Nevada DHHS contract for public health programs awarded $298.6M, highlighting potential for concentrated vendor relationships

Contract Overview

Contract Amount: $298,560 ($298.6K)

Contractor: Nevada Department of Health and Human Services

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-14

End Date: 2027-05-01

Contract Duration: 382 days

Daily Burn Rate: $782/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NCHS VSCP

Place of Performance

Location: CARSON CITY, CARSON CITY County, NEVADA, 89706

State: Nevada Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $298,560 to NEVADA DEPARTMENT OF HEALTH AND HUMAN SERVICES for work described as: NCHS VSCP Key points: 1. Value for money is difficult to assess due to the lack of competition. 2. Competition dynamics are limited, with a sole-source award suggesting potential for higher costs. 3. Risk indicators include the absence of a competitive bidding process. 4. Performance context is tied to administration of public health programs in Nevada. 5. Sector positioning is within the public health administration domain, a critical government function.

Value Assessment

Rating: questionable

The contract's value is difficult to benchmark without competitive bids. The firm fixed-price structure provides some cost certainty, but the absence of competition raises concerns about whether the government secured the best possible price. Without comparable contracts or market data for similar public health administration services in Nevada, a definitive value assessment is challenging. The total award amount of $298.6 million over its duration suggests a significant investment, making price discovery through competition crucial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one vendor can provide the required services. The lack of competition means there were no other bidders to compare against, potentially limiting the government's ability to negotiate the most favorable terms and pricing. This raises questions about the thoroughness of the procurement process in ensuring optimal value.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the price reductions typically driven by competitive bidding. This limits the potential for cost savings and efficient allocation of public funds.

Public Impact

The primary beneficiaries are the residents of Nevada who will receive public health program administration services. Services delivered include the administration of various public health programs critical to state well-being. The geographic impact is concentrated within the state of Nevada. Workforce implications may include employment opportunities within the contracted entity and its subcontractors, as well as within state public health agencies relying on these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Sole-source awards can reduce transparency in pricing and service delivery.
Potential for vendor lock-in due to the absence of competitive alternatives.
Limited opportunities for other qualified vendors to participate and innovate.

Positive Signals

Firm fixed-price contract provides cost predictability for the government.
Long-term contract (382 days duration) suggests a stable and ongoing need for these services.
Awarded to the Nevada Department of Health and Human Services, indicating direct state involvement and potential for alignment with state public health goals.

Sector Analysis

This contract falls within the public health administration sector, a critical area of government service delivery. The market for such services can be specialized, often involving state or local health departments. Benchmarking spending in this specific niche is challenging due to the localized nature of public health administration and the varying scopes of work. However, the substantial award amount suggests a significant program scope within Nevada.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not provided. As this was a sole-source award, it is unlikely that small business participation was a primary consideration in the initial award. Further investigation would be needed to determine if any subcontracting opportunities exist for small businesses within the scope of this contract.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the awarding agency, the Department of Health and Human Services, and potentially the Centers for Disease Control and Prevention (CDC) given the 'sa' field. Accountability measures would be defined in the contract's terms and conditions, focusing on performance and service delivery. Transparency is limited due to the sole-source nature of the award, with fewer public details available compared to competed contracts.

Related Government Programs

State Public Health Administration
Federal Grants to State Health Departments
Public Health Infrastructure Support
Disease Surveillance and Control Programs

Risk Flags

Sole-source award lacks competitive justification.
Potential for overpayment due to lack of competition.
Limited transparency regarding program specifics and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $298,560 to NEVADA DEPARTMENT OF HEALTH AND HUMAN SERVICES. NCHS VSCP

Who is the contractor on this award?

The obligated recipient is NEVADA DEPARTMENT OF HEALTH AND HUMAN SERVICES.

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 $298,560.

What is the period of performance?

Start: 2026-04-14. End: 2027-05-01.

What is the specific nature of the public health programs being administered under this contract?

The provided data indicates the contract is for 'Administration of Public Health Programs' (nd). While the specific programs are not detailed, this generally encompasses a wide range of activities essential for maintaining and improving the health of a population. This could include services related to disease prevention and control, health promotion, environmental health, maternal and child health, and public health laboratory services. The contract's duration and substantial value suggest it covers a broad and ongoing set of public health functions critical to the state of Nevada.

Why was this contract awarded on a sole-source basis instead of being competed?

The data explicitly states the contract type as 'NOT COMPETED' (ct), indicating a sole-source award. Sole-source procurements are typically justified when only one responsible source is available or capable of meeting the government's needs. Reasons can include unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or when a specific entity is mandated by law or regulation to perform the service. Without further documentation from the awarding agency, the precise justification for this sole-source award remains unclear, but it implies a determination that no other vendor could fulfill the requirements.

What are the potential risks associated with a sole-source award of this magnitude?

A sole-source award of this magnitude ($298.6 million) carries several potential risks. Primarily, the lack of competition means the government may not have achieved the best possible price, potentially leading to inefficient use of taxpayer funds. There's also a risk of vendor complacency or reduced incentive to innovate and improve services over time, as there is no competitive pressure. Furthermore, a sole-source award can create vendor lock-in, making it difficult and costly to switch providers in the future. It also limits opportunities for other qualified businesses to participate in government contracting and demonstrate their capabilities.

How does this contract align with the Centers for Disease Control and Prevention's (CDC) mission, given it's listed under their purview?

The 'sa' field lists 'Centers for Disease Control and Prevention,' suggesting this contract, while administered by the Nevada Department of Health and Human Services, may be funded or overseen by the CDC as part of its mission to protect public health. The CDC works to support state and local health departments in preventing disease, injury, and disability. This contract likely supports the implementation of CDC-guided public health initiatives or provides essential infrastructure for state-level public health operations that align with national public health goals and priorities.

What is the historical spending pattern for public health administration programs in Nevada, and how does this contract compare?

The provided data does not include historical spending patterns for public health administration in Nevada. To assess this, one would need to analyze past contracts awarded by the Nevada Department of Health and Human Services or related state agencies for similar services. Comparing this $298.6 million award to previous expenditures would reveal whether this represents an increase, decrease, or stable level of investment in public health administration. Without historical context, it's difficult to determine if this contract's value is consistent with past trends or represents a significant shift in resource allocation.

Industry Classification

NAICS: Public Administration › Administration of Human Resource Programs › Administration of Public Health Programs

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4150 TECHNOLOGY WAY STE 210, CARSON CITY, NV, 89706

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $298,560

Exercised Options: $298,560

Current Obligation: $298,560

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 75D30122D13175

IDV Type: IDC

Timeline