HHS awards $94.6M for Dallas emergency intake site services to American Canyon Solutions Inc

Contract Overview

Contract Amount: $94,575,614 ($94.6M)

Contractor: American Canyon Solutions Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2021-03-17

End Date: 2021-06-02

Contract Duration: 77 days

Daily Burn Rate: $1.2M/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FACILITY WRAP AROUND SERVICES AT EMERGENCY INTAKE SITES IN DALLAS, TX

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75202

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $94.6 million to AMERICAN CANYON SOLUTIONS INC for work described as: FACILITY WRAP AROUND SERVICES AT EMERGENCY INTAKE SITES IN DALLAS, TX Key points: 1. The contract value is substantial, indicating significant resource allocation for emergency services. 2. The award was not competed, raising questions about potential price discovery and market competition. 3. The short duration (77 days) suggests a response to an immediate, time-sensitive need. 4. The service category falls under Emergency and Other Relief Services, highlighting a critical need.

Value Assessment

Rating: questionable

The contract was not competed, making a direct pricing assessment against similar contracts difficult. The awarded amount of $94.6M for a 77-day period suggests a high daily burn rate, necessitating further scrutiny of the necessity and efficiency of the pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. Without competition, there is a reduced opportunity for price discovery and potentially less incentive for the contractor to offer the most competitive pricing.

Taxpayer Impact: The lack of competition means taxpayers may not have received the best possible price for these essential emergency services.

Public Impact

Provides critical facility wrap-around services for emergency intake sites, directly impacting vulnerable populations. Supports the Administration for Children and Families in responding to urgent humanitarian needs. Ensures operational capacity for emergency intake operations in Dallas, Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High cost per day
Short contract duration for a large sum

Positive Signals

Addresses critical emergency needs
Supports vulnerable populations

Sector Analysis

This contract falls within the 'Emergency and Other Relief Services' sector, which often sees rapid, non-competitive awards during crises. Benchmarks for such short-term, high-intensity services are difficult to establish due to their situational nature.

Small Business Impact

The contract was awarded to American Canyon Solutions Inc. Information regarding the company's size or small business status was not provided, nor was there an indication of subcontracting opportunities for small businesses.

Oversight & Accountability

The non-competitive nature of this award warrants oversight to ensure the necessity of the sole-source justification and the reasonableness of the price paid. Accountability for the expenditure is crucial given the significant amount awarded.

Related Government Programs

Emergency and Other Relief Services
Department of Health and Human Services Contracting
Administration for Children and Families Programs

Risk Flags

Lack of competition raises concerns about price fairness.
High cost per day for services.
Short contract duration for a significant award amount.
Potential for limited oversight on a sole-source contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $94.6 million to AMERICAN CANYON SOLUTIONS INC. FACILITY WRAP AROUND SERVICES AT EMERGENCY INTAKE SITES IN DALLAS, TX

Who is the contractor on this award?

The obligated recipient is AMERICAN CANYON SOLUTIONS INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Administration for Children and Families).

What is the total obligated amount?

The obligated amount is $94.6 million.

What is the period of performance?

Start: 2021-03-17. End: 2021-06-02.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required services. This could be due to an urgent, unforeseen need that precludes a competitive process, or unique capabilities possessed by a single contractor. A thorough review would examine the documentation supporting this justification and confirm that no viable competitive alternatives were overlooked, especially given the substantial contract value.

How was the pricing determined to be fair and reasonable without a competitive bidding process?

Without competition, agencies must rely on other methods to determine price reasonableness, such as comparing the proposed price to historical prices for similar services, using independent government cost estimates, or analyzing the contractor's cost and profit data. For this contract, the high daily cost suggests a need for detailed justification of the pricing structure and verification that it aligns with market rates for comparable emergency services, even if non-competitive.

What metrics were used to assess the effectiveness and value delivered by American Canyon Solutions Inc. during the contract period?

Effectiveness and value are typically measured against the contract's objectives and performance standards. For emergency intake site services, this would likely include metrics related to operational efficiency, client satisfaction (if applicable), adherence to safety protocols, and timely provision of services. Post-contract review should confirm that the services met the critical needs for which they were procured and that the expenditure was justified by the outcomes achieved.

Industry Classification

NAICS: Health Care and Social Assistance › Community Food and Housing, and Emergency and Other Relief Services › Emergency and Other Relief Services

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: American Canyon Solutions, Inc.

Address: 413 GATEWAY RD W, NAPA, CA, 94558

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

Financial Breakdown

Contract Ceiling: $94,575,614

Exercised Options: $94,575,614

Current Obligation: $94,575,614

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline