CMS Oncology Care Model Data Registry Contract Awarded to Cormac Corporation for $23.1M

Contract Overview

Contract Amount: $23,092,650 ($23.1M)

Contractor: Cormac Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2015-09-23

End Date: 2023-06-22

Contract Duration: 2,829 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THE CMS ONCOLOGY CARE MODEL (OCM) IS A PATIENT CARE PAYMENT MODEL DESIGNED TO TEST THE EFFECT OF BETTER CARE COORDINATION, IMPROVED ACCESS TO PRACTITIONERS, AND APPROPRIATE CLINICAL CARE ON HEALTH OUTCOMES AND COSTS OF CARE FOR MEDICARE FEE-FOR-SERVICE (FFS) BENEFICIARIES WITH CANCER. THE MODEL DATA REGISTRY CONTRACTOR PLAYS A CENTRAL ROLE IN THE COLLECTION OF QUALITY AND CLINICAL DATA FROM MODEL PARTICIPANTS, CALCULATION OF PERFORMANCE ON QUALITY MEASURES, AND EXCHANGE OF DATA WITH MODEL PARTICIPANTS AND OTHER ENTITIES.

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.1 million to CORMAC CORPORATION for work described as: THE CMS ONCOLOGY CARE MODEL (OCM) IS A PATIENT CARE PAYMENT MODEL DESIGNED TO TEST THE EFFECT OF BETTER CARE COORDINATION, IMPROVED ACCESS TO PRACTITIONERS, AND APPROPRIATE CLINICAL CARE ON HEALTH OUTCOMES AND COSTS OF CARE FOR MEDICARE FEE-FOR-SERVICE (FFS) BENEFICIARIES WITH CA… Key points: 1. The contract supports a critical payment model aimed at improving cancer care coordination and outcomes for Medicare beneficiaries. 2. Cormac Corporation is tasked with collecting quality and clinical data, calculating performance metrics, and facilitating data exchange. 3. The contract's duration of over 7 years suggests a long-term commitment to the Oncology Care Model. 4. The firm-fixed-price contract type indicates that the total cost is predetermined, offering budget certainty. 5. The contract was awarded through full and open competition, suggesting a potentially competitive bidding process. 6. The services provided fall under 'Other Computer Related Services,' highlighting the IT-intensive nature of modern healthcare data management.

Value Assessment

Rating: good

The contract value of $23.1 million over approximately 7.7 years for data registry services in a complex healthcare model appears reasonable. Benchmarking against similar large-scale healthcare data management contracts is challenging due to the specialized nature of the Oncology Care Model. However, the fixed-price nature provides cost predictability. The value is tied to the successful collection and processing of critical data for a significant federal healthcare initiative.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that all responsible sources were permitted to submit offers. This method generally promotes a competitive environment, which can lead to better pricing and service quality. The presence of two bids suggests a moderate level of competition for this specialized service.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple bidders to offer their best pricing and solutions, potentially leading to cost savings and higher quality services.

Public Impact

Medicare beneficiaries with cancer will benefit from improved care coordination and potentially better health outcomes through the Oncology Care Model. The contract enables the collection and analysis of crucial quality and clinical data to assess the effectiveness of the OCM. Healthcare providers participating in the OCM will receive data insights to improve their care delivery. The contract supports the Centers for Medicare and Medicaid Services (CMS) in its mission to reform healthcare payment models. The geographic impact is nationwide, covering all Medicare FFS beneficiaries eligible for the OCM.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the data requirements of the OCM evolve significantly beyond initial projections.
Reliance on accurate and timely data submission from participating healthcare providers, which can be a challenge.
The long contract duration could present risks if technology or data management best practices change rapidly.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, suggesting a potentially competitive and cost-effective process.
The contractor is responsible for a critical function supporting a major CMS healthcare initiative.
The contract duration aligns with the long-term nature of testing and evaluating healthcare payment models.

Sector Analysis

This contract operates within the healthcare IT and data management sector, specifically supporting federal healthcare initiatives. The market for specialized healthcare data analytics and registry services is growing, driven by the increasing complexity of healthcare delivery and the push for value-based care. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of the Oncology Care Model, but large federal contracts for health IT infrastructure and data services can range from tens to hundreds of millions of dollars.

Small Business Impact

The data indicates this contract was awarded through full and open competition and does not specify any small business set-aside provisions. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Cormac Corporation voluntarily engages small businesses for specialized services.

Oversight & Accountability

Oversight is primarily managed by the Centers for Medicare and Medicaid Services (CMS), the awarding agency. As a contract supporting a federal healthcare model, it is subject to standard government procurement regulations and oversight. Inspector General jurisdiction would apply to ensure the integrity of the contract and prevent fraud, waste, and abuse. Transparency is facilitated through public contract awards and reporting requirements, though specific operational details may be proprietary.

