HHS Awards $2.1M for Medical Services to Bay Area Anesthesia LLC

Contract Overview

Contract Amount: $2,108,040 ($2.1M)

Contractor: BAY Area Anesthesia LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-02-12

End Date: 2025-12-31

Contract Duration: 322 days

Daily Burn Rate: $6.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MID-LEVEL PROVIDERS TO PROVIDE MEDICAL SERVICES TO OUTPATIENT CLINIC

Place of Performance

Location: PINE RIDGE, SHANNON County, SOUTH DAKOTA, 57770

State: South Dakota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.1 million to BAY AREA ANESTHESIA LLC for work described as: MID-LEVEL PROVIDERS TO PROVIDE MEDICAL SERVICES TO OUTPATIENT CLINIC Key points: 1. Contract awarded for temporary medical staffing services. 2. Bay Area Anesthesia LLC is the sole awardee. 3. Potential for increased costs due to lack of competition. 4. Services are critical for outpatient clinic operations.

Value Assessment

Rating: fair

The contract value of $2.1M for 322 days of service appears reasonable for specialized medical staffing. However, without competitive bidding, it's difficult to ascertain if this represents the best value or if a lower price could have been achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers as there was no opportunity for multiple vendors to bid on the service.

Taxpayer Impact: The lack of competition could lead to a higher overall cost for taxpayers compared to a fully competed contract.

Public Impact

Ensures continued medical services for outpatient clinics. Potential impact on patient access if staffing is insufficient. Taxpayer funds are allocated for essential healthcare support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under temporary staffing services, often used to fill critical gaps in healthcare facilities. Benchmarks for this sector can vary widely based on specialization and location.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business set-aside opportunities were missed.

Oversight & Accountability

Oversight will be crucial to ensure the quality of services provided by Bay Area Anesthesia LLC and to monitor spending against the contract value, especially given the sole-source nature.

Related Government Programs

Risk Flags

Tags

temporary-help-services, department-of-health-and-human-services, sd, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.1 million to BAY AREA ANESTHESIA LLC. MID-LEVEL PROVIDERS TO PROVIDE MEDICAL SERVICES TO OUTPATIENT CLINIC

Who is the contractor on this award?

The obligated recipient is BAY AREA ANESTHESIA LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2025-02-12. End: 2025-12-31.

What is the justification for the sole-source award, and what steps were taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or urgent needs. The Department of Health and Human Services should have documented the rationale and explored limited competition options. Without this documentation, it's difficult to assess if fair pricing was achieved through negotiation or if the price reflects a premium due to the lack of competitive pressure.

What are the risks associated with relying on a single provider for essential medical staffing?

The primary risk is service disruption if the sole provider fails to meet contractual obligations or experiences internal issues. There's also a risk of price escalation in future contract renewals, as the government may become dependent on this specific provider. Contingency planning and regular performance reviews are essential to mitigate these risks.

How will the effectiveness of the medical services provided be measured and ensured?

Effectiveness will be measured through key performance indicators (KPIs) outlined in the contract, such as patient wait times, patient satisfaction scores, and adherence to medical protocols. Regular performance reviews by the Indian Health Service contracting officer's representative will be critical to ensure the provider meets quality standards and patient care needs.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesEmployment ServicesTemporary Help Services

Product/Service Code: MEDICAL SERVICESOTHER MEDICAL 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

Address: 1839 S ALMA SCHOOL RD STE 335, MESA, AZ, 85210

Business Categories: American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,108,040

Exercised Options: $2,108,040

Current Obligation: $2,108,040

Actual Outlays: $2,108,040

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2025-02-12

Current End Date: 2025-12-31

Potential End Date: 2025-12-31 00:00:00

Last Modified: 2026-01-10

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