Native Health awarded $10.9M contract for urban Indian healthcare services in Phoenix

Contract Overview

Contract Amount: $10,934,085 ($10.9M)

Contractor: Native Health

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-26

End Date: 2026-06-30

Contract Duration: 1,373 days

Daily Burn Rate: $8.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SERVICES. INDIAN HEALTH CARE IMPROVEMENT ACT (IHCIA). LETTER CONTRACT HHSI247202220012C. PROFESSIONAL MEDICAL AND HEALTH CARE SERVICES FOR URBAN INDIANS RESIDING IN THE PHOENIX METROPOLITAN URBAN AREA. IAW WITH TERMS AND CONDITIONS.

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85004

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.9 million to NATIVE HEALTH for work described as: SERVICES. INDIAN HEALTH CARE IMPROVEMENT ACT (IHCIA). LETTER CONTRACT HHSI247202220012C. PROFESSIONAL MEDICAL AND HEALTH CARE SERVICES FOR URBAN INDIANS RESIDING IN THE PHOENIX METROPOLITAN URBAN AREA. IAW WITH TERMS AND CONDITIONS. Key points: 1. Contract provides essential medical and healthcare services to urban Native Americans. 2. Sole-source award raises questions about potential cost savings through competition. 3. Long-term contract (nearly 4 years) suggests a stable, ongoing need for services. 4. Focus on urban Indian populations addresses a specific, often underserved demographic. 5. Performance context is critical to ensure value for taxpayer dollars. 6. Geographic focus on Phoenix metro area allows for concentrated service delivery.

Value Assessment

Rating: fair

The contract value of $10.9 million over approximately 3.7 years averages to about $2.95 million annually. Benchmarking this against similar contracts for comprehensive healthcare services to specific populations is challenging without more granular data on service scope and patient volume. However, given the specialized nature of serving urban Native Americans, the pricing may reflect unique operational costs and established relationships. Further analysis would require comparing per-member-per-month costs or cost per service provided against similar IHS or tribal health programs.

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. The justification for a sole-source award typically involves a unique capability or circumstance that only one contractor can fulfill. In this case, it's likely related to Native Health's established presence and specialized services for the urban Indian population in Phoenix. While this can ensure continuity of care, it limits the opportunity for price discovery through competitive bidding.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the potential cost reductions that competition can drive. The absence of bidding means the negotiated price is the only price, potentially leading to higher costs than if multiple vendors had vied for the contract.

Public Impact

Urban Native Americans residing in the Phoenix metropolitan area will benefit from continued access to medical and healthcare services. The contract ensures the provision of professional medical and healthcare services tailored to the needs of this specific population. Services are geographically concentrated within the Phoenix metropolitan area, ensuring accessibility for the target demographic. The contract supports the operational capacity of Native Health, likely sustaining jobs and expertise within the organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source nature requires strong justification to ensure fair pricing.
Performance metrics and outcomes need rigorous monitoring to ensure value.

Positive Signals

Addresses a critical healthcare need for a specific, often underserved population.
Native Health has an established role and likely deep understanding of the community's needs.
Contract provides stability for essential healthcare services.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on the provision of medical and health services. The Indian Health Service (IHS) operates within a unique segment of the healthcare market, aiming to provide comprehensive health services to federally recognized American Indians and Alaska Natives. Spending in this area is driven by federal trust responsibilities and specific legislative mandates like the Indian Health Care Improvement Act (IHCIA). Benchmarking requires comparison with other IHS contracts or tribal self-determination contracts for similar services.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions or subcontracting requirements. As a sole-source award to Native Health, a non-profit organization, the focus is likely on direct service delivery rather than fostering small business participation through subcontracting. Further investigation into Native Health's operational structure and any potential partnerships would be needed to assess small business impact.

Oversight & Accountability

Oversight for this contract would primarily fall under the Indian Health Service (IHS), a division of the Department of Health and Human Services (HHS). The IHS is responsible for ensuring that contract terms are met and that services are delivered effectively and efficiently. Transparency would be enhanced through public reporting of contract performance metrics and financial expenditures. The HHS Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Indian Health Service Programs
Urban Indian Health Programs
Federally Qualified Health Centers (FQHCs)
Tribal Health Programs

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for cost overruns without robust performance monitoring.
Ensuring equitable access and quality of care for a specific demographic.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.9 million to NATIVE HEALTH. SERVICES. INDIAN HEALTH CARE IMPROVEMENT ACT (IHCIA). LETTER CONTRACT HHSI247202220012C. PROFESSIONAL MEDICAL AND HEALTH CARE SERVICES FOR URBAN INDIANS RESIDING IN THE PHOENIX METROPOLITAN URBAN AREA. IAW WITH TERMS AND CONDITIONS.

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 $10.9 million.

What is the period of performance?

Start: 2022-09-26. End: 2026-06-30.

What is the specific scope of 'professional medical and health care services' covered under this contract?

The contract specifies 'PROFESSIONAL MEDICAL AND HEALTH CARE SERVICES FOR URBAN INDIANS RESIDING IN THE PHOENIX METROPOLITAN URBAN AREA.' While the exact services are not detailed in the provided data, this typically encompasses a broad range of primary care, specialty care referrals, preventive health services, mental health support, dental, and vision care, tailored to the needs of the urban Native American population. The Indian Health Care Improvement Act (IHCIA) guides the provision of these services. A more detailed understanding would require reviewing the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the contract, which would outline specific deliverables, service standards, and performance metrics.

What is the justification for awarding this contract on a sole-source basis?

Sole-source awards are granted when only one responsible source is determined to be capable of providing the required goods or services. For this contract with Native Health, the justification likely stems from Native Health's established infrastructure, deep community ties, specialized expertise in serving the urban Native American population in Phoenix, and potentially its status as a key provider within the IHS network for this demographic. The Indian Health Service (IHS) would have documented this justification, citing factors such as unique qualifications, lack of adequate competition, or the need for continuity of care with a trusted provider. Without access to the official justification document, the precise reasons remain speculative but are generally rooted in the provider's unique position and capabilities.

How does the annual cost of this contract compare to similar healthcare services provided to urban Native American populations in other metropolitan areas?

Direct comparison of the annual cost of $2.95 million for this contract to similar services in other metropolitan areas is difficult without standardized data. Factors influencing cost include the size of the urban Indian population served, the breadth of services offered (e.g., primary care only vs. comprehensive services including specialty care and mental health), local cost of living, and specific contractual arrangements. The Indian Health Service (IHS) aims to provide comparable levels of care, but funding allocations and service delivery models can vary. To perform a robust comparison, one would need to analyze per capita spending, cost per patient encounter, or cost per service line for contracts serving similar populations in cities like Denver, Los Angeles, or Seattle, while accounting for differences in scope and local economic conditions.

What performance metrics are in place to ensure the effectiveness and quality of healthcare services provided?

While specific performance metrics are not detailed in the provided contract abstract, contracts of this nature typically include a Performance Work Statement (PWS) or Statement of Work (SOW) that outlines key performance areas (KPAs) and measurable performance standards. For healthcare services, these often include patient satisfaction scores, appointment wait times, adherence to clinical guidelines, health outcome measures (e.g., chronic disease management rates), and utilization of preventive services. The Indian Health Service (IHS) is responsible for monitoring these metrics and ensuring Native Health meets or exceeds the contractually defined standards. Regular performance reviews and quality assurance processes are standard oversight mechanisms.

What is the historical spending trend for urban Indian healthcare services in the Phoenix area by the IHS?

Historical spending data for urban Indian healthcare services in the Phoenix area by the IHS is not provided in the current data. However, the issuance of a definitive contract for nearly four years suggests a sustained and recognized need for these services. To analyze historical trends, one would need to examine prior contract awards (including any previous sole-source or competitive contracts) to Native Health or other providers serving this population in Phoenix, as well as overall IHS budget allocations for urban Indian health programs. This would reveal patterns of increasing, decreasing, or stable investment in these services over time, potentially influenced by population growth, changes in healthcare needs, or shifts in federal funding priorities.

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: 75H71222R00058

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: $10,934,085

Exercised Options: $10,934,085

Current Obligation: $10,934,085

Actual Outlays: $10,236,388

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline