HHS awards $2.2M contract for emergency room physicians to Four Winds Staffing LLC

Contract Overview

Contract Amount: $2,202,790 ($2.2M)

Contractor: Four Winds Staffing LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-25

End Date: 2026-09-27

Contract Duration: 1,463 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EMERGENCY ROOM PHYSICIANS AT COLORADO RIVER SERVICE UNIT

Place of Performance

Location: PARKER, LA PAZ County, ARIZONA, 85344

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.2 million to FOUR WINDS STAFFING LLC for work described as: EMERGENCY ROOM PHYSICIANS AT COLORADO RIVER SERVICE UNIT Key points: 1. Contract awarded to Four Winds Staffing LLC for emergency room physician services. 2. The contract duration is 1463 days, ending in September 2026. 3. The contract was awarded under full and open competition. 4. The North American Industry Classification System (NAICS) code is 621111, Offices of Physicians. 5. The place of performance is Arizona (AZ), despite the service unit being in Colorado River. 6. This contract represents a significant investment in healthcare services for the Indian Health Service.

Value Assessment

Rating: fair

The contract value of $2.2 million over approximately four years suggests a moderate annual expenditure for physician services. Benchmarking this against similar contracts for emergency room physicians within the Indian Health Service or comparable federal healthcare providers would be necessary for a comprehensive value assessment. Without specific details on the number of physicians, hours, or specific services rendered, it is difficult to definitively assess if the pricing is competitive or represents good value for money. The fixed-price nature of the contract provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the opportunity was broadly advertised, but specific sources may have been excluded based on prior determinations. The presence of four bidders suggests a degree of competition, which is generally positive for price discovery. However, the 'exclusion of sources' clause warrants further investigation to understand its impact on the competitive landscape and potential cost savings.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to bid, potentially driving down prices and ensuring a wider pool of qualified providers.

Public Impact

Provides essential emergency room physician services to the Colorado River Service Unit, likely serving a Native American population. Ensures continuity of care and access to critical medical services for patients in the region. Supports the operational capacity of the Indian Health Service facilities. May indirectly benefit the local healthcare workforce through employment opportunities with the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential disconnect between the service unit location (Colorado River) and the place of performance (Arizona) could indicate logistical challenges or a need for clarification.
The 'exclusion of sources' in the competition type requires further scrutiny to ensure maximum taxpayer value.
Limited information on the specific qualifications and experience of Four Winds Staffing LLC in providing emergency room physicians.
The contract's duration of over four years may limit flexibility in adapting to changing healthcare needs or market conditions.

Positive Signals

Awarded under full and open competition, suggesting a broad search for qualified contractors.
The contract is a definitive contract, providing a clear framework for services.
Fixed-price contract type offers cost predictability for the government.
The contractor, Four Winds Staffing LLC, has secured a federal contract, indicating some level of established capability.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on physician services. The market for healthcare staffing, particularly for specialized roles like emergency room physicians, is substantial and often characterized by high demand and specialized skill requirements. Federal agencies like the Indian Health Service often rely on contracted services to supplement their workforce, especially in remote or underserved areas. Benchmarking this contract's value would involve comparing its per-physician cost or total value against similar contracts awarded by HHS, other federal agencies, or even large private healthcare systems for comparable services.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this contract. Therefore, there are no direct subcontracting implications or specific benefits for small businesses mandated by this award. The focus was on full and open competition, suggesting that the primary goal was to secure the best value from the broadest possible market, rather than prioritizing small business engagement.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and its Indian Health Service (IHS) component. Contract performance monitoring, adherence to the fixed-price terms, and quality of services delivered would be key areas of oversight. Transparency is facilitated through contract databases like FPDS, which provide public access to contract details. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Indian Health Service (IHS) Contracts
Physician Staffing Contracts
Emergency Medical Services Contracts
Federal Healthcare Provider Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Geographic discrepancy between service unit and place of performance.
Lack of detailed public information on contractor's specific qualifications for ER physicians.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.2 million to FOUR WINDS STAFFING LLC. EMERGENCY ROOM PHYSICIANS AT COLORADO RIVER SERVICE UNIT

Who is the contractor on this award?

The obligated recipient is FOUR WINDS STAFFING 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 $2.2 million.

What is the period of performance?

Start: 2022-09-25. End: 2026-09-27.

What is the specific geographic area served by the Colorado River Service Unit, and why is the place of performance listed as Arizona?

The Colorado River Service Unit is a healthcare facility operated by the Indian Health Service (IHS) that serves Native American communities along the Colorado River. While the service unit's name suggests a location near the Colorado River, the 'ST' (State) and 'SN' (State Name) fields indicate 'AZ' and 'ARIZONA' respectively as the place of performance. This discrepancy could arise for several reasons: the administrative offices or a significant portion of the patient population may be located in Arizona, or the contractor's primary operational base for fulfilling the contract is in Arizona, even if the patients are served across state lines or near the river border. Further clarification from the contracting agency would be needed to definitively resolve this geographical detail and ensure accurate understanding of service delivery.

How does the $2.2 million contract value compare to historical spending for emergency room physicians at this service unit or similar IHS facilities?

To assess the value of this $2.2 million contract, a comparative analysis of historical spending is crucial. Without access to specific historical data for the Colorado River Service Unit or comparable IHS facilities, a direct comparison is challenging. However, the annual value of this contract is approximately $550,000 (assuming an even distribution over four years). This figure needs to be benchmarked against the cost of employing physicians directly versus contracting, as well as against similar contracts awarded by IHS or other federal healthcare providers for emergency room physician services. Factors such as the number of physicians required, their specialty, the volume of patients, and the geographic location's impact on recruitment costs would influence this comparison. A detailed review of past IHS solicitations and awards for similar services would provide a more robust understanding of whether this contract represents a favorable or unfavorable cost.

What specific qualifications and experience does Four Winds Staffing LLC possess for providing emergency room physicians?

Information regarding the specific qualifications and experience of Four Winds Staffing LLC in providing emergency room physicians is not detailed in the provided data. As the contract was awarded under full and open competition, it implies that the agency assessed the contractor's capabilities and determined them to be sufficient to meet the requirements. However, for a thorough analysis, reviewing the contractor's past performance records, any certifications or accreditations held by the company and its physicians, and their experience with federal healthcare contracts, particularly within the IHS or similar environments, would be necessary. Publicly available information or specific contract award documents might contain more granular details on the contractor's suitability and track record.

What are the potential risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contract type?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contract type introduces a nuanced approach to competition. While it begins with the intent of broad solicitation (full and open), the subsequent 'exclusion of sources' indicates that certain potential bidders were deliberately removed from consideration. The primary risk here is that this exclusion might have inadvertently limited the competitive pool, potentially leading to higher prices or a less optimal selection of contractors than if all qualified sources had been allowed to bid. The justification for excluding sources is critical; if based on sound reasoning (e.g., past performance issues, inability to meet specific requirements), the risk might be mitigated. However, if the exclusion was arbitrary or poorly justified, it could represent a missed opportunity for better value and could raise concerns about fairness and efficiency in the procurement process.

How does the fixed-price contract type impact the government's risk and the contractor's incentive for efficiency?

A Firm Fixed Price (FFP) contract type, as indicated for this award, shifts the majority of the cost risk from the government to the contractor. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This provides the government with significant cost certainty and predictability, making budgeting easier. For the contractor, the incentive is to manage their costs efficiently to maximize profit. If their costs exceed the fixed price, their profit margin shrinks, or they may incur a loss. Conversely, if they can deliver the services for less than the fixed price, their profit increases. This structure encourages the contractor to be highly efficient and cost-conscious in their operations.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFP-22-PHX-04

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1908 PEMBROKE LN, MCKINNEY, TX, 75072

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,378,850

Exercised Options: $2,202,790

Current Obligation: $2,202,790

Actual Outlays: $1,739,052

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline