HHS Awards $78.3M Contract to NYC Health and Hospitals for Clinical Center of Excellence

Contract Overview

Contract Amount: $78,305,044 ($78.3M)

Contractor: NEW York City Health and Hospitals Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-29

End Date: 2025-09-28

Contract Duration: 1,095 days

Daily Burn Rate: $71.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST NO FEE

Sector: Healthcare

Official Description: WTCHP CLINICAL CENTER OF EXCELLENCE

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10013

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $78.3 million to NEW YORK CITY HEALTH AND HOSPITALS CORPORATION for work described as: WTCHP CLINICAL CENTER OF EXCELLENCE Key points: 1. Contract value of $78.3 million over 3 years. 2. Full and open competition was utilized. 3. Potential risk associated with the 'COST NO FEE' contract type. 4. Spending falls under Outpatient Care Centers sector.

Value Assessment

Rating: fair

The contract is a 'COST NO FEE' type, which offers less price certainty compared to fixed-price contracts. Benchmarking is difficult without specific cost breakdowns, but the per-unit cost of $71,511 (based on 8 awards) seems high for outpatient care services.

Cost Per Unit: $71,511

Competition Analysis

Competition Level: full-and-open

Full and open competition was conducted, suggesting a competitive bidding process. However, the 'COST NO FEE' structure may limit the government's ability to ensure cost efficiency and could lead to higher overall expenditures.

Taxpayer Impact: Taxpayer funds are committed to a significant contract for clinical services. The 'COST NO FEE' structure requires careful monitoring to ensure value for money and prevent cost overruns.

Public Impact

Enhances clinical services through a Center of Excellence. Supports healthcare infrastructure in New York City. Potential for improved patient outcomes and research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost uncertainty due to 'COST NO FEE' contract type.
High benchmarked per-unit cost.
Lack of small business participation.

Positive Signals

Full and open competition.
Addresses critical healthcare needs.
Long-term contract duration provides stability.

Sector Analysis

This contract falls within the Outpatient Care Centers sector, which is crucial for delivering accessible healthcare services. The spending benchmark of $71,511 per unit appears high for this sector, warranting further investigation into the specific services provided.

Small Business Impact

The data indicates that small businesses were not involved in this contract, as the 'sb' field is false. Opportunities for small business participation should be explored in future procurements within this sector to promote economic diversity.

Oversight & Accountability

The 'Centers for Disease Control and Prevention' is the awarding agency, suggesting a focus on public health initiatives. Oversight will be critical to ensure the 'COST NO FEE' contract delivers value and meets performance objectives.

Related Government Programs

All Other Outpatient Care Centers
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

High per-unit cost benchmark.
'COST NO FEE' contract type.
No small business participation.
Lack of detailed service information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $78.3 million to NEW YORK CITY HEALTH AND HOSPITALS CORPORATION. WTCHP CLINICAL CENTER OF EXCELLENCE

Who is the contractor on this award?

The obligated recipient is NEW YORK CITY HEALTH AND HOSPITALS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $78.3 million.

What is the period of performance?

Start: 2022-09-29. End: 2025-09-28.

What specific services are included under the 'WTCHP CLINICAL CENTER OF EXCELLENCE' to justify the per-unit cost?

The contract details do not specify the exact services. However, 'Center of Excellence' designations typically imply advanced, specialized, or research-oriented clinical services. Further analysis of the Statement of Work (SOW) is required to understand the scope and justify the $71,511 per-unit benchmark, which appears high for standard outpatient care.

What are the risks associated with a 'COST NO FEE' contract type in this context?

A 'COST NO FEE' contract means the government reimburses the contractor for all allowable costs but provides no fee or profit. This structure can lead to a lack of contractor incentive for cost control, potentially resulting in higher overall spending than anticipated. It requires robust government oversight to manage costs effectively.

How will the effectiveness of the 'Clinical Center of Excellence' be measured and ensured?

Effectiveness will likely be measured through performance metrics outlined in the contract's Statement of Work, focusing on clinical outcomes, patient satisfaction, and potentially research contributions. The Centers for Disease Control and Prevention (CDC) will need to implement rigorous monitoring and evaluation processes to ensure the center meets its objectives and provides value.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › All Other Outpatient Care Centers

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75D301-22-R-72142

Offers Received: 8

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 125 WORTH ST RM 514, NEW YORK, NY, 10013

Business Categories: Category Business, Government, Hospital, U.S. Local Government, U.S. National Government, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $78,305,044

Exercised Options: $78,305,044

Current Obligation: $78,305,044

Actual Outlays: $21,003,439

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline