Medicare Open Enrollment Outreach contract awarded to Porter Novelli for $94M over three years

Contract Overview

Contract Amount: $93,998,666 ($94.0M)

Contractor: Porter Novelli Public Services Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-07-01

End Date: 2024-06-30

Contract Duration: 1,095 days

Daily Burn Rate: $85.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: MEDICARE OPEN ENROLLMENT PUBLIC EDUCATION AND OUTREACH

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 $94.0 million to PORTER NOVELLI PUBLIC SERVICES INC. for work described as: MEDICARE OPEN ENROLLMENT PUBLIC EDUCATION AND OUTREACH Key points: 1. Value for money assessed through comparison to similar public health campaigns. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include the time and materials pricing structure, which can lead to cost overruns. 4. Performance context relies on the contractor's ability to effectively reach target populations. 5. Sector positioning within advertising and public relations services for government health initiatives.

Value Assessment

Rating: fair

The $94 million contract for Medicare Open Enrollment public education and outreach appears to be a significant investment. Benchmarking against similar large-scale public health campaigns is crucial to determine value for money. The time and materials (T&M) pricing structure, while offering flexibility, carries inherent risks of cost escalation if not closely managed. Without detailed performance metrics and cost breakdowns, a definitive value assessment is challenging, but the scale suggests a need for rigorous oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The number of bidders is not specified, but a competitive process is generally expected to yield more favorable pricing and innovative approaches. The open competition is a positive indicator for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it fosters a competitive environment, which can lead to lower prices and better quality services compared to sole-source or limited competition awards.

Public Impact

Beneficiaries of this contract are Medicare beneficiaries, who receive information about enrollment periods and plan options. Services delivered include public education, outreach campaigns, and informational materials to raise awareness. Geographic impact is national, aiming to reach all eligible Medicare beneficiaries across the United States. Workforce implications may include jobs in advertising, public relations, media, and campaign management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed effectively.
The large dollar amount necessitates robust oversight to ensure efficient use of funds.
Measuring the direct impact of outreach on enrollment numbers can be complex.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive pricing environment.
The contract duration of three years allows for sustained outreach efforts.
Focus on public education for a critical government program like Medicare.

Sector Analysis

This contract falls within the advertising and public relations sector, specifically serving government public health initiatives. The market for large-scale government outreach campaigns is competitive, with specialized firms capable of managing national-level communications. Spending in this area is often driven by legislative mandates and the need to inform the public about essential services like Medicare.

Small Business Impact

The data does not indicate any specific small business set-asides or subcontracting requirements for this contract. As a large prime contract, there may be opportunities for small businesses to participate as subcontractors to Porter Novelli, but this is not explicitly detailed in the provided information. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically reside with the Centers for Medicare and Medicaid Services (CMS) within the Department of Health and Human Services. Mechanisms likely include regular performance reviews, budget tracking, and adherence to contract terms. Transparency is generally expected for government contracts, with information often available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Medicare Program
Medicaid Program
Affordable Care Act Outreach
Public Health Campaigns
Health Insurance Marketplace Education

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Effectiveness of outreach in reaching diverse and hard-to-reach Medicare beneficiary populations.
Complexity of measuring direct impact on enrollment decisions.
Need for strong government oversight to manage contractor performance and costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $94.0 million to PORTER NOVELLI PUBLIC SERVICES INC.. MEDICARE OPEN ENROLLMENT PUBLIC EDUCATION AND OUTREACH

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 $94.0 million.

What is the period of performance?

Start: 2021-07-01. End: 2024-06-30.

What is the historical spending pattern for Medicare Open Enrollment public education and outreach over the past five years?

Analyzing historical spending for Medicare Open Enrollment public education and outreach is crucial for context. While specific figures for this exact contract are provided, understanding the trend of federal investment in this area over the last five years would reveal if this $94 million award represents an increase, decrease, or stable level of funding. This historical data can help identify shifts in strategy, the impact of legislative changes, or evolving outreach needs. For instance, a significant increase in spending might correlate with new enrollment initiatives or a perceived need to boost participation. Conversely, a decrease could indicate a shift towards more cost-effective digital outreach methods or a change in program priorities. Without this historical data, it is difficult to assess whether the current spending level is an anomaly or part of a consistent budgetary pattern for this essential public service.

How does the cost per beneficiary for this outreach campaign compare to similar public health initiatives?

To assess the value for money, comparing the cost per beneficiary for this Medicare Open Enrollment outreach campaign against similar public health initiatives is essential. This involves calculating the total contract value divided by the estimated number of beneficiaries reached or targeted. Benchmarking against campaigns for other federal programs (e.g., ACA enrollment, public health advisories) or even state-level health initiatives can provide valuable insights. If the cost per beneficiary is significantly higher than comparable efforts, it may indicate inefficiencies or a less cost-effective strategy. Conversely, a lower cost per beneficiary might suggest a highly efficient campaign. Factors such as the complexity of the message, the diversity of the target audience, and the chosen outreach channels (digital, print, broadcast) can influence these costs, so a nuanced comparison is necessary.

What are the key performance indicators (KPIs) used to measure the success of this outreach contract?

The success of this Medicare Open Enrollment public education and outreach contract is likely measured through a set of Key Performance Indicators (KPIs) designed to assess the effectiveness of the campaign. These KPIs could include metrics such as website traffic to Medicare-related information pages, call volume to Medicare helplines, the number of informational materials downloaded or distributed, social media engagement rates, and ultimately, the impact on enrollment numbers and plan selection rates during the open enrollment period. Media impressions and reach are also common metrics. The contract should clearly define these KPIs, along with target values and reporting frequencies, to allow for objective evaluation of Porter Novelli's performance and the overall return on investment for the taxpayer.

What is Porter Novelli's track record with large-scale federal government public health or outreach contracts?

Evaluating Porter Novelli's track record with similar large-scale federal government public health or outreach contracts is critical for assessing their capability and past performance. This involves reviewing their history of managing complex communication campaigns for government agencies, particularly those involving health-related topics or broad public education. Key aspects to examine include their success in meeting contract objectives, managing budgets effectively, adhering to timelines, and demonstrating positive outcomes. Past performance reviews, contract awards, and any documented issues or successes with previous government clients would provide valuable context. A strong history with comparable contracts suggests a higher likelihood of successful execution for this Medicare outreach initiative, while a less robust record might raise concerns about potential risks.

What are the potential risks associated with the Time and Materials (T&M) pricing structure for this contract?

The Time and Materials (T&M) pricing structure for this $94 million Medicare outreach contract presents several potential risks. T&M contracts allow the government to pay for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or profit. The primary risk is cost escalation, as there is less incentive for the contractor to control costs compared to a fixed-price contract. If project scope creeps, or if labor hours and material usage are not meticulously tracked and managed, the total cost can significantly exceed initial estimates. This necessitates robust government oversight, including detailed monitoring of timesheets, material requisitions, and regular progress reviews to ensure that all costs are reasonable, allocable, and necessary for the contract's objectives. Without stringent controls, T&M contracts can become significantly more expensive than anticipated.

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

Offers Received: 1

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: $126,082,231

Exercised Options: $93,998,666

Current Obligation: $93,998,666

Actual Outlays: $93,896,345

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75FCMC18D0045

IDV Type: IDC

Timeline