HHS awards $1.6M for ER nurses at North Dakota facility, highlighting temporary staffing needs

Contract Overview

Contract Amount: $163,660 ($163.7K)

Contractor: BAY Area Anesthesia LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-19

End Date: 2026-08-31

Contract Duration: 134 days

Daily Burn Rate: $1.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DO/TO FOR ER NURSES AT THE QUENTIN N BURDICK MEMORIAL HEALTH CARE FACILITY IN BELCOURT, ND

Place of Performance

Location: BELCOURT, ROLETTE County, NORTH DAKOTA, 58316

State: North Dakota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $163,660 to BAY AREA ANESTHESIA LLC for work described as: DO/TO FOR ER NURSES AT THE QUENTIN N BURDICK MEMORIAL HEALTH CARE FACILITY IN BELCOURT, ND Key points: 1. Contract addresses critical healthcare staffing shortages in remote areas. 2. Temporary staffing solutions can be more expensive than permanent hires. 3. Limited duration suggests a focus on immediate needs rather than long-term solutions. 4. Full and open competition after exclusion of sources indicates a specific justification for the procurement method. 5. The contract's value is moderate, but the per-diem cost warrants scrutiny. 6. Geographic location in North Dakota may present challenges in attracting and retaining staff.

Value Assessment

Rating: fair

The contract value of $1.64 million for approximately 4 months of ER nursing services appears high, especially considering it's for temporary help. While specific per-diem rates are not provided, the total amount suggests a significant daily expenditure. Benchmarking against similar temporary nursing contracts, particularly those for specialized roles like ER nurses, would be necessary to determine if this represents a fair market price. The urgency implied by temporary staffing often leads to premium pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This unusual designation suggests that while the competition was intended to be broad, specific sources were excluded for a stated reason, possibly related to unique qualifications or prior performance. The number of bidders is not specified, but the exclusion of sources limits the scope of competition, potentially impacting price discovery and the government's ability to secure the lowest possible price.

Taxpayer Impact: The exclusion of sources, even within a full and open framework, may limit competitive pressure, potentially leading to higher costs for taxpayers compared to a truly unrestricted competition.

Public Impact

Patients at the Quentin N Burdick Memorial Health Care Facility in Belcourt, ND, will benefit from continuous emergency room staffing. The contract ensures the delivery of essential emergency medical services to the local community. The geographic impact is concentrated in Belcourt, North Dakota, serving a specific tribal and local population. Workforce implications include the provision of temporary nursing jobs, potentially alleviating immediate staffing pressures on existing healthcare professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inflated costs due to the nature of temporary staffing contracts.
Limited competition due to the 'exclusion of sources' clause could impact value for money.
Reliance on temporary staff may lead to inconsistencies in care quality or operational efficiency.
The short duration of the contract raises questions about long-term staffing strategies.

Positive Signals

Ensures critical ER services are maintained at a vital healthcare facility.
The contract was awarded through a process that aimed for broad competition, albeit with exclusions.
The fixed-price contract type provides cost certainty for the government.

Sector Analysis

The healthcare staffing sector, particularly for specialized roles like ER nurses, faces persistent shortages across the United States. Temporary staffing agencies play a crucial role in filling these gaps, but often at a premium compared to permanent hires. This contract falls within the broader healthcare services industry, specifically addressing the need for clinical personnel. Comparable spending benchmarks would focus on per-diem rates for travel nurses or agency fees for similar contract durations and locations.

Small Business Impact

There is no indication that this contract included a small business set-aside. The contractor, Bay Area Anesthesia LLC, is not explicitly identified as a small business. Therefore, the direct impact on small business set-asides is likely minimal. However, the use of temporary staffing agencies can sometimes create subcontracting opportunities for smaller, specialized healthcare staffing firms, though this is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and its Indian Health Service (IHS) component. Accountability measures would include performance monitoring against the contract's requirements, ensuring the delivery of qualified ER nurses and adherence to schedules. Transparency is facilitated by the Federal Procurement Data System (FPDS), which publishes contract awards. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Indian Health Service (IHS) Contracts
Temporary Healthcare Staffing Services
Emergency Room Services Contracts
Federal Healthcare Facility Support

Risk Flags

Potential for high cost due to temporary staffing nature.
Limited competition due to exclusion of sources.
Short contract duration may indicate recurring need or lack of long-term planning.
Geographic isolation may impact staffing availability and cost.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $163,660 to BAY AREA ANESTHESIA LLC. DO/TO FOR ER NURSES AT THE QUENTIN N BURDICK MEMORIAL HEALTH CARE FACILITY IN BELCOURT, ND

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 $163,660.

What is the period of performance?

Start: 2026-04-19. End: 2026-08-31.

What is the typical per-diem rate for ER nurses in North Dakota, and how does this contract's implied rate compare?

Determining the exact per-diem rate from the total contract value ($1.64M) and duration (134 days) is challenging without knowing the exact number of nurses or hours worked. However, a rough estimate suggests a daily cost of approximately $12,238. Standard per-diem rates for travel ER nurses can vary significantly by location and demand, often ranging from $800 to $1,500 per day. If this contract implies a rate significantly higher than this range, it could indicate premium pricing due to urgency, specialized skills, or the remote location. Further analysis would require detailed breakdowns of staffing levels and hours.

What specific justification was provided for excluding other sources in this 'Full and Open Competition After Exclusion of Sources' award?

The designation 'Full and Open Competition After Exclusion of Sources' implies that the agency initially intended to compete the requirement broadly but then identified specific reasons to exclude certain potential offerors. Common justifications for excluding sources include unique capabilities, proprietary technology, urgent and compelling needs where only specific contractors can meet the demand, or prior successful performance that makes them the only viable option. Without access to the contract file or justification documentation, the precise reason for exclusion remains unknown. This lack of transparency can raise concerns about whether the exclusion truly served the government's best interest or limited competition unnecessarily.

How does the contract duration of approximately 4 months align with the typical needs for ER staffing at a facility like Quentin N Burdick Memorial Health Care Facility?

A contract duration of approximately four months for ER nurses typically signifies a short-term or interim staffing solution. This could be to cover extended leave, manage a temporary surge in patient volume, or bridge the gap while a permanent recruitment process is underway. For a facility like the Quentin N Burdick Memorial Health Care Facility, which may face challenges in recruiting and retaining permanent staff due to its location, such short-term contracts might be a recurring necessity. However, a consistent reliance on short-term contracts can be less cost-effective and potentially disruptive compared to a stable, permanent workforce.

What is the track record of Bay Area Anesthesia LLC in performing federal contracts, particularly for healthcare staffing?

Information regarding Bay Area Anesthesia LLC's specific track record with federal contracts, especially for healthcare staffing, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the types and values of previous federal awards, and any history of contract disputes or terminations. Without this data, it's difficult to gauge their reliability, experience, and past success in fulfilling similar government requirements. Federal agencies typically rely on past performance as a key factor in award decisions.

Are there any comparable federal spending benchmarks for temporary ER nursing services in similar rural or underserved areas?

Establishing precise federal spending benchmarks for temporary ER nursing in rural areas is complex due to variations in location, facility type, specific skill requirements, and contract terms. However, general benchmarks for travel nurses often fall within the $800-$1,500 per day range, excluding agency overhead and profit. Contracts awarded by the Indian Health Service (IHS) or Veterans Affairs (VA) to staffing agencies for similar roles could serve as comparators. The total value of $1.64 million over roughly four months, if it translates to a significantly higher daily rate than typical travel nurse assignments, would warrant further investigation into the specific market conditions and justifications for the pricing.

What are the potential risks associated with relying on temporary staffing agencies for critical healthcare roles like ER nurses?

Relying on temporary staffing agencies for critical roles like ER nurses presents several risks. Firstly, cost is often higher due to agency markups compared to direct hiring. Secondly, continuity of care can be impacted as temporary staff may have less familiarity with facility protocols, electronic health records, and the patient population. Thirdly, there's a risk of inconsistent quality if the agency does not rigorously vet its personnel. Finally, a constant churn of temporary staff can affect team morale and operational efficiency among permanent employees. The 'exclusion of sources' in this specific contract adds a layer of risk regarding the breadth of vetting for qualified and cost-effective providers.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3451 S MERCY ROAD, GILBERT, AZ, 85297

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $163,660

Exercised Options: $163,660

Current Obligation: $163,660

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75H70621D00030

IDV Type: IDC

Timeline