HHS awards $309K contract for LPN services to ENCODE, INC. in Oklahoma

Contract Overview

Contract Amount: $309,410 ($309.4K)

Contractor: Encode, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2025-10-17

End Date: 2026-08-31

Contract Duration: 318 days

Daily Burn Rate: $973/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LPN SERVICES FOR THE PAWNEE IHC NEEDED FOR SAFE AND QUALITY CARE.

Place of Performance

Location: PAWNEE, PAWNEE County, OKLAHOMA, 74058

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $309,409.76 to ENCODE, INC. for work described as: LPN SERVICES FOR THE PAWNEE IHC NEEDED FOR SAFE AND QUALITY CARE. Key points: 1. Contract awarded to ENCODE, INC. for LPN services at Pawnee Indian Health Center. 2. Firm Fixed Price contract type suggests predictable costs. 3. Contract duration of 318 days indicates a short-term need. 4. Awarded under Simplified Acquisition Procedures (SAP), suggesting a focus on efficiency for smaller procurements. 5. The contract is for miscellaneous health practitioner services. 6. Geographic focus on Oklahoma for service delivery.

Value Assessment

Rating: fair

The contract value of $309,409.76 for LPN services over approximately 10 months appears reasonable for the scope. However, without specific details on the number of LPNs required or the hours they will work, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for LPN services in the region would provide further context on pricing competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders compared to full and open competition. While the specific number of bids received is not detailed, SAP aims for efficient procurement of goods and services below certain thresholds. The 'BPA CALL' designation suggests it may have been sourced from an existing Blanket Purchase Agreement, potentially limiting the pool of eligible offerors.

Taxpayer Impact: Limited competition under SAP can sometimes lead to less aggressive pricing than a broad, open competition, potentially impacting taxpayer savings. However, it also allows for faster award times, which can be beneficial for urgent needs.

Public Impact

Patients at the Pawnee Indian Health Center will benefit from continued access to essential LPN services. The contract ensures the availability of qualified nursing staff for safe and quality patient care. Services are delivered within Oklahoma, supporting local healthcare infrastructure. The contract supports the employment of Licensed Practical Nurses.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may impact price competitiveness.
Lack of detailed performance metrics makes assessing service quality difficult.
Reliance on a single contractor for essential services could pose a risk if performance issues arise.

Positive Signals

Firm Fixed Price contract type provides cost certainty.
Contract duration is clearly defined, allowing for planning.
Awarded by a federal agency (HHS) indicates adherence to federal procurement standards.

Sector Analysis

This contract falls within the broader healthcare services sector, specifically focusing on nursing support. The Indian Health Service (IHS) within HHS procures a wide range of medical and support services to serve Native American communities. The market for LPN services is generally robust, with numerous providers available, though specific geographic availability and specialized needs can influence competition.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The contractor, ENCODE, INC., is not identified as a small business in the provided data. Further analysis would be needed to determine if small business participation was encouraged or required.

Oversight & Accountability

Oversight for this contract would typically fall under the Indian Health Service, a division of HHS. Standard federal procurement regulations and contract management practices would apply. Performance monitoring and quality assurance would be managed by the contracting officer's representative (COR) to ensure services meet the required standards. Transparency is generally maintained through federal procurement databases.

Related Government Programs

Indian Health Service Contracts
Licensed Practical Nurse Services
Healthcare Staffing Contracts
Federal Medical Services

Risk Flags

Limited competition
Potential for price not being fully optimized

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $309,409.76 to ENCODE, INC.. LPN SERVICES FOR THE PAWNEE IHC NEEDED FOR SAFE AND QUALITY CARE.

Who is the contractor on this award?

The obligated recipient is ENCODE, 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 $309,409.76.

What is the period of performance?

Start: 2025-10-17. End: 2026-08-31.

What is the track record of ENCODE, INC. with federal contracts, particularly within the Department of Health and Human Services?

A review of federal procurement data would be necessary to fully assess ENCODE, INC.'s track record. This would involve examining past performance on similar contracts, including any awards, terminations, or disputes. Understanding their history with HHS and the Indian Health Service specifically would provide insight into their reliability and capability in delivering healthcare services. Without this specific data, it is difficult to gauge their past performance beyond the current award.

How does the awarded price compare to market rates for LPN services in Oklahoma?

To benchmark the price, one would need to compare the contract's estimated hourly rate or total value against prevailing market rates for LPNs in the specific geographic region of Pawnee, Oklahoma. This would involve researching salary data from sources like the Bureau of Labor Statistics, consulting industry salary surveys, and potentially looking at other state or local government contracts for similar services. The provided data does not include the specific number of hours or LPNs, making a direct per-unit cost comparison difficult without further assumptions.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential understaffing, quality of care issues, or contractor performance failures. Mitigation strategies would involve robust performance monitoring by the COR, clear service level agreements within the contract, and potentially contingency plans for service continuity. The firm fixed-price nature of the contract helps mitigate cost overrun risks for the government. However, ensuring adequate LPN availability and retention by the contractor is crucial.

How effective is the Indian Health Service in procuring essential healthcare services through mechanisms like this BPA Call?

The effectiveness of IHS in procuring essential services can be evaluated by examining contract completion rates, patient satisfaction metrics, and the overall health outcomes in the communities served. The use of a BPA Call suggests an established process for leveraging existing agreements to meet needs efficiently. However, the limited competition aspect warrants scrutiny to ensure value for taxpayer money. Long-term analysis of health service delivery and patient access would provide a clearer picture of effectiveness.

What has been the historical spending pattern for LPN services by the Indian Health Service in Oklahoma?

Analyzing historical spending data for LPN services by IHS in Oklahoma would reveal trends in contract values, durations, and awarded contractors. This could highlight whether spending has been consistent, increasing, or decreasing, and identify any recurring issues with specific service providers or contract types. Understanding these patterns can inform future budgeting and procurement strategies, ensuring that funds are allocated efficiently and that competitive opportunities are maximized.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Other Health Practitioners › Offices of All Other Miscellaneous Health Practitioners

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 525 ROUTE 73 N, MARLTON, NJ, 08053

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $309,410

Exercised Options: $309,410

Current Obligation: $309,410

Actual Outlays: $72,940

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75H71124A00041

IDV Type: BPA

Timeline