HHS Awards $2.78M Task Order for FOH Wellness Services to HealthSource Solutions LLC

Contract Overview

Contract Amount: $2,778,021 ($2.8M)

Contractor: Healthsource Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: FEDERAL OCCUPATIONAL HEALTH (FOH) WELLNESS AND HEALTH PROMOTION SERVICES, ISSUANCE OF TASK ORDER 3: PERIOD OF PERFORMANCE: 04/01/2025 - 10/31/2025

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55447

State: Minnesota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.8 million to HEALTHSOURCE SOLUTIONS LLC for work described as: FEDERAL OCCUPATIONAL HEALTH (FOH) WELLNESS AND HEALTH PROMOTION SERVICES, ISSUANCE OF TASK ORDER 3: PERIOD OF PERFORMANCE: 04/01/2025 - 10/31/2025 Key points: 1. The contract focuses on wellness and health promotion services for Federal Occupational Health (FOH). 2. HealthSource Solutions LLC is the awardee for this task order. 3. The period of performance is from April 1, 2025, to October 31, 2025. 4. This award falls under the 'Fitness and Recreational Sports Centers' National Industry Classification code. 5. The contract type is Time and Materials.

Value Assessment

Rating: fair

The award amount of $2.78M for a 7-month period seems high for wellness services. Benchmarking against similar contracts for health promotion and fitness centers is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing structure (Time and Materials) can sometimes lead to cost overruns if not closely managed.

Taxpayer Impact: Taxpayer funds are being used for employee wellness programs, which can have long-term benefits in productivity and healthcare cost reduction, but the immediate cost needs justification.

Public Impact

Federal employees will benefit from enhanced wellness and health promotion services. The services aim to improve overall employee health and potentially reduce healthcare costs for the government. This award supports the government's commitment to employee well-being.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials contract type.
High cost for a relatively short performance period.
Lack of detailed performance metrics provided in the data.

Positive Signals

Awarded under full and open competition.
Focus on employee health and wellness.

Sector Analysis

This spending falls within the professional, scientific, and technical services sector, specifically related to health and wellness programs. Benchmarks for similar government contracts for occupational health services are not readily available but typically range widely based on scope and duration.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this award. Further investigation would be needed to determine small business participation.

Oversight & Accountability

Oversight will be crucial to ensure the effective delivery of wellness services and to manage costs under the Time and Materials contract. The contracting officer's representative will play a key role in monitoring performance and expenditures.

Related Government Programs

Fitness and Recreational Sports Centers
Department of Health and Human Services Contracting
Office of the Assistant Secretary for Financial Resources Programs

Risk Flags

Time and Materials contract type poses a risk of cost overruns.
High award amount for a short performance period requires justification.
Lack of detailed performance metrics in the provided data.
Potential for scope creep if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.8 million to HEALTHSOURCE SOLUTIONS LLC. FEDERAL OCCUPATIONAL HEALTH (FOH) WELLNESS AND HEALTH PROMOTION SERVICES, ISSUANCE OF TASK ORDER 3: PERIOD OF PERFORMANCE: 04/01/2025 - 10/31/2025

Who is the contractor on this award?

The obligated recipient is HEALTHSOURCE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Financial Resources).

What is the total obligated amount?

The obligated amount is $2.8 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What is the expected return on investment for these wellness services in terms of employee productivity and reduced healthcare utilization?

The return on investment (ROI) for wellness programs is often measured by metrics such as reduced absenteeism, lower healthcare claims, and improved employee morale and productivity. While specific ROI figures are not provided, the government invests in these services with the expectation of long-term cost savings and a healthier, more engaged workforce. Quantifying this ROI typically requires detailed tracking of employee health data and program participation over extended periods.

How does the per-unit cost of these wellness services compare to industry standards or previous government contracts?

Without specific details on the services provided and their associated costs, a direct per-unit cost comparison is challenging. The total award of $2.78M for a 7-month period suggests a significant investment. A thorough analysis would require breaking down the costs by service type (e.g., fitness classes, health screenings, counseling) and comparing these to benchmarks for similar offerings in both the public and private sectors.

What mechanisms are in place to ensure accountability and prevent potential overspending with the Time and Materials contract structure?

Accountability with Time and Materials contracts relies heavily on robust oversight and clear performance standards. Mechanisms typically include detailed reporting requirements for labor hours and materials, regular progress reviews, and a ceiling price that cannot be exceeded without modification. The Contracting Officer's Representative (COR) is responsible for closely monitoring all expenditures and ensuring that the work performed aligns with the contract's objectives and budget.

Industry Classification

NAICS: Arts, Entertainment, and Recreation › Other Amusement and Recreation Industries › Fitness and Recreational Sports Centers

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3149 FERNBROOK LN N, MINNEAPOLIS, MN, 55447

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,778,021

Exercised Options: $2,778,021

Current Obligation: $2,778,021

Actual Outlays: $2,279,147

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75P00123D00003

IDV Type: IDC

Timeline