NativeArc, LLC awarded $13.3M for ER physician services at Crownpoint Healthcare Facility

Contract Overview

Contract Amount: $13,299,520 ($13.3M)

Contractor: Nativearc, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-08-10

End Date: 2026-12-31

Contract Duration: 1,239 days

Daily Burn Rate: $10.7K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: TO PROVIDE ER PHYSICIAN SERVICES FOR THE ED DEPARTMENT OF THE CROWNPOINT HEALTHCARE FACILITY.

Place of Performance

Location: CROWNPOINT, MCKINLEY County, NEW MEXICO, 87313

State: New Mexico Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.3 million to NATIVEARC, LLC for work described as: TO PROVIDE ER PHYSICIAN SERVICES FOR THE ED DEPARTMENT OF THE CROWNPOINT HEALTHCARE FACILITY. Key points: 1. Contract provides essential physician services to a critical healthcare facility. 2. Competition dynamics appear favorable given the contract was competed under SAP. 3. Potential risk indicators include reliance on a single vendor for specialized services. 4. Performance context is vital, as physician availability directly impacts patient care. 5. Sector positioning is within healthcare services, specifically supporting federal facilities.

Value Assessment

Rating: good

The contract value of $13.3 million over approximately 4 years for ER physician services appears reasonable when benchmarked against similar contracts for specialized medical staffing. While specific per-unit cost data is not provided, the total award suggests a competitive pricing structure was likely achieved through the procurement process. The benchmark of $10.7 million indicates this award is within a comparable range for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), suggesting it was likely a smaller value procurement that allowed for streamlined competition. The data indicates two bids were received, which provides some level of price discovery but may not represent the full breadth of market interest compared to larger, full-and-open competitions. The limited number of bidders could potentially lead to less aggressive pricing.

Taxpayer Impact: Taxpayers benefit from a streamlined procurement process, but the limited competition may mean slightly higher costs than a broader competition could achieve.

Public Impact

Beneficiaries include patients of the Crownpoint Healthcare Facility in New Mexico. Services delivered are critical emergency room physician staffing. Geographic impact is focused on the service area of the Crownpoint Healthcare Facility. Workforce implications involve ensuring consistent availability of qualified medical professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized skills are difficult to replace.
Dependence on a single contractor for critical medical services could pose a risk if performance issues arise.

Positive Signals

Contract was competed, indicating some level of market engagement.
Awarded to a single vendor, potentially simplifying management and oversight.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on the provision of physician staffing for federal healthcare facilities. The market for specialized medical staffing is competitive, with numerous companies offering services to government and private entities. The total federal spending on healthcare services is substantial, and contracts like this represent a crucial component of ensuring access to care in underserved or remote areas.

Small Business Impact

The data does not indicate this contract was set aside for small businesses, nor does it provide information on subcontracting plans. As a limited competition under SAP, it's possible small businesses were not actively solicited or did not participate. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight would typically be managed by the Indian Health Service (IHS) contracting officers and program managers. Accountability measures would be embedded in the purchase order terms and conditions, including performance standards and payment schedules. Transparency is facilitated by contract data reporting, though specific details of performance monitoring are not publicly detailed.

Related Government Programs

Indian Health Service Medical Staffing Contracts
Federal Healthcare Provider Services
Emergency Room Physician Services Contracts

Risk Flags

Potential for service disruption due to single vendor reliance.
Limited competition may impact optimal pricing.
Need for robust performance monitoring to ensure quality of care.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.3 million to NATIVEARC, LLC. TO PROVIDE ER PHYSICIAN SERVICES FOR THE ED DEPARTMENT OF THE CROWNPOINT HEALTHCARE FACILITY.

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 $13.3 million.

What is the period of performance?

Start: 2023-08-10. End: 2026-12-31.

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

Information regarding NativeArc, LLC's specific track record in providing ER physician services to federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history with the government, and any reported issues or commendations. Federal procurement databases and contractor performance systems (like the Contractor Performance Assessment Reporting System - CPARS) would be the primary sources for this information. Without this data, it's difficult to definitively assess their reliability and expertise for this critical role.

How does the awarded amount compare to the benchmark of $10.7 million?

The awarded amount of $13.3 million is approximately 24% higher than the provided benchmark of $10.7 million. This difference could be attributed to various factors, including the specific scope of services, the duration of the contract, geographic location, prevailing market rates for physician services in New Mexico, and the specific qualifications required for the physicians. While the benchmark provides a useful reference point, a direct comparison requires a detailed understanding of the service requirements and market conditions for both the awarded contract and the benchmark data.

What are the primary risks associated with relying on a single vendor for ER physician services?

The primary risks associated with relying on a single vendor for ER physician services include potential service disruptions if the vendor faces staffing shortages, financial difficulties, or performance issues. There's also a risk of reduced negotiating leverage for future contract renewals, potentially leading to price increases. Furthermore, if the vendor's performance is unsatisfactory, the process of transitioning to a new provider can be lengthy and disruptive to patient care. Ensuring robust performance metrics and contingency plans within the contract is crucial to mitigate these risks.

What is the expected impact of these services on patient care at the Crownpoint Healthcare Facility?

The expected impact of these services on patient care at the Crownpoint Healthcare Facility is positive and critical. By securing ER physician services through this contract, the facility ensures that qualified medical professionals are available to treat patients presenting with emergency medical conditions. This directly contributes to timely and appropriate medical interventions, potentially improving patient outcomes, reducing wait times, and maintaining the operational capacity of the emergency department. Consistent physician staffing is fundamental to the quality and accessibility of emergency healthcare services.

How does the 'Competed under SAP' classification influence the perceived value for money?

The 'Competed under SAP' (Simplified Acquisition Procedures) classification suggests that the procurement process was streamlined, typically for acquisitions below a certain dollar threshold (e.g., $250,000, though this can vary). While SAP aims for efficiency, it often involves fewer bidders and less extensive documentation than full and open competition. This can lead to good value for money due to reduced administrative costs, but it may not always achieve the most competitive pricing possible if a wider range of vendors were not engaged. The fact that two bids were received indicates some competition, but the overall value proposition is influenced by the trade-off between efficiency and market breadth.

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: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 708 SW DESCHUTES AVE STE 5, 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: $13,299,520

Exercised Options: $13,299,520

Current Obligation: $13,299,520

Actual Outlays: $6,275,768

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline