Sole Source Contract for Healthcare Services Awarded to Urban Indian Center of Salt Lake for $13.5M
Contract Overview
Contract Amount: $13,585,295 ($13.6M)
Contractor: Urban Indian Center of Salt Lake
Awarding Agency: Department of Health and Human Services
Start Date: 2022-04-22
End Date: 2027-02-06
Contract Duration: 1,751 days
Daily Burn Rate: $7.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: THE PHOENIX AREA INDIAN HEALTH SERVICE IS ISSUING A SOLE SOURCE, FIXED PRICE CONTRACT TO URBAN INDIAN CENTER OF SALT LAKE, A NON-PROFIT URBAN INDIAN ORGANIZATION, FOR HEALTH CARE RELATED SERVICES FUNDED UNDER THE AMERICAN RESCUE PLAN ACT OF 2021 (ARP
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85004
State: Arizona Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $13.6 million to URBAN INDIAN CENTER OF SALT LAKE for work described as: THE PHOENIX AREA INDIAN HEALTH SERVICE IS ISSUING A SOLE SOURCE, FIXED PRICE CONTRACT TO URBAN INDIAN CENTER OF SALT LAKE, A NON-PROFIT URBAN INDIAN ORGANIZATION, FOR HEALTH CARE RELATED SERVICES FUNDED UNDER THE AMERICAN RESCUE PLAN ACT OF 2021 (ARP Key points: 1. Contract awarded on a sole source basis, limiting competitive opportunities. 2. Funding is tied to the American Rescue Plan Act of 2021, indicating a specific program objective. 3. The contract is for outpatient mental health and substance abuse centers, a critical service area. 4. The fixed-price structure aims to control costs, but the lack of competition raises concerns about optimal pricing.
Value Assessment
Rating: questionable
The contract is a firm fixed price, which can be advantageous for cost control. However, without competitive bidding, it's difficult to assess if the $13.5 million price represents fair market value compared to similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded using a sole source justification, meaning competition was not sought. This approach can lead to higher prices and reduced innovation compared to open competition.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these essential healthcare services.
Public Impact
Provides critical mental health and substance abuse services to the Phoenix Area Indian Health Service population. Funding from the American Rescue Plan Act ensures resources are directed towards pandemic recovery efforts. Supports a non-profit organization dedicated to serving urban Indian communities. Contract duration extends over several years, indicating a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole source award limits competition and potential cost savings.
- Lack of price benchmark makes value assessment difficult.
- Potential for overpayment due to non-competitive award.
Positive Signals
- Addresses critical healthcare needs for an underserved population.
- Utilizes specific federal funding for targeted relief.
- Supports a non-profit entity.
Sector Analysis
The healthcare sector, particularly services for underserved populations, often involves complex contracting. Benchmarks for outpatient mental health and substance abuse centers can vary significantly based on location, scope of services, and patient demographics.
Small Business Impact
The contract was awarded to a non-profit urban Indian organization, not a small business. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The sole source nature of this award warrants careful review by oversight bodies to ensure the justification for non-competition is sound and that the pricing is reasonable.
Related Government Programs
- Outpatient Mental Health and Substance Abuse Centers
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Sole source award
- Lack of competitive bidding
- Difficulty in establishing fair market price
- Potential for cost overruns without competition
Tags
outpatient-mental-health-and-substance-a, department-of-health-and-human-services, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $13.6 million to URBAN INDIAN CENTER OF SALT LAKE. THE PHOENIX AREA INDIAN HEALTH SERVICE IS ISSUING A SOLE SOURCE, FIXED PRICE CONTRACT TO URBAN INDIAN CENTER OF SALT LAKE, A NON-PROFIT URBAN INDIAN ORGANIZATION, FOR HEALTH CARE RELATED SERVICES FUNDED UNDER THE AMERICAN RESCUE PLAN ACT OF 2021 (ARP
Who is the contractor on this award?
The obligated recipient is URBAN INDIAN CENTER OF SALT LAKE.
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 $13.6 million.
What is the period of performance?
Start: 2022-04-22. End: 2027-02-06.
What was the specific justification for awarding this contract on a sole source basis, and were alternative competitive strategies considered?
The provided data states the contract is sole source, implying a specific justification was made, likely related to the unique capabilities or mission of the Urban Indian Center of Salt Lake. However, the exact justification and whether alternatives were explored are not detailed. Further investigation would be needed to confirm the validity of the sole source determination and ensure it aligns with federal procurement regulations.
How does the per-unit cost of these services compare to similar contracts awarded competitively in the region or nationally?
A direct comparison of per-unit costs is not possible with the provided data, as a specific per-unit cost benchmark is unavailable and the contract was awarded sole source. To assess value, one would need to obtain data on comparable services procured competitively by IHS or other federal agencies serving similar populations to establish a fair market price.
What mechanisms are in place to ensure the effectiveness and quality of the healthcare services provided under this contract?
While the data confirms the contract is for healthcare services, it does not detail the specific performance metrics, quality assurance protocols, or oversight mechanisms. The Indian Health Service would typically have established procedures for monitoring contractor performance and ensuring the quality of care delivered, but these are not itemized in the provided information.
Industry Classification
NAICS: Health Care and Social Assistance › Outpatient Care Centers › Outpatient Mental Health and Substance Abuse Centers
Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 75H71222R00016
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 120 W 1300 S, SALT LAKE CITY, UT, 84115
Business Categories: American Indian Owned Business, Category Business, Corporate Entity Tax Exempt, Minority Owned Business, Native American Owned Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,585,295
Exercised Options: $13,585,295
Current Obligation: $13,585,295
Actual Outlays: $8,425,281
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-04-22
Current End Date: 2027-02-06
Potential End Date: 2027-02-06 00:00:00
Last Modified: 2026-04-02
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