HHS awards $8.9M contract for healthcare support services to MAAT ENTERPRISES INC

Contract Overview

Contract Amount: $8,942,420 ($8.9M)

Contractor: Maat Enterprises Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2023-01-26

End Date: 2027-02-14

Contract Duration: 1,480 days

Daily Burn Rate: $6.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THE CONTRACTOR SHALL PROVIDE LICENSED PRACTICAL NURSES (LPN), CERTIFIED MEDICAL ASSISTANTS (CMA), CERTIFIED SURGICAL TECHNICIANS (CST) AND CERTIFIED NURSING ASSISTANTS (CNA) SERVICES, AS OUTLINED IN SCOPE OF WORK (SOW).

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85016

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $8.9 million to MAAT ENTERPRISES INC for work described as: THE CONTRACTOR SHALL PROVIDE LICENSED PRACTICAL NURSES (LPN), CERTIFIED MEDICAL ASSISTANTS (CMA), CERTIFIED SURGICAL TECHNICIANS (CST) AND CERTIFIED NURSING ASSISTANTS (CNA) SERVICES, AS OUTLINED IN SCOPE OF WORK (SOW). Key points: 1. Contract focuses on providing licensed practical nurses, medical assistants, surgical technicians, and nursing assistants. 2. Services are essential for supporting healthcare operations within the Indian Health Service. 3. The contract is a firm-fixed-price definitive contract, indicating a clear scope and pricing structure. 4. Awarded under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 5. The duration of the contract extends over three years, ensuring continuity of services. 6. Geographic focus is on Arizona, serving the healthcare needs of a specific region.

Value Assessment

Rating: good

The contract value of $8.9 million for a period of approximately three years appears reasonable for the scope of services, which includes various levels of healthcare support personnel. Benchmarking against similar contracts for staffing services within federal health agencies would provide a more precise value-for-money assessment. However, the firm-fixed-price structure suggests that the government has a clear understanding of costs and has negotiated a price that is expected to cover the contractor's expenses and profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition for procurements below certain thresholds. While the specific number of bidders is not provided, SAP generally encourages competition. The fact that it was competed suggests that multiple vendors had the opportunity to bid, which should lead to a more competitive price discovery process.

Taxpayer Impact: Competition under SAP generally leads to better pricing for taxpayers by allowing multiple qualified vendors to offer their services, fostering a more cost-effective outcome.

Public Impact

Beneficiaries include patients served by the Indian Health Service in Arizona, who will receive essential healthcare support. Services delivered encompass direct patient care and clinical support through LPNs, CMAs, CSTs, and CNAs. Geographic impact is concentrated in Arizona, addressing healthcare staffing needs within that region. Workforce implications include the employment of skilled healthcare professionals by MAAT ENTERPRISES INC. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor fails to maintain adequate staffing levels.
Ensuring consistent quality of care across all provided personnel requires ongoing oversight.
Reliance on a single contractor for critical support services could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Competition under SAP suggests a potentially competitive bidding process.
Long-term contract duration ensures service continuity for the Indian Health Service.

Sector Analysis

This contract falls within the Healthcare sector, specifically supporting the provision of clinical and nursing support staff. The market for healthcare staffing services is substantial, with numerous companies specializing in providing qualified personnel to government and private healthcare facilities. Contracts of this nature are common within federal health agencies like the Indian Health Service to supplement their permanent workforce and ensure adequate patient care.

Small Business Impact

The contract was awarded under Simplified Acquisition Procedures (SAP) and does not indicate a specific small business set-aside. While MAAT ENTERPRISES INC. may be a small business, the competition method suggests it was open to a wider range of vendors. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this contract.

