HHS awards $28M contract to Battelle Memorial Institute for healthcare quality measurement strategy

Contract Overview

Contract Amount: $28,062,989 ($28.1M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2023-02-27

End Date: 2027-02-26

Contract Duration: 1,460 days

Daily Burn Rate: $19.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NATIONAL CONSENSUS DEVELOPMENT AND STRATEGIC PLANNING FOR HEALTH CARE QUALITY MEASUREMENT

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.1 million to BATTELLE MEMORIAL INSTITUTE for work described as: NATIONAL CONSENSUS DEVELOPMENT AND STRATEGIC PLANNING FOR HEALTH CARE QUALITY MEASUREMENT Key points: 1. Contract focuses on strategic planning and development for healthcare quality measurement. 2. Battelle Memorial Institute, a large research and development organization, is the prime contractor. 3. The contract is a firm-fixed-price definitive contract, indicating a clear scope and price. 4. Awarded by the Centers for Medicare and Medicaid Services (CMS), a key agency within HHS. 5. The contract duration is 4 years, suggesting a long-term strategic initiative. 6. The contract was awarded through full and open competition, implying a competitive bidding process.

Value Assessment

Rating: good

The contract value of $28 million over four years for strategic planning and development in healthcare quality measurement appears reasonable given the complexity and importance of the domain. Benchmarking against similar large-scale consulting or R&D contracts for federal health agencies suggests this is within a typical range. The firm-fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor. Without specific per-unit cost data or detailed deliverables, a precise value-for-money assessment is challenging, but the competitive award process lends confidence.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this specific contract. While two bidders is better than a sole-source award, a higher number of bids would typically lead to more robust price discovery and potentially lower costs for the government. The specific details of the bidding process and evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by encouraging contractors to offer their best pricing and technical solutions. Full and open competition generally leads to better value for taxpayers compared to limited or sole-source procurements.

Public Impact

The primary beneficiaries are federal agencies like CMS and HHS, which will receive strategic guidance to improve healthcare quality measurement. The services delivered will involve research, analysis, and development of strategies for measuring healthcare quality. The geographic impact is national, as the strategies developed will likely influence healthcare quality across the United States. The contract supports the development of frameworks and tools that could indirectly impact healthcare providers and ultimately patients by driving improvements in care quality.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the strategic planning evolves significantly beyond initial expectations.
Reliance on Battelle's expertise may limit the incorporation of diverse perspectives if not managed carefully.
Ensuring the developed strategies are practical and implementable by diverse healthcare entities presents a challenge.

Positive Signals

Battelle Memorial Institute has a strong track record in research and development for government agencies.
The firm-fixed-price contract provides cost predictability for the government.
The contract is awarded through full and open competition, suggesting a fair and transparent process.
The long-term duration allows for comprehensive strategic development and planning.

Sector Analysis

This contract falls within the Management Consulting Services sector (NAICS 541618), specifically focusing on strategic planning and development within the healthcare domain. The federal government, particularly agencies like HHS and CMS, frequently procures services for policy development, program evaluation, and strategic guidance. The market for healthcare consulting is substantial, with numerous firms offering expertise in quality improvement, health IT, and policy analysis. This contract represents a significant investment in shaping the future of healthcare quality measurement at a national level.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The prime contractor, Battelle Memorial Institute, is a large research and development organization. While the contract itself is not set aside for small businesses, there may be opportunities for small businesses to participate as subcontractors to Battelle. The extent of small business subcontracting will depend on Battelle's procurement practices and the specific needs of the project. Further analysis would be needed to determine the actual impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the Centers for Medicare and Medicaid Services (CMS) within the Department of Health and Human Services (HHS). As a firm-fixed-price contract, oversight will focus on ensuring that Battelle Memorial Institute meets the defined scope, deliverables, and timelines. Performance metrics and regular progress reports are expected to be key oversight mechanisms. Transparency is facilitated by the public nature of federal contract awards, though detailed internal project management and specific oversight activities are not publicly disclosed. The Inspector General for HHS would have jurisdiction in cases of fraud or mismanagement.

Related Government Programs

Healthcare Quality Improvement Programs
Health Information Technology Strategic Planning
Medicare and Medicaid Program Development
National Healthcare Policy Research
Federal Health Data Analytics

Risk Flags

Potential for strategic misalignment with evolving healthcare landscape.
Risk of recommendations being impractical for implementation.
Ensuring objectivity and quality of research underpinning strategy.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.1 million to BATTELLE MEMORIAL INSTITUTE. NATIONAL CONSENSUS DEVELOPMENT AND STRATEGIC PLANNING FOR HEALTH CARE QUALITY MEASUREMENT

Who is the contractor on this award?

The obligated recipient is BATTELLE MEMORIAL INSTITUTE.

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 $28.1 million.

What is the period of performance?

Start: 2023-02-27. End: 2027-02-26.

What is Battelle Memorial Institute's track record with federal healthcare contracts?

Battelle Memorial Institute has a substantial history of performing research, development, and consulting services for various U.S. federal agencies, including those in the health sector. They have been involved in numerous projects related to public health, biomedical research, environmental science, and national security. For healthcare-specific contracts, Battelle has experience in areas such as health systems analysis, medical device development, public health program support, and health data analytics. Their extensive experience suggests a strong capability to handle complex federal projects. Specific details on past performance metrics for similar HHS contracts would provide a more granular assessment, but their overall profile indicates a capable and experienced contractor in the federal space.

How does the $28 million contract value compare to similar federal healthcare strategy contracts?

The $28 million contract value for a four-year strategic planning initiative in healthcare quality measurement is within a reasonable range for large-scale federal consulting and R&D efforts. Similar contracts awarded by agencies like HHS, CMS, or the Department of Veterans Affairs (VA) for strategic planning, policy development, or complex program analysis often fall within the tens of millions of dollars. For instance, contracts focused on health IT strategy, national health surveys, or major program redesign can easily reach or exceed this value. The firm-fixed-price nature also provides a clear benchmark. While precise comparisons require access to detailed scopes of work for other contracts, this award appears commensurate with the strategic importance and complexity of improving national healthcare quality measurement.

What are the primary risks associated with this contract for the government?

The primary risks for the government in this contract revolve around the successful development and implementation of the strategic plan. One key risk is the potential for the strategic direction to become misaligned with evolving healthcare landscapes or policy priorities, requiring costly adjustments. Another risk is the contractor's ability to deliver actionable and practical recommendations that can be effectively implemented across diverse healthcare systems. Ensuring the quality and objectivity of the research and analysis underpinning the strategy is crucial. Furthermore, while the contract is competitively awarded, there's always a risk that the chosen strategy might not yield the anticipated improvements in healthcare quality measurement, representing a suboptimal use of taxpayer funds.

How effective is the 'full and open competition' approach likely to be for this type of strategic contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring fair pricing and access to the best available solutions for the government. For a strategic planning contract like this, it allows a wide range of qualified firms, including research institutions and specialized consulting groups, to compete. This broad competition increases the likelihood that the government will receive innovative approaches and competitive pricing. However, the effectiveness is also dependent on the clarity of the solicitation, the evaluation criteria, and the number of responsive bids received. With two bids, the competition was present but perhaps not as robust as it could be, potentially limiting the downward pressure on price discovery compared to a scenario with numerous bidders.

What are the historical spending patterns for healthcare quality measurement strategy at CMS?

Historical spending patterns at CMS for healthcare quality measurement strategy can be complex to isolate as they are often embedded within broader program support, research, and development contracts. CMS consistently invests significant resources in initiatives aimed at improving the quality and efficiency of Medicare and Medicaid. This includes funding for the development and refinement of quality measures, data analysis, performance reporting systems, and strategic planning related to value-based care models. While specific figures for 'quality measurement strategy' as a standalone category are not readily available, overall spending on healthcare policy development, research, and program evaluation by CMS runs into hundreds of millions, if not billions, of dollars annually. This $28 million contract represents a focused investment within that larger context.

What is the potential impact of this contract on healthcare providers and patients?

The potential impact of this contract on healthcare providers and patients is significant, albeit indirect. The strategic plan developed will guide CMS and HHS in how healthcare quality is measured, reported, and potentially incentivized. Improved quality measures can lead to more accurate assessments of provider performance, encouraging providers to adopt best practices and focus on patient outcomes. For patients, this could translate into receiving higher quality care, better health outcomes, and potentially lower costs due to increased efficiency and effectiveness in the healthcare system. The clarity and usability of the developed measures will be critical factors in realizing these benefits.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75FCMC22R0031

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 505 KING AVE, COLUMBUS, OH, 43201

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

Financial Breakdown

Contract Ceiling: $59,968,327

Exercised Options: $46,238,601

Current Obligation: $28,062,989

Actual Outlays: $27,733,149

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $810,422

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline