Texas QIO Task Order Awarded $26.6M for Management Consulting Services

Contract Overview

Contract Amount: $26,563,971 ($26.6M)

Contractor: TMF Health Quality Institute

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: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

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 TEXAS. 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# PTX1401"IGF::CT::IGF"

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78730

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $26.6 million to TMF HEALTH QUALITY INSTITUTE 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 TEXAS. 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… Key points: 1. The award is for "real" funds to an existing task order for quality improvement organization services in Texas. 2. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 3. The period of performance is 5 years, from August 2014 to July 2019. 4. The North American Industry Classification System (NAICS) code 541618 suggests 'Other Management Consulting Services'.

Value Assessment

Rating: fair

The contract value of $26.6 million over five years averages $5.3 million annually. Benchmarking against similar management consulting contracts is difficult without more specific service details, but the annual average appears moderate for a state-wide quality improvement initiative.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the data indicates this is a task order for an existing contract, which might limit the scope of competition for this specific action.

Taxpayer Impact: Taxpayer funds are being used for quality improvement services in Texas, aiming to enhance healthcare quality and efficiency. The cost-plus-fixed-fee structure requires careful monitoring to ensure value for money.

Public Impact

Enhances healthcare quality and patient safety in Texas through quality improvement initiatives. Supports the Centers for Medicare and Medicaid Services (CMS) in achieving national healthcare goals. Provides essential management consulting services to a large state, impacting numerous beneficiaries. The long performance period allows for sustained program implementation and evaluation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This spending falls under management consulting services, specifically related to healthcare quality improvement. Benchmarks for this sector vary widely based on the specific services provided, but government contracts for such specialized consulting are common.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract documents (SOW, SOD, IGCE) are reportedly already with OAGM, suggesting internal review processes are in place. However, ongoing oversight of the Cost Plus Fixed Fee structure is crucial to ensure efficient use of taxpayer funds.

Related Government Programs

Risk Flags

Tags

other-management-consulting-services, department-of-health-and-human-services, tx, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.6 million to TMF HEALTH QUALITY INSTITUTE. THE PURPOSE OF THIS ACTION IS TO PROVIDE FUNDING TO AWARD AN 11TH SOW QIO QIN TASK ORDER FOR THE STATE OF TEXAS. 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# PTX1401"IGF::CT::IGF"

Who is the contractor on this award?

The obligated recipient is TMF HEALTH QUALITY INSTITUTE.

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 $26.6 million.

What is the period of performance?

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

What specific quality improvement activities are funded by this task order, and how do they align with CMS strategic goals?

The task order funds the 11th SOW QIO QIN task order for the state of Texas. While the exact activities are not detailed, Quality Improvement Organizations (QIOs) typically work with healthcare providers to improve patient care quality, safety, efficiency, and cost-effectiveness. These activities generally align with CMS's strategic goals of improving healthcare outcomes and reducing costs for Medicare and Medicaid beneficiaries.

What are the potential risks associated with a 5-year Cost Plus Fixed Fee contract for management consulting in the healthcare sector?

A 5-year Cost Plus Fixed Fee (CPFF) contract carries risks of potential cost overruns if the fixed fee is not adequately justified or if the contractor's costs escalate unexpectedly. For management consulting in healthcare, the long duration might also mean the services become outdated if not actively managed and adapted to the rapidly evolving healthcare landscape and regulatory environment.

How effectively does the 'full and open competition' method ensure value for money for these specialized management consulting services?

Full and open competition is generally the most effective method for ensuring value for money as it allows multiple qualified vendors to bid, fostering price competition and innovation. However, for highly specialized services like healthcare quality improvement, the effectiveness depends on the clarity of the Statement of Work (SOW) and the ability of the government to accurately evaluate technical proposals alongside price. The fact that this is a task order under an existing contract might imply a more streamlined, but potentially less competitive, process for this specific award.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesOther Management Consulting Services

Product/Service Code: MEDICAL SERVICESDEPENDENT MEDICARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HHSM5002014RFPQINQIO

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5918 W COURTYARD DR STE 300, AUSTIN, TX, 78730

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

Financial Breakdown

Contract Ceiling: $26,563,971

Exercised Options: $26,563,971

Current Obligation: $26,563,971

Actual Outlays: $39,667

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $2,127,797

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSM5002014QIN005I

IDV Type: IDC

Timeline

Start Date: 2014-07-18

Current End Date: 2019-07-17

Potential End Date: 2019-07-17 00:00:00

Last Modified: 2023-08-03

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