Oversight & Accountability

Oversight of this contract would typically be managed by the contracting officer and the program office within the Indian Health Service. Performance monitoring, quality assurance, and adherence to the scope of work are key accountability measures. Transparency is facilitated through contract award databases, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Indian Health Service Staffing Contracts
Healthcare Support Services
Licensed Practical Nurse Services
Certified Medical Assistant Services
Certified Nursing Assistant Services

Risk Flags

Potential for staffing shortages impacting service delivery.
Ensuring consistent quality of care across all contracted personnel.
Reliance on contractor for critical healthcare functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $8.9 million to MAAT ENTERPRISES INC. THE CONTRACTOR SHALL PROVIDE LICENSED PRACTICAL NURSES (LPN), CERTIFIED MEDICAL ASSISTANTS (CMA), CERTIFIED SURGICAL TECHNICIANS (CST) AND CERTIFIED NURSING ASSISTANTS (CNA) SERVICES, AS OUTLINED IN SCOPE OF WORK (SOW).

Who is the contractor on this award?

The obligated recipient is MAAT ENTERPRISES 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 $8.9 million.

What is the period of performance?

Start: 2023-01-26. End: 2027-02-14.

What is the track record of MAAT ENTERPRISES INC. in performing similar federal healthcare support contracts?

A review of federal procurement data indicates that MAAT ENTERPRISES INC. has been awarded contracts for healthcare support services. While specific details on past performance metrics for this contractor are not readily available in the public domain, the award of this $8.9 million contract by the Department of Health and Human Services suggests a level of confidence in their capability to deliver. Further investigation into past performance evaluations, if accessible, would provide a more comprehensive understanding of their reliability and quality of service in previous engagements. It is crucial to assess if they have successfully managed similar scopes of work, maintained staffing levels, and met quality standards in prior federal contracts.

How does the per-unit cost of services compare to market rates for LPNs, CMAs, CSTs, and CNAs in Arizona?

Determining the precise per-unit cost comparison requires detailed breakdown of the contract's pricing structure and specific labor categories. The provided data indicates a total contract value of $8.9 million over approximately 1480 days. To benchmark, one would need to know the hourly rates or daily rates for each type of professional (LPN, CMA, CST, CNA) and the estimated hours or days of service required for each. Market research on average salaries and overhead for these roles in Arizona, considering factors like experience and benefits, would be necessary. Without this granular data, a definitive comparison is challenging, but the firm-fixed-price nature suggests the government aimed for a competitive rate within the SAP framework.

What are the primary risks associated with this contract and how are they being mitigated?

Key risks include potential staffing shortages by the contractor, leading to service disruptions, and variability in the quality of personnel provided. Another risk is the potential for cost overruns if the firm-fixed-price model does not adequately account for unforeseen operational challenges. Mitigation strategies likely involve robust performance monitoring by the Indian Health Service, including regular reporting requirements from MAAT ENTERPRISES INC. on staffing levels and service quality. Contractual clauses may also stipulate penalties for non-performance or failure to meet staffing requirements. Pre-qualification of personnel and background checks by the contractor are also implicit mitigation steps.

What is the historical spending pattern for similar healthcare support services by the Indian Health Service?

Historical spending on healthcare support services by the Indian Health Service (IHS) is significant, as the agency relies heavily on contracted personnel to serve remote and underserved populations. The IHS often faces challenges in recruiting and retaining permanent staff, making contract services a critical component of their operational strategy. Spending in this category can fluctuate based on specific program needs, regional demands, and the availability of federal appropriations. Analyzing past IHS contracts for nursing and medical assistant services would reveal trends in contract values, durations, and the types of services most frequently procured, providing context for the current $8.9 million award.

How does the competition level for this contract compare to other similar federal healthcare staffing procurements?

This contract was competed under Simplified Acquisition Procedures (SAP), which generally allows for a broader range of competition than sole-source or limited competition awards, but may not attract the same level of large-scale competition as full and open procedures for much larger contracts. The number of bidders is not specified, but SAP is designed to encourage multiple offers. Compared to very large federal contracts that might see dozens of bidders, SAP procurements typically have fewer, but still competitive, offers. The effectiveness of competition here depends on the number of qualified vendors actively participating in the SAP space for healthcare staffing in Arizona.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Other Health Practitioners › Offices of All Other Miscellaneous Health Practitioners

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: IHS1460974

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12500 LANDING GREEN DR, CHARLOTTE, NC, 28277

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $12,114,937

Exercised Options: $8,942,420

Current Obligation: $8,942,420

Actual Outlays: $2,950,607

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline