HHS awards $61.4M to Porter Novelli for Medicare outreach, raising questions on value and competition

Contract Overview

Contract Amount: $61,407,597 ($61.4M)

Contractor: Porter Novelli Public Services Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2018-09-04

End Date: 2021-08-31

Contract Duration: 1,092 days

Daily Burn Rate: $56.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: MEDICARE OPEN ENROLLMENT PUBLIC EDUCATION AND OUTREACH TASK ORDER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $61.4 million to PORTER NOVELLI PUBLIC SERVICES INC. for work described as: MEDICARE OPEN ENROLLMENT PUBLIC EDUCATION AND OUTREACH TASK ORDER Key points: 1. Significant contract value of $61.4M for public education and outreach. 2. Porter Novelli Public Services Inc. is the sole awardee. 3. Contract duration spans nearly three years. 4. Focus on advertising agencies sector, NAICS 541810. 5. Potential for taxpayer impact due to contract scope.

Value Assessment

Rating: questionable

The contract value of $61.4M for public education and outreach is substantial. Without specific performance metrics or benchmarks for similar campaigns, assessing its value for money is difficult. The pricing structure (Time and Materials) can also lead to cost overruns if not managed tightly.

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 specific details of the competition and how price discovery was achieved are not provided, making it hard to fully assess its effectiveness in securing the best value.

Taxpayer Impact: The significant expenditure on public education and outreach could be a worthwhile investment if it effectively informs beneficiaries and improves Medicare enrollment. However, the large sum necessitates scrutiny to ensure taxpayer funds are used efficiently and achieve desired outcomes.

Public Impact

Millions of Medicare beneficiaries could be impacted by the outreach campaigns. Effective communication is crucial for ensuring beneficiaries understand their enrollment options. Potential for improved health outcomes if outreach leads to better plan selection. Taxpayer funds are being allocated to inform the public about healthcare services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clear performance metrics for value assessment.
Time and Materials pricing can increase cost uncertainty.
Limited insight into the competitive landscape and price negotiation.

Positive Signals

Contract aims to educate beneficiaries, potentially improving access to care.
Awarded under full and open competition.
Long-term engagement allows for sustained outreach efforts.

Sector Analysis

The contract falls under the Advertising Agencies sector (NAICS 541810). Spending in this sector for government public relations and outreach can vary widely depending on the campaign's scope and duration. This $61.4M award represents a significant investment within this category.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The contract was awarded to Porter Novelli Public Services Inc., and further analysis would be needed to determine if they are a small business or if subcontracting opportunities exist for small businesses.

Oversight & Accountability

Oversight would typically involve the Centers for Medicare and Medicaid Services (CMS) monitoring contract performance, expenditures, and adherence to scope. Regular reporting and performance reviews are crucial for accountability, especially with a Time and Materials contract.

Related Government Programs

Advertising Agencies
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

High contract value requires robust justification.
Time and Materials contract type poses cost control risks.
Lack of detailed performance metrics hinders value assessment.
Potential for scope creep without strict oversight.
Need for clear evidence of competitive advantage achieved.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $61.4 million to PORTER NOVELLI PUBLIC SERVICES INC.. MEDICARE OPEN ENROLLMENT PUBLIC EDUCATION AND OUTREACH TASK ORDER

Who is the contractor on this award?

The obligated recipient is PORTER NOVELLI PUBLIC SERVICES 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 $61.4 million.

What is the period of performance?

Start: 2018-09-04. End: 2021-08-31.

What specific outreach activities are planned, and how will their effectiveness be measured to justify the $61.4M expenditure?

The contract details should outline specific activities such as media campaigns, informational materials, and digital outreach. Effectiveness should be measured through metrics like beneficiary engagement, understanding of Medicare options, enrollment rates in targeted programs, and potentially improved health outcomes. Without clear KPIs tied to the $61.4M, assessing the return on investment is challenging.

Given the Time and Materials pricing, what controls are in place to mitigate cost overruns and ensure fair pricing for the services rendered?

Effective controls would include detailed labor hour tracking, established hourly rates, clear scope definitions for tasks, and regular reviews of expenditures against budget. A ceiling price should be established, and the government contracting officer must diligently monitor hours and costs to prevent excessive spending and ensure the contractor remains within agreed-upon parameters.

How does the $61.4M investment compare to previous Medicare outreach efforts, and what is the projected impact on beneficiary behavior and program utilization?

Benchmarking against historical spending on similar outreach campaigns is essential. The projected impact should be quantified through expected increases in awareness, informed decision-making, and potentially optimized utilization of Medicare benefits. A clear articulation of the expected outcomes and their alignment with agency goals is necessary to justify the investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Advertising, Public Relations, and Related Services › Advertising Agencies

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

Solicitation ID: 75FCMC18R0006

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1615 L STREET NW, SUITE 1150, WASHINGTON, DC, 20036

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

Financial Breakdown

Contract Ceiling: $61,407,597

Exercised Options: $61,407,597

Current Obligation: $61,407,597

Actual Outlays: $5,326,865

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75FCMC18D0045

IDV Type: IDC

Timeline