HHS Awards $606K for Temporary Health Services to CHG COMPANIES, INC. in Arizona
Contract Overview
Contract Amount: $606,100 ($606.1K)
Contractor: CHG Companies, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2025-03-27
End Date: 2026-03-31
Contract Duration: 369 days
Daily Burn Rate: $1.6K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: Healthcare
Official Description: FY25 PEDS AT CCHCF
Place of Performance
Location: CHINLE, APACHE County, ARIZONA, 86503
State: Arizona Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $606,100 to CHG COMPANIES, INC. for work described as: FY25 PEDS AT CCHCF Key points: 1. Contract awarded to CHG COMPANIES, INC. for $606,100. 2. Services are for Temporary Help Services (NAICS 561320). 3. The contract is for the Indian Health Service in Arizona. 4. Duration of the contract is 369 days. 5. Awarded under competitive procedures (SAP).
Value Assessment
Rating: good
The contract value of $606,100 for 369 labor hours appears reasonable given the nature of temporary health services. Benchmarking against similar contracts for specialized temporary staffing in healthcare would provide a more precise assessment.
Cost Per Unit: $1,643 per labor hour
Competition Analysis
Competition Level: full-and-open
The contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process for awards below the federal micro-purchase threshold. This method generally promotes price discovery and fair competition for smaller value contracts.
Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for necessary temporary health services.
Public Impact
Ensures continued availability of essential temporary health personnel for the Indian Health Service. Supports healthcare delivery in Arizona by providing staffing solutions. Potential impact on local healthcare workforce dynamics. Facilitates operational continuity for the Indian Health Service.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for increased costs if temporary staffing needs exceed initial projections.
- Reliance on a single vendor for critical temporary staffing.
Positive Signals
- Competitive award process likely secured favorable pricing.
- Contract duration aligns with anticipated service needs.
- Awarded to a company with a specific service code.
Sector Analysis
The healthcare sector, particularly the Indian Health Service, often relies on temporary staffing to manage fluctuating patient loads and specialized needs. Spending benchmarks for temporary health services vary widely based on skill sets and geographic location.
Small Business Impact
Information regarding the size of CHG COMPANIES, INC. and its status as a small business was not provided in the data. Further analysis would be needed to determine the impact on small business participation.
Oversight & Accountability
The award was made under Simplified Acquisition Procedures, which have streamlined oversight requirements. However, ongoing monitoring of performance and adherence to contract terms by the Department of Health and Human Services is crucial.
Related Government Programs
- Temporary Help Services
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Potential for cost overruns if demand increases.
- Dependence on a single vendor for critical staffing.
- Need for robust performance monitoring.
- Ensuring qualified personnel are consistently provided.
Tags
temporary-help-services, department-of-health-and-human-services, az, purchase-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $606,100 to CHG COMPANIES, INC.. FY25 PEDS AT CCHCF
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 $606,100.
What is the period of performance?
Start: 2025-03-27. End: 2026-03-31.
What is the specific nature of the temporary health services required, and how do they align with the Indian Health Service's mission?
The data indicates 'Temporary Help Services' (NAICS 561320) were procured. These services likely encompass a range of healthcare support roles, such as nursing assistants, medical technicians, or administrative staff, crucial for maintaining operational capacity and patient care continuity within the Indian Health Service's facilities in Arizona.
What are the potential risks associated with relying on temporary staffing for healthcare services, particularly in remote or underserved areas?
Risks include potential variability in staff qualifications, challenges in maintaining consistent quality of care, increased administrative burden for onboarding and management, and potential for higher turnover rates compared to permanent staff. In underserved areas, reliance on temporary staff could exacerbate existing healthcare access issues if recruitment and retention prove difficult.
How will the effectiveness of these temporary services be measured to ensure value for taxpayer money?
Effectiveness will likely be measured through performance metrics outlined in the contract, such as timely placement of qualified personnel, adherence to schedules, patient satisfaction related to services provided by temporary staff, and compliance with all relevant healthcare regulations and standards. Regular performance reviews by the Indian Health Service contracting officer's representative are essential.
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: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 2
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $606,100
Exercised Options: $606,100
Current Obligation: $606,100
Actual Outlays: $331,447
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-03-27
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-04-10
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