HHS awards $3.48M contract for diagnostic safety, with ATW Health Solutions Inc. leading

Contract Overview

Contract Amount: $3,483,517 ($3.5M)

Contractor: ATW Health Solutions Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-02-05

End Date: 2027-02-04

Contract Duration: 1,095 days

Daily Burn Rate: $3.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: DIAGNOSTIC SAFETY COORDINATING CENTER

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.5 million to ATW HEALTH SOLUTIONS INC. for work described as: DIAGNOSTIC SAFETY COORDINATING CENTER Key points: 1. Contract value of $3.48 million over 3 years for diagnostic safety coordination. 2. ATW Health Solutions Inc. secured the contract through full and open competition. 3. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 4. The North American Industry Classification System (NAICS) code 541990 suggests broad professional, scientific, and technical services. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. The award was made by the Agency for Healthcare Research and Quality (AHRQ).

Value Assessment

Rating: fair

The contract value of $3.48 million over three years for diagnostic safety coordination appears moderate for a federal contract of this nature. Benchmarking against similar contracts for professional, scientific, and technical services within healthcare research and safety initiatives would provide a clearer picture of value for money. The Time and Materials (T&M) contract type, while flexible, warrants close monitoring to ensure costs remain within reasonable bounds and do not escalate beyond initial expectations. Without specific performance metrics or detailed cost breakdowns, a definitive assessment of cost-effectiveness is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, which is crucial for understanding the intensity of competition. A robust competition typically leads to better pricing and innovation. The fact that it was competed openly is a positive sign for price discovery and ensuring taxpayer value.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are likely healthcare providers and patients, through improved diagnostic safety protocols. The services delivered will focus on coordinating efforts to enhance the safety of diagnostic processes within healthcare. The geographic impact is likely national, given the scope of federal healthcare research and safety initiatives. Workforce implications may include the need for specialized expertise in healthcare safety, quality improvement, and data analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Lack of specific number of bidders in the data limits assessment of competition intensity.
The broad NAICS code (541990) could encompass a wide range of services, making precise value assessment difficult without further detail.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
Contract supports a critical area of healthcare: diagnostic safety.
The Agency for Healthcare Research and Quality (AHRQ) is a reputable agency focused on improving healthcare quality and safety.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically related to healthcare research and safety. This sector is characterized by a demand for specialized expertise and often involves complex analytical and advisory services. Federal spending in this area supports evidence-based improvements in healthcare delivery and patient outcomes. Comparable spending benchmarks would typically be found within contracts awarded by agencies like AHRQ, CDC, or NIH for similar research, analysis, and coordination services.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Furthermore, there is no information regarding subcontracting plans or goals related to small businesses. Without this data, it is difficult to assess the direct impact on the small business ecosystem or whether opportunities for small business participation were prioritized.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for Healthcare Research and Quality (AHRQ), the awarding agency. As a delivery order under a potential IDIQ, oversight may also be influenced by the terms of the parent contract. Accountability measures would be tied to the performance work statement and deliverables outlined in the contract. Transparency is generally facilitated through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Patient Safety and Quality Improvement Initiatives
Healthcare Research and Development
Diagnostic Error Reduction Programs
Health Information Technology Services

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Scope creep risk without stringent oversight.
Dependence on contractor's expertise for effective coordination and analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.5 million to ATW HEALTH SOLUTIONS INC.. DIAGNOSTIC SAFETY COORDINATING CENTER

Who is the contractor on this award?

The obligated recipient is ATW HEALTH SOLUTIONS INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Agency for Healthcare Research and Quality).

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2024-02-05. End: 2027-02-04.

What is the track record of ATW Health Solutions Inc. with federal contracts, particularly within the Department of Health and Human Services?

A review of federal procurement data would be necessary to fully assess ATW Health Solutions Inc.'s track record. This would involve examining past contract awards, performance evaluations (if publicly available), and any history of contract modifications or disputes. Understanding their experience with similar types of services, such as healthcare safety, research coordination, and technical consulting, would be particularly relevant. A strong history of successful contract performance with HHS or other federal agencies would indicate a lower performance risk for this new award. Conversely, a history of issues could raise concerns about the contractor's ability to meet the requirements of this diagnostic safety coordinating center contract.

How does the $3.48 million contract value compare to similar diagnostic safety coordination efforts funded by the federal government?

To benchmark the $3.48 million contract value, one would need to identify comparable federal contracts awarded for diagnostic safety coordination, patient safety initiatives, or related healthcare research and technical services. This comparison should consider the duration of the contract (3 years), the scope of work, and the specific deliverables. For instance, contracts awarded by agencies like the Centers for Medicare & Medicaid Services (CMS) or the Centers for Disease Control and Prevention (CDC) for patient safety programs could serve as benchmarks. The Time and Materials (T&M) pricing structure also needs to be considered, as T&M contracts can vary significantly in total cost depending on the hours worked. A preliminary assessment suggests the value is moderate, but a detailed comparative analysis is required for a definitive conclusion on value for money.

What are the primary risks associated with a Time and Materials (T&M) contract for diagnostic safety coordination?

The primary risk associated with a Time and Materials (T&M) contract for diagnostic safety coordination is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used. If not carefully managed and monitored, this can lead to costs exceeding initial estimates or budgets. For diagnostic safety coordination, risks include scope creep where tasks expand beyond the original intent, inefficient labor utilization, or the use of higher-than-necessary labor categories. Effective oversight, clear task definitions, and robust reporting mechanisms are crucial to mitigate these risks and ensure the government receives good value. The agency must actively manage the contractor's effort to prevent unnecessary expenditures.

What is the expected effectiveness of the services provided under this contract in improving diagnostic safety?

The effectiveness of the services provided under this contract will depend heavily on the specific tasks outlined in the Statement of Work (SOW) and the contractor's ability to execute them. As a 'Diagnostic Safety Coordinating Center,' the contractor is expected to facilitate communication, share best practices, analyze data, and potentially develop guidelines or tools to reduce errors in diagnostic processes. The Agency for Healthcare Research and Quality (AHRQ) is well-positioned to oversee such an initiative, given its mission. Success will be measured by tangible improvements in diagnostic accuracy, reductions in diagnostic-related patient harm, and the successful dissemination and adoption of safety protocols across healthcare settings. Key performance indicators (KPIs) within the contract will be critical for assessing effectiveness.

How has federal spending on diagnostic safety and related patient safety initiatives evolved over the past five years?

Federal spending on diagnostic safety and broader patient safety initiatives has generally seen an upward trend, driven by recognition of the significant impact of medical errors on patient outcomes and healthcare costs. Agencies like AHRQ, CDC, and NIH consistently fund research and programs aimed at improving healthcare quality and safety. While specific figures for 'diagnostic safety coordination' might be embedded within larger patient safety or healthcare quality improvement budgets, the overall investment reflects a commitment to evidence-based interventions. Analyzing historical spending patterns within AHRQ's portfolio, particularly for contracts related to safety, quality improvement, and research coordination, would reveal the trajectory and scale of federal investment in this critical area.

What is the significance of the Agency for Healthcare Research and Quality (AHRQ) awarding this contract?

The significance of AHRQ awarding this contract lies in its alignment with the agency's core mission. AHRQ is dedicated to producing evidence to make healthcare safer, higher quality, and more accessible, affordable, and equitable. By funding a 'Diagnostic Safety Coordinating Center,' AHRQ is directly investing in efforts to reduce diagnostic errors, which are a major source of patient harm. This contract signifies AHRQ's commitment to tackling a complex and critical aspect of healthcare delivery. The agency's expertise in health services research and its role in disseminating findings make it an appropriate steward for such an initiative, aiming to translate research into practice and improve patient safety nationwide.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 625 W ADAMS ST, CHICAGO, IL, 60661

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned 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: $5,717,466

Exercised Options: $3,483,517

Current Obligation: $3,483,517

Actual Outlays: $2,372,869

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA22D006G

IDV Type: FSS

Timeline