HHS awards $23.9M for Florida QIO services, extending contract for 5 years

Contract Overview

Contract Amount: $23,942,841 ($23.9M)

Contractor: Health Services Advisory Group, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2014-07-18

End Date: 2019-07-17

Contract Duration: 1,825 days

Daily Burn Rate: $13.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: THE PURPOSE OF THIS ACTION IS TO PROVIDE FUNDING TO AWARD AN 11TH SOW QIO QIN TASK ORDER FOR THE STATE OF FLORIDA. THIS REQUISITION SERVES AS "REAL" FUNDS. THE FUNDS WERE PREVIOUSLY PROCESSED AS "PENDING FUNDS AVAILABILITY". ALL CONTRACT DOCUMENTS (SOW, SOD AND IGCE) ARE ALREADY IN OAGM.PERIOD OF PERFORMANCE: 08/01/2014 THRU 07/31/2019APP# PFL1401"IGF::CT::IGF"

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85016

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.9 million to HEALTH SERVICES ADVISORY GROUP, INC. for work described as: THE PURPOSE OF THIS ACTION IS TO PROVIDE FUNDING TO AWARD AN 11TH SOW QIO QIN TASK ORDER FOR THE STATE OF FLORIDA. THIS REQUISITION SERVES AS "REAL" FUNDS. THE FUNDS WERE PREVIOUSLY PROCESSED AS "PENDING FUNDS AVAILABILITY". ALL CONTRACT DOCUMENTS (SOW, SOD AND IGCE) ARE ALREADY … Key points: 1. Contract provides essential quality improvement services for Medicare beneficiaries in Florida. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Performance period spans five years, indicating a long-term commitment to service delivery. 4. The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. 5. This action represents the release of 'real' funds for an existing task order. 6. The awardee, Health Services Advisory Group, Inc., has a track record in similar health services contracts.

Value Assessment

Rating: good

The total award amount of $23.9 million over five years averages to approximately $4.78 million per year. This figure needs to be benchmarked against similar Quality Improvement Organization (QIO) contracts awarded by CMS to assess value for money. Without specific comparable data, it's difficult to definitively state if this represents excellent or fair pricing, but it appears within a reasonable range for a statewide contract of this nature. The Cost Plus Fixed Fee structure requires careful monitoring of costs to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding process where multiple contractors likely vied for the award. The level of competition is a positive sign for price discovery and potentially achieving a fair market price for the services rendered. The specific number of bidders is not provided, which would offer further insight into the intensity of the competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service quality, as contractors strive to win the award.

Public Impact

Beneficiaries of Medicare in the state of Florida receive improved quality of healthcare services. The contract supports the Centers for Medicare and Medicaid Services (CMS) in its mission to ensure quality healthcare. Services delivered likely include patient care improvement initiatives, data analysis, and provider education. The geographic impact is specific to the state of Florida, affecting its Medicare-eligible population. The contract supports the healthcare services sector and potentially related administrative and consulting roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely managed.
Ensuring consistent quality of services across the entire state of Florida over the five-year period.
Measuring the tangible impact and effectiveness of quality improvement initiatives funded by this contract.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Long performance period (5 years) suggests stability and commitment to the program.
Focus on quality improvement aligns with CMS's core mission.

Sector Analysis

This contract falls within the Management Consulting Services sector, specifically 'Other Management Consulting Services' (NAICS 541618). This sector encompasses a wide range of advisory and assistance services. Within the federal landscape, contracts for Quality Improvement Organizations (QIOs) are a specialized segment focused on enhancing healthcare quality for Medicare beneficiaries. Comparable spending benchmarks would involve looking at other QIO contracts awarded by CMS across different states or regions, as well as other federal contracts for health management and consulting services.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, Health Services Advisory Group, Inc., would be responsible for its own subcontracting decisions, which are not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Centers for Medicare and Medicaid Services (CMS), the awarding agency. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing are crucial to ensure that costs are reasonable and allowable. The Department of Health and Human Services' Office of Inspector General (OIG) would have jurisdiction for investigating fraud, waste, and abuse related to these funds. Transparency is typically managed through contract reporting requirements and public contract databases.

