HHS awarded $34.3M for regional site staffing services, with 12 bidders indicating strong competition

Contract Overview

Contract Amount: $34,281,956 ($34.3M)

Contractor: RAO Radiologists, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-10-01

End Date: 2013-11-15

Contract Duration: 1,871 days

Daily Burn Rate: $18.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: SERVICES PROVISION SITE STAFFING FOR REGION B

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20878

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $34.3 million to RAO RADIOLOGISTS, INC. for work described as: SERVICES PROVISION SITE STAFFING FOR REGION B Key points: 1. The contract value of $34.3 million over approximately five years suggests a significant need for ongoing staffing support. 2. With 12 bidders, the competition level appears robust, potentially driving competitive pricing. 3. The 'Time and Materials' contract type introduces cost-reimbursement risks that require diligent oversight. 4. The service category 'All Other Miscellaneous Ambulatory Health Care Services' is broad, necessitating clear performance metrics. 5. The contract's duration of 1871 days (over 5 years) indicates a long-term strategic requirement. 6. The award to RAO RADIOLOGISTS, INC. for staffing services highlights potential diversification or support functions within healthcare providers.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service delivery details and comparable market rates for regional site staffing. The total award of $34.3 million over nearly five years averages to approximately $7 million annually. Given the broad service category, it's difficult to assess if this represents good value for money without understanding the scope and volume of staffing provided. The 'Time and Materials' pricing structure, while common, can lead to cost overruns if not managed tightly, impacting overall value.

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 while the competition was broad, specific sources may have been excluded for defined reasons. The presence of 12 bidders suggests a healthy level of interest and competition for this requirement. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A high number of bidders typically translates to better pricing for taxpayers as contractors vie for the award. It reduces the risk of inflated costs due to a lack of market alternatives.

Public Impact

The primary beneficiaries are likely the Department of Health and Human Services (HHS) and potentially the public through the continuity of health services supported by adequate staffing. The services delivered involve providing essential site staffing, crucial for the operational efficiency of HHS facilities or programs in Region B. The geographic impact is focused on Region B, suggesting a localized but critical operational need. Workforce implications include the creation or maintenance of jobs for the staff provided by RAO RADIOLOGISTS, INC., potentially impacting the local healthcare workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Time and Materials' contract type carries inherent risk of cost escalation if not closely monitored and managed.
The broad nature of the service category 'All Other Miscellaneous Ambulatory Health Care Services' could lead to scope creep or ambiguity in performance expectations.
Lack of specific performance metrics or KPIs in the provided data makes it difficult to assess the quality and effectiveness of the staffing services.
The exclusion of sources, even within a full and open competition framework, warrants understanding the rationale to ensure no viable, competitive options were overlooked.

Positive Signals

The robust competition with 12 bidders suggests a well-defined requirement that attracted significant market interest.
The award to a single contractor (RAO RADIOLOGISTS, INC.) implies a thorough evaluation process that identified a best-value solution.
The contract's duration indicates a stable, long-term need, allowing for consistent service delivery and potential for building expertise.
The award falls under the Department of Health and Human Services, a critical agency, suggesting the services are vital to its mission.

Sector Analysis

This contract falls within the Healthcare Services sector, specifically related to ambulatory health care services and administrative support. The market for healthcare staffing and support services is substantial, driven by the continuous need for qualified personnel in clinical and administrative roles. This contract represents a portion of federal spending aimed at ensuring the operational capacity of health agencies. Comparable spending benchmarks would typically involve analyzing other federal contracts for similar staffing solutions across different regions or agencies.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if RAO RADIOLOGISTS, INC. chooses to engage them. Without explicit subcontracting plans or goals, it's difficult to assess the direct benefit to the small business ecosystem from this specific award.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Health and Human Services, specifically the Office of the Assistant Secretary for Administration. Given the 'Time and Materials' nature, rigorous monitoring of labor hours, costs, and deliverables is crucial. Transparency would be enhanced through regular reporting requirements and performance reviews. The Inspector General's office for HHS would have jurisdiction for audits and investigations if any issues of fraud, waste, or abuse arise.

Related Government Programs

HHS Staffing Contracts
Ambulatory Health Care Services
Federal Healthcare Support Services
Region B Service Contracts
Time and Materials Contracts

Risk Flags

Time and Materials Contract Type
Broad Service Category
Potential for Cost Overruns
Exclusion of Sources Justification Needed
Lack of Specific Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $34.3 million to RAO RADIOLOGISTS, INC.. SERVICES PROVISION SITE STAFFING FOR REGION B

Who is the contractor on this award?

The obligated recipient is RAO RADIOLOGISTS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $34.3 million.

What is the period of performance?

Start: 2008-10-01. End: 2013-11-15.

What is the specific nature of the 'site staffing' services provided under this contract?

The provided data categorizes the service under NAICS code 621999 ('All Other Miscellaneous Ambulatory Health Care Services'), which is very broad. 'Site staffing' typically refers to providing personnel to manage and operate a specific location or facility. In the context of HHS, this could range from administrative support staff, patient intake personnel, facility maintenance staff, or even specialized clinical support roles depending on the 'site' in question (Region B). Without more granular details on the contract's statement of work, it's difficult to pinpoint the exact functions performed. However, the award to RAO RADIOLOGISTS, INC. might suggest a focus on staffing related to medical imaging or diagnostic facilities, or it could indicate a broader role in managing administrative or operational aspects of HHS sites.

How does the average annual cost of $7 million compare to similar federal staffing contracts?

Comparing the average annual cost of approximately $7 million requires benchmarking against similar federal contracts for site staffing or administrative support within the healthcare sector. Factors influencing cost include geographic location (Region B), the specific types of personnel required (clinical vs. administrative), the number of staff, and the duration of service. Contracts for specialized clinical staff would naturally be higher than those for general administrative support. Without access to a database of comparable contracts with detailed scope and pricing, a precise benchmark is difficult. However, for a large federal agency like HHS requiring potentially significant staffing across a region, $7 million annually could be within a reasonable range, provided the scope of services is substantial and the quality of personnel meets expectations. The 'Time and Materials' aspect necessitates close scrutiny of labor rates and hours billed.

What are the primary risks associated with the 'Time and Materials' contract type for this service?

The primary risk with a 'Time and Materials' (T&M) contract, like this one, is the potential for cost overruns. Unlike fixed-price contracts, the government pays for the actual labor hours and materials used, plus a negotiated markup. If the contractor's efficiency is low, if scope creep occurs without proper change order management, or if labor rates are high, the total cost can exceed initial estimates significantly. For 'site staffing,' this means the government bears the risk if the contractor takes longer than expected to fulfill duties or if unforeseen material needs arise. Effective oversight is critical, involving detailed tracking of hours, verification of tasks performed, and comparison against established labor rates and market benchmarks to mitigate these risks and ensure value for money.

What does the 'After Exclusion of Sources' clause imply for competition and cost?

The 'Full and Open Competition After Exclusion of Sources' clause indicates that while the solicitation was broadly advertised, certain potential offerors were intentionally excluded from bidding. The Federal Acquisition Regulation (FAR) allows for such exclusions under specific circumstances, such as when only a limited number of sources can fulfill the requirement due to technical expertise, proprietary data, or other justifications. While 12 bidders participated, the exclusion of specific sources could potentially limit the breadth of competition and, consequently, the downward pressure on pricing. The justification for excluding sources must be documented and sound to ensure the government isn't inadvertently limiting competition unnecessarily. Understanding the rationale behind the exclusion is key to assessing its impact on the final award price and overall value.

How has HHS spending on similar 'Miscellaneous Ambulatory Health Care Services' evolved over time?

To assess the evolution of HHS spending on 'Miscellaneous Ambulatory Health Care Services' (NAICS 621999), one would need to analyze historical contract data for HHS over several fiscal years. This would involve querying federal procurement databases (like FPDS or USASpending) for contracts awarded under this specific NAICS code or similar broad healthcare service categories. Key trends to look for would include the total dollar amount obligated annually, the number of contracts awarded, the types of services procured (if discernible from contract descriptions), and the primary contractors. Without this historical data, it's impossible to determine if the $34.3 million awarded here represents an increase, decrease, or stable level of spending compared to previous periods for similar services within HHS. Such analysis would provide context on the agency's long-term needs and budget allocation for these types of support services.

What is the track record of RAO RADIOLOGISTS, INC. in performing federal contracts, particularly for staffing?

Assessing the track record of RAO RADIOLOGISTS, INC. requires examining their past performance on federal contracts. This involves searching procurement databases for previous awards to the company, noting the agencies involved, the contract types, the services rendered, and the contract values. Key performance indicators would include whether contracts were completed successfully, on time, and within budget. Information on past performance evaluations, any disputes, or contract terminations would also be crucial. While the company name suggests a specialization in radiology, their award for 'site staffing' indicates either a diversification of services or that the 'site' specifically relates to radiological or healthcare facilities requiring operational support. A review of their federal contract history would reveal their experience level and reliability in fulfilling government requirements, especially in service provision roles.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › All Other Miscellaneous Ambulatory Health Care Services

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

Offers Received: 12

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 9407 SPRUCE TREE CIR, BETHESDA, MD, 20814

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $34,281,956

Exercised Options: $34,281,956

Current Obligation: $34,281,956

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline