HHS awards $3.6M contract for nursing services at Pine Ridge Hospital, raising questions about competition

Contract Overview

Contract Amount: $3,614,890 ($3.6M)

Contractor: Tribal Health, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-05-14

End Date: 2026-08-14

Contract Duration: 457 days

Daily Burn Rate: $7.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROVIDE ACUTE CARE NURSING (ACN) AND OUTPATIENT DEPARTMENT (OPD) REGISTERED NURSE (RN) OR LICENSED PRACTICAL NURSE SERVICES FOR PINE RIDGE HOSPITAL, PINE RIDGE, SOUTH DAKOTA

Place of Performance

Location: PINE RIDGE, OGLALA LAKOTA County, SOUTH DAKOTA, 57770

State: South Dakota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.6 million to TRIBAL HEALTH, LLC for work described as: PROVIDE ACUTE CARE NURSING (ACN) AND OUTPATIENT DEPARTMENT (OPD) REGISTERED NURSE (RN) OR LICENSED PRACTICAL NURSE SERVICES FOR PINE RIDGE HOSPITAL, PINE RIDGE, SOUTH DAKOTA Key points: 1. Contract awarded to Tribal Health, LLC for registered and licensed practical nurse services. 2. Services are for Pine Ridge Hospital's Acute Care Nursing and Outpatient Departments. 3. The contract duration is 457 days, with a firm-fixed-price structure. 4. The award was not competed, raising potential concerns about price discovery. 5. The geographic focus is South Dakota, serving the Pine Ridge Indian Health Service facility. 6. This contract falls under Temporary Help Services, a common need for healthcare facilities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable sole-source nursing service contracts. The firm-fixed-price structure provides some cost certainty. However, the lack of competition means there's no direct market comparison to assess if the pricing represents optimal value for taxpayer dollars. Further analysis would require understanding the specific skill sets and availability of nurses in the region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not publicly advertised or competed among multiple vendors. While sole-source awards can be justified in specific circumstances, such as unique capabilities or urgent needs, the lack of competition limits the government's ability to solicit the best possible pricing and terms. It is unclear from the provided data why this contract was not competed.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the opportunity for the government to secure the most cost-effective solution.

Public Impact

The primary beneficiaries are patients at Pine Ridge Hospital, who will receive essential acute care and outpatient nursing services. Registered Nurses (RNs) and Licensed Practical Nurses (LPNs) will be provided to ensure continuity of care. The geographic impact is localized to Pine Ridge, South Dakota, and the surrounding community served by the hospital. This contract supports the healthcare workforce by providing necessary staffing to a critical facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source award justification needs further scrutiny.
Potential for limited vendor pool in remote areas like Pine Ridge.

Positive Signals

Addresses critical nursing shortages at a vital healthcare facility.
Firm-fixed-price contract provides budget predictability.
Focus on specific nursing services ensures targeted support.

Sector Analysis

The healthcare sector, particularly within government-funded facilities like those operated by the Indian Health Service, often faces challenges in recruiting and retaining qualified medical personnel. Contracts for temporary or specialized nursing services are common to fill staffing gaps. The market for such services can be influenced by geographic location, demand for specific specialties, and the overall healthcare labor market.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the sole-source nature of the award, it is unlikely that subcontracting opportunities for small businesses were a primary consideration. Further investigation would be needed to determine if the prime contractor, Tribal Health, LLC, has any small business subcontracting plans or if they are themselves a small business.

Oversight & Accountability

Oversight of this contract would primarily fall under the Department of Health and Human Services, specifically the Indian Health Service. Accountability measures would be tied to the performance clauses within the firm-fixed-price contract, ensuring that the required nursing services are delivered. Transparency is limited due to the sole-source nature of the award, making public scrutiny of the procurement process difficult.

Related Government Programs

Indian Health Service Contracts
Temporary Nursing Services
Rural Healthcare Staffing
Tribal Healthcare Support

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency in Award

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.6 million to TRIBAL HEALTH, LLC. PROVIDE ACUTE CARE NURSING (ACN) AND OUTPATIENT DEPARTMENT (OPD) REGISTERED NURSE (RN) OR LICENSED PRACTICAL NURSE SERVICES FOR PINE RIDGE HOSPITAL, PINE RIDGE, SOUTH DAKOTA

Who is the contractor on this award?

The obligated recipient is TRIBAL HEALTH, 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 $3.6 million.

What is the period of performance?

Start: 2025-05-14. End: 2026-08-14.

What is the track record of Tribal Health, LLC in providing nursing services to federal agencies?

Information regarding the specific track record of Tribal Health, LLC in providing nursing services to federal agencies is not detailed in the provided data. A comprehensive review would require searching federal procurement databases (like SAM.gov or FPDS) for past performance history, contract awards, and any reported issues or successes. Understanding their experience with similar facilities, contract types (firm-fixed-price), and service requirements (ACN/OPD RN/LPN) would be crucial for assessing their capability and reliability for this specific award.

How does the $3.6 million contract value compare to similar nursing service contracts awarded by IHS or other federal agencies?

Direct comparison of the $3.6 million contract value is difficult without knowing the exact scope, duration, and specific nursing roles required. However, contracts for registered and licensed practical nurses can range significantly based on location, demand, and the number of personnel. For a period of approximately 15 months (457 days), $3.6 million suggests a substantial need for nursing staff. Benchmarking would involve looking at contracts for similar service levels and durations within the Indian Health Service or other agencies serving remote or underserved populations, considering the prevailing wage rates and market conditions for nursing professionals.

What are the specific risks associated with a sole-source award for critical healthcare services?

The primary risk associated with a sole-source award for critical healthcare services is the potential for inflated costs due to the absence of competitive bidding. Without competing offers, the government may not secure the most cost-effective pricing. Additionally, there's a risk that the chosen contractor may not be the most qualified or innovative provider available, as the selection process did not involve a broad market solicitation. This can also limit transparency and public trust in the procurement process, especially for essential services like healthcare.

What is the expected impact of these nursing services on the quality of care at Pine Ridge Hospital?

The expected impact of these nursing services is a significant improvement in the quality and continuity of care at Pine Ridge Hospital. By providing registered and licensed practical nurses, the contract aims to fill critical staffing gaps in both acute care and outpatient departments. This should lead to reduced wait times, better patient monitoring, improved patient outcomes, and a more sustainable workload for existing staff. The availability of qualified nursing professionals is fundamental to delivering effective healthcare services, particularly in facilities serving specific populations like the one at Pine Ridge.

What are the historical spending patterns for nursing services at Pine Ridge Hospital or similar IHS facilities?

Historical spending patterns for nursing services at Pine Ridge Hospital or similar IHS facilities are not provided in the current data. To assess this, one would need to analyze past contracts awarded to Pine Ridge Hospital or other IHS facilities for similar nursing support. This would involve examining the frequency of contract awards, the average contract values, the duration of these contracts, and whether they were competed or sole-sourced. Understanding historical spending can reveal trends in demand, potential cost escalations, and the typical procurement methods used for nursing staff.

Are there any specific performance metrics or service level agreements (SLAs) tied to this contract?

The provided data indicates a 'FIRM FIXED PRICE' contract type, which typically includes defined deliverables and performance expectations. However, specific performance metrics or Service Level Agreements (SLAs) are not detailed. For a contract of this nature, common metrics would likely include nurse-to-patient ratios, adherence to patient care standards, punctuality, and professional conduct. The effectiveness of oversight would depend on how rigorously these (likely implicit or detailed in the contract's statement of work) metrics are monitored and enforced by the Indian Health Service contracting officers.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

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: 14614 N KIERLAND BLVD STE 120, SCOTTSDALE, AZ, 85254

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

Financial Breakdown

Contract Ceiling: $3,614,890

Exercised Options: $3,614,890

Current Obligation: $3,614,890

Actual Outlays: $2,482,883

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline