

Positive Signals

Awarded through full and open competition, indicating a strong vendor pool.
Long contract duration suggests sustained focus and commitment to the program's goals.
The 'Accountable Health Communities' initiative itself is designed to improve healthcare value and outcomes.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on social sciences and humanities applied to healthcare. The market for health services research and development is substantial, driven by government initiatives and private sector innovation aimed at improving healthcare delivery, patient outcomes, and cost-effectiveness. Comparable spending benchmarks would typically be found within federal R&D budgets for health and social services.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses in the provided data. This means that while Mathematica Inc. is the prime contractor, opportunities for small businesses to participate would depend on their subcontracting strategy. Without explicit set-aside requirements, the direct impact on the small business ecosystem for this specific contract may be limited.

Oversight & Accountability

Oversight for this contract is likely managed by the Centers for Medicare and Medicaid Services (CMS), a division of HHS. As a cost-plus-fixed-fee contract, CMS would be responsible for monitoring expenditures, ensuring adherence to the scope of work, and verifying the achievement of research objectives. Transparency is typically maintained through regular reporting requirements from the contractor and potential public dissemination of research findings. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Accountable Health Communities Model
Centers for Medicare and Medicaid Services Initiatives
Health Services Research Grants
Social Science Research Funding
Healthcare Innovation and Delivery Improvement Programs

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Reliance on Prime Contractor Expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.7 million to MATHEMATICA INC.. IGF::OT::IGF ACCOUNTABLE HEALTH COMMUNITIES

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 $19.7 million.

What is the period of performance?

Start: 2017-05-17. End: 2023-11-17.

What is the historical spending trend for the Accountable Health Communities initiative under CMS?

The provided data focuses on a single contract award of $19.7 million to Mathematica Inc. for the Accountable Health Communities initiative, spanning from May 2017 to November 2023. To understand the historical spending trend, one would need to examine the total budget allocated to the Accountable Health Communities model across all contracts and funding mechanisms over several fiscal years. This would involve analyzing historical budget requests, appropriations, and actual expenditures by CMS for this specific program. Without access to broader budget data, it's impossible to determine if this $19.7 million represents a significant increase, decrease, or consistent level of investment compared to previous or subsequent periods for the initiative as a whole.

How does Mathematica Inc.'s track record with government R&D contracts compare to other potential bidders?

Mathematica Inc. is a well-established research organization with extensive experience in government contracting, particularly in health and social policy research. They have a history of successfully managing large-scale, complex R&D projects for federal agencies like HHS, CMS, and others. Their track record includes numerous studies and evaluations related to healthcare programs, Medicare, Medicaid, and population health. While the provided data indicates 6 bidders competed for this specific contract, a comprehensive comparison would require analyzing the specific R&D portfolios, past performance evaluations (e.g., CPARS), and demonstrated capabilities of each of the other 5 bidders. Generally, Mathematica's established reputation and experience likely position them as a strong contender in such competitions.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this specific contract. However, for an R&D contract focused on the Accountable Health Communities model, typical KPIs would likely revolve around the successful completion of research objectives, the quality and validity of research findings, adherence to project timelines, effective management of resources, and the potential impact of the research on improving health outcomes or reducing costs. Performance measurement would likely involve regular progress reports, interim and final research deliverables, peer reviews of findings, and potentially evaluations of the contractor's ability to meet milestones and objectives as defined in the contract's Statement of Work (SOW).

What is the potential risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D effort?

The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks, primarily related to cost control. While the 'fixed fee' component provides the contractor with a predetermined profit margin, the 'cost plus' aspect means the government reimburses the contractor for allowable costs incurred. The primary risk for the government is that the contractor may have less incentive to control costs rigorously compared to fixed-price contracts, as higher costs directly translate to higher overall contract value (though the fee remains fixed). This necessitates robust government oversight to scrutinize all claimed costs, ensure they are reasonable, allocable, and directly related to the contract's objectives. For R&D, CPFF is often used because the scope and costs can be uncertain, but it requires diligent administration to mitigate the risk of cost overruns.

How does the $19.7 million award compare to the total federal spending on health R&D in the relevant fiscal years?

The $19.7 million awarded to Mathematica Inc. represents a specific investment within the broader federal spending on health R&D. Federal spending on health R&D is substantial, encompassing agencies like the National Institutes of Health (NIH), Centers for Disease Control and Prevention (CDC), and various components within the Department of Health and Human Services (HHS), including CMS. For context, NIH alone typically receives tens of billions of dollars annually for biomedical research. Therefore, $19.7 million, while significant for a single contract, is a relatively small fraction of the total federal health R&D budget. This contract likely funds a specific, targeted initiative within the larger health R&D landscape, contributing to a particular aspect of healthcare improvement rather than representing overall federal R&D investment.

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: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1100 1ST ST NE FL 12, WASHINGTON, DC, 20024

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

Financial Breakdown

Contract Ceiling: $19,716,773

Exercised Options: $19,716,773

Current Obligation: $19,716,773

Actual Outlays: $4,790,269

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201400034I

IDV Type: IDC

Timeline