Department of Health and Human Services Agency-Wide Plan (as of June 2010)
Table of Contents
HHS has been entrusted with carefully investing $145.7 billion of taxpayer’s funds over 10 years for these purposes and the Department is committed to making every dollar count. HHS Recovery Act activities are creating jobs, expanding early care and educational opportunities for children and providing immediate relief to States and local communities. In addition, HHS Programs supported by the Recovery Act serve as the foundation upon which the new Affordable Care Act will be implemented. Taken together, these two landmark pieces of legislation will help bring down healthcare costs for families and businesses, raise the quality of care in this country and give Americans more control over their own health care. The early investments made in health information technology, prevention and wellness, scientific research, training for health care professionals, and resources directed towards maintaining and expanding access to care in the Recovery Act are already paying dividends.
HHS Recovery Act activities touch the lives of Americans by:
Improving and Preserving Health Care
Accelerating the Adoption of Health Information Technology
Strengthening Scientific Research and Facilities
Improving Children and Community Services
Strengthening Community Health Care Services
Supporting Comparative Effectiveness Research
Promoting Prevention and Wellness
Improving Accountability and Information Technology Security
* This includes an estimated $4.3 billion in financial relief to States by reducing the amount they would have to pay the Federal government to offset the cost of Medicare coverage for prescription drugs for their residents eligible for both Medicare and Medicaid.
Baseline Competition Performance: HHS has achieved great success awarding its contract dollars competitively. In fiscal years 2007 and 2008, HHS awarded 80 percent and 84 percent of its available dollars competitively. Similarly, in fiscal years 2009 and 2010 (to date), HHS awarded 80 percent and 89 percent of its available dollars competitively. The funds that were not available for competition were obligated through statutorily exempt processes, such as the SBA 8(a) Business Development Program and Indian Self-Determination and Education Assistance Act (Section 638).
Recovery Act Competition: HHS issued Department-wide guidance emphasizing its commitment to competitive procedures for Recovery Act-funded acquisitions and its intention to strengthen internal controls to maximize competition. Representatives from HHS’s acquisition community meet regularly to share information and lessons, to reinforce the need for contracting officials to be business advisers to their program offices, and to reemphasize the need to steward public funds responsibly. As of April 29, 2010, HHS had awarded 65 percent of its Recovery Act contract dollars competitively. A single $302 million Recovery Act-funded sole-source contract between the National Cancer Institute and its Federally Funded Research and Development Center (FFRDC) accounts for the difference in competition between HHS contracts using all appropriations and its Recovery Act-funded contracts.
Increased Scrutiny of Non-Competitive Recovery Act Contracts: For actions that will not be competed, program and contracting officials have been put on notice that their justifications for other than full and open competition must demonstrate the soundness of limiting competition and withstand public scrutiny. Each of HHS’s Justifications for Other than Full and Open Competition is published on the Federal Business Opportunities (FedBizOpps) website.
Periodic Updates: This plan will be updated annually to reflect actual levels of competition, achievements against plans, and issuance of additional competition-related policy.
Baseline Contract Type: For fiscal years 2007 and 2008, HHS awarded 45 percent and 38 percent, respectively, of its contract actions on a fixed price basis. In FY 2009 and 2010 (to date) 62 percent and 70 percent, respectively, were fixed price contracts.
Recovery Act Contract Type The Acting Senior Procurement Executive issued, through the Office of Recovery Act Coordination, Department-wide guidance emphasizing HHS’ commitment to using fixed price type contracts to award Recovery
Act-funded acquisitions. Representatives from HHS’s contracting community meet weekly to share information and lessons, to reinforce the need for contracting officials to be business advisers to their program offices, and to reemphasize the need to steward public funds responsibly. As a result, as of April 29, 2010, 86 percent of HHS Recovery Act-funded contract actions were fixed price.
Increased Scrutiny of Other Than Fixed Price Recovery Act Contracts: For actions that will not be fixed price, program and contracting officials have been put on notice that they must demonstrate the basis for determining the contract type. Accordingly, HHS has developed a standard template to document the basis for determining that a contract using Recovery Act funds could not be fixed price. In addition, non-fixed priced Recovery-funded contract actions must be justified in FedBizOpps.
Periodic Updates: This plan will be updated annually to reflect actual contract types, achievements against plans, and issuance of additional contract type-related policy.
HHS has been moving quickly and carefully to award Recovery Act funds in an open and transparent manner that will achieve the objectives of each Recovery Act program and meet the statute’s and President’s mandate for accountability and transparency. A Recovery Act Implementation Team, comprised of the heads of the Department’s Operating Divisions and Staff Divisions, meets monthly to review specific program plans and Recovery Act policies being implemented in HHS. The Implementation Team’s work was refocused in January 2010 from the initial planning phrase to concentrate on:
Ensuring accountability has been a key HHS objective from the very beginning of implementation of the Recovery Act. HHS established new policy and technical processes to implement the Recovery Act’s transparency and accountability requirements. The Department continues to refine them and establish new ones as necessary. In addition to the Implementation Team, HHS created a Recovery Act Technical Council consisting of senior management officials from the Department’s Operating Divisions and the heads of business functions across the Office of the Secretary that meets regularly to address operational issues. The Office of Recovery Act Coordination was established in March 2009 to ensure that HHS fully implements the Act’s requirements and OMB’s guidance, and provides staff support to these groups.
Examples of ongoing activities to minimize risk and ensure accountability include:
Summary of Significant Changes:
The current plan updates the funding chart to take into account actuarial changes in calculating mandatory spending. In addition, the chart reflects new financial relief for States by reducing the amount they would have to pay the Federal government to offset the cost of Medicare coverage for prescription drugs for their residents eligible for both Medicare and Medicaid.