HHS awards $2.3M for temporary healthcare staffing in Arizona, with 9 bidders competing

Contract Overview

Contract Amount: $2,356,883 ($2.4M)

Contractor: Medicus Healthcare Solutions, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-04-11

End Date: 2026-06-30

Contract Duration: 810 days

Daily Burn Rate: $2.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: SURGEON - MEDICUS

Place of Performance

Location: CHINLE, APACHE County, ARIZONA, 86503

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.4 million to MEDICUS HEALTHCARE SOLUTIONS, LLC for work described as: SURGEON - MEDICUS Key points: 1. Value for money appears reasonable given the competitive bidding process. 2. Strong competition indicates potential for fair pricing. 3. Risk indicators are low due to established service category and competitive award. 4. Performance context is set by the need for temporary healthcare support. 5. Sector positioning is within healthcare staffing services for federal agencies.

Value Assessment

Rating: good

The contract value of $2.36 million over approximately 27 months for temporary healthcare staffing appears to be within a reasonable range, especially considering the competitive nature of the award. Benchmarking against similar contracts for temporary medical personnel can provide a more precise assessment, but the presence of 9 bidders suggests a degree of market validation for the pricing. The purchase order structure for labor hours allows for flexibility in managing staffing needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 9 bidders participating. This level of competition is generally positive, suggesting that multiple capable vendors were aware of and responded to the requirement. A robust bidding process typically leads to better price discovery and encourages vendors to offer competitive terms to secure the award.

Taxpayer Impact: The strong competition benefits taxpayers by likely driving down costs and ensuring the government receives services at a fair market price. It reduces the risk of overpayment and promotes efficiency in the procurement process.

Public Impact

Benefits Native American communities by providing essential temporary healthcare personnel through the Indian Health Service. Delivers critical temporary staffing services to support healthcare operations in Arizona. Geographic impact is focused on Arizona, addressing specific regional healthcare needs. Workforce implications include the provision of temporary healthcare professionals to fill critical gaps.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating broad market engagement.
Multiple bidders (9) participated, suggesting a healthy competitive environment.
Contract type is a Purchase Order, which can offer flexibility for defined needs.
Service is in a well-defined category (Temporary Help Services).

Sector Analysis

The healthcare staffing sector is a critical component of the broader healthcare industry, addressing the persistent challenge of workforce shortages. Federal agencies, particularly those like the Indian Health Service, often rely on contract staffing to meet demand in remote or underserved areas. The market for temporary healthcare staffing is substantial, with numerous providers ranging from large national firms to smaller specialized agencies. This contract fits within the segment of government contracting focused on providing essential medical personnel to federal healthcare facilities.

Small Business Impact

This contract was not specifically set aside for small businesses, and the data indicates no small business participation (sb: false). While this doesn't preclude small businesses from subcontracting, the primary award was not directed towards them. Further analysis would be needed to determine if any subcontracting opportunities were made available to small businesses within the ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services and the Indian Health Service. As a Purchase Order, it is subject to standard procurement regulations and agency oversight. Transparency is generally maintained through contract databases, and accountability rests with the contracting officer and the agency to ensure performance and adherence to terms. Specific Inspector General jurisdiction would depend on the nature of any potential issues or investigations.

Related Government Programs

Indian Health Service Contracts
Temporary Healthcare Staffing Services
Federal Healthcare Procurement
Health and Human Services Contracts

Risk Flags

Potential for inconsistent quality of care from temporary staff.
Challenges in rapid onboarding and integration of new personnel.
Risk of price escalation due to market demand fluctuations.
Dependence on contractor performance for critical healthcare services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.4 million to MEDICUS HEALTHCARE SOLUTIONS, LLC. SURGEON - MEDICUS

Who is the contractor on this award?

The obligated recipient is MEDICUS HEALTHCARE SOLUTIONS, 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 $2.4 million.

What is the period of performance?

Start: 2024-04-11. End: 2026-06-30.

What is the track record of Medicus Healthcare Solutions, LLC with federal contracts?

Medicus Healthcare Solutions, LLC has a history of performing federal contracts, primarily within the healthcare staffing domain. While this specific award is a Purchase Order, the company's experience likely extends to various contract vehicles. Analyzing their past performance ratings, any past performance issues, and the types of agencies they have served can provide insight into their reliability and capability. A review of their contract history would reveal the volume and value of previous federal awards, helping to establish a baseline for their performance and suitability for fulfilling government requirements. Their presence in this competitive bid suggests they are an active participant in the federal healthcare contracting market.

How does the awarded price compare to market rates for similar temporary healthcare staffing services?

Directly comparing the awarded price to precise market rates without more granular data on the specific roles, skill sets, and duration is challenging. However, the fact that this contract was awarded under full and open competition with 9 bidders provides a strong indication that the price is competitive. Market rates for temporary healthcare staffing can vary significantly based on geographic location, specialty (e.g., nurses, physicians, technicians), and the urgency of the need. The Indian Health Service's competitive process aims to secure services at or near fair market value. Further benchmarking against publicly available salary surveys for healthcare professionals or data from other federal agencies procuring similar services could offer a more refined comparison.

What are the primary risks associated with this type of temporary staffing contract?

The primary risks associated with this temporary staffing contract include potential challenges in ensuring consistent quality of care from temporary staff, difficulties in rapid onboarding and integration of new personnel, and the risk of price escalation if demand for temporary staff increases significantly. There's also a risk related to the availability of specialized healthcare professionals in the required locations. For the government, ensuring compliance with labor laws and credentialing requirements for temporary staff is crucial. Contractor performance risk, while mitigated by competition, always exists. The relatively short duration and defined scope of a purchase order can help manage some of these risks compared to longer-term, broader contracts.

How effective is the Indian Health Service in meeting its staffing needs through such contracts?

The effectiveness of the Indian Health Service (IHS) in meeting its staffing needs through contracts like this one is multifaceted. Contracts for temporary staffing are often utilized to address immediate shortages, cover leave, or provide specialized services that are difficult to recruit for permanently. The success of these contracts depends on the IHS's ability to accurately forecast needs, manage contractor performance, and ensure that the temporary staff integrate well with existing teams and contribute to patient care continuity. While these contracts can be a vital tool, they are typically a supplement to, rather than a replacement for, permanent staffing strategies. The competitive nature of this award suggests IHS is leveraging market mechanisms to procure these services.

What are the historical spending patterns for temporary healthcare staffing by the Indian Health Service?

Historical spending patterns for temporary healthcare staffing by the Indian Health Service (IHS) would likely show a consistent need for such services, driven by the unique challenges of staffing healthcare facilities in remote and underserved areas. The IHS often faces difficulties in recruiting and retaining permanent staff, making contract staffing a necessary component of their operational strategy. Spending in this category can fluctuate based on specific facility needs, recruitment success, and overall budget allocations. Analyzing past IHS expenditures on temporary staffing would reveal trends in demand, average contract values, and the types of services most frequently procured, providing context for the current $2.36 million award.

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: IHS1490802-04-06-07-09

Offers Received: 9

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 22 ROULSTON RD, WINDHAM, NH, 03087

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,356,883

Exercised Options: $2,356,883

Current Obligation: $2,356,883

Actual Outlays: $1,815,193

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline