HHS Awards $12.6M for QPP-SURS to Altarum Institute via Full and Open Competition
Contract Overview
Contract Amount: $12,625,478 ($12.6M)
Contractor: Altarum Institute
Awarding Agency: Department of Health and Human Services
Start Date: 2017-02-16
End Date: 2022-02-15
Contract Duration: 1,825 days
Daily Burn Rate: $6.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 30
Pricing Type: COST PLUS FIXED FEE
Sector: Healthcare
Official Description: QUALITY PAYMENT PROGRAM SMALL UNDERSERVED AND RURAL SUPPORT (QPP-SURS) AWARD IGF::CT::IGF
Place of Performance
Location: ANN ARBOR, WASHTENAW County, MICHIGAN, 48105
State: Michigan Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $12.6 million to ALTARUM INSTITUTE for work described as: QUALITY PAYMENT PROGRAM SMALL UNDERSERVED AND RURAL SUPPORT (QPP-SURS) AWARD IGF::CT::IGF Key points: 1. The contract focuses on administrative management and consulting services for the Quality Payment Program. 2. Altarum Institute, a known entity in healthcare consulting, secured the award. 3. The contract spans five years, indicating a significant, long-term need. 4. The use of Cost Plus Fixed Fee (CPFF) pricing warrants scrutiny for potential cost overruns.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) structure can lead to higher costs if not managed tightly. Benchmarking against similar CPFF contracts for administrative consulting services is recommended to ensure fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a robust price discovery process. This method generally leads to more competitive pricing compared to sole-source or limited solicitations.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure services at a reasonable cost. However, the CPFF structure requires ongoing oversight to control final expenditures.
Public Impact
Impacts healthcare providers participating in the Quality Payment Program. Aims to improve support for underserved and rural populations within the program. The five-year duration suggests a sustained effort to refine program administration and outreach.
Waste & Efficiency Indicators
Waste Risk Score: 69 / 10
Warning Flags
- CPFF pricing structure requires close monitoring.
- Long contract duration increases risk exposure.
Positive Signals
- Full and open competition utilized.
- Established contractor with relevant expertise.
Sector Analysis
This contract falls under administrative management and general management consulting services, a broad category. Benchmarks for similar government contracts in this sector vary widely based on scope and duration.
Small Business Impact
The contract was not awarded to a small business. There is no indication of small business participation or subcontracting goals within the provided data.
Oversight & Accountability
The contract's long duration and CPFF structure necessitate robust oversight from the Centers for Medicare and Medicaid Services to ensure efficient use of funds and achievement of program objectives.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) pricing.
- Long contract duration (5 years).
- Lack of small business participation noted.
- Potential for scope creep in administrative services.
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, mi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $12.6 million to ALTARUM INSTITUTE. QUALITY PAYMENT PROGRAM SMALL UNDERSERVED AND RURAL SUPPORT (QPP-SURS) AWARD IGF::CT::IGF
Who is the contractor on this award?
The obligated recipient is ALTARUM INSTITUTE.
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 $12.6 million.
What is the period of performance?
Start: 2017-02-16. End: 2022-02-15.
What is the specific value proposition of Altarum Institute's services for the QPP-SURS program?
The value proposition likely centers on Altarum's expertise in healthcare policy, program administration, and data analysis to enhance the effectiveness and reach of the Quality Payment Program, particularly for underserved and rural providers. Their services are expected to streamline operations, improve provider engagement, and ensure compliance with program requirements, ultimately benefiting patient care.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this program?
The primary risk with CPFF is that the contractor may have less incentive to control costs compared to fixed-price contracts, as their fee is fixed regardless of the actual costs incurred. This can lead to potential cost overruns if not rigorously monitored. Additionally, defining the 'fixed fee' accurately upfront can be challenging for complex service contracts.
How effectively is this contract expected to improve support for underserved and rural providers in the QPP?
Effectiveness will depend on the specific strategies and deliverables Altarum Institute implements. The contract's success hinges on their ability to develop and execute targeted outreach, technical assistance, and resource allocation plans that directly address the unique challenges faced by underserved and rural providers within the Quality Payment Program framework.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HHSM5002016RFP0021
Offers Received: 30
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 3520 GREEN CT STE 300, ANN ARBOR, MI, 48105
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,625,478
Exercised Options: $12,625,478
Current Obligation: $12,625,478
Actual Outlays: $1,499,674
Subaward Activity
Number of Subawards: 41
Total Subaward Amount: $8,341,176
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-02-16
Current End Date: 2022-02-15
Potential End Date: 2022-02-15 00:00:00
Last Modified: 2025-09-04
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