HHS awards $2.05M contract for economic forecasting and analysis to IHS Global Inc

Contract Overview

Contract Amount: $2,054,754 ($2.1M)

Contractor: IHS Global Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2021-04-18

End Date: 2026-04-17

Contract Duration: 1,825 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ECONOMETRIC FORECASTING AND ECONOMIC SERVICES

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.1 million to IHS GLOBAL INC for work described as: ECONOMETRIC FORECASTING AND ECONOMIC SERVICES Key points: 1. Contract provides essential economic forecasting and analysis services to support federal health policy. 2. The contract was awarded using full and open competition, suggesting a competitive bidding process. 3. The duration of the contract is 5 years, indicating a long-term need for these services. 4. The contract type is Time and Materials, which can pose cost control challenges if not managed carefully. 5. The services fall under Administrative Management and General Management Consulting, a common area for federal support. 6. The award amount is relatively modest, suggesting a focused scope of work within economic analysis.

Value Assessment

Rating: good

The contract value of $2.05 million over five years appears reasonable for specialized economic forecasting and analysis services. Benchmarking against similar contracts for economic consulting within federal agencies would provide a more precise value-for-money assessment. However, the Time and Materials pricing structure necessitates close monitoring to ensure costs remain aligned with the anticipated scope and effort. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the competitive award process provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but the use of this procurement method generally fosters a competitive environment, which is expected to lead to better pricing and service quality. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified contractors for these specialized economic services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages a wider pool of talent, potentially leading to more efficient use of public funds.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) benefits from enhanced economic insights to inform policy decisions. Services delivered include econometric forecasting and economic analysis crucial for understanding healthcare market trends. The geographic impact is national, as CMS policies affect healthcare access and costs across the United States. The contract supports a specialized workforce of economists and analysts within IHS Global Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type requires diligent oversight to prevent cost overruns and scope creep.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness of the services delivered.
The specific nature of economic forecasting can be subject to inherent uncertainties and forecast inaccuracies.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contract duration of five years suggests a stable and ongoing need for these critical economic services.
The contractor, IHS Global Inc., is likely selected based on demonstrated expertise in economic analysis.

Sector Analysis

The federal government frequently procures economic consulting and analysis services to support policy development and program evaluation. This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on management and economic consulting. The market for such services is competitive, with numerous firms offering specialized expertise. Comparable spending benchmarks would involve analyzing other contracts for similar economic forecasting and analysis awarded by agencies like HHS, Treasury, or the Commerce Department.

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 small business set-aside. The primary contractor is IHS Global Inc., which is likely a large business. The absence of a small business set-aside means opportunities for small business participation are not mandated by this specific award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures would be defined within the contract's statement of work and performance standards. Transparency is facilitated through contract award databases like FPDS-NG, where basic award details are publicly available. The Inspector General for the Department of Health and Human Services may have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

Economic Consulting Services
Management and Consulting Services
Federal Budget Analysis
Healthcare Policy Analysis
Econometric Modeling

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Risk of forecast inaccuracy inherent in economic modeling.
Need for strong government oversight to ensure efficient contractor performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.1 million to IHS GLOBAL INC. ECONOMETRIC FORECASTING AND ECONOMIC SERVICES

Who is the contractor on this award?

The obligated recipient is IHS GLOBAL 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 $2.1 million.

What is the period of performance?

Start: 2021-04-18. End: 2026-04-17.

What is the track record of IHS Global Inc. in providing similar economic forecasting services to the federal government?

IHS Global Inc., now part of S&P Global, has a long-standing history of providing economic and market intelligence to government agencies. While specific details on past performance for this exact type of forecasting for CMS are not provided in the summary data, the company's broader portfolio includes extensive work in economic analysis, data analytics, and consulting across various sectors. Federal procurement databases often contain past performance information, which would be reviewed during the source selection process. Agencies typically assess a contractor's ability to meet technical requirements, manage schedules, and control costs based on prior contract performance. A review of FPDS or SAM.gov might reveal other relevant federal contracts awarded to IHS Global Inc. for similar services, offering insights into their reliability and expertise in government contracting.

How does the $2.05 million contract value compare to similar economic forecasting contracts awarded by federal agencies?

The $2.05 million contract value over a five-year period equates to an average annual value of approximately $410,000. This amount is considered moderate for specialized economic forecasting and analysis services. Larger federal agencies, such as the Department of the Treasury, Department of Commerce, or the Congressional Budget Office, may award significantly larger contracts for comprehensive economic modeling and long-term forecasting. However, for a specific task order or a focused analytical need within an agency like CMS, this value is plausible. Benchmarking against contracts with similar scope (e.g., econometric analysis, market forecasting for healthcare) awarded by agencies of comparable size and mission would provide a more precise comparison. The Time and Materials nature also means the final cost could vary based on actual effort expended.

What are the primary risks associated with a Time and Materials (T&M) contract for economic forecasting services?

The primary risk with a Time and Materials (T&M) contract for economic forecasting is the potential for cost overruns if the scope of work is not clearly defined or if the contractor's effort exceeds initial estimates. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used. This can lead to unpredictability in final costs for the government. For economic forecasting, scope creep can occur if the analysis requirements evolve or if unforeseen complexities arise in the data or modeling. Effective risk mitigation requires robust government oversight, detailed tracking of labor hours and expenses, and clear communication channels to manage any deviations from the anticipated effort. The government must ensure that the contractor is efficient and that the work performed directly aligns with the contract's objectives.

What is the expected effectiveness of the economic forecasting services provided under this contract for CMS policy decisions?

The effectiveness of the economic forecasting services hinges on several factors, including the quality of data used, the sophistication of the econometric models employed, and the expertise of the analysts at IHS Global Inc. For CMS policy decisions, accurate forecasts of healthcare utilization, costs, and market dynamics are crucial for budget planning, program design, and regulatory impact assessments. If the forecasts are reliable and insightful, they can significantly improve the evidence base for policy formulation, leading to more efficient resource allocation and better health outcomes. Conversely, inaccurate or poorly interpreted forecasts could lead to suboptimal policy choices. The contract's effectiveness will ultimately be measured by how well the insights generated inform and improve CMS's strategic planning and operational decisions.

How has federal spending on economic consulting and analysis services evolved over the past five years, and where does this contract fit?

Federal spending on economic consulting and analysis services has generally remained robust, driven by the need for data-driven insights to inform policy across various domains, including healthcare, finance, and national security. Agencies consistently require expertise in econometrics, forecasting, and market analysis to navigate complex economic landscapes. This $2.05 million contract for CMS fits within this broader trend, representing a specific investment in economic intelligence for the healthcare sector. While overall federal spending fluctuates based on budget appropriations and national priorities, the demand for specialized economic analysis, particularly in areas like healthcare economics, tends to be consistent. This contract appears to be a standard procurement for essential analytical support rather than a response to a sudden surge or decline in spending for such services.

Industry Classification

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

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 210407

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 15 INVERNESS WAY E, ENGLEWOOD, CO, 80112

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

Financial Breakdown

Contract Ceiling: $2,054,754

Exercised Options: $2,054,754

Current Obligation: $2,054,754

Actual Outlays: $695,911

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAA19D001X

IDV Type: FSS

Timeline