HHS awards $5.4M for post-acute care assessment data development and maintenance to The RAND Corporation

Contract Overview

Contract Amount: $21,027,824 ($21.0M)

Contractor: THE Rand Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2015-09-25

End Date: 2019-08-24

Contract Duration: 1,429 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CT::IGF QMHAG 62 (S. MANDL)-REQUEST FOR MIDS TO, ENTITLED, "DEVELOPMENT AND MAINTENANCE OF POST-ACUTE CARE CROSS-SETTING STANDARDIZED ASSESSMENT DATA", APP#151289, PERIOD OF PERFORMANCE 9/15/15-9/14/16, USING FMIB 7510 FOR $5,415,705. RREQUISITION 1 OF 1.

Place of Performance

Location: SANTA MONICA, LOS ANGELES County, CALIFORNIA, 90407

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.0 million to THE RAND CORPORATION for work described as: IGF::CT::IGF QMHAG 62 (S. MANDL)-REQUEST FOR MIDS TO, ENTITLED, "DEVELOPMENT AND MAINTENANCE OF POST-ACUTE CARE CROSS-SETTING STANDARDIZED ASSESSMENT DATA", APP#151289, PERIOD OF PERFORMANCE 9/15/15-9/14/16, USING FMIB 7510 FOR $5,415,705. RREQUISITION 1 OF 1. Key points: 1. The contract focuses on standardizing data for post-acute care settings, a critical area for healthcare quality improvement. 2. The RAND Corporation, a well-established research organization, is the awardee. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The period of performance spans nearly four years, indicating a significant, long-term project.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which allows for flexibility but requires careful oversight to manage costs. The total award amount of $5,415,705 over its duration suggests a moderate investment for the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The investment aims to improve healthcare data standardization, potentially leading to better patient outcomes and more efficient resource allocation, which benefits taxpayers in the long run.

Public Impact

Improved data collection and analysis in post-acute care can lead to better patient care transitions and reduced readmission rates. Standardized data will enable more accurate comparisons across different care providers and settings. This initiative supports the Centers for Medicare and Medicaid Services' (CMS) broader goals of healthcare quality and efficiency. The project's findings could influence future healthcare policy and payment models.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns with Cost Plus Fixed Fee contracts if not managed diligently.
  • Ensuring the long-term sustainability and usability of the developed data standards.
  • Measuring the actual impact of the standardized data on patient outcomes and healthcare costs.

Positive Signals

  • Award to a reputable research institution (The RAND Corporation).
  • Full and open competition process.
  • Focus on a critical area of healthcare improvement.
  • Significant performance period allowing for thorough development and implementation.

Sector Analysis

This contract falls within the 'Other Scientific and Technical Consulting Services' sector. Spending in this area often supports research, development, and advisory services for government agencies. Benchmarks for similar contracts can vary widely based on the specific technical expertise and project scope.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The awardee, The RAND Corporation, is a large research organization. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The Cost Plus Fixed Fee contract type necessitates robust oversight from the Centers for Medicare and Medicaid Services to ensure costs are reasonable and the work is progressing as intended. Regular reporting and performance reviews are crucial for accountability.

Related Government Programs

  • Other Scientific and Technical Consulting Services
  • Department of Health and Human Services Contracting
  • Centers for Medicare and Medicaid Services Programs

Risk Flags

  • Cost control risks inherent in CPFF contracts.
  • Ensuring widespread adoption and integration of new data standards.
  • Measuring the long-term impact on healthcare quality and costs.
  • Potential for scope creep if project requirements are not clearly defined and managed.

Tags

other-scientific-and-technical-consultin, department-of-health-and-human-services, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.0 million to THE RAND CORPORATION. IGF::CT::IGF QMHAG 62 (S. MANDL)-REQUEST FOR MIDS TO, ENTITLED, "DEVELOPMENT AND MAINTENANCE OF POST-ACUTE CARE CROSS-SETTING STANDARDIZED ASSESSMENT DATA", APP#151289, PERIOD OF PERFORMANCE 9/15/15-9/14/16, USING FMIB 7510 FOR $5,415,705. RREQUISITION 1 OF 1.

Who is the contractor on this award?

The obligated recipient is THE RAND 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 $21.0 million.

What is the period of performance?

Start: 2015-09-25. End: 2019-08-24.

What is the expected return on investment for the $5.4 million spent on developing and maintaining post-acute care assessment data?

The return on investment is expected to manifest through improved healthcare efficiency, reduced hospital readmissions, and enhanced patient outcomes. By standardizing data, CMS can better analyze care quality, identify best practices, and potentially optimize reimbursement models, leading to long-term cost savings and better allocation of healthcare resources.

What are the primary risks associated with the Cost Plus Fixed Fee contract structure for this project?

The primary risks with a Cost Plus Fixed Fee structure include potential cost overruns if the contractor's costs exceed projections, and the government paying a higher price than anticipated. There's also a risk that the fixed fee might not adequately incentivize the contractor to control costs aggressively, requiring diligent oversight from the agency to ensure efficiency and value.

How will the effectiveness of the developed post-acute care assessment data be measured?

Effectiveness will likely be measured by the adoption rate of the standardized data across post-acute care providers, the accuracy and completeness of the data collected, and its utility in improving care coordination and patient outcomes. CMS will likely track metrics related to readmission rates, patient satisfaction, and the ability to compare performance across different facilities.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesOther Scientific and Technical Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: RFPCMSMIDS20130001

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1776 MAIN ST, SANTA MONICA, CA, 90401

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: $21,098,084

Exercised Options: $21,098,084

Current Obligation: $21,027,824

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201313014I

IDV Type: IDC

Timeline

Start Date: 2015-09-25

Current End Date: 2019-08-24

Potential End Date: 2019-09-24 00:00:00

Last Modified: 2021-10-27

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