HHS Awards $2.3M for Temporary Staffing to CHG Companies, Inc. in Arizona
Contract Overview
Contract Amount: $2,322,139 ($2.3M)
Contractor: CHG Companies, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2024-03-11
End Date: 2026-06-30
Contract Duration: 841 days
Daily Burn Rate: $2.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: LABOR HOURS
Sector: Healthcare
Official Description: FY24 ER NONPERSONAL SERVICES
Place of Performance
Location: CHINLE, APACHE County, ARIZONA, 86503
State: Arizona Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $2.3 million to CHG COMPANIES, INC. for work described as: FY24 ER NONPERSONAL SERVICES Key points: 1. Contract value of $2.32 million for temporary staffing services. 2. Awarded to CHG COMPANIES, INC. under full and open competition. 3. Potential risk associated with reliance on temporary labor for critical services. 4. Sector focus on healthcare support services.
Value Assessment
Rating: fair
The contract value of $2.32 million for temporary help services over approximately two years appears reasonable given the duration and labor hours. Benchmarking against similar contracts for temporary staffing in the healthcare sector would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The use of competitive bidding aims to ensure taxpayer funds are used efficiently for essential services.
Public Impact
Ensures continued operation of Indian Health Service facilities by providing necessary temporary staff. Supports healthcare delivery in Arizona by filling critical staffing gaps. Potential for job creation and economic activity through the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Dependence on temporary staff can lead to inconsistencies in service quality.
- Potential for increased turnover and associated training costs.
- Contract duration may not align with long-term strategic staffing needs.
Positive Signals
- Addresses immediate staffing shortages effectively.
- Leverages competitive market for staffing solutions.
- Provides flexibility to scale workforce as needed.
Sector Analysis
This contract falls within the professional and management support services sector, specifically temporary help services. Healthcare staffing is a significant area of government spending, with benchmarks varying based on skill sets and geographic location.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The Department of Health and Human Services, specifically the Indian Health Service, is responsible for overseeing this contract. Standard procurement regulations and contract management practices should ensure accountability.
Related Government Programs
- Temporary Help Services
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Potential for inconsistent service quality due to temporary staffing.
- Risk of higher long-term costs compared to permanent hires for essential roles.
- Dependence on contractor performance for critical healthcare support.
- Limited visibility into specific skill sets and qualifications of temporary staff.
Tags
temporary-help-services, department-of-health-and-human-services, az, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $2.3 million to CHG COMPANIES, INC.. FY24 ER NONPERSONAL SERVICES
Who is the contractor on this award?
The obligated recipient is CHG COMPANIES, INC..
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 $2.3 million.
What is the period of performance?
Start: 2024-03-11. End: 2026-06-30.
What is the average hourly rate for the temporary staff provided under this contract, and how does it compare to market rates for similar positions in Arizona?
The provided data does not specify the average hourly rate. To assess value, this rate would need to be compared against prevailing wages and industry benchmarks for temporary healthcare support staff in the specified geographic region. A higher-than-market rate could indicate potential overspending or a lack of competitive pressure.
What are the specific roles and skill levels of the temporary staff being procured, and are these critical functions that could be more effectively managed through permanent hires?
The data indicates 'Temporary Help Services' (NAICS 561320) but does not detail specific roles or skill levels. If the temporary staff are filling essential, long-term functions, relying on temporary contracts might be less cost-effective and could indicate a failure in strategic workforce planning, posing a risk to service continuity and quality.
How will the Indian Health Service measure the effectiveness and performance of the temporary staff and CHG COMPANIES, INC. throughout the contract period?
Effectiveness is typically measured through performance metrics outlined in the contract, such as fill rates, staff retention, and client satisfaction surveys. The IHS should have a robust performance monitoring plan to ensure the temporary staff meet the required standards and that the contractor delivers on its obligations.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services
Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: IHS1482053-52-94
Offers Received: 10
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 7259 S BINGHAM JUNCTION BLVD, MIDVALE, UT, 84047
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,322,139
Exercised Options: $2,322,139
Current Obligation: $2,322,139
Actual Outlays: $1,782,803
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2024-03-11
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-03-02
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