HHS Awards $171.7M Task Order to American Canyon Solutions for Emergency Relief Services
Contract Overview
Contract Amount: $171,705,652 ($171.7M)
Contractor: American Canyon Solutions Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2016-04-29
End Date: 2018-05-21
Contract Duration: 752 days
Daily Burn Rate: $228.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: IGF::OT::IGF WRAP AROUND FIRST TASK ORDER ACF/ORR
Place of Performance
Location: MURRIETA, RIVERSIDE County, CALIFORNIA, 92562
Plain-Language Summary
Department of Health and Human Services obligated $171.7 million to AMERICAN CANYON SOLUTIONS INC for work described as: IGF::OT::IGF WRAP AROUND FIRST TASK ORDER ACF/ORR Key points: 1. Significant award value of $171.7 million for emergency and relief services. 2. Contract awarded via full and open competition, suggesting a competitive market. 3. Potential risk associated with time and materials pricing structure. 4. Spending falls under the 'Emergency and Other Relief Services' NAICS code.
Value Assessment
Rating: fair
The Time and Materials (T&M) pricing structure can lead to cost overruns if not closely managed. Without a fixed ceiling or detailed labor rates, it's difficult to benchmark against similar contracts without more granular data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing, but the T&M structure may limit price certainty.
Taxpayer Impact: Taxpayer funds are utilized for emergency and relief services. The T&M pricing model presents a risk of potentially higher costs than a fixed-price contract if not managed effectively.
Public Impact
Supports critical emergency and relief operations for the Department of Health and Human Services. The duration of the contract (752 days) suggests a sustained need for these services. Awarded to American Canyon Solutions Inc., a California-based company.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Lack of detailed cost breakdown for T&M
Positive Signals
- Full and open competition
- Supports essential government function
Sector Analysis
Spending in the 'Emergency and Other Relief Services' sector is often reactive and can fluctuate based on national needs. Benchmarks are difficult without specific service details, but large task orders indicate significant program requirements.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors or partners in this award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
Oversight would focus on the justification and monitoring of the Time and Materials contract to ensure costs remain reasonable and services are delivered effectively, especially given the significant award value.
Related Government Programs
- Emergency and Other Relief Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Time and Materials pricing structure
- Potential for cost overruns
- Lack of detailed service description
- Limited visibility into subcontractor performance (if any)
Tags
emergency-and-other-relief-services, department-of-health-and-human-services, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $171.7 million to AMERICAN CANYON SOLUTIONS INC. IGF::OT::IGF WRAP AROUND FIRST TASK ORDER ACF/ORR
Who is the contractor on this award?
The obligated recipient is AMERICAN CANYON SOLUTIONS 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 $171.7 million.
What is the period of performance?
Start: 2016-04-29. End: 2018-05-21.
What specific emergency and relief services were provided under this task order, and how do they align with HHS's mission?
The task order falls under NAICS code 624230, 'Emergency and Other Relief Services.' While specific services aren't detailed, this typically includes disaster relief, humanitarian aid, and support for vulnerable populations. The alignment with HHS's mission is direct, as the agency is responsible for protecting the health of all Americans and providing essential human services, especially during crises.
What are the primary risks associated with the Time and Materials (T&M) pricing structure for this $171.7 million award?
The primary risk of a T&M contract is the potential for cost escalation without a defined ceiling. The government pays for the actual labor hours and material costs incurred by the contractor. Without stringent oversight, detailed reporting, and clear task definitions, this can lead to the government paying more than anticipated, especially for a contract of this magnitude.
How effective was the full and open competition in ensuring value for taxpayer money on this task order?
Full and open competition is designed to maximize value by encouraging multiple bids. However, the effectiveness in ensuring value for taxpayer money is tempered by the T&M pricing structure. While competition likely drove down initial bids, the T&M nature means the final cost is less predictable. Effective contract management and oversight are crucial to realizing value.
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: 15233SOL00531
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 41615 REAGAN WAY, MURRIETA, CA, 92562
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $171,705,652
Exercised Options: $171,705,652
Current Obligation: $171,705,652
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSP233201600005I
IDV Type: IDC
Timeline
Start Date: 2016-04-29
Current End Date: 2018-05-21
Potential End Date: 2018-05-21 00:00:00
Last Modified: 2021-10-06
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