HHS Awards $2.1M for QRS Measure Support to PQA Inc

Contract Overview

Contract Amount: $214,200 ($214.2K)

Contractor: PQA Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2024-08-15

End Date: 2025-09-20

Contract Duration: 401 days

Daily Burn Rate: $534/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TO PROVIDE MEASURE SPECIFICATIONS, MEASURE MAINTENANCE AND TECHNICAL SUPPORT FOR SEVERAL QUALITY MEASURES BASED ON THE QUALITY RATING SYSTEM (QRS) MEASURE SET OUTLINED IN THE CALL LETTERS.

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22315

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $214,200 to PQA INC for work described as: TO PROVIDE MEASURE SPECIFICATIONS, MEASURE MAINTENANCE AND TECHNICAL SUPPORT FOR SEVERAL QUALITY MEASURES BASED ON THE QUALITY RATING SYSTEM (QRS) MEASURE SET OUTLINED IN THE CALL LETTERS. Key points: 1. Contract awarded to PQA Inc. for quality measure specifications and technical support. 2. Focus on Quality Rating System (QRS) measure set as outlined in call letters. 3. Potential risk associated with sole-source procurement impacting price discovery. 4. Spending falls within the IT/Professional Services sector.

Value Assessment

Rating: fair

The contract is a firm-fixed-price purchase order. Without competitive bidding, it's difficult to assess if the $2.14M price represents fair value compared to market rates for similar measure maintenance and technical support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under Simplified Acquisition Procedures (SAP), indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.

Taxpayer Impact: The lack of competition for this sole-source award may result in taxpayers paying a premium for these essential quality measure services.

Public Impact

Ensures continued operation and maintenance of critical quality measures for healthcare providers. Supports the Centers for Medicare and Medicaid Services (CMS) in its quality rating initiatives. Impacts healthcare organizations relying on accurate and up-to-date quality measure data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Potential for overpayment due to lack of competitive benchmarking.
Contract duration of 401 days may be extended without further competition.

Positive Signals

Award to a specialized firm (PQA Inc.) likely ensures technical expertise.
Firm-fixed-price contract provides cost certainty for the government.
Supports essential CMS functions related to healthcare quality.

Sector Analysis

This contract falls under professional services, specifically related to healthcare quality measurement and IT support for those measures. Spending benchmarks for similar IT support contracts for government agencies vary widely but often benefit from competitive bidding.

Small Business Impact

The data indicates this was a sole-source award to PQA Inc., with no indication of subcontracting opportunities for small businesses. Further analysis would be needed to determine if small businesses could have provided these services competitively.

Oversight & Accountability

Oversight will be crucial to ensure PQA Inc. delivers the specified measure maintenance and technical support effectively. The lack of competition necessitates careful monitoring of performance and deliverables to justify the expenditure.

Related Government Programs

Professional Organizations
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Limited transparency in price discovery

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $214,200 to PQA INC. TO PROVIDE MEASURE SPECIFICATIONS, MEASURE MAINTENANCE AND TECHNICAL SUPPORT FOR SEVERAL QUALITY MEASURES BASED ON THE QUALITY RATING SYSTEM (QRS) MEASURE SET OUTLINED IN THE CALL LETTERS.

Who is the contractor on this award?

The obligated recipient is PQA 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 $214,200.

What is the period of performance?

Start: 2024-08-15. End: 2025-09-20.

What is the specific technical expertise PQA Inc. possesses that justifies a sole-source award for QRS measure support?

PQA Inc. is a recognized leader in healthcare quality measurement, specializing in developing, maintaining, and implementing quality measures. Their established infrastructure, proprietary data, and deep understanding of the Quality Rating System (QRS) likely make them uniquely qualified, potentially justifying a sole-source award to ensure continuity and expertise.

What are the risks associated with the $2.14M sole-source award for measure specifications and maintenance?

The primary risk is the lack of competitive pricing, potentially leading to the government overpaying for services. Without competing the contract, there's no market validation of the price. Additionally, reliance on a single vendor could create future lock-in and limit flexibility if the government seeks alternative solutions or pricing structures.

How does this contract contribute to the overall effectiveness of the Quality Rating System (QRS)?

This contract is essential for the operational effectiveness of the QRS by ensuring the accuracy, relevance, and technical integrity of the quality measures. PQA Inc.'s support maintains the system's reliability, enabling CMS to accurately assess and report on healthcare provider performance, which ultimately informs patient choice and drives quality improvement.

Industry Classification

NAICS: Other Services (except Public Administration) › Business, Professional, Labor, Political, and Similar Organizations › Professional Organizations

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: CCSQ-393-2024-0269

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5911 KINGSTOWNE VILLAGE PKWY, ALEXANDRIA, VA, 22315

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

Financial Breakdown

Contract Ceiling: $214,200

Exercised Options: $214,200

Current Obligation: $214,200

Actual Outlays: $214,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline