Economic Modeling for the Data Banks

This is a SOURCES SOUGHT NOTICE to determine the availability and capability of small businesses (including certified 8(a), Small Disadvantaged, and HUBZone firms; veteran and service-disabled veteran-owned small businesses, and women-owned small businesses) to conduct economic and trend analyses of the Data Bank's past and current revenue, expenses, and cash reserves. These analyses shall be used to create reusable analytical models which will forecast and/or predict future economic trends as they relate to query fee structure to support a financially self-sustaining program. The purpose of the National Practitioner Data Bank (NPDB) is to improve the quality of health care by requiring State licensing boards, hospitals and other health care entities and professional societies to identify those practitioners who engage in unprofessional behavior, and to restrict the ability of incompetent physicians, dentists, and other health care practitioners from moving State to State without disclosure or discovery of previous medical malpractice payment and adverse action history. These adverse actions could pertain to professional licensure, clinical privileges, and professional society memberships. The purpose of the Healthcare Integrity and Protection Data Bank (HIPDB) is to combat fraud and abuse in the health insurance industry and in health care delivery. HIPDB information is intended to be used in combination with information from other sources in making determinations on employment, affiliation, certification, or licensure decisions. The information in the HIPDB should serve as a flagging system to alert U.S. Government and State agencies and health plans that there may be a problem with the performance of a particular practitioner, provider, or supplier. The contractor will be required to: 1. Develop a detailed methodology and analysis plan in the areas of empirical estimates, expenses, revenue, cash reserves, query fees, and organization growth that will be in line with HRSA's Strategic Goals; 2. Indicate the questions the economic analyses and models will address, i.e. the theoretical basis for the analysis, the assumptions proposed for the analysis, the data and estimation procedures proposed to implement the analysis, the expected outputs, the anticipated schedule of the analysis, and a brief description of any alternative analysis approaches; 3. Provide the requested information in written hard copy and electronic format to the COR; and, 4. Develop analyses and models to support various aspects of forecasting, identifying risks, and opportunities for future growth. These analyses and models shall include the following: a) A determination of the DPDB's economic break-even point. b) A cost-benefit analysis that includes both qualitative and quantitative benefits. The analysis shall include estimates of cost savings and avoidance, as well as financial analysis that include Payback Period, Net Present Value and Return on Investment metrics. c) A basis of estimate that thoroughly describes the assumptions, mathematics, and reasoning of the calculations for each alternative. d) A highlighting of areas for improvement and areas that offers future potential. Qualified contractors (in team or alone) must satisfy the following minimum requirements. Provide a detailed description of your company's experience and demonstrated abilities to deliver each and every one (address each separately) of the following requirements: a) Revenue Model The Data Bank revenue comes directly from Data Bank users who submit and pay for queries. No funds are appropriated for either the NPDB or HIPDB by Congress. All revenues are used for Data Bank program operations. The model must compare historical and forecasted trends of revenue, develop an estimated annual revenue growth rate and show the projected impact of the revenue on the merger between the NPDB and HIPDB. b) Expense Model The Data Bank annual expenses are approximately $25 million dollars. With the increase in staff over the years, expenses have increased. The model must compare historical and forecasted trends of expenses, develop an estimated annual expense growth rate, and show the projected impact of the expenses on the merger between the NPDB and HIPDB c) Cash Reserves Model A substantial cash reserve is required to mitigate the possibility of decrease revenues. While NPDB cash reserve may appear to be high, the Data Bank continues to assure that the reserve is maintained at a reasonable but not excessive level. The Data Bank anticipates the reserve balance will remain high until adjustments are made to user fees. The model must compare historical and forecasted trends of cash reserves, develop an estimated annual cash reserves growth rate, and show the projected impact of the expenses on the merger between the NPDB and HIPDB d) Query Fee Structure Model The Data Bank charges a query fee to recover the costs of operating the Data Bank, (which is required by law to be self-sustaining). Fees are charged for Traditional Queries, Continuous Query Enrollments, and Self Queries. Traditional Queries are requests for information about a specific subject or entity. The Continuous Query is an enrollment service which gives enrolled health care providers notification within one business day of the Data Bank's receipt of a report on any of its enrolled practitioners. The model must compare historical and forecasted trends of query fees, determine breakeven costs, provide pricing fees analysis, and show the projected impact of the query fees on the merger between the NPDB and HIPDB. In addition, contractor (in team or alone) must possess: 1. Prior experience in contracts of the type; 2. Have a national presence; 3. History of adherence to contract schedules, including the administrative aspects of performance; 4. Sufficient information management and computer resources for contract implementation; 5. Reputation for reasonable and cooperative behavior and commitment to customer satisfaction; and 6. Ability to address operational issues that impact survey performance. In addition, it is preferable that the Contractor has experience working with federal contracts meeting deadlines while maintaining flexibility in the work process. A firm fixed price type contract is anticipated, for one year (12 months). The NAICS Code is 541690, with a small business size standard of $14.0m. Interested small business potential offerors are encouraged to respond to this notice. However, be advised that generic capability statements are not sufficient for effective evaluation of respondents' capacity and capability to perform specific work as required. Responses must directly demonstrate company's capability, experience, and/or ability to marshal resources to effectively and efficiently perform each of the tasks described above at a sufficient level of detail to allow definitive numerical evaluation; and evidence that the contractor can satisfy the minimum requirements listed above while in compliance with FAR 52.219-14 ("Limitations on Subcontracting"). Failure to definitively address each of these factors will result in a finding that respondent lacks capability to perform the work. Responses to this notice shall not exceed 30 single-spaced pages, excluding attachments, and must include: 1. Company name, mailing address, e-mail address, telephone and FAX numbers, website address (if available), and the name, telephone number, and e-mail address of a point of contact having the authority and knowledge to clarify responses with Government representatives. 2. Name, title, telephone number, and e-mail addresses of individuals who can verify the demonstrated capabilities identified in the responses. 3. Business size for NAICS 541690 (size standard $14.0m or number of employees) and status, if qualified as an 8 (a) firm (must be certified by SBA), Small Disadvantaged Business (must be certified by SBA), Woman-Owned Small Business, HUBZone firm (must be certified by SBA), and/or Service-Disabled Veteran-Owned Small Business (must be listed in the VetBiz Vendor Information Pages). 4. DUNS number, CAGE Code, Tax Identification Number, and company structure (Corporation, LLC, partnership, joint venture, etc.). Companies also must be registered in the Central Contractor Registry (CCR, at www.ccr.gov) to be considered as potential sources. 5. Identification of the firm's GSA Schedule contract(s) by Schedule number and contract number and SINs that are applicable to this potential requirement are also requested. 6. If the company has a Government approved accounting system, please identify the agency that approved the system. Please submit copies of any documentation such as letters or certificates to indicate the firm's status (see item #3, above). Teaming arrangements are acceptable, and the information required above on the company responding to this announcement, should also be provided for each entity expected to be teammates of the respondent for performance of this work. To the maximum extent possible, please submit non-proprietary information. Any proprietary information submitted should be identified as such and will be properly protected from disclosure. This notice is for planning purposes only, and does not constitute an Invitation for Bids, a Request for Proposals, a Solicitation, and a Request for Quotes, or an indication the Government will contract for the items contained in this announcement. This request is not to be construed as a commitment on the part of the Government to award a contract, nor does the Government intend to pay for any information submitted as a result of this request. The Government will not reimburse respondents for any cost associated with submission of the information being requested or reimburse expenses incurred to interested parties for responses to this announcement. Responses to this notice must be received by the Contracting Officer not later than 1:00 pm eastern standard time on June 25, 2012 for consideration. Please forward responses via e-mail to contact@example.gov and forward by delivery, surface mail or fax to the following address: 5600 Fishers Lane, Room 13A-43 Rockville, MD 20857, Fax +1 (555) 000-0000. Responses to this announcement will not be returned, nor will there be any ensuing discussions or debriefings of any responses. However, information obtained as a result of this announcement may be reflected in the subsequent solicitation, and HRSA may contact one or more respondents for clarifications and to enhance the Governments' understanding. This announcement is Government market research, and may result in revisions in both its requirements and its acquisition strategy based on industry responses. Point of Contact: Elizabeth B. Downey, Contract Specialist, Phone: +1 (555) 000-0000, Fax: +1 (555) 000-0000, Email: contact@example.gov