HHS awards $33.9M contract for Open Payments program research and analytic services to Econometrica, Inc

Contract Overview

Contract Amount: $33,923,920 ($33.9M)

Contractor: Econometrica, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2018-09-26

End Date: 2026-09-25

Contract Duration: 2,921 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: TO PROVIDE RESEARCH AND ANALYTIC SERVICES TO THE OPEN PAYMENTS PROGRAM.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $33.9 million to ECONOMETRICA, INC. for work described as: TO PROVIDE RESEARCH AND ANALYTIC SERVICES TO THE OPEN PAYMENTS PROGRAM. Key points: 1. Contract focuses on research and analytic services for the Open Payments program, aiming to enhance transparency in healthcare. 2. Econometrica, Inc. secured the contract, indicating a potential focus on their expertise in economic and social science research. 3. The contract duration of approximately 8 years suggests a long-term need for these specialized services. 4. The contract type, Cost Plus Fixed Fee, allows for flexibility but requires careful monitoring of costs. 5. The award was made under full and open competition, suggesting a robust selection process. 6. The specific NAICS code (541720) points to a specialization in research and development within social sciences and humanities.

Value Assessment

Rating: good

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contracts for similar research and analytic services for the Open Payments program. However, the Cost Plus Fixed Fee structure suggests that the government will reimburse allowable costs plus a fixed fee, which can be efficient if costs are well-managed. The fixed fee component provides some predictability for the contractor's profit. Further analysis would require understanding the scope of work and the deliverables expected.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a moderate level of competition for this specialized service. While not a large number of bidders, the open competition process generally helps in achieving fair market prices and selecting the most capable vendor.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages competitive pricing and ensures that the contract is awarded to the most qualified offeror, potentially leading to better value for public funds.

Public Impact

The primary beneficiaries are the Department of Health and Human Services (HHS) and specifically the Centers for Medicare and Medicaid Services (CMS), who will receive crucial research and analytic support for the Open Payments program. The services delivered will contribute to the transparency of financial relationships between physicians, teaching hospitals, and manufacturers of drugs and medical devices. The geographic impact is national, as the Open Payments program itself has nationwide implications for healthcare transparency and public awareness. Workforce implications may include the need for specialized researchers, data analysts, and subject matter experts within Econometrica, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns given the Cost Plus Fixed Fee contract type if not rigorously managed.
Ensuring the research and analytic outputs directly inform and improve the Open Payments program's effectiveness.
Maintaining data integrity and security throughout the contract lifecycle.
The relatively low number of bidders (2) could indicate a niche market or high barriers to entry, potentially limiting future competition.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
Econometrica, Inc.'s specialization in research and development in social sciences and humanities aligns with the contract's needs.
The long contract duration (approx. 8 years) implies a stable and ongoing need for these services, suggesting a well-defined program requirement.
The contract supports the important public interest goal of healthcare transparency through the Open Payments program.

Sector Analysis

The healthcare analytics and research sector is a growing field, driven by the increasing volume of healthcare data and the need for insights to improve patient care, reduce costs, and ensure compliance. This contract fits within the broader IT and professional services sector, specifically focusing on data analysis and research for government programs. Comparable spending benchmarks would depend on the specific nature of the research and analytics required, but contracts for large-scale data analysis and program support within federal health agencies can range from millions to hundreds of millions of dollars.

Small Business Impact

This contract does not appear to have a small business set-aside. The awardee, Econometrica, Inc., is a mid-sized business. There is no explicit information provided regarding subcontracting plans for small businesses. The focus on specialized research and analytics may limit opportunities for broad subcontracting, but specific components could potentially be outsourced to small businesses with relevant expertise.

Oversight & Accountability

Oversight for this contract will likely be managed by the Centers for Medicare and Medicaid Services (CMS) within the Department of Health and Human Services. Mechanisms would include regular progress reports, performance reviews, and financial audits to ensure compliance with the contract terms and efficient use of funds. The Inspector General's office for HHS would have jurisdiction for investigating any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Open Payments Program
Physician Payments Sunshine Act
Healthcare Data Analytics
Healthcare Transparency Initiatives
CMS Research and Development Contracts

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Scope Creep Potential
Data Security and Privacy Concerns
Ensuring Actionable Research Outputs

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $33.9 million to ECONOMETRICA, INC.. TO PROVIDE RESEARCH AND ANALYTIC SERVICES TO THE OPEN PAYMENTS PROGRAM.

Who is the contractor on this award?

The obligated recipient is ECONOMETRICA, 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 $33.9 million.

What is the period of performance?

Start: 2018-09-26. End: 2026-09-25.

What is the specific scope of 'research and analytic services' required for the Open Payments program under this contract?

The provided data does not detail the specific scope of 'research and analytic services.' However, given the context of the Open Payments program, these services likely involve analyzing the data collected on payments and other transfers of value made by manufacturers of drugs and medical devices to physicians and teaching hospitals. This could include identifying trends, assessing the impact of these relationships on healthcare decisions, evaluating the effectiveness of the program's transparency measures, and providing insights to CMS for program improvement and policy development. The research may also involve statistical analysis, economic modeling, and qualitative assessments to understand the broader implications of the reported data.

How does Econometrica, Inc.'s past performance and track record align with the requirements of this contract?

Econometrica, Inc. specializes in research and development in the social sciences and humanities, with a focus on economic and statistical analysis. Their expertise in areas such as health economics, program evaluation, and data analytics suggests a strong alignment with the needs of a contract requiring research and analytic services for a program like Open Payments. While specific past performance details on similar government contracts are not provided, their stated capabilities indicate they are well-positioned to undertake complex analytical tasks. A thorough review of their past performance would typically involve examining client feedback, project success rates, and adherence to timelines and budgets on previous engagements.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics for this contract. Typically, for research and analytic services, KPIs would focus on the quality, timeliness, and relevance of the deliverables. This could include metrics such as the accuracy of analyses, the clarity and comprehensiveness of reports, adherence to project milestones, and the actionable insights provided to the agency. For the Open Payments program, success might also be measured by how effectively the research contributes to understanding physician-industry relationships and informing policy or public awareness efforts.

What is the historical spending trend for research and analytic services related to the Open Payments program or similar CMS initiatives?

The provided data only includes information for this specific contract award. To understand historical spending trends, one would need to access broader federal procurement databases and analyze spending patterns for the Open Payments program and similar initiatives by CMS over several fiscal years. This would involve looking at contracts awarded for data analysis, research, program evaluation, and transparency-related services within CMS. Such an analysis would reveal whether spending in this area has been increasing, decreasing, or remaining stable, and identify the primary contractors involved in supporting these efforts.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of service, and how are they mitigated?

A Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Econometrica, Inc., carries inherent risks, primarily the potential for cost overruns. The government agrees to pay the contractor's allowable costs plus a fixed fee representing profit. If the contractor's costs exceed estimates, the government bears the burden, although the fee remains fixed. Mitigation strategies include rigorous cost monitoring, detailed audits of incurred costs, clearly defined scope of work to prevent scope creep, and strong contract management by the agency. The fixed fee itself incentivizes the contractor to manage costs efficiently to maximize their profit margin within the agreed-upon fee.

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: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4416 EAST WEST HWY STE 215, BETHESDA, MD, 20814

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

Financial Breakdown

Contract Ceiling: $33,923,920

Exercised Options: $33,923,920

Current Obligation: $33,923,920

Actual Outlays: $22,668,669

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201100015I

IDV Type: IDC

Timeline