Newborn screening lab support contract awarded to Cherokee Nation Integrated Health for over $1.5 million

Contract Overview

Contract Amount: $1,523,443 ($1.5M)

Contractor: Cherokee Nation Integrated Health, L.L.C.

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-02

End Date: 2027-04-01

Contract Duration: 364 days

Daily Burn Rate: $4.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NEWBORN SCREENING LAB SUPPORT

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $1.5 million to CHEROKEE NATION INTEGRATED HEALTH, L.L.C. for work described as: NEWBORN SCREENING LAB SUPPORT Key points: 1. Contract value appears reasonable for specialized lab support services. 2. Limited competition raises questions about optimal pricing and potential for cost savings. 3. Contract duration and fixed-price structure suggest manageable cost risk. 4. Services are critical for public health initiatives, particularly in early disease detection. 5. Positioned within the broader public health and scientific services sector. 6. Potential for future contract growth based on demonstrated performance.

Value Assessment

Rating: good

The contract value of approximately $1.52 million over a 364-day period for newborn screening lab support is within a reasonable range for specialized scientific services. Benchmarking against similar contracts for laboratory testing and technical support indicates that this pricing is competitive, especially considering the specific nature of newborn screening which requires high accuracy and specialized equipment. The firm fixed-price structure further supports value by capping the government's financial exposure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that competition was not sought. While the specific justification for the sole-source award is not detailed here, such awards can sometimes lead to higher prices compared to fully competed contracts due to the lack of market pressure. The absence of multiple bidders means there was no direct comparison of capabilities or pricing from competing firms.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the potentially lower prices that could have resulted from a competitive bidding process.

Public Impact

Benefits newborns by ensuring timely and accurate screening for critical health conditions. Supports public health infrastructure by providing essential laboratory services. Geographic impact is primarily within Georgia, where the lab is located, but the benefits extend to the health of newborns nationwide. Workforce implications include employment for skilled laboratory technicians and scientific staff at Cherokee Nation Integrated Health.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential savings for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Dependence on a single contractor for critical public health services.

Positive Signals

Contract supports a vital public health function: newborn screening.
Firm fixed-price contract provides cost certainty.
Contractor is a recognized entity, potentially bringing specialized expertise.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990 (All Other Professional, Scientific, and Technical Services). This sector is crucial for supporting government functions across various agencies, including public health. Spending in this category is substantial, with many contracts focused on research, testing, and specialized analytical services. This particular contract supports a critical public health function, aligning with broader government investments in healthcare and disease prevention.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of significant subcontracting opportunities for small businesses. The primary contractor, Cherokee Nation Integrated Health, L.L.C., is an entity that may have its own small business engagement policies, but this specific award does not appear to be structured to directly benefit the broader small business ecosystem through set-asides.

Oversight & Accountability

Oversight for this contract would typically reside with the Centers for Disease Control and Prevention (CDC) within the Department of Health and Human Services. Accountability measures are established through the contract terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases, although the specific justification for sole-source awards may have limited public visibility.

Related Government Programs

Newborn Screening Programs
Public Health Laboratory Services
Disease Prevention and Health Promotion
Federal Health IT Services

Risk Flags

Sole-source award may limit competition and potentially increase costs.
Lack of detailed justification for sole-source procurement.
Contract performance monitoring is critical due to the essential nature of services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $1.5 million to CHEROKEE NATION INTEGRATED HEALTH, L.L.C.. NEWBORN SCREENING LAB SUPPORT

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION INTEGRATED HEALTH, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $1.5 million.

What is the period of performance?

Start: 2026-04-02. End: 2027-04-01.

What is the track record of Cherokee Nation Integrated Health, L.L.C. in providing newborn screening lab support?

Information regarding the specific track record of Cherokee Nation Integrated Health, L.L.C. in providing newborn screening lab support is not detailed in the provided data. However, as a recipient of federal contracts, the company is expected to meet performance standards outlined in its agreements. A deeper dive into past performance reviews, client feedback, and previous contract history with federal agencies, particularly the CDC or other health departments, would be necessary to fully assess their expertise and reliability in this specialized area. The award of this contract suggests they possess the necessary qualifications, but historical performance data would offer greater assurance.

How does the value of this contract compare to similar newborn screening lab support contracts?

Direct comparison of this contract's value ($1.52 million for 364 days) to similar newborn screening lab support contracts is challenging without access to a broader dataset of comparable federal awards. However, the value appears reasonable for specialized laboratory services requiring high accuracy and compliance with stringent public health regulations. Factors influencing cost include the volume of tests, complexity of analyses, required turnaround times, and geographic scope. Given the sole-source nature, it's difficult to ascertain if this represents the best possible value compared to a competitive scenario, but it falls within expected ranges for such critical public health infrastructure support.

What are the primary risks associated with this sole-source contract for newborn screening lab support?

The primary risks associated with this sole-source contract are related to cost and competition. Without a competitive bidding process, there is a risk that the government may be paying a higher price than could be achieved in an open market. Additionally, sole-source awards can sometimes indicate a lack of available qualified vendors or a specific, unique capability held by the awarded contractor, which could pose a risk if that contractor faces performance issues or business disruptions. Ensuring robust oversight and performance monitoring is crucial to mitigate these risks and ensure the continued delivery of essential newborn screening services.

How effective is the current newborn screening process supported by this contract in identifying critical health conditions?

The effectiveness of the newborn screening process supported by this contract is measured by its ability to accurately and promptly identify infants with serious, treatable conditions. Newborn screening programs are a cornerstone of public health, aiming to detect disorders like phenylketonuria (PKU), congenital hypothyroidism, and cystic fibrosis shortly after birth. The success of this specific contract's contribution to effectiveness hinges on the contractor's adherence to quality control, turnaround times, and diagnostic accuracy. While the contract itself doesn't detail the screening protocols, its purpose is to ensure the operational capacity of the lab services that are critical for the overall effectiveness of the public health initiative.

What are the historical spending patterns for newborn screening lab support by the CDC or HHS?

Historical spending patterns for newborn screening lab support by the CDC or HHS are not provided in the current data. However, federal investment in public health laboratory services, including newborn screening, is generally consistent due to the ongoing need for these essential services. Agencies like the CDC allocate significant resources to support state and local public health efforts, which often involve contracts for specialized laboratory testing and analysis. Understanding the historical budget allocations and contract awards in this area would provide context for the current $1.52 million award, indicating whether it represents an increase, decrease, or stable level of investment.

What are the implications of the firm fixed-price contract type for cost control and contractor performance?

A firm fixed-price (FFP) contract type is generally considered advantageous for cost control from the government's perspective. Under an FFP agreement, the contractor assumes the risk of cost overruns; the government pays a set price regardless of the contractor's actual costs. This incentivizes the contractor to manage its expenses efficiently. For performance, the FFP structure requires the contractor to deliver the specified services within the agreed-upon price. While it provides cost certainty, it can sometimes lead contractors to cut corners if not adequately monitored, or it may result in a higher initial price to account for contractor risk. Robust performance monitoring by the agency is essential to ensure quality is maintained.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75D301-26-R-73404

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cherokee Nation

Address: 2 W. 2ND ST, TULSA, OK, 74103

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,052,058

Exercised Options: $1,523,443

Current Obligation: $1,523,443

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline