HHS awards $19.5M contract to Native Health for physician services in Arizona

Contract Overview

Contract Amount: $19,494,245 ($19.5M)

Contractor: Native Health

Awarding Agency: Department of Health and Human Services

Start Date: 2022-05-06

End Date: 2026-02-06

Contract Duration: 1,372 days

Daily Burn Rate: $14.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ARPA-NACHS,PAO

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85004

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.5 million to NATIVE HEALTH for work described as: ARPA-NACHS,PAO Key points: 1. Contract awarded to a single entity, raising questions about competition and potential cost savings. 2. The contract duration of over three years suggests a need for sustained services. 3. Fixed-price contract type may offer some cost certainty, but requires careful monitoring of scope. 4. The specific service code (621111) indicates a focus on general physician services. 5. Geographic focus on Arizona suggests a targeted approach to healthcare delivery. 6. The absence of small business set-aside information warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

Benchmarking the value of this $19.5 million contract is challenging without more detailed service descriptions and comparable contract data. The fixed-price nature provides some cost control, but the lack of competition could lead to suboptimal pricing. Further analysis would require understanding the specific services rendered and comparing them to similar contracts within the Indian Health Service or other federal agencies providing physician services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. While sole-source awards can be justified for specialized services or existing relationships, they limit price discovery and potentially reduce the incentive for cost efficiency. The absence of a competitive bidding process means taxpayers may not be receiving the best possible price for these services.

Taxpayer Impact: The lack of competition means taxpayers may be paying a premium for these physician services, as there was no market pressure to drive down costs.

Public Impact

Native American communities in Arizona will benefit from access to physician services. The contract supports the delivery of essential healthcare services, likely including primary care and specialized consultations. The geographic impact is concentrated within Arizona, addressing specific healthcare needs of the region. The contract will likely support a workforce of physicians and potentially other healthcare professionals employed by Native Health.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Limited transparency on performance metrics and service quality.
Potential for vendor lock-in due to sole-source award.

Positive Signals

Award to an established provider (Native Health) suggests continuity of care.
Fixed-price contract offers some budget predictability.
Focus on a specific geographic region allows for tailored service delivery.

Sector Analysis

The healthcare sector, particularly within federal health services, often involves complex contracting for medical professionals and facilities. The Indian Health Service (IHS) specifically contracts for healthcare services to American Indians and Alaska Natives. This contract for physician services fits within the broader market for healthcare providers, where competition can vary significantly based on specialization and geographic demand. Benchmarking against similar IHS contracts or other federal healthcare procurements would provide further context on pricing and value.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this contract. This suggests that the primary awardee, Native Health, is expected to perform the services directly or through its own resources. Further investigation would be needed to determine if any subcontracting opportunities exist for small businesses within the scope of this award.

Oversight & Accountability

Oversight for this contract would typically fall under the Indian Health Service (IHS), a division of the Department of Health and Human Services. Accountability measures would be defined in the contract's terms and conditions, likely including performance standards and reporting requirements. Transparency may be limited due to the sole-source nature of the award, but contract details should be publicly accessible through federal procurement databases.

Related Government Programs

Indian Health Service Contracts
Federal Physician Services
Arizona Healthcare Programs
Native American Health Services

Risk Flags

Sole-source award may limit price competition.
Lack of detailed service scope in summary data.
Performance metrics not explicitly stated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.5 million to NATIVE HEALTH. ARPA-NACHS,PAO

Who is the contractor on this award?

The obligated recipient is NATIVE HEALTH.

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 $19.5 million.

What is the period of performance?

Start: 2022-05-06. End: 2026-02-06.

What is the specific scope of physician services covered under this contract, and how does it align with the needs of the target population?

The contract is associated with the North American Industry Classification System (NAICS) code 621111, which pertains to 'Offices of Physicians (except Mental Health Specialists)'. This generally includes services provided by general practitioners, family physicians, and other medical specialists (excluding mental health). For this specific contract with Native Health in Arizona, the services are intended to address the healthcare needs of American Indians and Alaska Natives served by the Indian Health Service (IHS). The exact scope would be detailed in the contract's Statement of Work (SOW), outlining the types of consultations, treatments, and potentially specialized care to be provided, ensuring alignment with the health priorities and patient demographics within the contracted service area in Arizona.

How does the contract's value of $19.5 million compare to similar physician service contracts awarded by the IHS or other federal agencies?

Comparing the $19.5 million value requires context regarding the duration and scope. This contract spans approximately 34 months (from May 2022 to February 2026), equating to an average annual value of roughly $6.8 million. Without specific details on the number of physicians, patient volume, or specialized services, a direct comparison is difficult. However, federal contracts for physician services can range widely. For instance, larger contracts might involve comprehensive hospital staffing or specialized surgical teams, while smaller ones could focus on specific clinics or limited specialties. The value here appears to be for a significant, ongoing provision of physician services within a defined region, suggesting it's substantial but not exceptionally large in the context of broad federal healthcare procurements.

What are the potential risks associated with awarding this contract on a sole-source basis, and what mitigation strategies are in place?

The primary risk of a sole-source award is the potential for inflated pricing and reduced efficiency due to the lack of competition. Without competing bids, the government may not secure the most cost-effective solution. Additionally, it can limit innovation and the introduction of new providers. Mitigation strategies typically involve rigorous justification for the sole-source award, demonstrating why only one vendor can meet the requirement. This often includes detailed market research, price analysis to ensure reasonableness, and strong contract management to monitor performance and costs closely. The government would also need to ensure the contractor is meeting all performance expectations and adhering to the contract terms to maximize value despite the lack of competition.

What performance metrics or quality indicators are likely being used to assess the effectiveness of the services provided under this contract?

While specific performance metrics are not detailed in the provided data, contracts of this nature typically include a robust set of Key Performance Indicators (KPIs) within the Statement of Work (SOW). For physician services, these often include measures related to patient access (e.g., appointment wait times, availability of specialists), quality of care (e.g., adherence to clinical guidelines, patient outcomes, reduction in preventable readmissions), patient satisfaction, and operational efficiency (e.g., documentation timeliness, billing accuracy). The Indian Health Service would likely monitor these metrics through regular reporting from Native Health, site visits, and potentially patient surveys to ensure the contract is meeting its objectives and delivering effective healthcare.

How has federal spending on physician services through the IHS evolved over the past five years, and does this contract represent a trend?

Analyzing the precise trend of federal spending on physician services specifically through the IHS requires access to detailed historical budget and contract data, which is not fully available here. However, the IHS consistently procures physician services to fulfill its trust responsibility to provide healthcare to eligible American Indians and Alaska Natives. Spending in this area is generally driven by factors such as population growth, increasing healthcare costs, and evolving health needs within these communities. A contract of this size ($19.5M over ~3 years) suggests a continued commitment to ensuring adequate physician staffing and services in specific regions like Arizona. Without broader data, it's difficult to definitively state if this represents a new trend or a continuation of established spending patterns for physician support.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75H71222R00013

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4041 N CENTRAL AVE BUILDING C, PHOENIX, AZ, 85012

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: $19,494,245

Exercised Options: $19,494,245

Current Obligation: $19,494,245

Actual Outlays: $19,281,049

Contract Characteristics

Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)

Cost or Pricing Data: NO

Timeline