HHS awards $11.8M for Surgical/Medical RN Services to RAO RADIOLOGISTS, INC. in Arizona
Contract Overview
Contract Amount: $11,877,082 ($11.9M)
Contractor: RAO Radiologists, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2021-09-22
End Date: 2026-09-22
Contract Duration: 1,826 days
Daily Burn Rate: $6.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: SURGICAL/MEDICAL REGISTERED NURSE SERVICES AT HHCC
Place of Performance
Location: POLACCA, NAVAJO County, ARIZONA, 86042
State: Arizona Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $11.9 million to RAO RADIOLOGISTS, INC. for work described as: SURGICAL/MEDICAL REGISTERED NURSE SERVICES AT HHCC Key points: 1. Contract awarded for temporary nursing services, indicating potential staffing shortages or specialized needs. 2. RAO RADIOLOGISTS, INC. secured the contract, suggesting a competitive landscape for healthcare staffing. 3. The contract duration of five years presents a long-term commitment of federal funds. 4. The firm fixed-price structure aims to control costs, but flexibility may be limited.
Value Assessment
Rating: good
The contract value of $11.8M over five years appears reasonable for specialized nursing services. Benchmarking against similar contracts for registered nurse staffing would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of a delivery order under a larger contract suggests a streamlined procurement process.
Taxpayer Impact: Taxpayers benefit from competitive bidding, which should lead to a fair market price for essential healthcare services.
Public Impact
Ensures continued access to critical surgical and medical registered nurse services at HHCC. Supports healthcare operations within the Indian Health Service, potentially improving patient care. Provides employment opportunities for registered nurses through RAO RADIOLOGISTS, INC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price creep if demand for services increases significantly.
- Reliance on a single vendor for critical nursing roles.
Positive Signals
- Full and open competition utilized.
- Firm fixed-price contract type.
Sector Analysis
This contract falls within the Healthcare sector, specifically focusing on temporary staffing for specialized medical roles. Healthcare staffing costs can vary significantly based on location, specialty, and duration of need.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of Health and Human Services is responsible for overseeing this contract. Robust oversight is crucial to ensure service quality and adherence to contract terms.
Related Government Programs
- Temporary Help Services
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Long contract duration may not align with fluctuating needs.
- Potential for cost overruns if market rates increase significantly.
- Dependence on a single vendor for critical services.
- Limited visibility into small business subcontracting opportunities.
Tags
temporary-help-services, department-of-health-and-human-services, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $11.9 million to RAO RADIOLOGISTS, INC.. SURGICAL/MEDICAL REGISTERED NURSE SERVICES AT HHCC
Who is the contractor on this award?
The obligated recipient is RAO RADIOLOGISTS, 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 $11.9 million.
What is the period of performance?
Start: 2021-09-22. End: 2026-09-22.
What is the typical hourly rate for a surgical/medical registered nurse in Arizona, and how does this contract's implied rate compare?
The average hourly rate for a registered nurse in Arizona can range from $35-$55, depending on experience and specialty. For specialized surgical/medical roles, rates can be higher. This contract's total value of $11.8M over 1826 days (approx. 5 years) implies an average daily cost of roughly $6,460. If assuming 24/7 coverage by multiple nurses, the per-nurse hourly rate would need to be calculated based on the number of nurses and hours worked to determine its competitiveness.
What are the potential risks associated with a five-year contract for temporary nursing services?
A significant risk is the potential for escalating labor costs over the five-year period, especially if market rates for nurses increase substantially. There's also a risk of vendor performance issues or difficulty in retaining qualified staff. Furthermore, long-term reliance on temporary staff might hinder the development of permanent, in-house expertise and potentially impact institutional knowledge.
How effectively does this contract address the Indian Health Service's need for specialized nursing staff?
The contract's effectiveness hinges on RAO RADIOLOGISTS, INC.'s ability to consistently provide qualified and reliable surgical/medical registered nurses. Successful execution will ensure continuity of care and support the IHS's mission. Monitoring performance metrics, such as nurse retention rates and patient satisfaction, will be key to assessing its long-term effectiveness.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services
Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 75H71221R00029
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8603 WESTWOOD CENTER DR STE 330, VIENNA, VA, 22182
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,592,082
Exercised Options: $12,592,082
Current Obligation: $11,877,082
Actual Outlays: $10,659,947
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36F79720D0062
IDV Type: FSS
Timeline
Start Date: 2021-09-22
Current End Date: 2026-09-22
Potential End Date: 2026-09-22 00:00:00
Last Modified: 2026-04-14
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