HHS awards $7.4M contract for long-term care survey support to Insight Policy Research

Contract Overview

Contract Amount: $7,386,887 ($7.4M)

Contractor: Insight Policy Research, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-09-22

End Date: 2026-09-21

Contract Duration: 1,825 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: LONG TERM CARE SURVEY PROCESS OPERATIONAL SUPPORT & ANALYSIS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $7.4 million to INSIGHT POLICY RESEARCH, INC. for work described as: LONG TERM CARE SURVEY PROCESS OPERATIONAL SUPPORT & ANALYSIS Key points: 1. Contract provides operational support and analysis for the long-term care survey process. 2. Awarded through full and open competition, indicating a broad market search. 3. The contract duration of 1825 days (5 years) suggests a need for sustained support. 4. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. The awardee, Insight Policy Research, Inc., is a new entity in federal contracting based on this award. 7. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework.

Value Assessment

Rating: fair

The contract value of $7.4 million over five years averages to approximately $1.48 million per year. Without specific deliverables or performance metrics, it is difficult to benchmark the value for money. The Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not closely managed, as it reimburses the contractor for actual labor hours and material costs. Comparing this to similar contracts for operational support and analysis in healthcare regulation would provide a clearer picture of its cost-effectiveness. The absence of a specific ceiling price in the provided data makes a precise value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the agency sought proposals from all responsible sources. The presence of 3 bidders indicates a moderate level of competition for this specific award. While full and open competition is generally preferred for ensuring fair pricing and access to a wide range of capabilities, the limited number of bidders (3) might suggest that the market for this specialized service is not extensive or that other factors may have influenced participation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages a wider pool of contractors to offer their services, potentially leading to better value.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) benefits from enhanced operational support for its long-term care survey processes. This contract supports the delivery of essential services related to the oversight and regulation of long-term care facilities nationwide. Improved survey processes can lead to better quality of care and safety for residents in nursing homes and other long-term care settings. The analysis provided will inform policy decisions and operational improvements within CMS, impacting healthcare standards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed diligently.
Limited number of bidders (3) may indicate potential for reduced price competition.
The awardee is a relatively new entity in federal contracting, raising questions about their established track record and capacity for large-scale government support.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness and efficiency of the awarded services.
The contract is a Delivery Order, suggesting it might be part of a larger IDIQ vehicle, which could obscure the full scope and total value of the underlying contract.

Positive Signals

Awarded through full and open competition, maximizing potential contractor reach.
The contract duration of five years suggests a stable, long-term need for these services, indicating a well-defined requirement.
The contract supports a critical function within CMS related to healthcare quality and safety.
The geographic scope of the contract is national, supporting CMS's broad regulatory responsibilities.

Sector Analysis

The contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This sector encompasses a wide range of services aimed at improving organizational efficiency and effectiveness. Within the federal government, consulting services are frequently procured to support policy analysis, program management, and operational improvements. The market for such services is competitive, with numerous firms offering specialized expertise. Benchmarking this contract's value would require comparing its annual cost against similar consulting engagements for federal agencies focused on healthcare regulation and operational support.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and the awardee is not designated as a small business (ss: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Insight Policy Research, Inc., may choose to subcontract portions of this work to small businesses as part of their overall business strategy, though this is not mandated by the contract terms as presented.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Medicare and Medicaid Services (CMS), the contracting agency. As a Delivery Order, it likely falls under a broader contract or task order structure that includes its own oversight mechanisms. The Time and Materials nature of the contract necessitates close monitoring of labor hours, costs, and deliverables to ensure accountability and prevent cost overruns. Transparency would be facilitated through contract reporting requirements and potentially through public contract databases, though specific performance data may not be readily available.

Related Government Programs

Long-Term Care Facility Quality Reporting Program
Medicare and Medicaid Survey and Certification Program
Healthcare Quality Improvement Initiatives
Federal Consulting Services Procurement

Risk Flags

Time and Materials contract type requires diligent oversight to control costs.
Limited number of bidders may reduce competitive pressure.
Awardee's track record in federal contracting is not extensively documented in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $7.4 million to INSIGHT POLICY RESEARCH, INC.. LONG TERM CARE SURVEY PROCESS OPERATIONAL SUPPORT & ANALYSIS

Who is the contractor on this award?

