HHS awards $23.9M for Hospital Quality Improvement Contractor services to Convergence Health Improvement, Inc
Contract Overview
Contract Amount: $23,922,354 ($23.9M)
Contractor: Convergence Health Improvement, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2020-09-18
End Date: 2024-09-17
Contract Duration: 1,460 days
Daily Burn Rate: $16.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 22
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: HOSPITAL QUALITY IMPROVEMENT CONTRACTOR (HQIC)
Place of Performance
Location: ROSEVILLE, PLACER County, CALIFORNIA, 95661
Plain-Language Summary
Department of Health and Human Services obligated $23.9 million to CONVERGENCE HEALTH IMPROVEMENT, INC. for work described as: HOSPITAL QUALITY IMPROVEMENT CONTRACTOR (HQIC) Key points: 1. Contract awarded to Convergence Health Improvement, Inc. for $23.9M. 2. Services fall under 'Other Management Consulting Services' (NAICS 541618). 3. The contract was awarded under full and open competition. 4. This is a delivery order under a larger contract. 5. The contract duration is 1460 days.
Value Assessment
Rating: good
The contract value of $23.9M over four years appears reasonable for specialized quality improvement consulting services. Benchmarking against similar large-scale healthcare consulting contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors have the opportunity to bid.
Taxpayer Impact: The competitive nature of the award is expected to ensure taxpayer funds are used efficiently for quality improvement initiatives.
Public Impact
Improved hospital quality and patient outcomes. Potential cost savings through enhanced efficiency. Support for healthcare policy implementation. Data analysis and reporting on hospital performance. Dissemination of best practices in healthcare.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for scope creep in consulting services.
- Reliance on a single delivery order for a large sum.
Positive Signals
- Awarded under full and open competition.
- Focus on improving hospital quality.
- Long-term contract duration allows for sustained impact.
Sector Analysis
The healthcare sector, particularly through CMS, frequently engages contractors for quality improvement initiatives. Spending benchmarks for such services vary widely based on scope, but $23.9M over four years for a national contractor is within a plausible range.
Small Business Impact
The provided data does not indicate if small businesses were involved in this specific contract award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
Oversight is likely managed by the Centers for Medicare and Medicaid Services (CMS). The effectiveness of oversight will depend on clear performance metrics and regular reviews of the contractor's deliverables.
Related Government Programs
- Other Management Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Contract value is substantial.
- Long contract duration.
- Services are critical to healthcare quality.
- Potential for significant impact on patient care.
- Awarded under full and open competition.
Tags
other-management-consulting-services, department-of-health-and-human-services, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $23.9 million to CONVERGENCE HEALTH IMPROVEMENT, INC.. HOSPITAL QUALITY IMPROVEMENT CONTRACTOR (HQIC)
Who is the contractor on this award?
The obligated recipient is CONVERGENCE HEALTH IMPROVEMENT, 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 $23.9 million.
What is the period of performance?
Start: 2020-09-18. End: 2024-09-17.
What specific quality metrics are being targeted by this contract, and what are the expected improvements?
The specific quality metrics targeted are not detailed in the provided data. However, typical goals for a Hospital Quality Improvement Contractor (HQIC) include reducing readmission rates, improving patient safety scores, enhancing patient satisfaction, and ensuring adherence to clinical best practices. Expected improvements would be quantifiable reductions in adverse events and measurable gains in patient outcome indicators.
What is the risk of the contractor not meeting the quality improvement goals within the contract period?
The risk of not meeting goals exists, influenced by factors like the complexity of healthcare systems, resistance to change, and unforeseen external events. Mitigation strategies include clear performance-based milestones, regular progress reviews by CMS, and potentially incentive-based payment structures tied to achieving specific quality targets. The contractor's past performance and the contract's oversight mechanisms are key to managing this risk.
How will the effectiveness of the contractor's services be measured and validated by CMS?
Effectiveness will likely be measured through a combination of quantitative data analysis and qualitative assessments. CMS will track key performance indicators (KPIs) related to hospital quality metrics that the contractor is tasked with improving. Validation may involve comparing pre- and post-intervention data, site visits, and reviews of the contractor's reports and recommendations. Performance-based payment adjustments could also serve as a validation mechanism.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services
Product/Service Code: MEDICAL SERVICES › DEPENDENT MEDICARE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 22
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1688 ORVIETTO DR, ROSEVILLE, CA, 95661
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,922,354
Exercised Options: $23,922,354
Current Obligation: $23,922,354
Actual Outlays: $16,553,440
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75FCMC19D0013
IDV Type: IDC
Timeline
Start Date: 2020-09-18
Current End Date: 2024-09-17
Potential End Date: 2024-09-17 00:00:00
Last Modified: 2025-03-19
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