HHS awards $4.1M contract for Medicare beneficiary research, with a 25-order ceiling

Contract Overview

Contract Amount: $4,131,518 ($4.1M)

Contractor: Alan S. Newman Associates, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-12

End Date: 2026-09-14

Contract Duration: 1,463 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 25

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: MEDICARE BENEFICIARY RESPONDENT PANEL TASK ORDER

Place of Performance

Location: NORTH CHESTERFIELD, CHESTERFIELD County, VIRGINIA, 23225

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.1 million to ALAN S. NEWMAN ASSOCIATES, INC. for work described as: MEDICARE BENEFICIARY RESPONDENT PANEL TASK ORDER Key points: 1. Contract focuses on marketing research and public opinion polling for Medicare beneficiaries. 2. The contract was awarded using full and open competition after exclusion of sources. 3. A time and materials pricing structure is utilized, indicating potential for cost variability. 4. The contract has a duration of 1463 days, spanning over four years. 5. The award is a delivery order under a larger contract vehicle. 6. The primary place of performance is Virginia.

Value Assessment

Rating: fair

The total award amount is $4,131,518. Without specific benchmarks for similar Medicare beneficiary respondent panel tasks, it's difficult to definitively assess value for money. The time and materials (T&M) pricing structure, while common for research and development, can lead to cost overruns if not closely managed. The contract has a ceiling of 25 delivery orders, suggesting a flexible but potentially fragmented approach to task execution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which implies that while the competition was open, certain sources may have been excluded prior to the solicitation. The number of orders (25) suggests multiple task orders may have been issued under this contract, but the number of bidders for the primary contract is not specified. This method aims for broad competition while potentially focusing on specific capabilities.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by encouraging a wider range of potential contractors to bid, which can drive down prices and improve service quality.

Public Impact

Medicare beneficiaries will benefit from research aimed at improving their understanding and utilization of Medicare services. The services delivered include marketing research and public opinion polling. The primary geographic impact is in Virginia, where the performance is located. The contract supports market research professionals and potentially administrative staff involved in polling and data analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost uncertainty if not managed effectively.
The 'exclusion of sources' clause in the competition type warrants further investigation into the rationale.
The contract spans over four years, requiring sustained oversight to ensure continued value.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The contract is a delivery order, indicating it's part of a larger, potentially pre-vetted, contract vehicle.
The focus on Medicare beneficiaries aligns with critical public health service goals.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically marketing research and public opinion polling. This sector is crucial for government agencies seeking to understand public sentiment, gather feedback on programs, and inform policy decisions. Comparable spending in this area can vary widely depending on the scope and duration of research, but government reliance on market research firms for program evaluation and public outreach is consistent.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting plans. Given the nature of marketing research and public opinion polling, it's possible that smaller, specialized firms could be involved as subcontractors, but this is not explicitly stated.

Oversight & Accountability

Oversight would typically be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures would be tied to the successful completion of task orders according to defined scope, timelines, and quality standards. Transparency is generally facilitated through contract award databases, though specific details of task order performance may be less public.

Related Government Programs

Medicare Program Integrity
Medicaid Services
Health Services Research
Public Opinion Polling Services
Marketing Research Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Need for clear definition of scope in task orders to manage T&M costs effectively.
Rationale for 'exclusion of sources' in competition type requires scrutiny.
Long contract duration necessitates sustained performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.1 million to ALAN S. NEWMAN ASSOCIATES, INC.. MEDICARE BENEFICIARY RESPONDENT PANEL TASK ORDER

Who is the contractor on this award?

The obligated recipient is ALAN S. NEWMAN ASSOCIATES, 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 $4.1 million.

What is the period of performance?

Start: 2022-09-12. End: 2026-09-14.

What is the typical cost structure for similar Medicare beneficiary respondent panel task orders?

The typical cost structure for Medicare beneficiary respondent panel task orders can vary significantly based on the complexity of the research, the methodology employed (e.g., surveys, focus groups, interviews), the sample size, and the duration of the study. While this contract utilizes a Time and Materials (T&M) approach, other contracts might use Firm-Fixed Price (FFP) for well-defined scopes or Cost-Plus-Fixed-Fee (CPFF) for research and development where costs are less predictable. T&M contracts are often used when the scope of work is not clearly defined at the outset, allowing for flexibility but requiring robust oversight to prevent cost escalation. Benchmarking T&M rates against industry standards for similar professional services, considering the specific expertise required for healthcare-related polling, would be necessary for a comprehensive value assessment.

How does the 'full and open competition after exclusion of sources' impact price discovery compared to standard full and open competition?

The 'full and open competition after exclusion of sources' clause suggests that while the solicitation was broadly advertised, certain potential offerors were intentionally excluded from the bidding process before the solicitation was issued. This exclusion could be based on various factors, such as past performance, specific technical capabilities, or pre-qualification requirements. Compared to standard full and open competition, where all responsible sources are generally considered, this modified approach might limit the pool of bidders. A smaller pool of bidders could potentially lead to less aggressive pricing, as the competitive pressure might be reduced. However, if the excluded sources were not highly competitive or if the remaining pool is still robust, the impact on price discovery might be minimal. The rationale behind the exclusion is critical to understanding its effect on taxpayer value.

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

Key performance indicators (KPIs) for this contract would likely focus on the quality and timeliness of the research deliverables. This could include metrics such as the accuracy and representativeness of the respondent panels, the clarity and actionability of the research findings, adherence to project timelines for each task order, and the cost-effectiveness of the research methodologies employed. For public opinion polling, KPIs might also involve response rates, margin of error, and the reliability of the data collected. The Centers for Medicare and Medicaid Services (CMS) would establish specific KPIs within each task order, ensuring that the research directly supports their program evaluation and beneficiary engagement objectives. Contractor performance would be assessed against these defined metrics throughout the contract duration.

What is the historical spending pattern for Medicare beneficiary respondent panel research by CMS?

Historical spending patterns for Medicare beneficiary respondent panel research by CMS are likely substantial, given the agency's mission to serve millions of beneficiaries and the need for continuous feedback and program evaluation. CMS frequently engages contractors for market research, public opinion polling, and beneficiary surveys to understand healthcare utilization, satisfaction, and program effectiveness. While specific historical data for 'Medicare beneficiary respondent panel task orders' under this exact contract vehicle is not provided, CMS consistently awards contracts in the tens to hundreds of millions of dollars annually for various research and data collection efforts. Analyzing past awards for similar services, including the number of contracts, average award values, and contractor performance, would provide context for the $4.1 million awarded here. This spending reflects the ongoing need to gather insights directly from beneficiaries to inform policy and improve healthcare delivery.

What are the potential 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 marketing research and public opinion polling is the potential for cost overruns. Unlike Firm-Fixed-Price (FFP) contracts, T&M contracts do not have a predetermined total cost. The government pays for the actual labor hours and materials used, plus a fixed fee or percentage. If the scope of work is not well-defined, or if project management is weak, the contractor may incur more hours or use more expensive materials than anticipated, leading to a higher final cost than initially projected. This necessitates robust government oversight to monitor labor hours, material costs, and overall project progress to ensure that the work remains within budget expectations and delivers value. Without diligent oversight, T&M contracts can become significantly more expensive than initially planned.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › Marketing Research and Public Opinion Polling

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 25

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1025 BOULDERS PKWY, SUITE 401, RICHMOND, VA, 23225

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

Financial Breakdown

Contract Ceiling: $6,533,036

Exercised Options: $4,131,518

Current Obligation: $4,131,518

Actual Outlays: $2,559,846

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75FCMC22D0006

IDV Type: IDC

Timeline