The obligated recipient is INSIGHT POLICY RESEARCH, 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 $7.4 million.

What is the period of performance?

Start: 2021-09-22. End: 2026-09-21.

What is the track record of Insight Policy Research, Inc. with federal contracts?

Based on the provided data, Insight Policy Research, Inc. appears to be a relatively new entity in the federal contracting space, with this award being a primary indicator of their engagement. Further investigation into federal procurement databases like SAM.gov or FPDS would be necessary to ascertain the full extent of their contract history, including past performance on similar projects, their size status, and any prior awards or terminations. Without a substantial history, assessing their proven ability to manage and execute large-scale government contracts effectively remains challenging. Their capacity to deliver on this $7.4 million, five-year contract will be a key determinant of their future federal contracting prospects.

How does the value of this contract compare to similar federal procurements for operational support and analysis in healthcare?

Benchmarking the value of this $7.4 million, five-year contract requires comparison with similar services procured by federal agencies, particularly within the Department of Health and Human Services (HHS) or related healthcare regulatory bodies. Contracts for management and general management consulting services (NAICS 541611) can vary significantly based on scope, duration, and complexity. Given this is for long-term care survey process operational support and analysis, comparable contracts might involve program evaluation, data analysis, and process improvement initiatives. The average annual value of approximately $1.48 million needs to be assessed against the specific deliverables and the level of expertise required. Without detailed scope information, a precise comparison is difficult, but the value appears moderate for a five-year federal support contract in a specialized area.

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, such as this one for long-term care survey support, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual hours worked and materials used. If not managed diligently with strict oversight on labor categories, hours billed, and material costs, the total expenditure can exceed initial estimates or budgets. This necessitates robust monitoring by the government contracting officer and technical team to ensure that the effort is efficient and that the contractor is not incentivized to prolong tasks unnecessarily. For specialized analytical and operational support, ensuring the efficiency and necessity of each labor hour is crucial for taxpayer value.

How effective is full and open competition in ensuring competitive pricing for specialized consulting services like these?

Full and open competition is generally the most effective method for ensuring competitive pricing for a wide range of services, including specialized consulting. By allowing all responsible sources to submit proposals, the government can leverage market forces to obtain the best value. However, the effectiveness is contingent on the actual level of competition. In this case, with 3 bidders, the competition was present but not extensive. For highly specialized services, the pool of qualified bidders might be smaller, potentially limiting the price pressure. Nevertheless, full and open competition provides the framework for achieving competitive pricing and ensures that the government has explored the market broadly before making an award.

What are the implications of this contract for the quality of long-term care services nationwide?

This contract is designed to provide operational support and analysis for the long-term care survey process, which is a critical component of ensuring quality and safety in nursing homes and other long-term care facilities. By enhancing the efficiency and effectiveness of these surveys, the contract indirectly contributes to better oversight of healthcare providers. Improved survey processes can lead to more accurate assessments of facility compliance with federal standards, timely identification of deficiencies, and ultimately, better care for residents. The analysis generated may also inform policy adjustments aimed at further improving the quality of care and safety within the long-term care sector.

What is the historical spending pattern for long-term care survey support at CMS?

The provided data focuses on a single award and does not offer historical spending patterns for long-term care survey support at CMS. To understand historical spending, one would need to analyze contract data over several fiscal years, looking for similar contract vehicles, task orders, or procurements related to survey operations, analysis, and support within CMS. This would involve identifying the total amount obligated annually for such services, the number of contracts awarded, and the primary contractors involved. Such an analysis would reveal trends in spending, identify periods of increased or decreased investment, and highlight any shifts in contracting strategies or service providers over time.

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

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Westat, Inc.

Address: 1310 N COURTHOUSE RD STE 880, ARLINGTON, VA, 22201

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $7,386,887

Exercised Options: $7,386,887

Current Obligation: $7,386,887

Actual Outlays: $5,714,460

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS10F0136X

IDV Type: FSS

Timeline