[Federal Register Volume 81, Number 189 (Thursday, September 29, 2016)]
[Notices]
[Pages 66972-66975]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-23124]


-----------------------------------------------------------------------

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Office of Inspector General


Announcement of Requirements and Registration for ``The Simple 
Extensible Sampling Tool Challenge''

AGENCY: Office of Inspector General (OIG), HHS.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Simple Extensible Sampling Tool Challenge (Challenge) is 
an HHS/OIG Challenge under the ``America COMPETES'' (Creating 
Opportunities to Meaningfully Promote Excellence in Technology, 
Education, and Science) Reauthorization Act of

[[Page 66973]]

2010 (Pub. L. 111-358). The objective of this Challenge is to construct 
a sampling tool to replace the current version of RAT-STATS software.

DATES: Important dates regarding the Challenge include the following:
    The Challenge begins September 28, 2016.
    Submission period: September 28, 2016, to May 15, 2017, 5:00 p.m. 
EST.
    Judging period: September 28, 2016, to June 15, 2017.
    OIG announces a winner: Rolling basis, no later than July 1, 2017.

FOR FURTHER INFORMATION CONTACT: Jared Smith, 202-205-9119 or 
[email protected].
    Award Approving Official: Daniel R. Levinson.

SUPPLEMENTARY INFORMATION: 

I. Background

    RAT-STATS is a basic sampling tool that was originally designed by 
OIG to give nonexperts a robust method for selecting statistically 
valid samples in the health care oversight environment. RAT-STATS is 
used by both Government agencies and private health care providers and 
has been involved in billions of dollars in audit-related recoveries.
    The objective of the current Challenge is to develop the foundation 
for an upgraded version of RAT-STATS. The current version of RAT-STATS 
is well validated; however, its user interface can be difficult to 
navigate, and the underlying code makes the software costly to update. 
OIG needs a new, modern version of the software that is easy to use and 
can be extended in a cost-effective manner.
    Submissions will be reviewed in the order they are received by OIG. 
After the first five finalists are identified, no further submissions 
will be reviewed. This exclusion applies even to submissions received 
prior to when the fifth finalist is identified and submissions received 
before May 15, 2017, 5:00 p.m. EST. In addition, even if five finalists 
are not identified, entries received after May 15, 2017, 5:00 p.m. EST, 
will not be considered. The number of submissions under review, the 
number of finalists identified, and the names of the finalists will all 
be posted at the public Web site https://www.challenge.gov/challenge/Statistical-Software-for-Healthcare-Oversight/. This information will 
be updated on a weekly basis.
    Upon being notified that an entry has been reviewed and does not 
meet the criteria for becoming a finalist, a participant has 7 business 
days to request an explanation for the rejection. Explanation requests 
must be sent via email to [email protected]. An explanation will 
be provided within 10 business days from when the request is received. 
At any time prior to May 15, 2017, or the identification of the five 
finalists by OIG--whichever occurs first--a team (one or more members) 
may resubmit its entry. Upon receipt of an updated submission, the 
previous submission will be excluded in its entirety from the 
competition, and the submission date for the team will be defined as 
the time when the new submission is received.
    Other than as described in the previous paragraph, OIG is not 
required to provide feedback to challenge participants with respect to 
any information submitted. By submitting an entry, individuals and 
teams grant OIG the right to use all or part of its Challenge entry 
(i.e., algorithm and software) as submitted or in order to create a 
future software package. Any version of the software produced by OIG 
will be freely available to the public.
    OIG will amend this Federal Register notice if the timeline or the 
rules for the Challenge are modified. In addition, OIG will notify 
registered Challenge participants by email of any amendments and will 
include the modified Challenge showing the changes.
    Addresses: Notifications of any amendment to this Federal Register 
notice and answers to frequently asked questions about it will be 
posted at https://www.challenge.gov/challenge/Statistical-Software-for-Healthcare-Oversight/.

II. Subject of Challenge

    Each year HHS handles hundreds of millions of Medicare and Medicaid 
claims valued at more than a trillion dollars. Due to the high volume 
of claims, statistical sampling provides a critical tool to ensure 
effective oversight of these expenditures. Sampling is used by the 
providers in their own efforts to monitor their performance and by the 
various organizations within HHS. There are a wide range of different 
software tools for performing statistical analysis. RAT-STATS has a 
unique niche in that it provides a straightforward tool for individuals 
who need a simple but robust method for selecting and analyzing 
statistical samples. The RAT-STATS software was originally created in 
1978 and has gone through several upgrades since that time. Unlike a 
full statistical package that attempts to answer all types of questions 
for a wide range of users, RAT-STATS serves as a streamlined solution 
to handle the specific task of developing valid statistical samples and 
estimates within the health care oversight setting.
    For example, an OIG investigator may pull a simple random sample in 
order to estimate damages for a provider suspected of fraud. RAT-STATS 
generates valid pseudo-random numbers and outputs all of the 
information needed to replicate the sample. Once the investigator 
finishes reviewing the sample, he or she can then enter the results 
into RAT-STATS to get the final statistical estimate. While the 
investigator may need some basic training in statistics, he or she 
would not need the same level of expertise as would be required to 
navigate the many options available in a full-service statistical or 
data analysis package.
    The objective of the current Challenge is to develop the foundation 
for an upgraded version of RAT-STATS. The current version of RAT-STATS 
is well validated; however, its user interface can be difficult to 
navigate and the underlying code makes the software costly to update. 
OIG needs a new, modern version of the software that is easy to use and 
can be extended in a cost-effective manner. In addition, the new 
version of the software must be 508 compliant.
    The current version of the RAT-STATS software can be found at the 
following web address: http://www.oig.hhs.gov/compliance/rat-stats/index.asp.
    In order to complete the Challenge participants must create a 
software package that replicates the operation of four of the functions 
of the original RAT-STATS software: (1) Single Stage Random Numbers; 
(2) Unrestricted Attribute Appraisal; (3) Unrestricted Variable 
Appraisal; and (4) Stratified Variable Appraisal. In addition, 
submissions must meet all of the rules and requirements outlined in 
this Notice.
    The detailed technical specifications behind the 4 RAT-STATS 
functions along with 10 test datasets will be provided in their 
entirety at the start of the competition at https://oig.hhs.gov/compliance/rat-stats/prize/. The Challenge does not require the 
derivation of any new statistical methods.

III. Rules for Participating in the Challenge

    Teams of one or more members can participate in this Challenge. 
There is no maximum team size. Each team must have a captain, and each 
individual may only be part of a single team. Individual team members 
and team captains must

[[Page 66974]]

register in accordance with the Registration Process section below. The 
role of the team captain is to serve as the corresponding participant 
with OIG about the Challenge and to submit the team's Challenge entry. 
While OIG will notify all registered Challenge participants by email of 
any amendments to the Challenge, the team captain is expected to keep 
the team members informed about matters germane to the Challenge.
    (1) To be eligible to win the Challenge prize, each participant 
(individual or entity) must--
    a. register to participate in the Challenge under the rules 
promulgated by OIG as published in this Notice;
    b. have complied with all the requirements under this section;
    c. in the case of a private entity, be incorporated in and maintain 
a primary place of business in the United States or, in the case of an 
individual, be a citizen or permanent resident of the United States;
    d. not be a Federal entity or Federal employee acting within the 
scope of their employment;
    e. not be an employee of OIG, a judge of the Challenge, or any 
other party involved with the design, production, execution, or 
distribution of the Challenge or the immediate family of such a party 
(i.e., spouse, parent, step-parent, child, or stepchild); and
    f. be at least 18 years old at the time of submission.
    (2) Federal contractors may not use Federal funds from a contract 
to develop their Challenge submissions or to fund efforts in support of 
their Challenge submission.
    (3) Federal grantees may not use Federal funds to develop COMPETES 
Act Challenge applications unless consistent with the purpose of their 
grant award.
    (4) An individual or entity shall not be deemed ineligible because 
the individual or entity used Federal facilities or consulted with 
Federal employees during a competition if the facilities and employees 
are made available to all individuals and entities participating in the 
competition on an equitable basis.
    (5) By participating in this Challenge, each individual (whether 
competing singly or in a group) and entity agrees to assume any and all 
risks and waive claims against the Federal Government and its related 
entities (as defined in the COMPETES Act), except in the case of 
willful misconduct, for any injury, death, damage, or loss of property, 
revenue, or profits, whether direct, indirect, or consequential, 
arising from participation in this Challenge, whether the injury, 
death, damage, or loss arises through negligence or otherwise.
    (6) No individual (whether competing singly or in a group) or 
entity participating in the Challenge is required to obtain liability 
insurance or demonstrate financial responsibility in order to 
participate in this Challenge.
    (7) By participating in this competition, each individual and 
entity agrees to assume any and all risks and waive claims against the 
Federal Government and its related entities, except in the case of 
willful misconduct, for any injury, death, damage, or loss of property, 
revenue, or profits, whether direct, indirect, or consequential, 
arising from my participation in this prize contest, whether the 
injury, death, damage, or loss arises through negligence or otherwise.
    (8) By participating in this Challenge, each individual (whether 
participating singly or in a group) and entity grants to OIG, in any 
existing or inchoate copyright or patent rights owned by the individual 
or entity, an irrevocable, paid-up, royalty-free, nonexclusive 
worldwide license to use, reproduce, post, link to, share, and display 
publicly on the Web the submission, except for source code. This 
license includes without limitation posting or linking to the 
submission, except for source code, on OIG's public facing Web site 
(http://www.oig.hhs.gov/compliance/rat-stats/index.asp). In developing 
its future software systems, OIG may include algorithms and software 
from Challenge entries and may consult with individuals or teams that 
submitted entries. Thus, the license also permits OIG to develop a 
future software system, independently or with others, using any 
algorithms or software from Challenge entries, including those obtained 
from other Challenges or solicitations, and OIG may freely use, 
reproduce, modify, and distribute the resulting future software system 
without restriction. Each participant will retain all other 
intellectual property rights in their submissions, as applicable.
    (9) OIG reserves the right, at its sole discretion, to (a) cancel, 
suspend, or modify the Challenge through amendment to this Federal 
Register notice, and/or (b) not award any prizes if no entries meet the 
stated requirements. In addition, OIG reserves the right to disqualify 
any Challenge participants or entries in instances where cheating or 
other misconduct is identified.
    (10) Each individual (whether participating singly or in a group) 
or entity agrees to follow all applicable Federal, State, and local 
laws, regulations, and policies.
    (11) Each individual (whether participating singly or in a group) 
and entity participating in this Challenge must comply with all terms 
and conditions of these rules, and participation in this Challenge 
constitutes each such participant's full and unconditional agreement to 
abide by these rules. Winning is contingent upon fulfilling all 
requirements herein.
    (12) Each individual (whether participating singly or in a group) 
and entity grants to OIG and its contractors assisting OIG with this 
Challenge the right to review the submission, study the algorithms and 
the code, and run the software on other sets of images.
    (13) Submissions must not infringe upon any copyright, patent, 
trade secrets, or any other rights of any third party. Each individual 
(whether participating singly or in a group) or entity warrants that 
she or the team is the sole author and owner of any copyrightable work 
that the submission comprises, that the submission is wholly original 
with the participant or is an improved version of an existing work that 
the participant has sufficient rights to use and improve. In addition, 
the submission must not trigger any reporting or royalty obligation to 
any third party. A submission must not include proprietary, classified, 
confidential, or sensitive information.
    (14) The licenses for any code used as part of a submission must be 
compatible with each other and must allow OIG to distribute and modify 
the software both within and outside the agency without incurring any 
reporting or royalty obligations to any third party.
    (15) The submission must not contain malicious code such as 
viruses, timebombs, cancelbots, worms, trojan horses, or other 
potentially harmful programs or other material or information.
    (16) The submission must be unique and must not represent a 
modification of a previous submission from another team.
    (17) Submitted software must be fully functional and operate 
correctly on Microsoft Windows systems configured in accordance with 
the applicable United States Government Configuration Baseline (USGCB) 
and applicable configurations (https://usgcb.nist.gov/). The group 
policy settings associated with this configuration are also available 
on the NIST Web site (https://usgcb.nist.gov/usgcb/microsoft_content.html).
    (18) Submitted software must be a stand-alone product that is 
designed for end users to run in the standard user context without 
requiring elevated administrative privileges.

[[Page 66975]]

    (19) Submitted software must not require or make use of any network 
capabilities.
    (20) Submitted software must be section 508 compliant. For example, 
it must be possible to run all functions using a keyboard, the software 
must include a well-defined indicator of current program focus, any 
results provided in image format must also be available in text, and 
color coding shall not be used as the only means of conveying 
information. For more details refer to section 36 CFR 1194.21.

IV. Registration Process

    Beginning on September 28, 2016, visit https://www.challenge.gov/challenge/Statistical-Software-for-Healthcare-Oversight/ and follow the 
instructions provided.

V. Submission Requirements

    Submissions must be entered electronically using the challenge.gov 
Web site https://www.challenge.gov/challenge/Statistical-Software-for-Healthcare-Oversight/ and must contain each of the following elements.
    (1) Executable software that replicates the four target RAT-STATS 
functions: Single Stage Random Numbers, Unrestricted Attribute 
Appraisal, Unrestricted Variable Appraisal, and the Stratified Variable 
Appraisal.
    (2) Source code for the executable that is both human- and machine-
readable. The source code can be written in any programming language(s) 
as long as the requirements of this notice are met. The source code 
must be commented sufficiently so that another user can understand the 
underlying operation of the code.
    (3) A text file written in English documenting and explaining any 
noncosmetic differences between the submission and the original RAT-
STATS software.
    (4) A text file written in English summarizing the changes required 
to add additional RAT-STATS functions to the submission.
    (5) A text file written in English documenting all software 
licenses associated with the source code used as part of the project. 
The text file must describe the nature of each individual license and 
their overall compatibility.
    (6) A one-page text file written in English that contains the 
following:
    a. Names and email addresses of the team captain and all team 
members.
    b. A five or more character identifier for the entry that is used 
as a prefix in the names of all of the team's submitted files.
    c. A brief description of the submission.

VI. Prize Award Details

    The first five submissions that meet all of the requirements 
outlined in this Notice will receive $3,000. In addition, if a 
submission is selected to serve as the foundation for the new version 
of RAT-STATS, then that submission will receive an additional $25,000. 
The names of the winners will be posted on OIG Web sites. In addition, 
all winners will be notified via email at the email addresses provided 
in their prize submissions.
    Prizes awarded under this Challenge will be paid by electronic 
funds transfer and may be subject to Federal income taxes. OIG will 
comply with U.S. Internal Revenue Service withholding and reporting 
requirements, where applicable.
    To select a winner, OIG will first review submissions in the order 
in which they are received to determine their suitability for judging 
and eligibility to win the prize. An eligible submission must comply 
with all rules and requirements outlined in this Federal Register 
notice.
    Submissions that meet the initial eligibility requirements will 
proceed to the next phase in the judging process, which will assess the 
submissions based on their ability to replicate RAT-STATS output for 60 
test datasets. The 60 test cases will be the same for all submissions. 
Ten of these test cases will be made available to the public at the 
start of the Challenge at https://oig.hhs.gov/compliance/rat-stats/prize/. The submissions will also be reviewed during this phase to 
ensure that the steps required to add additional modules are reasonable 
and fully documented.
    The first five eligible submissions that comply with the rules of 
this Notice, follow the detailed submission instructions, are complete, 
and are able to fully replicate RAT-STATS on the 60 target cases will 
each be declared a finalist. Once five finalists have been identified, 
no further applications will be reviewed even if they are submitted 
prior to the May 15, 2017, 5:00 p.m. EST deadline. Moreover, the 
contest will end on May 15, 2017, at 5:00 p.m. EST even if fewer than 
five finalists have been selected.
    The replacement for RAT-STATS will be voted on by 12 HHS/OIG Office 
of Audit Services (OAS) statistical specialists. The finalist with the 
greatest number of votes will be selected as the replacement for RAT-
STATS and will receive the overall prize. Each statistical specialist 
will be given a 2-week period to review the submissions and to vote on 
the submission that he or she would prefer to use in the future. The 
instructions for the voting will be as follows: ``Please review the 
operation of the following software packages and select one that you 
would prefer to use in the future for selecting and analyzing your 
statistical samples.'' In the case of a tie, the OAS lead statistician 
will serve as the tie-breaking vote.

    Dated: September 20, 2016.
Daniel R. Levinson,
Inspector General.
[FR Doc. 2016-23124 Filed 9-28-16; 8:45 am]
 BILLING CODE 4152-01-P