HHS awarded $22.3M for medical staffing, with Acuity-CHS, LLC delivering emergency relief services

Contract Overview

Contract Amount: $22,261,834 ($22.3M)

Contractor: Acuity-Chs, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2016-04-29

End Date: 2017-01-15

Contract Duration: 261 days

Daily Burn Rate: $85.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: IGF::OT::IGF MEDICAL AND CLINICAL STAFFING TO 02

Place of Performance

Location: CAPE CANAVERAL, BREVARD County, FLORIDA, 32920

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22.3 million to ACUITY-CHS, LLC for work described as: IGF::OT::IGF MEDICAL AND CLINICAL STAFFING TO 02 Key points: 1. Value for money appears fair given the emergency nature of the contract and the time-and-materials pricing structure. 2. Competition dynamics indicate a full and open competition, suggesting a robust market for these services. 3. Risk indicators are moderate, primarily related to the time-and-materials pricing which can lead to cost overruns if not managed closely. 4. Performance context is tied to emergency and relief services, implying a need for rapid deployment and flexibility. 5. Sector positioning is within healthcare staffing, a critical but often volatile market, especially during emergencies.

Value Assessment

Rating: fair

The contract's value of $22.3 million for emergency medical staffing over approximately 9 months appears reasonable in the context of urgent needs. However, the time-and-materials (T&M) pricing structure, while flexible, carries inherent risks for cost control. Benchmarking T&M contracts is challenging without specific service details, but the overall award amount is within a typical range for large-scale emergency staffing efforts. Further analysis would require comparing specific labor rates and overhead to similar emergency response contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the designation suggests a competitive process. A competitive award generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competitions. The government likely received proposals from various qualified staffing agencies.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to secure the best possible pricing and service offerings.

Public Impact

Beneficiaries include patients requiring medical care during emergency or relief situations. Services delivered encompass the provision of essential medical and clinical staff to support healthcare facilities. Geographic impact is focused on Florida (ST: FL, SN: FLORIDA), where the services were deployed. Workforce implications involve the mobilization and deployment of healthcare professionals to address critical staffing shortages.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials (T&M) pricing without clear caps or detailed scope.
Reliance on a single awardee (ACUITY-CHS, LLC) for critical emergency staffing needs.
Limited visibility into the specific qualifications and vetting processes of the deployed medical personnel.
The short duration (approx. 9 months) may indicate a reactive, rather than proactive, approach to staffing needs.

Positive Signals

Awarded under full and open competition, suggesting a competitive market and potentially good value.
Contract addresses critical needs for emergency and relief services, indicating responsiveness to urgent requirements.
The contract was awarded to a single entity, potentially streamlining management and deployment.
The specific award amount ($22.3M) suggests a significant scale of operation, capable of addressing substantial needs.

Sector Analysis

The healthcare staffing sector is a vital component of the broader healthcare industry, particularly crucial during public health emergencies or natural disasters. This contract falls within the 'Emergency and Other Relief Services' category, highlighting its role in providing immediate support. Spending in this area can fluctuate significantly based on national and regional emergencies. Comparable spending benchmarks would typically involve analyzing other large-scale emergency medical staffing contracts awarded by federal agencies like HHS, FEMA, or DOD.

Small Business Impact

The contract was not set aside for small businesses (SB: false, SMB: false). There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary awardee, Acuity-CHS, LLC, likely provided the services directly or through its own resources. The absence of small business set-asides means that opportunities for small businesses to participate in this specific contract were limited unless they were part of the prime contractor's supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS), specifically the Office of the Assistant Secretary for Administration (ASA). The Inspector General (IG) of HHS would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse. Transparency is generally maintained through contract award databases, though detailed performance metrics and cost breakdowns may not always be publicly available, especially for emergency contracts.

Related Government Programs

HHS Emergency Preparedness Grants
FEMA Disaster Relief Funding
Public Health Emergency Staffing Contracts
Medical Reserve Corps Deployments
Department of Defense Medical Support Contracts

Risk Flags

Time and Materials pricing structure may lead to cost overruns.
Lack of specific bidder count limits assessment of competitive intensity.
Limited public information on contractor's specific emergency response performance.
No indication of small business subcontracting goals or achievements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.3 million to ACUITY-CHS, LLC. IGF::OT::IGF MEDICAL AND CLINICAL STAFFING TO 02

Who is the contractor on this award?

The obligated recipient is ACUITY-CHS, LLC.

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 $22.3 million.

What is the period of performance?

Start: 2016-04-29. End: 2017-01-15.

What was the specific nature of the emergency or relief situation that necessitated this contract?

The contract was awarded under the NAICS code 624230 (Emergency and Other Relief Services) and was active from April 2016 to January 2017. While the specific emergency is not detailed in the provided data, this period included significant events such as the Zika virus outbreak response and preparations for potential public health crises. Contracts under this code are typically used to rapidly procure services and supplies to address unforeseen circumstances, natural disasters, or public health emergencies requiring immediate federal assistance.

How does the Time and Materials (T&M) pricing structure compare to fixed-price contracts for similar emergency staffing needs?

Time and Materials (T&M) contracts offer flexibility, allowing for adjustments in scope and effort without formal change orders, which is advantageous in rapidly evolving emergency situations. However, they carry a higher risk of cost overruns if not meticulously managed, as the government pays for actual labor hours and material costs, plus a fixed fee or percentage. Fixed-price contracts provide cost certainty but are less adaptable to unforeseen changes. For emergency staffing, T&M might be preferred for initial rapid deployment where the full scope is initially unknown, but a transition to fixed-price or cost-plus-fixed-fee might be considered for longer-term, more defined needs to ensure better cost control.

What is Acuity-CHS, LLC's track record with federal emergency response contracts?

Acuity-CHS, LLC has a history of providing healthcare services, including staffing, to various government entities. While specific details on their track record solely within federal emergency response are limited in this dataset, their ability to secure a $22.3 million contract for emergency and relief services from HHS suggests they possess the necessary qualifications and capacity. Further investigation into their past performance on similar contracts, including client feedback and any documented issues, would provide a more comprehensive understanding of their reliability in crisis situations.

Were there any performance issues or contract modifications during the contract's period of performance?

The provided data does not include details on contract modifications or performance issues. The contract had a duration of 261 days (approximately 9 months) and was awarded on April 29, 2016, with an end date of January 15, 2017. Without access to the contract's official file or modification history, it is impossible to determine if there were any performance challenges, scope changes, or adjustments to the contract value during its active period.

How does the awarded amount compare to historical federal spending on emergency medical staffing?

The $22.3 million awarded to Acuity-CHS, LLC for emergency medical staffing is a significant sum, indicative of a substantial operational requirement. Historical federal spending on emergency medical staffing can vary widely depending on the scale and frequency of national emergencies. For instance, major hurricanes, pandemics, or widespread public health crises can trigger multi-million dollar contracts for staffing support. Comparing this award requires analyzing spending patterns during similar periods of declared emergencies or public health threats, considering factors like the duration of the need and the geographic scope of the response.

Industry Classification

NAICS: Health Care and Social Assistance › Community Food and Housing, and Emergency and Other Relief Services › Emergency and Other Relief Services

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 15233SOL00103

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Comprehensive Health Services, LLC (UEI: 116768247)

Address: 8810 ASTRONAUT BLVD, CAPE CANAVERAL, FL, 32920

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,261,834

Exercised Options: $22,261,834

Current Obligation: $22,261,834

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSP233201500179I

IDV Type: IDC

Timeline