Related Government Programs

Medicare Fee-for-Service (FFS) Beneficiaries
Oncology Care Model (OCM)
Healthcare Quality Improvement Programs
Health Data Management Systems
Federal Healthcare IT Contracts

Risk Flags

Data Security and Privacy Risk
Data Accuracy and Completeness Risk
Contractor Performance Risk
Programmatic Effectiveness Risk (OCM)

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.1 million to CORMAC CORPORATION. THE CMS ONCOLOGY CARE MODEL (OCM) IS A PATIENT CARE PAYMENT MODEL DESIGNED TO TEST THE EFFECT OF BETTER CARE COORDINATION, IMPROVED ACCESS TO PRACTITIONERS, AND APPROPRIATE CLINICAL CARE ON HEALTH OUTCOMES AND COSTS OF CARE FOR MEDICARE FEE-FOR-SERVICE (FFS) BENEFICIARIES WITH CANCER. THE MODEL DATA REGISTRY CONTRACTOR PLAYS A CENTRAL ROLE IN THE COLLECTION OF QUALITY AND CLINICAL DATA FROM MODEL PARTICIPANTS, CALCULATION OF PERFORMANCE ON QUALITY MEASURES, AND EXCHANGE OF DATA WITH MODEL PARTI

Who is the contractor on this award?

The obligated recipient is CORMAC CORPORATION.

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 $23.1 million.

What is the period of performance?

Start: 2015-09-23. End: 2023-06-22.

What is the track record of Cormac Corporation in managing large federal healthcare data contracts?

Cormac Corporation has a history of performing IT and data management services for federal agencies. While specific details on past oncology-related data registry contracts are not provided in the summary data, their award for this significant CMS initiative suggests they possess the requisite experience and capabilities. Further investigation into their past performance on similar contracts, particularly those involving sensitive health data and complex reporting requirements, would be beneficial for a comprehensive assessment. Their ability to successfully execute this contract will depend on their established processes for data security, quality assurance, and timely delivery of analytics.

How does the $23.1 million contract value compare to similar data registry services for federal healthcare models?

Direct comparisons for the specific 'Oncology Care Model Data Registry' are challenging due to its unique design and the specialized nature of the services. However, large-scale federal health IT and data management contracts often run into tens or hundreds of millions of dollars over several years. The value of this contract, approximately $2.97 million per year on average, appears reasonable given the complexity of collecting, processing, and analyzing clinical and quality data from numerous healthcare providers for a national model. It reflects the significant resources required for robust data infrastructure and analytical support in healthcare.

What are the primary risks associated with this contract for the government and taxpayers?

Key risks include potential data breaches or security vulnerabilities, given the sensitive nature of patient health information. Another risk is the accuracy and completeness of the data submitted by participating providers, which could impact the model's performance evaluation. Delays in data processing or reporting could hinder the timely assessment of the Oncology Care Model's effectiveness. Furthermore, if the model itself does not achieve its intended outcomes, the investment in the data registry, while necessary for evaluation, might not yield the desired return in terms of improved patient care or cost savings.

How effective is the Oncology Care Model (OCM) in achieving its stated goals, and how does this contract support that effectiveness?

The effectiveness of the OCM is evaluated through the data collected and analyzed under this contract. The model aims to improve care coordination, enhance patient outcomes, and manage costs for cancer patients. This contract is crucial because it provides the infrastructure for collecting the quality measures and clinical data necessary to assess whether these goals are being met. Without reliable data registry services, CMS would be unable to determine the OCM's impact, identify best practices, or make informed decisions about its future. The contract's success is directly tied to the OCM's ability to demonstrate value.

What are the historical spending patterns for data registry and analytics services within CMS or similar agencies?

CMS and other health-focused federal agencies have consistently invested in data management, analytics, and IT infrastructure to support healthcare programs. Spending in this area has generally increased over time, driven by the digitization of health records, the expansion of value-based care initiatives, and the need for robust data to inform policy and program evaluation. Contracts for data registries, health IT systems, and analytical support often represent significant portions of agency budgets, reflecting the critical role data plays in modern healthcare administration and reform efforts.

What are the implications of the 'Other Computer Related Services' NAICS code for the type of work performed?

The NAICS code 541519, 'Other Computer Related Services,' is broad and encompasses a wide range of IT services not classified elsewhere. For this contract, it suggests that Cormac Corporation is providing services that go beyond standard software development or IT support. This likely includes data architecture, database management, data integration, data quality assurance, data analysis, and potentially the development of custom reporting tools tailored to the specific needs of the Oncology Care Model. It signifies a focus on the complex management and utilization of data rather than just the underlying hardware or basic software.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 161 FORT EVANS RD NE, LEESBURG, VA, 20176

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $23,092,650

Exercised Options: $23,092,650

Current Obligation: $23,092,650

Actual Outlays: $3,778,767

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0045U

IDV Type: FSS

Timeline