HHS awards $34.4M for World Trade Center clinical centers, impacting NYC health services

Contract Overview

Contract Amount: $34,455,818 ($34.5M)

Contractor: NEW York City Health and Hospitals Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2011-09-29

End Date: 2016-12-31

Contract Duration: 1,920 days

Daily Burn Rate: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST NO FEE

Sector: Healthcare

Official Description: WORLD TRADE CENTER CLINICAL CENTERS OF EXCELLENCE

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10013

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $34.5 million to NEW YORK CITY HEALTH AND HOSPITALS CORPORATION for work described as: WORLD TRADE CENTER CLINICAL CENTERS OF EXCELLENCE Key points: 1. Contract value appears reasonable given the scope of establishing specialized clinical centers. 2. Full and open competition suggests a robust market engagement process. 3. Contract type (Cost No Fee) may indicate inherent uncertainties in service delivery costs. 4. Performance period of 5 years provides a substantial timeframe for achieving program goals. 5. Focus on outpatient care centers aligns with public health needs for WTC-affected populations. 6. Geographic concentration in New York City targets a specific, high-need population.

Value Assessment

Rating: good

The contract value of $34.4 million over approximately five years for establishing and operating clinical centers of excellence for World Trade Center (WTC) health is within a reasonable range for specialized public health initiatives. Benchmarking against similar large-scale public health programs, the per-beneficiary cost would need further analysis, but the overall investment reflects a significant commitment to a vulnerable population. The 'Cost No Fee' contract type suggests that the government is reimbursing the contractor for allowable costs, which can be appropriate for research or service delivery where precise costs are difficult to predict upfront. However, it necessitates strong oversight to ensure cost efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This approach is generally favored as it promotes a competitive environment, potentially leading to better pricing and innovative solutions. The presence of 7 bidders suggests a healthy level of interest and capability within the market for providing these specialized health services.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

Provides specialized clinical care and health services to individuals affected by the World Trade Center disaster. Benefits first responders, survivors, and residents of New York City and surrounding areas with long-term health monitoring and treatment. Aims to improve the health outcomes and quality of life for a population facing unique and persistent health challenges. Supports the ongoing public health infrastructure necessary to address the consequences of the WTC attacks. Contributes to research and understanding of health conditions related to WTC exposure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost No Fee' contract type requires diligent oversight to manage and control costs effectively.
Ensuring equitable access to services across the diverse WTC-affected population in the New York City area is crucial.
Long-term sustainability of clinical services beyond the contract period needs consideration.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potentially good value.
The substantial funding indicates a strong commitment to addressing the health needs of the WTC-affected population.
The establishment of 'Centers of Excellence' implies a focus on high-quality, specialized care.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on specialized outpatient care. The market for public health services, particularly those addressing the long-term health consequences of major events like 9/11, is often characterized by a mix of government funding, non-profit organizations, and specialized healthcare providers. The total federal spending on WTC-related health programs represents a significant, albeit targeted, investment in public health infrastructure and direct patient care.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, was not explicitly detailed in the provided data. However, given the specialized nature and scale of establishing clinical centers of excellence, larger healthcare systems or consortia were likely the primary bidders. Further investigation into subcontracting opportunities would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Disease Control and Prevention (CDC), a division of HHS. Mechanisms likely include regular performance reviews, cost audits, and adherence to clinical quality standards. Transparency is generally maintained through public health reporting and program evaluations, though specific contract-level details might be subject to privacy regulations. The Inspector General of HHS would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

World Trade Center Health Program
National Institute for Occupational Safety and Health (NIOSH)
Public Health Service Act programs
Disaster relief and public health emergency response

Risk Flags

Cost control risks associated with 'Cost No Fee' contract type.
Ensuring equitable access to specialized care for all eligible WTC-affected individuals.
Long-term sustainability planning for WTC health services beyond current funding cycles.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $34.5 million to NEW YORK CITY HEALTH AND HOSPITALS CORPORATION. WORLD TRADE CENTER CLINICAL CENTERS OF EXCELLENCE

Who is the contractor on this award?

The obligated recipient is NEW YORK CITY HEALTH AND HOSPITALS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $34.5 million.

What is the period of performance?

Start: 2011-09-29. End: 2016-12-31.

What is the track record of New York City Health and Hospitals Corporation in managing large-scale public health initiatives, particularly those related to specialized care?

New York City Health and Hospitals Corporation (HHC) is the largest public healthcare system in the United States, operating numerous hospitals and health centers across the city. HHC has extensive experience managing complex public health programs and serving diverse, often vulnerable, populations. Their track record includes significant involvement in community health, emergency preparedness, and specialized care services. While specific performance metrics for this particular contract are not detailed here, HHC's scale and mission suggest a capacity to manage such initiatives. However, like any large organization, they face ongoing challenges related to funding, operational efficiency, and adapting to evolving healthcare needs. Their experience with managing large patient populations and coordinating care across multiple facilities would be a key asset in fulfilling the requirements of the WTC Clinical Centers of Excellence contract.

How does the $34.4 million contract value compare to other federal investments in WTC-related health services?

The $34.4 million awarded to New York City Health and Hospitals Corporation represents a significant portion of federal funding dedicated to the World Trade Center Health Program (WTCCHP). The WTCCHP, administered by the National Institute for Occupational Safety and Health (NIOSH), has received substantial appropriations over the years to cover medical monitoring and treatment for eligible responders and survivors. While the total annual federal investment can fluctuate based on appropriations and program needs, this specific contract award for establishing 'Centers of Excellence' is a substantial, multi-year commitment. It aligns with the program's goal of providing comprehensive, long-term care. Comparing this single award requires looking at the overall WTCCHP budget, which has historically been in the hundreds of millions of dollars annually, encompassing various service providers and research initiatives across the nation.

What are the primary risks associated with a 'Cost No Fee' contract for clinical services, and how are they mitigated?

A 'Cost No Fee' (CNF) contract, also known as Cost Plus Fixed Fee (CPFF) or Cost Reimbursement (CR) without a fee, means the contractor is reimbursed for allowable costs but does not receive an additional profit margin. This type of contract is often used when the scope of work involves uncertainties, research, or development where final costs are difficult to predict. For clinical services, the primary risks include potential cost overruns if services are more complex or utilized more than anticipated, and the contractor potentially lacking strong incentives for cost efficiency since their primary goal is reimbursement of costs. Mitigation strategies employed by the government typically involve rigorous cost monitoring, detailed auditing of expenses, clear definitions of allowable costs, and strong performance management to ensure services are delivered effectively and efficiently. Regular reporting and justification of expenditures are critical.

What is the expected effectiveness of establishing 'Centers of Excellence' for WTC-related health conditions?

Establishing 'Centers of Excellence' for World Trade Center (WTC) related health conditions is intended to consolidate expertise, resources, and research capabilities into specialized facilities. The expected effectiveness lies in providing a higher standard of integrated care for a complex and often chronic set of illnesses stemming from WTC exposure. These centers aim to improve diagnostic accuracy, offer coordinated multidisciplinary treatment plans (including medical, mental health, and social services), and facilitate research into the long-term health impacts. By concentrating expertise, they can also serve as hubs for training other healthcare providers and disseminating best practices. The ultimate goal is to enhance the health outcomes and quality of life for WTC-affected individuals through focused, high-quality, and research-informed medical care.

How has federal spending on WTC health programs evolved since the inception of the World Trade Center Health Program?

Federal spending on World Trade Center (WTC) health programs has evolved significantly since the establishment of the WTC Health Program (WTCCHP) in 2011, following earlier ad-hoc funding. Initially, funding was more fragmented and reactive. The formalization of the WTCCHP under NIOSH provided a structured approach to medical monitoring and treatment, leading to more consistent and substantial federal appropriations. Spending has generally increased over time as the eligible population grew, more individuals sought care, and the long-term health consequences became better understood. The program's budget has typically ranged from several hundred million dollars annually to cover medical benefits, administrative costs, and research. Key legislative actions, such as the James Zadroga 9/11 Health and Compensation Act and subsequent reauthorizations, have been crucial in securing and sustaining this funding, reflecting a growing commitment to the long-term health needs of the WTC community.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › All Other Outpatient Care Centers

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 125 WORTH ST RM 514, NEW YORK, NY, 10013

Business Categories: Category Business, Government, Hospital, U.S. Local Government, U.S. National Government, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $34,455,818

Exercised Options: $34,455,818

Current Obligation: $34,455,818

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline