Primaris awarded $14.5M for quality improvement services in Missouri, a sole-source contract

Contract Overview

Contract Amount: $14,483,244 ($14.5M)

Contractor: Primaris

Awarding Agency: Department of Health and Human Services

Start Date: 2008-08-01

End Date: 2012-03-07

Contract Duration: 1,314 days

Daily Burn Rate: $11.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: Healthcare

Official Description: QUALITY IMPROVEMENT ORGANIZATION FOR THE STATE OF MISSOURI

Place of Performance

Location: COLUMBIA, BOONE County, MISSOURI, 65201

State: Missouri Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $14.5 million to PRIMARIS for work described as: QUALITY IMPROVEMENT ORGANIZATION FOR THE STATE OF MISSOURI Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Duration of over three years suggests a need for sustained quality improvement efforts. 3. Services fall under management consulting, a broad category with varying value propositions. 4. Awarded by CMS, indicating a focus on Medicare/Medicaid program integrity. 5. No small business set-aside, potentially limiting opportunities for smaller entities. 6. Geographic focus on Missouri suggests localized quality improvement initiatives.

Value Assessment

Rating: fair

The contract value of $14.5 million over approximately 3.5 years averages to about $4.1 million annually. Without specific performance metrics or comparable contracts for similar quality improvement initiatives in other states, it is difficult to definitively assess value for money. However, sole-source awards often carry a premium due to the lack of competitive pressure. The nature of quality improvement services can be complex to benchmark, but the annual spend is substantial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when a specific contractor is deemed uniquely qualified or when circumstances prevent full and open competition. The lack of competition means that pricing was not subject to market forces, potentially leading to a higher cost for the government compared to a competed award. The rationale for the sole-source award is not detailed here.

Taxpayer Impact: Sole-source awards mean taxpayers did not benefit from competitive bidding, which could have driven down costs. The government may have paid more than necessary due to the absence of multiple offers.

Public Impact

Beneficiaries of Medicare and Medicaid in Missouri are expected to receive improved quality of care through the contractor's services. The contract aims to enhance the quality of healthcare services delivered within the state. The geographic impact is specifically limited to the state of Missouri. The contract supports the operational goals of the Centers for Medicare and Medicaid Services (CMS) within a specific state.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential cost savings from competition.
Lack of detailed performance metrics makes it difficult to assess effectiveness.
Long contract duration without clear re-competition points could reduce contractor incentive for innovation.

Positive Signals

Focus on quality improvement aligns with CMS's mission to ensure high standards of care.
Contracting with a specific entity may indicate specialized expertise required for Missouri's healthcare landscape.
The award supports a critical function of healthcare oversight and enhancement.

Sector Analysis

This contract falls within the broader management consulting services sector, specifically focused on healthcare quality improvement. The market for such services is substantial, driven by regulatory requirements and the ongoing need for healthcare providers to enhance patient outcomes and operational efficiency. Comparable spending benchmarks are difficult to establish without more specific service details, but government contracts for quality improvement and program management can range widely in value depending on scope and duration.

Small Business Impact

The contract data indicates that this was not a small business set-aside, nor does it appear to involve significant subcontracting opportunities for small businesses based on the available information. The sole-source nature of the award further suggests that opportunities for small businesses to participate were likely limited from the outset.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Medicare and Medicaid Services (CMS). As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is limited due to the sole-source nature. Specific accountability measures would be detailed in the contract's performance work statement, which is not provided. Inspector General jurisdiction would apply if any fraud or mismanagement were suspected.

Related Government Programs

Medicare Quality Improvement Program
Medicaid Quality Improvement Initiatives
Healthcare Consulting Services
State Health Program Management

Risk Flags

Sole-source award limits competitive pricing.
Lack of detailed performance metrics hinders effectiveness assessment.
Potential for cost overruns due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.5 million to PRIMARIS. QUALITY IMPROVEMENT ORGANIZATION FOR THE STATE OF MISSOURI

Who is the contractor on this award?

The obligated recipient is PRIMARIS.

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 $14.5 million.

What is the period of performance?

Start: 2008-08-01. End: 2012-03-07.

What specific quality improvement activities were undertaken by Primaris under this contract?

The provided data does not detail the specific quality improvement activities undertaken by Primaris. Generally, Quality Improvement Organizations (QIOs) work with healthcare providers to improve the quality of care for Medicare beneficiaries. This can include initiatives related to patient safety, care coordination, chronic disease management, and reducing hospital readmissions. Without the contract's statement of work or performance reports, the precise nature and scope of Primaris's activities in Missouri remain unspecified. The contract's objective was to enhance healthcare quality within the state, likely involving data analysis, provider education, and implementation of best practices.

How does the $14.5 million award compare to similar quality improvement contracts in other states?

Direct comparison of the $14.5 million award to similar contracts in other states is challenging without knowing the specific scope, duration, and services rendered. This contract, awarded to Primaris for Missouri, spanned approximately 3.5 years. Annualized, it represents roughly $4.1 million per year. However, the lack of competition (sole-source award) makes a direct value-for-money comparison difficult. Competed contracts often yield lower prices. The size and complexity of a state's healthcare system, the specific quality metrics targeted, and the contractor's established presence can all influence contract value. Further analysis would require access to detailed contract data for other states and similar service types.

What is the justification for this contract being awarded on a sole-source basis?

The provided data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. The specific justification for this determination is not included in the data. Common reasons for sole-source awards include the unique capability of a single contractor, urgent and compelling needs where competition is impractical, or when a specific entity is mandated by statute or regulation. For Quality Improvement Organizations (QIOs), CMS often contracts with specific entities that have demonstrated expertise or are designated for particular regions or states. The rationale would typically be documented by the contracting agency (CMS) in accordance with federal acquisition regulations.

What were the key performance indicators (KPIs) or expected outcomes for this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or expected outcomes for this contract. Typically, contracts for quality improvement services would outline measurable goals related to improvements in patient safety, reduction in adverse events, enhanced care coordination, better management of chronic diseases, and increased patient satisfaction. These KPIs would be crucial for assessing the contractor's performance and the overall effectiveness of the quality improvement initiatives. Without this information, it is difficult to quantitatively evaluate the success of Primaris's work under this award.

What is Primaris's track record in providing quality improvement services to government agencies?

While this specific contract was awarded to Primaris for Missouri, their track record in providing quality improvement services to government agencies, particularly CMS, is generally established. Primaris has historically served as a Quality Improvement Organization (QIO) in various states. QIOs are a cornerstone of CMS's efforts to improve healthcare quality, patient safety, and efficiency for Medicare beneficiaries. Their work typically involves collaborating with healthcare providers, analyzing data, and implementing evidence-based practices. The renewal or continuation of such contracts suggests a level of satisfaction and perceived competence by the awarding agencies, although specific performance details for each contract would be necessary for a comprehensive assessment.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › DEPENDENT MEDICARE SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Address: 200 N KEENE ST, COLUMBIA, MO, 65201

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,483,244

Exercised Options: $14,483,244

Current Obligation: $14,483,244

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline