CMS awards $30M contract to RAND Corporation for national implementation of CAHPS surveys

Contract Overview

Contract Amount: $30,092,608 ($30.1M)

Contractor: THE Rand Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-29

End Date: 2025-09-29

Contract Duration: 1,826 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: CONSUMER ASSESSMENT OF HEALTH PLANS CAHPS MA AND MA-PDS FFS AND PDPS NATIONAL IMPLEMENTATION OF THE MA AND PDP CAHPS SURVEY

Place of Performance

Location: SANTA MONICA, LOS ANGELES County, CALIFORNIA, 90401

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $30.1 million to THE RAND CORPORATION for work described as: CONSUMER ASSESSMENT OF HEALTH PLANS CAHPS MA AND MA-PDS FFS AND PDPS NATIONAL IMPLEMENTATION OF THE MA AND PDP CAHPS SURVEY Key points: 1. Contract focuses on enhancing patient experience data collection for Medicare Advantage and Prescription Drug Plans. 2. RAND Corporation, a well-established research organization, is tasked with survey implementation. 3. The contract duration of 1826 days suggests a long-term commitment to data collection and analysis. 4. The use of Time and Materials pricing may introduce cost variability depending on actual effort. 5. This award is part of a broader effort to improve quality assessment in federal healthcare programs. 6. The contract's success hinges on the accuracy and representativeness of the collected survey data.

Value Assessment

Rating: good

The contract value of $30,009,260 over approximately five years appears reasonable for a national-level survey implementation and data analysis project. Benchmarking against similar large-scale survey contracts is challenging without more specific details on scope and deliverables. However, RAND Corporation's reputation suggests a capacity to deliver high-quality research and analysis, potentially justifying the investment. The Time and Materials pricing model, while offering flexibility, warrants close monitoring to ensure cost efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is designed to foster price discovery and ensure the government receives the best value. The specific number of bidders is not provided, but the full and open nature suggests a robust selection process.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through competitive bidding and encouraging innovation among potential contractors.

Public Impact

Beneficiaries of Medicare Advantage and Prescription Drug Plans will have their experiences systematically collected and analyzed. The services delivered include the national implementation and administration of the CAHPS surveys. The geographic impact is national, covering all eligible Medicare beneficiaries. The project supports the Centers for Medicare and Medicaid Services' (CMS) mission to improve healthcare quality and patient satisfaction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Time and Materials pricing structure if not closely managed.
Dependence on the accuracy and completeness of survey responses for meaningful data.
Ensuring the representativeness of the surveyed population across diverse demographic and geographic groups.

Positive Signals

Award to a reputable research organization (RAND Corporation) with a proven track record in complex studies.
The contract supports a critical function for CMS in evaluating healthcare plan performance.
Full and open competition suggests a fair and transparent procurement process.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on management and consulting services related to healthcare data collection and analysis. The market for such services is competitive, with numerous firms capable of conducting large-scale surveys and providing analytical support. The total federal spending on similar administrative and management consulting services is substantial, with this contract representing a specific investment in healthcare quality assessment.

Small Business Impact

The contract does not appear to have a specific small business set-aside. Given the nature of the work, which requires extensive research, survey administration, and data analysis capabilities, it is likely that larger, specialized firms or research institutions like RAND Corporation are best positioned to compete. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract will primarily reside with the Centers for Medicare and Medicaid Services (CMS), the awarding agency. CMS will be responsible for monitoring performance, ensuring deliverables meet contractual requirements, and managing the Time and Materials aspect of the contract. Transparency is facilitated through the contract award process and public reporting mechanisms for federal spending. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Medicare Advantage Quality Programs
Prescription Drug Plan Quality Metrics
Consumer Assessment of Healthcare Providers and Systems (CAHPS)
Healthcare Data Analytics Services
Federal Healthcare Quality Improvement Initiatives

Risk Flags

Potential for cost creep due to Time and Materials pricing.
Ensuring data representativeness across diverse Medicare beneficiary populations.
Maintaining robust data security and privacy protocols.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $30.1 million to THE RAND CORPORATION. CONSUMER ASSESSMENT OF HEALTH PLANS CAHPS MA AND MA-PDS FFS AND PDPS NATIONAL IMPLEMENTATION OF THE MA AND PDP CAHPS SURVEY

Who is the contractor on this award?

The obligated recipient is THE RAND CORPORATION.

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 $30.1 million.

What is the period of performance?

Start: 2020-09-29. End: 2025-09-29.

What is the historical spending by CMS on CAHPS survey implementation and related services?

Historical spending by CMS on CAHPS survey implementation and related services can vary significantly year over year, influenced by the specific plans being surveyed (e.g., MA, PDP, ACOs), the scope of the surveys, and the contractors involved. While the current award is for approximately $30 million over five years, past expenditures on similar national implementations would need to be aggregated from various contract vehicles and task orders. Analyzing historical data would involve reviewing contract databases for awards to RAND Corporation and other entities performing similar functions. This would provide context on the scale and cost trends of CMS's efforts to gather beneficiary feedback, helping to assess if the current award represents an increase, decrease, or stable level of investment in this area.

How does the pricing structure (Time and Materials) compare to fixed-price contracts for similar survey implementation projects?

Time and Materials (T&M) contracts, like the one awarded to RAND Corporation, offer flexibility by reimbursing the contractor for direct labor hours at specified rates and for the actual cost of materials. This is often used when the scope of work is not clearly defined or is expected to evolve. In contrast, fixed-price contracts establish a set price for a well-defined scope, shifting more risk to the contractor to manage costs. For survey implementation, a fixed-price contract might be suitable if the methodology, sample size, and reporting requirements are precisely known upfront. However, T&M can be advantageous if unforeseen challenges arise during survey design, data collection, or analysis, allowing for adjustments without formal contract modifications. The key concern with T&M is the potential for cost escalation if not rigorously monitored and controlled by the government contracting officer.

What are the key performance indicators (KPIs) that will be used to evaluate the success of this contract?

Key performance indicators (KPIs) for this contract will likely focus on the successful and timely administration of the CAHPS surveys, the quality and accuracy of the collected data, and the effective analysis and reporting of findings. Specific KPIs could include meeting deadlines for survey deployment and data collection, achieving target response rates from beneficiaries, maintaining data integrity throughout the process, and delivering comprehensive analytical reports that meet CMS's requirements. Adherence to budget, particularly within the T&M framework, and the contractor's responsiveness to CMS inquiries and directives would also be critical. Ultimately, the success will be measured by the utility of the data generated in informing CMS's quality improvement initiatives and policy decisions.

What is RAND Corporation's track record with CMS and other federal agencies on similar large-scale survey and research projects?

The RAND Corporation has a long and extensive track record of conducting complex research, analysis, and program evaluation for federal agencies, including the Department of Health and Human Services (HHS) and its components like CMS. They are known for their rigorous methodologies and high-quality deliverables across a wide range of policy areas, including healthcare. RAND has previously been involved in various CAHPS initiatives and other healthcare quality measurement projects. Their established reputation suggests a strong capability to manage large-scale, national projects requiring significant research expertise, data management, and stakeholder engagement, making them a credible choice for this significant contract.

What are the potential risks associated with the national implementation of these surveys, and how are they being mitigated?

Potential risks in national survey implementation include low response rates, sampling bias, data security breaches, and challenges in adapting surveys to diverse populations. Low response rates can be mitigated through effective outreach strategies, incentives, and multiple contact methods. Sampling bias is addressed by employing robust sampling frames and methodologies to ensure representativeness. Data security is paramount and is managed through strict adherence to federal data protection regulations (e.g., HIPAA) and secure IT infrastructure. Mitigating challenges with diverse populations involves careful survey design, translation, and culturally sensitive administration. CMS and RAND will likely have detailed risk management plans outlining specific mitigation strategies for each identified risk.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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

Solicitation ID: RFQ 200774

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1776 MAIN ST, SANTA MONICA, CA, 90401

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,200,043

Exercised Options: $30,092,608

Current Obligation: $30,092,608

Actual Outlays: $24,674,651

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $9,754,803

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS10F0275P

IDV Type: FSS

Timeline