MATHEMATICA INC. awarded $14.1M contract for consulting services by HHS, spanning 5 years

Contract Overview

Contract Amount: $14,141,887 ($14.1M)

Contractor: Mathematica Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2009-09-30

End Date: 2014-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $7.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: MIDS IDIQ TASK ORDER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $14.1 million to MATHEMATICA INC. for work described as: MIDS IDIQ TASK ORDER Key points: 1. Contract value appears reasonable for the duration and scope of scientific and technical consulting. 2. Competition was robust, suggesting potential for good price discovery. 3. Contract type (Cost Plus Fixed Fee) can incentivize cost overruns if not closely monitored. 4. Performance period of five years allows for sustained support but requires ongoing evaluation. 5. Services fall under a broad consulting category, indicating potential for diverse applications within CMS. 6. The contract was awarded as a delivery order under an IDIQ, suggesting it's part of a larger framework.

Value Assessment

Rating: good

The contract value of $14.1 million over five years averages to approximately $2.8 million annually. This figure seems within a reasonable range for specialized scientific and technical consulting services, especially for a federal agency like CMS. Benchmarking against similar large-scale consulting contracts within the federal government would provide a more precise value-for-money assessment, but initial indications suggest fair pricing given the duration and potential complexity of the tasks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order under an existing IDIQ (Indefinite Delivery, Indefinite Quantity) contract. The 'full-and-open' competition indicates that multiple bidders were likely considered, which generally promotes competitive pricing and allows the government to select the best value. The number of bidders is not specified, but the competitive nature suggests a healthy market for these services.

Taxpayer Impact: A full and open competition ensures that taxpayers benefit from potentially lower prices and a wider range of innovative solutions being offered by various contractors.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and potentially the broader healthcare sector through improved consulting services. Services delivered likely involve research, analysis, and technical guidance to support CMS initiatives. Geographic impact is primarily national, given CMS's role in federal healthcare programs. Workforce implications may include employment for consultants and subject matter experts within Mathematica Inc. and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to less incentive for the contractor to control costs compared to fixed-price arrangements.
The broad nature of 'Other Scientific and Technical Consulting Services' could lead to scope creep if not managed tightly.
Reliance on a single IDIQ task order for significant consulting needs might limit flexibility if requirements evolve significantly.

Positive Signals

Awarded through a competitive process, indicating potential for strong performance and value.
The five-year duration suggests a stable, long-term need for these services, allowing for deep integration and impact.
MATHEMATICA INC. is a known entity in research and analysis, suggesting a level of expertise.

Sector Analysis

The contract falls within the Scientific and Technical Consulting Services sector, a broad category encompassing a wide range of analytical, research, and advisory functions. This sector is crucial for government agencies needing specialized expertise that may not be available in-house. Comparable spending benchmarks would depend on the specific nature of the consulting, but federal spending on professional services, including technical consulting, is substantial, often in the billions annually across various agencies.

Small Business Impact

There is no explicit indication of a small business set-aside for this contract, and the prime contractor, MATHEMATICA INC., is a large business. However, large IDIQ contracts often include subcontracting goals. The extent to which small businesses will participate as subcontractors will determine the impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and program managers within CMS. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract databases like FPDS, though specific task order details might be less public. Inspector General jurisdiction would apply to prevent fraud, waste, and abuse.

Related Government Programs

Federal Professional Services Contracts
Healthcare Consulting Services
Scientific Research and Development Support
CMS Program Support Contracts
IDIQ Contract Vehicles

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Broad 'Other Scientific and Technical Consulting Services' category necessitates clear scope definition.
Performance duration of five years requires sustained monitoring and evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.1 million to MATHEMATICA INC.. MIDS IDIQ TASK ORDER

Who is the contractor on this award?

The obligated recipient is MATHEMATICA 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 $14.1 million.

What is the period of performance?

Start: 2009-09-30. End: 2014-09-29.

What is the specific nature of the 'Other Scientific and Technical Consulting Services' provided under this contract?

While the NAICS code 541690 broadly covers 'Other Scientific and Technical Consulting Services,' the specific tasks under this delivery order are not detailed in the provided data. Typically, such services for CMS could range from policy analysis, program evaluation, data analytics, health economics research, IT strategy consulting, to operational efficiency improvements. The 'MATHEMATICA INC.' name suggests a focus on research, analysis, and evidence-based consulting, likely supporting CMS's mission to improve healthcare quality and affordability for Medicare and Medicaid beneficiaries.

How does the $14.1 million contract value compare to similar consulting contracts awarded by CMS or other HHS agencies?

Without access to a comprehensive database of comparable CMS or HHS consulting contracts, a precise benchmark is difficult. However, $14.1 million over five years ($2.8 million annually) is a significant but not extraordinary sum for specialized consulting services supporting a large federal agency. Many large-scale program support, research, and technical assistance contracts awarded to major consulting firms by federal health agencies fall within or exceed this range. The value appears commensurate with the duration and the potential complexity of supporting a major federal healthcare program.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for these services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as their profit (the fixed fee) is guaranteed regardless of the final cost, provided they stay within the contract's scope. This can potentially lead to cost overruns if not managed diligently. For the government, effective oversight, detailed cost monitoring, and robust negotiation are crucial to ensure value for money and prevent unnecessary expenditures. The fixed fee itself should be negotiated based on a realistic estimate of effort and risk.

What is Mathematica Inc.'s track record with federal contracts, particularly with HHS or CMS?

MATHEMATICA INC. is a well-established research and consulting firm with a significant history of working with federal agencies, including the Department of Health and Human Services (HHS) and its components like the Centers for Medicare and Medicaid Services (CMS). They are known for their work in health policy, healthcare research, and program evaluation. Their extensive experience suggests a strong understanding of federal contracting processes and the specific needs of agencies like CMS, likely contributing to their successful bid on this contract.

How does the competition level (full-and-open) influence the potential value and innovation for this contract?

A 'full-and-open' competition generally leads to better value for taxpayers by fostering a competitive environment where multiple companies vie for the contract. This encourages competitive pricing, potentially driving down costs. Furthermore, a wider pool of bidders can introduce a broader range of innovative approaches and solutions. The government can select the offer that provides the best combination of technical merit, past performance, and price. This contrasts with sole-source or limited competitions, which may offer less price pressure and a narrower selection of potential solutions.

What are the implications of this contract being a delivery order under an IDIQ contract?

This contract is a delivery order issued under an existing Indefinite Delivery, Indefinite Quantity (IDIQ) contract. This means the IDIQ vehicle itself was previously competed and awarded, establishing terms and conditions for future orders. Issuing a delivery order allows the agency to procure specific services or supplies as needed, up to a certain ceiling. For this contract, it implies that the foundational competition for the IDIQ occurred earlier, and this delivery order represents a specific task awarded under that established framework. It can streamline the procurement process for subsequent needs.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mathematica Inc (UEI: 154125140)

Address: 600 MARYLAND AVE SW, WASHINGTON, DC, 20024

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $14,141,887

Exercised Options: $14,141,887

Current Obligation: $14,141,887

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSM500200800020I

IDV Type: IDC

Timeline