Related Government Programs

Quality Improvement Organizations (QIOs)
Medicare Quality Initiatives
Healthcare Consulting Services
Federal Health IT Services
State Health Programs

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring Complexity
Long-Term Service Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.9 million to HEALTH SERVICES ADVISORY GROUP, INC.. THE PURPOSE OF THIS ACTION IS TO PROVIDE FUNDING TO AWARD AN 11TH SOW QIO QIN TASK ORDER FOR THE STATE OF FLORIDA. THIS REQUISITION SERVES AS "REAL" FUNDS. THE FUNDS WERE PREVIOUSLY PROCESSED AS "PENDING FUNDS AVAILABILITY". ALL CONTRACT DOCUMENTS (SOW, SOD AND IGCE) ARE ALREADY IN OAGM.PERIOD OF PERFORMANCE: 08/01/2014 THRU 07/31/2019APP# PFL1401"IGF::CT::IGF"

Who is the contractor on this award?

The obligated recipient is HEALTH SERVICES ADVISORY GROUP, 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 $23.9 million.

What is the period of performance?

Start: 2014-07-18. End: 2019-07-17.

What is the historical spending pattern for this specific task order or related QIO contracts in Florida?

The provided data indicates this is the 11th task order for QIO services in Florida, with a period of performance from 08/01/2014 to 07/31/2019, and a total award of $23,942,840.73. This suggests a recurring need for these services. To understand the historical pattern, one would need to examine the award amounts and performance periods of the previous 10 task orders. Without that granular data, we can infer a consistent, multi-year funding stream for QIO services in Florida. Comparing the annual average cost of this task order ($4.78M) to previous ones would reveal trends in cost and scope. It's also important to note that 'real' funds were processed, implying prior 'pending funds availability,' which is a procedural detail rather than a spending trend indicator.

How does the annual cost of this contract compare to other state-level QIO contracts managed by CMS?

The annual cost for this contract averages approximately $4.78 million ($23.9M / 5 years). To benchmark this effectively, we would need data on other state-level QIO contracts awarded by CMS. QIO contracts vary significantly based on state population, specific program requirements, and the scope of work defined in the Statement of Work (SOW). For instance, a contract for a highly populous state like California might be expected to cost more than one for a less populous state. Without comparative data on annual costs for similar state QIO contracts, it is difficult to definitively assess if $4.78 million represents a high, low, or average annual expenditure. However, it provides a baseline for future comparisons.

What specific performance metrics are used to evaluate the success of Health Services Advisory Group, Inc. under this contract?

The provided data does not detail the specific performance metrics or Key Performance Indicators (KPIs) used to evaluate Health Services Advisory Group, Inc. Typically, QIO contracts focus on metrics related to improving healthcare quality, patient safety, and beneficiary satisfaction. These could include reductions in hospital readmission rates, improvements in chronic disease management, decreased rates of healthcare-associated infections, and enhanced patient experience scores. The contract documents (SOW, SOD, IGCE) mentioned as being in OAGM would likely contain these performance standards and evaluation criteria. CMS would monitor the contractor's performance against these metrics throughout the contract period.

What is the track record of Health Services Advisory Group, Inc. in managing federal healthcare contracts, particularly QIOs?

Health Services Advisory Group, Inc. (HSAG) is a known entity in the healthcare services sector, often involved in quality improvement initiatives. While this specific data point confirms they were awarded this task order, a comprehensive assessment of their track record would require reviewing their past performance on other federal contracts, especially previous QIO contracts or similar health services management contracts with CMS or other federal agencies. Information regarding past performance, including any awards, penalties, or contract terminations, would typically be available in federal procurement databases like the Federal Procurement Data System (FPDS) or through agency performance evaluation systems. Their continued engagement in QIO work suggests a generally positive or at least acceptable performance history.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract structure is the potential for the contractor to incur costs that exceed initial estimates, with the government bearing the responsibility for reimbursing allowable costs. While the fixed fee provides the contractor with a defined profit margin, the cost reimbursement aspect can incentivize less stringent cost control compared to fixed-price contracts. For the government, the risk lies in potential cost overruns and the need for robust oversight to ensure that all claimed costs are reasonable, allocable, and necessary for contract performance. Effective monitoring of expenditures and adherence to the SOW are critical to mitigate these risks and ensure value for money.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: MEDICAL SERVICES › DEPENDENT MEDICARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HHSM5002014RFPQINQIO

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Health Services Holdings, Inc.

Address: 3133 E CAMELBACK RD, PHOENIX, AZ, 85016

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

Financial Breakdown

Contract Ceiling: $23,942,841

Exercised Options: $23,942,841

Current Obligation: $23,942,841

Actual Outlays: $104,814

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSM5002014QIN008I

IDV Type: IDC

Timeline