HHS Awards $5.2M Telehealth Contract to Avel eCare LLC for Indian Health Service
Contract Overview
Contract Amount: $2,601,975 ($2.6M)
Contractor: Avel Ecare LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2025-12-31
End Date: 2026-06-30
Contract Duration: 181 days
Daily Burn Rate: $14.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: TELEHEALTH BRIDGE AWARDED 5,203,949.40
Place of Performance
Location: BILLINGS, YELLOWSTONE County, MONTANA, 59101
State: Montana Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $2.6 million to AVEL ECARE LLC for work described as: TELEHEALTH BRIDGE AWARDED 5,203,949.40 Key points: 1. Contract value of $5,203,949.40 for telehealth services. 2. Awarded to Avel eCare LLC, a single vendor. 3. No competition was utilized for this award. 4. The contract falls under 'All Other Miscellaneous Ambulatory Health Care Services'.
Value Assessment
Rating: questionable
The contract value of $5.2M for 18 months of service is significant. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar telehealth solutions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition raises concerns about the optimal use of taxpayer funds, as a more competitive process could have yielded cost savings.
Public Impact
Ensures continued telehealth access for IHS beneficiaries in Montana. Potential for higher costs due to sole-source nature. Limited transparency on vendor selection and pricing justification.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Limited price transparency
Positive Signals
- Addresses critical telehealth needs
- Supports IHS mission
Sector Analysis
The contract is in the healthcare sector, specifically telehealth services. Spending benchmarks for similar telehealth contracts are difficult to ascertain without competitive data, but $5.2M for 18 months is a substantial investment.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further review of the justification for not competing the contract is needed to ensure accountability and responsible spending.
Related Government Programs
- All Other Miscellaneous Ambulatory Health Care Services
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Limited transparency on vendor selection
- No small business participation noted
Tags
all-other-miscellaneous-ambulatory-healt, department-of-health-and-human-services, mt, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $2.6 million to AVEL ECARE LLC. TELEHEALTH BRIDGE AWARDED 5,203,949.40
Who is the contractor on this award?
The obligated recipient is AVEL ECARE 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 $2.6 million.
What is the period of performance?
Start: 2025-12-31. End: 2026-06-30.
What was the specific justification for awarding this contract on a sole-source basis instead of conducting a competitive procurement?
The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling circumstances. A thorough review of the agency's justification documentation would be necessary to understand the rationale.
How does the per-unit cost of this telehealth service compare to industry benchmarks, given the lack of competitive pricing?
Without competitive bids or publicly available pricing data for similar services procured competitively, it is impossible to establish a reliable per-unit cost benchmark. The absence of competition means there's no market validation for the price. The agency should have conducted market research to establish a fair and reasonable price, but this information is not provided.
What measures are in place to ensure the effectiveness and quality of telehealth services provided by Avel eCare LLC under this contract?
The contract type is Firm Fixed Price, which sets the price regardless of the contractor's cost. While this provides cost certainty, it doesn't inherently guarantee effectiveness. The Department of Health and Human Services and the Indian Health Service would typically have performance standards, service level agreements, and quality assurance processes outlined in the contract to monitor and ensure the quality and effectiveness of the telehealth services delivered.
Industry Classification
NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › All Other Miscellaneous Ambulatory Health Care Services
Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 75H70926BAO_018
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4500 N LEWIS AVE, SIOUX FALLS, SD, 57104
Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $5,203,949
Exercised Options: $2,601,975
Current Obligation: $2,601,975
Actual Outlays: $498,150
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-12-31
Current End Date: 2026-06-30
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-02-17
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