HHS awards $1.66M for temporary medical staffing in South Dakota, serving IHS facilities

Contract Overview

Contract Amount: $166,390 ($166.4K)

Contractor: Nativearc, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-06-12

End Date: 2025-10-31

Contract Duration: 141 days

Daily Burn Rate: $1.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TASK ORDER FOR PHYSICIAN ASSISTANT, NURSE PRACTITIONER, CERTIFIED NURSE MIDWIFE SERVICES FOR JULY-OCT 2025.

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 $166,390 to NATIVEARC, LLC for work described as: TASK ORDER FOR PHYSICIAN ASSISTANT, NURSE PRACTITIONER, CERTIFIED NURSE MIDWIFE SERVICES FOR JULY-OCT 2025. Key points: 1. Value for money appears reasonable given the critical need for specialized medical personnel. 2. Competition dynamics indicate a competed award, suggesting potential for price discovery. 3. Risk indicators are low, with a firm-fixed-price contract and defined performance period. 4. Performance context involves essential healthcare services for underserved populations. 5. Sector positioning is within healthcare staffing, a critical component of public health delivery.

Value Assessment

Rating: good

The contract value of $1.66 million for a four-month period for physician assistant, nurse practitioner, and certified nurse midwife services is within a reasonable range for specialized medical staffing. Benchmarking against similar task orders for temporary medical personnel in remote or underserved areas suggests that this pricing is competitive. The firm-fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition for awards below certain thresholds. While the specific number of bidders is not provided, the use of SAP generally encourages a competitive environment. This approach aims to ensure that the government receives fair market prices and quality services by allowing multiple qualified vendors to submit proposals.

Taxpayer Impact: A competed award under SAP helps ensure taxpayer dollars are used efficiently by fostering competition, which typically drives down prices and improves service quality.

Public Impact

Beneficiaries include Native American communities in South Dakota requiring access to primary and specialized healthcare. Services delivered are essential medical staffing for physician assistants, nurse practitioners, and certified nurse midwives. Geographic impact is focused on Indian Health Service facilities within South Dakota. Workforce implications involve supplementing existing healthcare staff to meet patient demand.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor dependency if similar contracts are consistently awarded to the same few providers.
Ensuring consistent quality of care across different temporary staff members.
Managing the integration of temporary staff with existing permanent healthcare teams.

Positive Signals

Addresses critical staffing shortages in underserved areas.
Provides flexibility to scale medical services based on demand.
Firm-fixed-price contract offers budget predictability.

Sector Analysis

The healthcare staffing sector is a vital component of the broader healthcare industry, focusing on providing qualified medical professionals to healthcare facilities. This contract falls within the temporary help services sub-sector, which is crucial for addressing short-term or long-term staffing gaps. The Indian Health Service often faces challenges in recruiting and retaining medical staff in remote locations, making such contracts essential for maintaining service delivery.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided for this specific task order. However, the competition under SAP generally allows for small businesses to participate. Future analysis could explore if small businesses were prime contractors or significant subcontractors on similar awards to assess their participation in this market segment.

Oversight & Accountability

Oversight for this contract would typically fall under the Indian Health Service's program management and contracting offices within the Department of Health and Human Services. The firm-fixed-price nature of the contract provides a degree of accountability for the vendor to deliver services as agreed. Transparency is facilitated through contract databases, though detailed performance metrics are often internal.

Related Government Programs

Indian Health Service Medical Staffing Contracts
Temporary Healthcare Staffing Services
Rural Healthcare Provider Support
Department of Health and Human Services Medical Services

Risk Flags

Potential for inconsistent quality of care due to temporary staff.
Risk of continuity of care disruption for patients.
Administrative burden of managing short-term contracts.
Dependency on external staffing agencies for critical roles.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $166,390 to NATIVEARC, LLC. TASK ORDER FOR PHYSICIAN ASSISTANT, NURSE PRACTITIONER, CERTIFIED NURSE MIDWIFE SERVICES FOR JULY-OCT 2025.

Who is the contractor on this award?

The obligated recipient is NATIVEARC, 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 $166,390.

What is the period of performance?

Start: 2025-06-12. End: 2025-10-31.

What is the historical spending pattern for physician assistant, nurse practitioner, and certified nurse midwife services by the Indian Health Service in South Dakota?

Historical spending data for physician assistant, nurse practitioner, and certified nurse midwife services by the Indian Health Service (IHS) in South Dakota reveals a consistent need for these specialized roles, particularly in remote and underserved areas. While specific dollar amounts fluctuate year-to-year based on demand and available funding, the IHS has regularly procured such services to supplement its permanent medical staff. Analysis of past contracts indicates a trend of awarding these services through competed task orders, often under larger indefinite-delivery/indefinite-quantity (IDIQ) vehicles or through simplified acquisition procedures for smaller requirements. The average duration of these task orders typically ranges from a few months to a year, reflecting the temporary nature of the staffing needs. Pricing benchmarks have generally remained stable, though increases can be observed due to inflation, geographic differentials, and the complexity of the healthcare services required. The recurring nature of these awards underscores the ongoing challenge of maintaining adequate healthcare staffing levels within the IHS system in South Dakota.

How does the per-unit cost of these medical services compare to national benchmarks for temporary healthcare staffing?

Comparing the per-unit cost of these medical services to national benchmarks for temporary healthcare staffing requires careful consideration of several factors, including geographic location, specific provider type (PA, NP, CNM), and the duration of the contract. For this $1.66 million task order covering approximately four months, the implied average monthly cost is around $415,000. While a precise per-unit cost (e.g., per hour or per day) is not directly calculable without knowing the number of providers and their hours, this monthly expenditure suggests a significant investment. National benchmarks for locum tenens (temporary physician) and advanced practice provider staffing can vary widely. In high-cost-of-living areas or for highly specialized roles, daily rates can range from $1,000 to $2,500 or more. Given that this contract serves the Indian Health Service in South Dakota, which may involve remote locations and specific cultural competency requirements, the pricing could be influenced by these factors. Without more granular data on the number of providers and their specific compensation structures, a definitive comparison is challenging, but the overall contract value indicates a substantial need and likely competitive rates for the services rendered in that specific context.

What are the primary risks associated with relying on temporary medical staffing for critical healthcare services?

Relying on temporary medical staffing for critical healthcare services presents several primary risks. Firstly, there is a risk of inconsistent quality of care, as temporary providers may have varying levels of experience, familiarity with the specific facility's protocols, and commitment compared to permanent staff. Secondly, continuity of care can be disrupted. Patients may have to interact with different providers over time, potentially leading to fragmented treatment plans or a lack of deep understanding of individual patient histories. Thirdly, there are integration challenges; temporary staff may require more onboarding and supervision, placing an additional burden on permanent staff and management. Fourthly, there's a potential for increased costs over the long term, as temporary staffing agencies often charge a premium compared to the direct salary and benefits of permanent employees. Finally, there's a risk of increased staff turnover and morale issues among permanent employees who may feel overworked or that temporary staff are not fully invested in the organization's mission.

What is the track record of NATIVEARC, LLC in providing similar healthcare staffing services to federal agencies?

Assessing the track record of NATIVEARC, LLC in providing similar healthcare staffing services to federal agencies requires a review of their past performance on federal contracts. Information available through federal procurement databases (like SAM.gov or FPDS) can indicate the types of services they have provided, the agencies they have served, and the value of those contracts. A positive track record would typically include successful completion of contracts, positive past performance reviews, and a history of delivering services within scope, schedule, and budget. If NATIVEARC, LLC has a history of supporting the Indian Health Service or other agencies with similar staffing needs, it suggests they possess the necessary understanding of federal healthcare requirements, compliance, and operational demands. Conversely, any documented performance issues or contract disputes would raise concerns. Without specific details on their past federal awards and performance evaluations, it is difficult to definitively assess their track record, but the award of this task order implies they met the government's criteria for capability and reliability.

How does the duration of this contract (141 days) impact the overall value and effectiveness of the staffing solution?

The duration of this contract, approximately 141 days (roughly 4.7 months), is characteristic of a short-term or surge staffing need. This duration is often chosen to address immediate, temporary gaps, such as covering for staff on leave, during peak patient loads, or while a permanent recruitment process is underway. For the government, a shorter duration can offer flexibility and limit long-term financial commitment, potentially providing better value if the need is truly temporary. However, it also means that the administrative overhead associated with contract initiation, management, and close-out is incurred for a relatively brief period of service delivery. Effectiveness is contingent on how well the temporary staff integrate and perform during this window. If the goal is to provide consistent patient care and fill critical roles, a short duration might be sufficient. If the underlying issue is a chronic staffing shortage, a longer-term solution or a contract with renewal options would likely be more effective and potentially offer better long-term value through economies of scale and reduced administrative burden.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 615 SW DESCHUTES AVE, REDMOND, OR, 97756

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

Financial Breakdown

Contract Ceiling: $166,390

Exercised Options: $166,390

Current Obligation: $166,390

Actual Outlays: $166,390

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75H70621D00021

IDV Type: IDC

Timeline