HHS awards $21M to Porter Novelli for healthcare fraud prevention outreach, highlighting advertising agency services

Contract Overview

Contract Amount: $20,997,235 ($21.0M)

Contractor: Porter Novelli Public Services Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2022-07-06

End Date: 2025-09-29

Contract Duration: 1,181 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: HEALTH CARE FRAUD PREVENTION OUTREACH & EDUCATION CAMPAIGN UNDER THE NATIONAL EDUCATION CAMPAIGN & OUTREACH CONTRACT (NEC)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.0 million to PORTER NOVELLI PUBLIC SERVICES INC. for work described as: HEALTH CARE FRAUD PREVENTION OUTREACH & EDUCATION CAMPAIGN UNDER THE NATIONAL EDUCATION CAMPAIGN & OUTREACH CONTRACT (NEC) Key points: 1. Value for money assessed by comparing advertising costs to potential fraud savings. 2. Competition dynamics indicate a full and open process, suggesting competitive pricing. 3. Risk indicators include the Time and Materials contract type, which can lead to cost overruns if not managed closely. 4. Performance context relies on the effectiveness of public outreach campaigns in changing behavior. 5. Sector positioning places this contract within the broader health sector's efforts to combat fraud.

Value Assessment

Rating: fair

The contract value of approximately $21 million for an outreach campaign is substantial. Benchmarking this against similar public health communication campaigns is difficult without specific metrics on expected fraud reduction. The Time and Materials pricing structure introduces a risk of cost escalation if not tightly managed, impacting the overall value proposition. However, the Centers for Medicare and Medicaid Services (CMS) likely has established internal benchmarks for such services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple advertising agencies had the opportunity to bid. The presence of three bidders suggests a reasonable level of competition, which should theoretically drive more competitive pricing. The specific details of the bidding process and the evaluation criteria would provide further insight into how effectively this competition translated into value for the government.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services compared to sole-source or limited competition awards.

Public Impact

Beneficiaries include Medicare and Medicaid recipients, healthcare providers, and the general public, who are educated on fraud prevention. Services delivered include public awareness campaigns, educational materials, and outreach strategies. Geographic impact is national, aiming to reach all individuals and entities involved in federal healthcare programs. Workforce implications may involve the need for specialized communication and public relations expertise within CMS or its contractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Measuring the direct impact of an outreach campaign on fraud reduction can be challenging.
Reliance on a single contractor for a significant outreach effort may limit diverse perspectives.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contract duration allows for sustained campaign efforts over multiple years.
Focus on fraud prevention aligns with critical government priorities for healthcare spending.

Sector Analysis

The advertising and public relations sector is a key component of government communication strategies. This contract falls within the broader health sector, specifically addressing the significant issue of healthcare fraud. Comparable spending benchmarks for national public health campaigns can vary widely depending on the target audience and objectives, but a $21 million investment suggests a high-priority, broad-reaching initiative.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specific services.

Oversight & Accountability

Oversight is likely conducted by the Centers for Medicare and Medicaid Services (CMS) program officials responsible for the National Education Campaign and Outreach contract. Accountability measures would be tied to the successful execution of outreach activities and campaign milestones. Transparency is facilitated through contract award data, though detailed campaign performance metrics may not be publicly available.

Related Government Programs

Medicare Fraud Strike Force
CMS Healthcare Fraud Prevention Partnership
Office of Inspector General (HHS) Fraud Prevention Initiatives

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Difficulty in directly measuring campaign impact on fraud reduction.
Reliance on contractor performance for successful execution of national outreach.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.0 million to PORTER NOVELLI PUBLIC SERVICES INC.. HEALTH CARE FRAUD PREVENTION OUTREACH & EDUCATION CAMPAIGN UNDER THE NATIONAL EDUCATION CAMPAIGN & OUTREACH CONTRACT (NEC)

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 $21.0 million.

What is the period of performance?

Start: 2022-07-06. End: 2025-09-29.

What is the track record of Porter Novelli Public Services Inc. in managing large-scale government public health campaigns?

Porter Novelli Public Services Inc. has a history of working with government agencies on public health initiatives. While specific details on past HHS campaigns are not provided in this data, their experience in public relations and advertising suggests a capacity to manage complex communication strategies. A deeper dive into their past performance on similar contracts, including client testimonials and project outcomes, would be necessary to fully assess their track record. Their ability to adapt messaging to diverse audiences and measure campaign effectiveness are key indicators to evaluate.

How does the $21 million contract value compare to similar federal healthcare fraud prevention outreach campaigns?

Direct comparisons for healthcare fraud prevention outreach campaigns are challenging due to the unique nature of each initiative and varying objectives. However, $21 million over approximately three years (July 2022 to September 2025) represents a significant investment. This figure should be benchmarked against the scale of the target audience, the complexity of the message, and the expected return on investment in terms of fraud dollars saved. For context, large-scale public health campaigns, such as anti-smoking or vaccination drives, can also command budgets in the tens of millions, indicating that this level of funding is not unusual for national-level awareness efforts.

What are the primary risks associated with a Time and Materials (T&M) contract for an outreach campaign?

The primary risk with a Time and Materials (T&M) contract for an outreach campaign is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work expands, or if the contractor's labor hours exceed initial estimates, the total cost can escalate beyond the government's initial budget. Effective oversight, clear task definitions, and diligent monitoring of labor hours and material costs are crucial to mitigate these risks and ensure the contract remains within its allocated funding.

How will the effectiveness of this outreach campaign be measured in terms of fraud prevention?

Measuring the direct effectiveness of an outreach campaign on fraud prevention can be complex. Key performance indicators (KPIs) would likely include metrics such as reach (number of people exposed to the campaign), engagement (website visits, social media interactions), and potentially shifts in reported fraud incidents or beneficiary awareness surveys. The Centers for Medicare and Medicaid Services (CMS) would need to establish baseline data and track these metrics throughout the campaign's duration. Ultimately, the success will be evaluated by its contribution to reducing healthcare fraud, waste, and abuse, though isolating the campaign's specific impact from other anti-fraud efforts is a challenge.

What is the historical spending trend for healthcare fraud prevention outreach by HHS?

Historical spending data for HHS healthcare fraud prevention outreach campaigns would provide valuable context. Without specific historical figures, it's difficult to determine if this $21 million award represents an increase, decrease, or stable level of investment. Analyzing past budgets allocated to similar initiatives, the types of contractors used, and the perceived success of previous campaigns would help assess the current award's significance and inform future budgeting decisions. This contract's duration and value suggest a sustained, multi-year effort, which may indicate a strategic shift or ongoing commitment to public education in fraud prevention.

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

Solicitation ID: LRFP 221155

Offers Received: 3

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: $59,985,074

Exercised Options: $20,997,235

Current Obligation: $20,997,235

Actual Outlays: $20,957,179

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75FCMC18D0045

IDV Type: IDC

Timeline