HHS awards $5.1M for Cheyenne River Health Center staffing, with a 370-day performance period

Contract Overview

Contract Amount: $5,142,792 ($5.1M)

Contractor: Prime Physicians PLLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-06-25

End Date: 2026-06-30

Contract Duration: 370 days

Daily Burn Rate: $13.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EMERGENCY DEPARTMENT MANAGEMENT AND STAFFING SERVICES, CHEYENNE RIVER HEALTH CENTER, EAGLE BUTTE, SD. PERIOD OF PERFORMANCE 07/01/2025 - 6/30/2026

Place of Performance

Location: EAGLE BUTTE, DEWEY County, SOUTH DAKOTA, 57625

State: South Dakota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.1 million to PRIME PHYSICIANS PLLC for work described as: EMERGENCY DEPARTMENT MANAGEMENT AND STAFFING SERVICES, CHEYENNE RIVER HEALTH CENTER, EAGLE BUTTE, SD. PERIOD OF PERFORMANCE 07/01/2025 - 6/30/2026 Key points: 1. The contract value of $5.14 million for one year of emergency department management and staffing represents a significant investment in rural healthcare access. 2. Competition dynamics for this contract are crucial for ensuring fair pricing and quality of service delivery in a remote location. 3. Performance context is key, as the effectiveness of staffing services directly impacts patient care outcomes at the Cheyenne River Health Center. 4. Sector positioning within the Indian Health Service highlights a commitment to serving Native American communities. 5. Risk indicators may include potential staffing shortages, contractor performance issues, or unexpected cost escalations impacting service continuity.

Value Assessment

Rating: good

The contract value of $5.14 million for a 370-day period averages approximately $13,899 per day. Benchmarking this against similar emergency department staffing contracts is challenging due to the specialized nature of serving a specific health center. However, the daily rate appears within a reasonable range for providing comprehensive management and staffing services, considering the need for specialized medical professionals and the remote location.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this approach generally fosters a competitive environment, encouraging vendors to offer competitive pricing and robust service proposals to win the contract. This method is preferred for ensuring the government receives the best value.

Taxpayer Impact: Full and open competition suggests that taxpayers benefit from potentially lower prices and higher quality services due to the competitive bidding process, maximizing the return on investment for federal healthcare spending.

Public Impact

The primary beneficiaries are the patients of the Cheyenne River Health Center, who will receive essential emergency medical services. The contract ensures the continuous operation and staffing of the emergency department, providing critical care to the local population. The geographic impact is concentrated in Eagle Butte, South Dakota, serving the Cheyenne River Indian Reservation and surrounding areas. Workforce implications include the provision of medical professionals (physicians, nurses, support staff) to operate the emergency department.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor to understaff or provide less experienced personnel if cost-cutting measures are prioritized over quality.
Dependence on a single contractor for critical emergency services could lead to service disruptions if performance issues arise.
Geographic isolation of the service location may present logistical challenges for staffing and supply chain management.

Positive Signals

Awarding under full and open competition suggests a robust vetting process for potential contractors.
The firm-fixed-price contract type provides cost certainty for the government, limiting the risk of cost overruns.
The contract duration of over a year allows for stable service provision and relationship building with the health center.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on emergency department management and staffing. The Indian Health Service (IHS) operates within a unique market characterized by a federal mandate to provide healthcare to federally recognized Native American tribes. Spending in this area is critical for fulfilling treaty obligations and addressing health disparities. Comparable spending benchmarks are often specific to IHS facilities due to their unique operational context and patient populations.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, the primary contractor, PRIME PHYSICIANS PLLC, is likely not a small business, and there is no explicit indication of subcontracting goals for small businesses within this award. This means the direct economic impact on the small business ecosystem from this specific contract may be limited unless the prime contractor voluntarily engages small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Indian Health Service (IHS), a division of the Department of Health and Human Services (HHS). The IHS has established protocols for contract monitoring and performance evaluation. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the contract's execution.

Related Government Programs

Indian Health Service Contracts
Rural Healthcare Services
Emergency Department Staffing
Physician Services Contracts
Healthcare Facility Management

Risk Flags

Potential for staffing shortages in a remote location.
Dependence on contractor performance for critical services.
Geographic isolation impacting logistics and recruitment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.1 million to PRIME PHYSICIANS PLLC. EMERGENCY DEPARTMENT MANAGEMENT AND STAFFING SERVICES, CHEYENNE RIVER HEALTH CENTER, EAGLE BUTTE, SD. PERIOD OF PERFORMANCE 07/01/2025 - 6/30/2026

Who is the contractor on this award?

The obligated recipient is PRIME PHYSICIANS PLLC.

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 $5.1 million.

What is the period of performance?

Start: 2025-06-25. End: 2026-06-30.

What is the track record of PRIME PHYSICIANS PLLC in managing and staffing emergency departments for federal agencies, particularly within the IHS?

Information regarding PRIME PHYSICIANS PLLC's specific track record with federal agencies, especially the Indian Health Service (IHS), is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes with similar contracts. Federal procurement databases and agency performance records would be the primary sources for this analysis. Understanding their experience in similar remote or underserved areas would be particularly relevant to evaluating their suitability for the Cheyenne River Health Center contract.

How does the daily cost of $13,899 for emergency department staffing compare to similar contracts awarded by the IHS or other federal healthcare providers?

The daily cost of approximately $13,899 for emergency department management and staffing is a key metric for value assessment. To benchmark this effectively, one would need to compare it against contracts for similar services in comparable geographic locations and facility types, particularly those managed by the IHS or other agencies serving rural or tribal populations. Factors such as the scope of services (e.g., physician coverage, nursing, administrative support), required qualifications of personnel, and the specific operational demands of the Cheyenne River Health Center would influence this comparison. Without access to a broader dataset of comparable IHS contracts, a precise benchmark is difficult, but this figure represents a significant daily expenditure for essential healthcare services.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential difficulties in recruiting and retaining qualified medical staff due to the remote location, leading to service disruptions or reduced quality of care. Another risk is the potential for cost overruns if unforeseen operational challenges arise, although the firm-fixed-price structure aims to mitigate this. Contractor performance issues, such as failure to meet staffing levels or quality standards, also pose a significant risk. Mitigation strategies typically involve robust contract monitoring by the IHS, clear performance metrics, contingency planning by the contractor, and established procedures for addressing performance deficiencies or emergencies.

How effective has the IHS been in ensuring adequate emergency care in remote locations like the Cheyenne River Indian Reservation through similar staffing contracts?

The effectiveness of IHS contracts in ensuring adequate emergency care in remote locations is a complex issue often subject to ongoing evaluation. Success is typically measured by metrics such as patient wait times, patient satisfaction, availability of critical services, and health outcomes. Challenges in remote areas often include infrastructure limitations, recruitment difficulties, and cultural competency requirements. Analyzing historical data on patient access, service utilization, and health status at the Cheyenne River Health Center, alongside reviews of past contractor performance, would provide insights into the effectiveness of such staffing arrangements.

What are the historical spending patterns for emergency department management and staffing services at the Cheyenne River Health Center or similar IHS facilities?

Historical spending data for emergency department management and staffing at the Cheyenne River Health Center or comparable IHS facilities would provide valuable context for the current $5.14 million award. Analyzing past contract values, durations, and the number of competitive bids over several years can reveal trends in cost, service scope, and contractor stability. Significant year-over-year increases or decreases in spending, or frequent changes in contractors, might indicate underlying issues with service delivery, pricing, or market dynamics within the IHS system for these specialized services.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2800 PIERCE ST STE 414, SIOUX CITY, IA, 51104

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,142,792

Exercised Options: $5,142,792

Current Obligation: $5,142,792

Actual Outlays: $1,264,751

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75H70624D00004

IDV Type: IDC

Timeline