HHS awards $21.5M for Quality Improvement Organization services to Healthcare Quality Strategies, Inc

Contract Overview

Contract Amount: $21,512,618 ($21.5M)

Contractor: Healthcare Quality Strategies, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2008-08-01

End Date: 2011-07-31

Contract Duration: 1,094 days

Daily Burn Rate: $19.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Healthcare

Official Description: QIO SERVICE 9TH SOW

Place of Performance

Location: EAST BRUNSWICK, MIDDLESEX County, NEW JERSEY, 08816

State: New Jersey Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.5 million to HEALTHCARE QUALITY STRATEGIES, INC for work described as: QIO SERVICE 9TH SOW Key points: 1. The contract focuses on healthcare quality strategies, a critical area for CMS. 2. Competition was limited, raising questions about price discovery and potential overspending. 3. The 'Other Management Consulting Services' NAICS code is broad and may encompass various activities. 4. The contract's cost-plus award fee structure can incentivize performance but also carries risk.

Value Assessment

Rating: questionable

The contract type is Cost Plus Award Fee, which can lead to higher costs than fixed-price contracts. Without a clear benchmark for similar services, it's difficult to definitively assess if the $21.5M award represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited competitive environment. This lack of competition may have hindered robust price discovery and potentially led to a less favorable price for the government.

Taxpayer Impact: The limited competition and cost-plus award fee structure suggest a higher potential taxpayer impact due to less pressure on cost efficiency.

Public Impact

Impacts Medicare beneficiaries by aiming to improve healthcare quality. Affects healthcare providers through quality monitoring and improvement initiatives. The specific outcomes and effectiveness of the quality improvement efforts are key public interests.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Cost-plus award fee contract type
Lack of specific performance metrics in provided data

Positive Signals

Focus on healthcare quality improvement
Long-term contract duration suggests sustained need

Sector Analysis

This contract falls within the Healthcare sector, specifically related to quality improvement and consulting services for CMS. Benchmarks for similar management consulting contracts can vary widely based on scope and complexity.

Small Business Impact

The provided data does not indicate any specific set-asides for small businesses, suggesting this contract was not awarded under such provisions.

Oversight & Accountability

Oversight would typically be managed by CMS program officials to ensure the contractor meets performance requirements and delivers value. The effectiveness of this oversight is not detailed in the provided data.

Related Government Programs

Other Management Consulting Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Potential for cost overruns due to Cost Plus Award Fee structure.
Lack of competition may have led to suboptimal pricing.
Broad NAICS code could obscure the true nature of services rendered.
Absence of specific performance outcome data makes effectiveness assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.5 million to HEALTHCARE QUALITY STRATEGIES, INC. QIO SERVICE 9TH SOW

Who is the contractor on this award?

The obligated recipient is HEALTHCARE QUALITY STRATEGIES, 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 $21.5 million.

What is the period of performance?

Start: 2008-08-01. End: 2011-07-31.

What specific quality metrics were targeted by this contract, and what were the achieved outcomes?

The provided data lacks specifics on targeted quality metrics and achieved outcomes. Understanding these details is crucial for evaluating the contract's effectiveness and value for money. Without this information, it's impossible to determine if the $21.5M investment yielded tangible improvements in healthcare quality for beneficiaries.

Were there any attempts to compete this contract or explore alternative solutions before awarding it on a non-competitive basis?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION.' This suggests that either a sole-source justification was made, or the opportunity was not broadly advertised. Further investigation into the justification for non-competition would be necessary to understand the rationale and potential missed opportunities for better pricing or innovative solutions.

How does the cost-plus award fee structure compare to fixed-price contracts for similar quality improvement services in terms of overall cost and performance?

Cost-plus award fee contracts offer flexibility and incentivize performance but can lead to higher costs than fixed-price contracts if not managed tightly. Without specific performance targets and award fee criteria, it's difficult to assess if this structure optimized value. Fixed-price contracts might offer more predictable costs but could limit flexibility in evolving quality improvement landscapes.

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: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 557 CRANBERRY RD, STE 21, EAST BRUNSWICK, NJ, 08816

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

Financial Breakdown

Contract Ceiling: $21,512,618

Exercised Options: $21,512,618

Current Obligation: $21,512,618

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline