HHS awards $25.1M for ECQM/ECQI resource center to ICF ESAC, LLC, with 3 years remaining

Contract Overview

Contract Amount: $25,136,292 ($25.1M)

Contractor: ICF Esac, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-02

End Date: 2025-09-01

Contract Duration: 1,825 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: ELECTRONIC CLINICAL QUALITY MEASURE ECQM STANDARDS AND ELECTRONIC CLINICAL QUALITY IMPROVEMENTS ECQI RESOURCE CENTER

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $25.1 million to ICF ESAC, LLC for work described as: ELECTRONIC CLINICAL QUALITY MEASURE ECQM STANDARDS AND ELECTRONIC CLINICAL QUALITY IMPROVEMENTS ECQI RESOURCE CENTER Key points: 1. Contract value of $25.1M over 5 years suggests a significant investment in clinical quality improvement resources. 2. The contract was awarded under full and open competition, indicating a potentially competitive bidding process. 3. The use of Time and Materials pricing may present cost control challenges if not closely managed. 4. The contractor, ICF ESAC, LLC, has a substantial contract duration, implying a need for sustained expertise. 5. This contract supports critical healthcare infrastructure for the Centers for Medicare and Medicaid Services (CMS). 6. The contract's focus on electronic quality measures is central to modernizing healthcare data and reporting.

Value Assessment

Rating: good

The total contract value of $25.1M over five years averages to approximately $5M annually. Benchmarking this against similar contracts for health IT support and resource center development is crucial. Without specific comparable contract data, it's difficult to definitively assess value for money. However, the duration and scope suggest a potentially fair price for specialized services in a complex domain like healthcare quality measurement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit a bid. The presence of 3 bids indicates a moderate level of competition for this contract. A higher number of bidders typically leads to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

Healthcare providers benefit from standardized electronic clinical quality measures (ECQM) and resources, enabling more efficient and effective patient care. The Centers for Medicare and Medicaid Services (CMS) benefits from improved data collection and analysis for quality initiatives. Patients may experience better health outcomes due to the focus on quality improvement in healthcare delivery. The contract supports the development and maintenance of critical IT infrastructure for healthcare quality reporting. The geographic impact is national, as CMS standards affect healthcare providers across the United States.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials pricing if not rigorously monitored.
Dependence on a single contractor for a critical resource center could pose a risk if performance falters.
Ensuring the continued relevance and accuracy of ECQM/ECQI standards requires ongoing adaptation and expertise.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Long contract duration indicates contractor stability and commitment to the program.
Focus on electronic quality measures aligns with federal healthcare modernization goals.

Sector Analysis

This contract falls within the Health Information Technology (Health IT) sector, specifically focusing on the development and maintenance of standards and resources for electronic clinical quality measures (ECQM) and electronic clinical quality improvements (ECQI). This area is critical for CMS's efforts to measure and improve the quality of healthcare services provided to Medicare and Medicaid beneficiaries. The market for such specialized IT services within healthcare is substantial, driven by regulatory requirements and the push for value-based care.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, ICF ESAC, LLC, may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the work required.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Medicare and Medicaid Services (CMS), a division of the Department of Health and Human Services (HHS). CMS contracting officers and program managers are responsible for monitoring contractor performance, ensuring compliance with contract terms, and managing expenditures. Transparency is facilitated through contract award databases and reporting requirements. Specific Inspector General jurisdiction would likely fall under the HHS Office of Inspector General (OIG) for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

Electronic Health Records (EHR) Incentive Programs
Meaningful Use Program
Quality Payment Program (QPP)
Healthcare Quality Data Reporting
Health IT Standards Development

Risk Flags

Potential for cost escalation due to Time and Materials pricing.
Contractor performance risk over a long duration.
Ensuring continued relevance of standards in a rapidly evolving field.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $25.1 million to ICF ESAC, LLC. ELECTRONIC CLINICAL QUALITY MEASURE ECQM STANDARDS AND ELECTRONIC CLINICAL QUALITY IMPROVEMENTS ECQI RESOURCE CENTER

Who is the contractor on this award?

The obligated recipient is ICF ESAC, LLC.

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 $25.1 million.

What is the period of performance?

Start: 2020-09-02. End: 2025-09-01.

What is the track record of ICF ESAC, LLC with government contracts, particularly within the healthcare sector?

ICF ESAC, LLC, is a significant government contractor with a history of serving various federal agencies, including the Department of Health and Human Services. Their experience often spans areas like health IT, program management, and data analytics. For instance, they have been involved in supporting public health initiatives, developing health information systems, and providing technical assistance related to healthcare policy and regulations. Their performance on previous contracts, especially those with similar scope and complexity to the ECQM/ECQI resource center, would be a key indicator of their capability to successfully execute this current award. Reviewing past performance evaluations and any documented issues or successes would provide a more comprehensive understanding of their reliability and expertise in this domain.

How does the $25.1M contract value compare to similar federal investments in health IT resource centers or quality measure development?

The $25.1M contract value over five years, averaging approximately $5M annually, represents a substantial but not unprecedented investment in specialized health IT services. Comparable federal contracts for developing and maintaining complex IT systems, managing large-scale data resources, or providing technical expertise for regulatory bodies often fall within this range or higher. For example, contracts supporting the development of electronic health record standards, health information exchanges, or large data analytics platforms for agencies like CMS or NIH can easily reach tens of millions of dollars over similar periods. The specific nature of ECQM/ECQI standards and resource centers is critical to CMS's value-based care initiatives, justifying a significant allocation. Without direct comparisons of contracts solely for ECQM/ECQI resource centers, this figure appears reasonable given the scope and strategic importance.

What are the primary risks associated with a Time and Materials (T&M) contract for this type of service?

The primary risk associated with a Time and Materials (T&M) contract for services like the ECQM/ECQI resource center is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and material costs incurred. If project scope creeps, inefficiencies arise, or the contractor does not manage resources effectively, the total cost can escalate beyond initial estimates. For the government, this necessitates robust oversight and diligent monitoring of labor hours, rates, and material expenses to ensure that costs remain reasonable and that the contractor is performing efficiently. The absence of a fixed ceiling can make budget predictability challenging, requiring proactive management from the contracting agency.

How effective are electronic clinical quality measures (ECQM) and electronic clinical quality improvements (ECQI) in driving better healthcare outcomes?

Electronic Clinical Quality Measures (ECQM) and Electronic Clinical Quality Improvements (ECQI) are designed to be key drivers of better healthcare outcomes by enabling the systematic measurement and reporting of care quality using data directly from electronic health records (EHRs). ECQMs provide a standardized way to assess performance across various clinical areas, such as chronic disease management, preventive care, and patient safety. By leveraging this data, healthcare providers can identify areas for improvement, benchmark their performance against peers, and implement targeted interventions. The ECQI program further supports this by providing resources and guidance to help providers effectively use these measures to enhance care delivery. While the effectiveness is contingent on proper implementation, data integrity, and meaningful use by providers, these tools are fundamental to the shift towards value-based care and improving the overall quality and efficiency of the healthcare system.

What is the historical spending trend for CMS in areas related to quality measurement and health IT infrastructure?

The Centers for Medicare and Medicaid Services (CMS) has consistently allocated significant funding towards quality measurement and health IT infrastructure, reflecting its strategic priorities. Over the past decade, spending in these areas has been substantial, driven by legislative mandates such as the HITECH Act and subsequent initiatives aimed at promoting the adoption and meaningful use of electronic health records (EHRs) and improving healthcare quality. Programs like the Medicare Electronic Health Records (EHR) Incentive Program (now part of the Quality Payment Program) and the development of quality measures have historically commanded billions of dollars. Investments in data analytics, interoperability, and the infrastructure to support quality reporting, including resource centers like the one awarded to ICF ESAC, LLC, are ongoing and critical components of CMS's mission to ensure quality, affordable healthcare.

What are the implications of having only 3 bidders for a contract of this size and importance?

Having only 3 bidders for a contract valued at $25.1M and critical to CMS's quality improvement efforts suggests a moderately competitive landscape. While 'full and open competition' was utilized, a smaller pool of bidders could indicate several factors: high barriers to entry due to specialized expertise required, limited number of qualified contractors in the market, or perhaps the specific timing or solicitation details deterred broader participation. From a taxpayer perspective, fewer bidders might mean less downward pressure on pricing compared to a scenario with numerous competitors. However, if these 3 bidders are highly capable and experienced, the government could still secure a high-quality service. The key is to ensure that the selected contractor provides excellent value and performance throughout the contract duration.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1801 RESEARCH BLVD STE 500, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,136,292

Exercised Options: $25,136,292

Current Obligation: $25,136,292

Actual Outlays: $20,120,862

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $55,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0539X

IDV Type: FSS

Timeline