DHS awards $42.5M contract for medical staffing, raising questions about competition and value

Contract Overview

Contract Amount: $42,537,698 ($42.5M)

Contractor: Ingenesis Inc

Awarding Agency: Department of Homeland Security

Start Date: 2018-01-12

End Date: 2018-11-15

Contract Duration: 307 days

Daily Burn Rate: $138.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: IGF::CT::IGF INGENESIS FOLLOW-ON FOR MEDICAL STAFFING SERVICES

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78217

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $42.5 million to INGENESIS INC for work described as: IGF::CT::IGF INGENESIS FOLLOW-ON FOR MEDICAL STAFFING SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Significant contract value for a single vendor suggests a lack of robust market engagement. 3. Performance period is relatively short, indicating potential for frequent re-competition or contract modifications. 4. The 'All Other Miscellaneous Ambulatory Health Care Services' NAICS code is broad, making direct comparisons difficult. 5. Focus on labor hours suggests a need for flexible staffing, but also potential for cost overruns if not managed tightly. 6. The contract's value is substantial within the context of specialized medical staffing services for federal agencies.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and broad service category. Without competitive bids, it's difficult to ascertain if the $42.5 million represents a fair market price. The contract's duration and the specific services rendered would need closer examination to assess value for money. Compared to similar sole-source awards for specialized medical staffing, this contract's price point may be within a range, but the lack of competition prevents a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one vendor, Ingenesis Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means there was no direct comparison of pricing or service offerings from other qualified providers, potentially leading to a higher price than if the contract had been competed.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure to drive down costs. The sole-source award limits the government's ability to secure the best possible price and service combination.

Public Impact

Immigrants in U.S. Immigration and Customs Enforcement (ICE) detention facilities benefit from the provision of medical staffing services. The contract ensures the availability of essential healthcare services for individuals in federal custody. Services are delivered within Texas, impacting the local healthcare workforce and potentially utilizing local resources. The contract supports the operational needs of DHS by providing necessary medical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and competitive pricing.
Broad service category makes performance and cost evaluation difficult.
Potential for cost escalation without competitive oversight.

Positive Signals

Ensures critical medical staffing for a federal agency.
Contract awarded to a single, established provider.

Sector Analysis

This contract falls within the broader healthcare services sector, specifically focusing on medical staffing for government facilities. The market for federal healthcare staffing is substantial, with agencies like DHS and HHS frequently contracting for these services. Benchmarking this contract's value is difficult without more specific service details, but it represents a significant investment in ensuring operational capacity for detention health services. The NAICS code 621999, 'All Other Miscellaneous Ambulatory Health Care Services,' indicates a specialized niche within the larger healthcare industry.

Small Business Impact

There is no indication that this contract included small business set-asides. As a sole-source award to Ingenesis Inc., it is unlikely that subcontracting opportunities for small businesses were a primary consideration or requirement within the contract terms. This contract does not appear to directly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers within the Department of Homeland Security. Transparency is limited due to the sole-source nature of the award. While there are standard reporting requirements for federal contracts, the lack of competition reduces the inherent accountability that comes from a bidding process. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Medical Services Contracts
Detention Facility Operations
Ambulatory Health Care Services
Department of Homeland Security Contracts
Immigration and Customs Enforcement Contracts

Risk Flags

Sole-source award raises concerns about fair pricing and competition.
Broad NAICS code limits specific performance and cost analysis.
Short contract duration may indicate instability or transition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $42.5 million to INGENESIS INC. IGF::CT::IGF INGENESIS FOLLOW-ON FOR MEDICAL STAFFING SERVICES

Who is the contractor on this award?

The obligated recipient is INGENESIS INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $42.5 million.

What is the period of performance?

Start: 2018-01-12. End: 2018-11-15.

What is the track record of Ingenesis Inc. in performing federal contracts, particularly for medical staffing?

Ingenesis Inc. has a history of performing federal contracts, including those related to medical staffing and healthcare services. A review of federal procurement data would reveal the number and types of contracts awarded to Ingenesis, their performance ratings (if available), and any past issues or successes. For this specific contract (IDV 621999), the data indicates it was a definitive contract awarded in 2018. Further investigation into Ingenesis's broader contract portfolio would be necessary to fully assess their track record, including their experience with sole-source awards and their ability to meet the specific demands of agencies like ICE.

How does the $42.5 million contract value compare to similar medical staffing contracts awarded by ICE or other federal agencies?

Direct comparison of the $42.5 million contract value is challenging due to its sole-source nature and the broad NAICS code (621999) assigned. Without competitive bids, it's difficult to establish a market benchmark. However, for context, other federal agencies often award multi-million dollar contracts for medical staffing in correctional or detention facilities. The value is significant, but its fairness is questionable without competitive data. A more granular analysis would require comparing it to contracts for similar staffing levels, service scope, and geographic locations, which is difficult given the limited information available for this sole-source award.

What are the specific risks associated with awarding a large contract like this on a sole-source basis?

The primary risk of a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not secure the most cost-effective solution. Another risk is reduced innovation, as there's less incentive for the sole provider to offer novel or more efficient service delivery methods. Furthermore, it can limit the government's flexibility if the chosen contractor underperforms, as switching providers in a sole-source scenario can be complex and time-consuming. There's also a risk of vendor lock-in, making the agency dependent on a single supplier.

What is the expected effectiveness of the medical staffing services provided under this contract for ICE detention facilities?

The effectiveness of the medical staffing services hinges on the quality of personnel provided by Ingenesis Inc. and the oversight by ICE. The contract aims to ensure that individuals in ICE custody receive necessary medical care, which is crucial for humanitarian reasons and public health within detention centers. Success would be measured by factors such as timely access to care, appropriate treatment, patient satisfaction (where applicable), and adherence to medical standards. The short performance period (less than a year) might suggest a focus on immediate needs or a transition to a different contracting strategy, impacting long-term effectiveness.

What have been historical spending patterns for medical staffing services by ICE or DHS?

Historical spending patterns for medical staffing by ICE and DHS are substantial, reflecting the ongoing need to provide healthcare in detention facilities. Agencies like ICE consistently award contracts for a range of medical services, including physician services, nursing staff, and specialized care. Spending can fluctuate based on detainee populations, policy changes, and the contracting strategies employed. Analyzing past spending would reveal trends in contract types (competitive vs. sole-source), average contract values, and the primary service providers, offering context for the $42.5 million award.

Are there any specific performance metrics or deliverables outlined in the contract that can be used to assess performance?

The provided data does not detail specific performance metrics or deliverables for this contract. Typically, federal contracts include statements of work (SOW) or performance work statements (PWS) that outline required services, quality standards, and key performance indicators (KPIs). For a medical staffing contract, these might include response times for medical requests, staffing ratios, credentialing of personnel, and patient care outcomes. Without access to the full contract documentation, it is impossible to assess the specific measures used to evaluate Ingenesis Inc.'s performance and the effectiveness of the services provided.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › All Other Miscellaneous Ambulatory Health Care Services

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 10231 KOTZEBUE ST, SAN ANTONIO, TX, 78217

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $58,284,897

Exercised Options: $47,248,725

Current Obligation: $42,537,698

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline