HHS awards $10M for physician services at Rosebud IHS Hospital, South Dakota, over 1 year

Contract Overview

Contract Amount: $9,988,423 ($10.0M)

Contractor: Prime Physicians PLLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-07-31

End Date: 2026-06-30

Contract Duration: 334 days

Daily Burn Rate: $29.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TASK ORDER ISSUED AGAINST 75H70624D00004 TO PRIME PHYSICIANS, PLLC, FOR THE ROSEBUD SERVICE UNIT (RSU), ROSEBUD IHS HOSPITAL, ROSEBUD, SOUTH DAKOTA.

Place of Performance

Location: ROSEBUD, TODD County, SOUTH DAKOTA, 57570

State: South Dakota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.0 million to PRIME PHYSICIANS PLLC for work described as: TASK ORDER ISSUED AGAINST 75H70624D00004 TO PRIME PHYSICIANS, PLLC, FOR THE ROSEBUD SERVICE UNIT (RSU), ROSEBUD IHS HOSPITAL, ROSEBUD, SOUTH DAKOTA. Key points: 1. Contract provides essential physician services to the Rosebud Service Unit, addressing critical healthcare needs. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price nature of the contract helps manage cost certainty for the government. 4. The duration of the contract is approximately one year, indicating a need for ongoing services. 5. The award to Prime Physicians, PLLC, suggests a focus on specialized medical staffing. 6. Geographic concentration in South Dakota highlights specific regional healthcare demands.

Value Assessment

Rating: good

The contract value of approximately $10 million for a one-year period for physician services appears reasonable given the critical nature of healthcare provision in a remote service unit. Benchmarking against similar contracts for physician staffing in Indian Health Service (IHS) facilities or other rural healthcare settings would provide a more precise value assessment. However, the fixed-price structure offers cost predictability. The award amount is within the expected range for specialized medical services supporting a hospital.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this method generally fosters price discovery and encourages competitive pricing. The agency sought to ensure it received the best value by allowing all responsible sources to compete.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified contractors, ensuring the government obtains services at a fair market value.

Public Impact

Beneficiaries include patients of the Rosebud Service Unit and Rosebud IHS Hospital, receiving essential medical care. Services delivered encompass physician staffing to ensure the continued operation of the hospital. The geographic impact is concentrated in Rosebud, South Dakota, serving the local community and surrounding areas. Workforce implications include the provision of medical professionals to fill critical staffing gaps.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for physician burnout due to demanding workload in a rural setting.
Dependence on a single prime contractor for critical medical services.
Ensuring consistent quality of care across all assigned physicians.

Positive Signals

Award through full and open competition suggests a robust vetting process.
Fixed-price contract provides cost certainty.
Focus on a specific service unit addresses targeted healthcare needs.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on physician services. The North American Industry Classification System (NAICS) code 621111, Offices of Physicians (except Mental Health Specialists), represents a significant portion of the healthcare industry. Spending in this area is driven by the demand for medical expertise, particularly in underserved or remote regions like the Rosebud Service Unit, where attracting and retaining physicians can be challenging. Comparable spending benchmarks would involve analyzing other IHS contracts or federal procurements for physician staffing in similar geographic and demographic contexts.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Prime Physicians, PLLC, is the prime contractor, there is no explicit information on subcontracting plans with small businesses. The impact on the small business ecosystem would depend on whether the prime contractor utilizes small businesses for support services, which is not detailed in this award notice.

Oversight & Accountability

Oversight for this contract would typically fall under the Indian Health Service (IHS) contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver services as specified. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics and specific oversight activities are not publicly disclosed in this summary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Indian Health Service (IHS) Medical Staffing Contracts
Rural Healthcare Provider Support
Federal Physician Services Procurement
Healthcare Services for Underserved Populations

Risk Flags

Potential for service disruption if contractor fails to maintain adequate staffing.
Dependence on a single entity for critical healthcare services.
Need for robust contract oversight to ensure quality and compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.0 million to PRIME PHYSICIANS PLLC. TASK ORDER ISSUED AGAINST 75H70624D00004 TO PRIME PHYSICIANS, PLLC, FOR THE ROSEBUD SERVICE UNIT (RSU), ROSEBUD IHS HOSPITAL, ROSEBUD, SOUTH DAKOTA.

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 $10.0 million.

What is the period of performance?

Start: 2025-07-31. End: 2026-06-30.

What is the historical spending pattern for physician services at the Rosebud Service Unit?

Analyzing historical spending for physician services at the Rosebud Service Unit (RSU) is crucial for understanding cost trends and identifying potential efficiencies or escalations. Without specific historical data for this task order or previous contracts at RSU, a comprehensive analysis is not possible. However, federal agencies like the Indian Health Service (IHS) often face challenges in maintaining consistent physician staffing in remote locations, which can lead to fluctuating contract costs due to market rates, recruitment difficulties, and the need for locum tenens services. Examining prior contract awards for similar services at RSU, if available, would reveal if this $10 million award represents an increase, decrease, or stable spending level compared to previous years. Factors such as changes in patient volume, service scope, or the competitive landscape could influence these historical costs.

How does the awarded price compare to market rates for similar physician services?

Benchmarking the awarded price of approximately $10 million for one year of physician services against market rates requires detailed information on the specific physician specialties, qualifications, and the scope of services required at the Rosebud IHS Hospital. Generally, physician compensation in rural and underserved areas, such as the Rosebud Service Unit, can be higher due to recruitment and retention challenges. The Indian Health Service (IHS) often utilizes various contract mechanisms, including firm-fixed-price contracts, to secure these services. To perform a precise comparison, one would need to consult industry salary surveys for physicians in comparable geographic locations and healthcare settings, as well as analyze recent federal contract awards for similar physician staffing requirements within the IHS or other federal agencies serving similar populations. The fixed-price nature of this contract suggests the government aimed for cost certainty, but the underlying rate competitiveness is key.

What are the specific performance metrics and quality assurance measures for this contract?

The provided data does not detail the specific performance metrics or quality assurance measures for this contract. However, for healthcare service contracts, particularly those involving direct patient care within the Indian Health Service (IHS), robust performance standards are typically established. These often include metrics related to patient wait times, patient satisfaction, adherence to clinical protocols, physician availability, and medical record accuracy. Quality assurance would likely involve regular reviews of physician performance, credentialing verification, and potentially site visits by IHS officials. The firm-fixed-price nature of the contract implies that the contractor is responsible for meeting all specified service requirements, and failure to do so could result in contractual remedies. Detailed performance expectations would be outlined in the contract's Statement of Work (SOW).

What is the contractor's track record with the Indian Health Service or similar federal agencies?

Information regarding Prime Physicians, PLLC's specific track record with the Indian Health Service (IHS) or other federal agencies is not provided in the award data. A thorough assessment of the contractor's past performance would involve reviewing their history of successfully delivering similar medical services, adherence to contract terms, quality of care provided, and any past performance evaluations or disputes. Federal agencies typically maintain contractor performance information systems that inform future procurement decisions. Without access to these records or further details on Prime Physicians, PLLC's prior engagements, it is difficult to definitively assess their suitability and reliability for this critical healthcare contract.

What are the potential risks associated with relying on a single prime contractor for physician services?

Relying on a single prime contractor, Prime Physicians, PLLC, for physician services at the Rosebud IHS Hospital presents several potential risks. Firstly, there is a risk of service disruption if the contractor experiences staffing shortages, financial difficulties, or fails to meet contractual obligations. Secondly, a lack of competition for future contract renewals could potentially lead to increased costs or reduced service quality over time. Thirdly, the government's leverage in negotiating terms or addressing performance issues might be diminished. To mitigate these risks, the IHS would typically implement strong contract management, closely monitor performance, maintain open communication with the contractor, and ensure contingency plans are in place for potential service interruptions. The full and open competition for this initial award helps mitigate initial risk by selecting a presumably capable provider.

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: $9,988,423

Exercised Options: $9,988,423

Current Obligation: $9,988,423

Actual Outlays: $319,042

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75H70624D00004

IDV Type: IDC

Timeline