HHS Awards $3.2M for Paramedic Services at IHS Pine Ridge, Competition Under SAP

Contract Overview

Contract Amount: $320,616 ($320.6K)

Contractor: BAY Area Anesthesia LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-05

End Date: 2026-05-16

Contract Duration: 41 days

Daily Burn Rate: $7.8K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PARAMEDIC SERVICES AT THE IHS PINE RIDGE SERVICE UNIT EMS DEPARTMENT.

Place of Performance

Location: PINE RIDGE, SHANNON County, SOUTH DAKOTA, 57770

State: South Dakota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $320,616 to BAY AREA ANESTHESIA LLC for work described as: PARAMEDIC SERVICES AT THE IHS PINE RIDGE SERVICE UNIT EMS DEPARTMENT. Key points: 1. Spending focuses on essential paramedic services for the Pine Ridge Service Unit. 2. Competition was conducted under Simplified Acquisition Procedures (SAP). 3. The contract is a Firm Fixed Price delivery order. 4. The award is for a short duration of 41 days. 5. The primary agency is the Indian Health Service (IHS).

Value Assessment

Rating: fair

The contract value of $3.2M for a 41-day period suggests a high daily rate. Benchmarking against similar paramedic service contracts would be necessary to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, indicating it likely fell below the threshold for full and open competition. This method may limit the pool of potential offerors and impact price discovery.

Taxpayer Impact: Taxpayer funds are being used for critical emergency medical services, with the efficiency of the procurement method impacting the overall value for money.

Public Impact

Ensures continued emergency medical response for the Pine Ridge community. Supports the operational needs of the Indian Health Service. Potential for high per-diem costs due to the short duration and SAP competition.

Waste & Efficiency Indicators

Waste Risk Score: 78 / 10

Warning Flags

Short contract duration may indicate a stop-gap measure or potential for future, longer-term contracts.
SAP competition might not yield the best possible pricing.
Lack of detailed performance metrics in the provided data.

Positive Signals

Addresses a critical service need for a specific community.
Awarded by a specialized agency (IHS) focused on Native American healthcare.
Clear contract end date provides a defined period of service.

Sector Analysis

This contract falls under healthcare services, specifically emergency medical services. Spending benchmarks for paramedic services can vary significantly based on location, scope of services, and contract duration.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this procurement. Further analysis would be needed to determine small business participation.

Oversight & Accountability

Oversight would typically involve the Indian Health Service monitoring contract performance and ensuring compliance with terms and conditions. The SAP process may have less stringent documentation requirements than full and open competition.

Related Government Programs

Ambulance Services
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Potential for overpayment due to SAP competition.
Short contract duration raises concerns about service continuity.
Lack of transparency on performance metrics.
High daily cost implied by contract value and duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $320,616 to BAY AREA ANESTHESIA LLC. PARAMEDIC SERVICES AT THE IHS PINE RIDGE SERVICE UNIT EMS DEPARTMENT.

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 $320,616.

What is the period of performance?

Start: 2026-04-05. End: 2026-05-16.

What is the justification for using SAP for a contract valued at $3.2M, and what was the pricing strategy to ensure value?

The justification for using Simplified Acquisition Procedures (SAP) likely stems from the contract's value falling below the statutory threshold for full and open competition, or specific agency exceptions. The pricing strategy would have been based on the Firm Fixed Price (FFP) model, aiming to establish a set cost for the defined services. However, without detailed pricing breakdowns or market research data, assessing the true value for money achieved through SAP is challenging.

What are the specific performance metrics and service level agreements tied to this contract to ensure effective paramedic services?

The provided data lacks specific performance metrics and service level agreements (SLAs). Effective oversight would require clear deliverables, such as response times, patient care standards, and equipment maintenance protocols. The Indian Health Service would need to actively monitor these aspects to ensure the quality and timeliness of the paramedic services provided, especially given the critical nature of emergency medical care.

Given the short 41-day duration, does this contract represent a temporary solution, and what is the long-term plan for paramedic services at this IHS unit?

The short 41-day duration strongly suggests this contract is a temporary measure, possibly to bridge a gap until a longer-term contract can be awarded or an in-house solution is established. It raises questions about the sustainability of paramedic services at the IHS Pine Ridge Service Unit. Further investigation into the agency's long-term strategy and procurement pipeline is warranted.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Ambulance Services

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $320,616

Exercised Options: $320,616

Current Obligation: $320,616

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75H70623D00015

IDV Type: IDC

Timeline