HHS awards $76.9M contract for pediatrician services to Prime Physicians Tri Providers LLC

Contract Overview

Contract Amount: $76,922 ($76.9K)

Contractor: Prime Physicians TRI Providers LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-13

End Date: 2027-04-12

Contract Duration: 364 days

Daily Burn Rate: $211/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HASKELL PEDIATRICIAN

Place of Performance

Location: LAWRENCE, DOUGLAS County, KANSAS, 66046

State: Kansas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $76,921.6 to PRIME PHYSICIANS TRI PROVIDERS LLC for work described as: HASKELL PEDIATRICIAN Key points: 1. Contract value of $76.9 million over 364 days indicates a significant investment in specialized medical staffing. 2. The contract type, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggests a competitive process with specific criteria. 3. A single delivery order was issued, implying a focused scope of work for the awarded contractor. 4. The fixed-price contract structure aims to control costs and provide predictable spending for the agency. 5. The duration of the contract (364 days) suggests a need for ongoing, but not necessarily permanent, staffing solutions. 6. The North American Industry Classification System (NAICS) code 561320 points to the temporary help services sector.

Value Assessment

Rating: good

The contract value of $76.9 million for 364 days of pediatrician services appears to be within a reasonable range for specialized medical staffing, especially considering the potential need for experienced professionals in a specific healthcare setting like the Indian Health Service. Without direct benchmarks for similar contracts within the IHS for this exact service, a precise value-for-money assessment is challenging. However, the firm fixed-price nature of the contract suggests an effort to manage costs effectively. Further analysis would require comparing the per-diem or per-hour rates implied by this contract to market rates for similar physician services in comparable geographic locations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be open, certain sources were excluded prior to the solicitation. The specific reasons for exclusion are not detailed here, but this approach can sometimes limit the pool of potential bidders. The fact that a single delivery order was issued suggests that the competition may have focused on a specific set of requirements or a particular vendor's capabilities that met those requirements after the initial exclusion phase.

Taxpayer Impact: While the competition was not fully open from the outset, the exclusion of sources implies a deliberate process to ensure specific needs were met. Taxpayers benefit from a structured procurement that aims for qualified providers, though the impact on price discovery is less clear than with a truly open competition.

Public Impact

Beneficiaries include pediatric patients served by the Indian Health Service, ensuring access to specialized medical care. The services delivered are critical for providing essential healthcare to a vulnerable population. The geographic impact is likely concentrated in areas served by the Indian Health Service, potentially in Kansas given the state code (KS). Workforce implications involve the provision of temporary, specialized medical personnel to supplement existing healthcare staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' could impact price negotiation.
Reliance on temporary staffing may lead to continuity of care challenges if not managed effectively.
The specific needs of the Indian Health Service may require specialized expertise that could be difficult to source consistently.

Positive Signals

The contract ensures the availability of essential pediatric services for a critical population.
The firm fixed-price structure provides cost certainty for the agency.
The award to a single contractor for a delivery order suggests a clear understanding of the required services.

Sector Analysis

The healthcare sector, particularly within government services, relies heavily on staffing contracts to meet patient care demands. The Indian Health Service (IHS) operates within a unique segment of this market, often facing challenges in recruiting and retaining medical professionals in remote or underserved areas. This contract for pediatrician services falls under the broader category of temporary healthcare staffing, a market that has seen significant growth. Comparable spending benchmarks would typically involve analyzing per-diem rates for physicians in similar government healthcare settings or comparing the total contract value against the expected patient caseload and service intensity.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, the primary contractor, Prime Physicians Tri Providers LLC, is not a small business for the purpose of this award. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside means that opportunities for small businesses to participate in this contract are likely limited to potential subcontracting roles, if any are offered by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services (HHS) and the Indian Health Service (IHS). Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally maintained through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Indian Health Service Medical Staffing Contracts
Pediatric Healthcare Services
Temporary Physician Services
Federal Healthcare Staffing Solutions

Risk Flags

Potential for limited competition due to source exclusion.
Reliance on temporary staffing may impact continuity of care.
Need for robust oversight to ensure quality of care.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $76,921.6 to PRIME PHYSICIANS TRI PROVIDERS LLC. HASKELL PEDIATRICIAN

Who is the contractor on this award?

The obligated recipient is PRIME PHYSICIANS TRI PROVIDERS 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 $76,921.6.

What is the period of performance?

Start: 2026-04-13. End: 2027-04-12.

What is the track record of Prime Physicians Tri Providers LLC in performing similar federal contracts, particularly within the Indian Health Service?

Information regarding the specific track record of Prime Physicians Tri Providers LLC in performing similar federal contracts, especially within the Indian Health Service, is not directly available in the provided data snippet. A comprehensive assessment would require reviewing the contractor's past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any documented history of successful service delivery. Without this data, it's difficult to ascertain their experience level and reliability for this specific pediatrician services contract. Future analysis should focus on identifying past performance metrics and any potential red flags from previous engagements.

How does the implied hourly or daily rate for these pediatricians compare to market rates for similar services in Kansas or comparable regions?

The total contract value is $76,921,600 for a duration of 364 days. Assuming a standard 8-hour workday and 5 days a week, this equates to approximately 1,892.8 hours per year per pediatrician if only one is needed, or a total of 1,892.8 workdays. If we consider the total contract value and divide it by the number of days (364), the average daily cost is approximately $211,323. If we assume this covers multiple pediatricians, the per-pediatrician daily rate would be lower. To benchmark, we would need to know the number of pediatricians funded and compare their implied daily or hourly rates against average physician salaries and contract rates for locum tenens or temporary pediatricians in Kansas or similar IHS service areas. Without knowing the number of providers, a precise comparison is difficult, but the overall contract value suggests a substantial investment.

What are the specific risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method for this contract?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method presents specific risks. While it aims for competition, the initial exclusion of certain sources means the agency has pre-determined that some potential offerors are not eligible. This can limit the breadth of competition and potentially reduce the number of viable bids. Risks include: 1) Reduced price competition if the excluded sources were strong competitors. 2) Potential for protests if the exclusion criteria are perceived as arbitrary or not justified. 3) The agency must have a clear, documented justification for the exclusion. If the justification is weak, it could lead to legal challenges. The benefit is that it allows the agency to tailor the competition to specific, perhaps unique, requirements that only a subset of the market can meet.

What is the expected impact of this contract on the availability and quality of pediatric healthcare services within the Indian Health Service network?

This contract is expected to have a positive impact by ensuring the availability of qualified pediatricians to serve patients within the Indian Health Service (IHS) network. By securing these services through a dedicated contract, the IHS aims to fill staffing gaps, reduce wait times for appointments, and provide consistent medical care to children in areas that may face shortages of healthcare professionals. The quality of care should be maintained or improved by bringing in experienced physicians. However, the long-term impact on quality also depends on the contractor's ability to retain staff and the effectiveness of the IHS's own quality assurance and oversight mechanisms for these contracted providers.

How does the historical spending on pediatrician services by the Indian Health Service compare to this contract's value?

To assess the historical spending context, one would need to analyze prior IHS contracts for pediatrician services over several fiscal years. This would involve identifying similar contract vehicles, their values, durations, and the number of providers funded. Comparing the current $76.9 million contract for 364 days against historical data would reveal whether this award represents an increase, decrease, or stable level of investment in these services. Factors such as inflation, changes in healthcare needs, and shifts in procurement strategies would need to be considered for a meaningful comparison. Without access to historical IHS spending data on pediatrician services, it's impossible to provide a specific comparison.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 330 DAKOTA DUNES BLVD STE 400, NORTH SIOUX CITY, SD, 57049

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $76,922

Exercised Options: $76,922

Current Obligation: $76,922

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75H71125D00003

IDV Type: IDC

Timeline