HHS Spends $30.7M on Quality Intervention Consulting, Facing Potential Cost Overruns
Contract Overview
Contract Amount: $30,726,322 ($30.7M)
Contractor: Mdrc
Awarding Agency: Department of Health and Human Services
Start Date: 2016-09-30
End Date: 2022-09-30
Contract Duration: 2,191 days
Daily Burn Rate: $14.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF VARIATIONS IN IMPLEMENTATION OF QUALITY INTERVENTIONS
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10016
State: New York Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $30.7 million to MDRC for work described as: IGF::OT::IGF VARIATIONS IN IMPLEMENTATION OF QUALITY INTERVENTIONS Key points: 1. The contract awarded to MDRC for administrative management consulting services has a significant value of $30.7 million. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which carries inherent risk of cost overruns. 4. The sector is administrative management consulting, a common area for government support services.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type, combined with a substantial value, raises concerns about potential cost escalation beyond initial estimates. Benchmarking against similar administrative consulting contracts is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the Cost Plus Fixed Fee structure can limit the effectiveness of price discovery if not carefully managed.
Taxpayer Impact: The potential for cost overruns in a Cost Plus Fixed Fee contract could lead to higher taxpayer expenditure than initially planned.
Public Impact
Taxpayers may face increased costs due to the Cost Plus Fixed Fee contract structure. The effectiveness of quality interventions funded by this contract will be crucial for public health outcomes. Transparency in reporting cost variations and justifications is essential for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type increases risk of cost overruns.
- Long contract duration (6 years) can lead to scope creep and increased costs.
- Lack of specific performance metrics makes it hard to assess value for money.
Positive Signals
- Awarded under full and open competition, indicating potential for competitive pricing.
- Contract aims to improve quality interventions, which can have positive public health impacts.
Sector Analysis
This contract falls within the administrative management and general management consulting services sector. Spending in this area often supports program implementation and evaluation across various government agencies. Benchmarks vary widely based on the specific services provided.
Small Business Impact
The 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
Oversight of Cost Plus Fixed Fee contracts is critical to ensure costs remain reasonable and aligned with project goals. Regular audits and performance reviews by HHS are necessary to maintain accountability.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for cost overruns.
- Long contract duration.
- Lack of specific performance metrics.
- Limited insight into small business participation.
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $30.7 million to MDRC. IGF::OT::IGF VARIATIONS IN IMPLEMENTATION OF QUALITY INTERVENTIONS
Who is the contractor on this award?
The obligated recipient is MDRC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).
What is the total obligated amount?
The obligated amount is $30.7 million.
What is the period of performance?
Start: 2016-09-30. End: 2022-09-30.
What specific quality interventions are being implemented, and what are their expected outcomes?
The contract aims to support the implementation of quality interventions, likely within the Department of Health and Human Services' programs. Without specific details on the nature of these interventions (e.g., healthcare quality improvement, program efficiency enhancements), it's difficult to assess their expected outcomes. Further documentation would be needed to understand the precise goals and anticipated benefits for public health or service delivery.
How effectively is the Cost Plus Fixed Fee structure being managed to control costs and ensure value?
The Cost Plus Fixed Fee structure inherently carries a risk of cost escalation as the contractor is reimbursed for allowable costs plus a fixed fee. Effective management requires rigorous oversight, detailed cost tracking, and clear justification for all expenditures. Without access to detailed financial reports and performance reviews, it's challenging to definitively assess how well costs are being controlled and if the government is receiving good value for its investment.
What mechanisms are in place to measure the success and impact of the implemented quality interventions?
Measuring the success of quality interventions requires clearly defined metrics and performance indicators established at the outset of the contract. The provided data does not specify these metrics. Robust oversight should include regular assessments of whether the interventions are achieving their intended goals, leading to demonstrable improvements in quality, efficiency, or other key performance areas relevant to the contract's objectives.
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: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 16 E 34TH STREET FL 19, NEW YORK, NY, 10016
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: $30,726,322
Exercised Options: $30,726,322
Current Obligation: $30,726,322
Actual Outlays: $16,554,264
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $16,255,117
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSP233201500059I
IDV Type: IDC
Timeline
Start Date: 2016-09-30
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 00:00:00
Last Modified: 2020-06-05
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