DHS awarded $13.8M for physician services to Acuity-CHS, LLC, with a 364-day duration

Contract Overview

Contract Amount: $13,821,959 ($13.8M)

Contractor: Acuity-Chs, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2006-10-01

End Date: 2007-09-30

Contract Duration: 364 days

Daily Burn Rate: $38.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL SERVICES

Place of Performance

Location: CAPE CANAVERAL, BREVARD County, FLORIDA, 32920

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13.8 million to ACUITY-CHS, LLC for work described as: MEDICAL SERVICES Key points: 1. The contract value of $13.8 million for a single year of physician services appears high, warranting a closer look at the scope and necessity. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process that could lead to better pricing. 3. The contract was awarded as a delivery order, indicating it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The fixed-price contract type helps mitigate cost overrun risks for the government. 5. The specific services provided under NAICS code 621111 (Offices of Physicians) need further clarification to assess performance. 6. The contract's duration of 364 days suggests a short-term need or a bridge to a more permanent solution.

Value Assessment

Rating: fair

The contract value of $13.8 million for 364 days of physician services is substantial. Without knowing the exact number of physicians, hours, or specialized services provided, it's difficult to benchmark effectively. However, the average annual cost per physician in the US can range significantly, but this contract's total value suggests a considerable operational requirement. Further analysis would require details on the scope of work and the specific medical services rendered to determine if the pricing is competitive and represents good value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which theoretically allows all responsible sources to submit bids. This method is generally preferred as it fosters a competitive environment, potentially leading to lower prices and better quality services. The number of bidders is not specified, but the use of this procurement method suggests that the agency sought to maximize competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at the most favorable prices and terms available in the market.

Public Impact

Beneficiaries likely include U.S. Customs and Border Protection personnel requiring medical services. The services delivered are physician services, crucial for maintaining the health and readiness of federal employees. The contract is geographically focused on Florida, where the services are to be performed. This contract supports the healthcare sector by engaging medical professionals and potentially related support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of medical services provided makes it difficult to assess the true value and necessity of the $13.8 million award.
The contract's short duration (364 days) might indicate a temporary need or a potential for follow-on contracts, which could lead to increased long-term spending.
Without knowing the number of physicians or the specific medical specialties, it's challenging to benchmark the per-physician cost against industry standards.

Positive Signals

The use of 'full and open competition' suggests an effort to ensure a competitive bidding process, which can lead to better pricing for the government.
The 'firm fixed price' contract type helps control costs and reduces the risk of budget overruns for the agency.
The contract is awarded to a specific entity, Acuity-CHS, LLC, indicating a clear point of accountability for service delivery.

Sector Analysis

The healthcare services sector, particularly within government contracting, is a significant market. This contract falls under the 'Offices of Physicians' category (NAICS 621111), which includes establishments primarily engaged in practicing medicine. Government agencies frequently contract for medical services to support their personnel, especially in remote locations or for specialized needs. Benchmarking this contract's value would require comparison to similar physician service contracts awarded by federal agencies, considering factors like geographic location, specialty, and duration.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was on obtaining the required medical services through the most competitive means available. There is no explicit information regarding subcontracting plans for small businesses. The impact on the small business ecosystem would be minimal unless Acuity-CHS, LLC, voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security and U.S. Customs and Border Protection. The contract's performance would be monitored by a Contracting Officer's Representative (COR) to ensure compliance with the terms and conditions. As a delivery order, it may be subject to the oversight of the parent IDIQ contract, if applicable. Transparency is generally maintained through contract databases like FPDS, where basic award information is publicly available. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified.

Related Government Programs

Department of Homeland Security Medical Services Contracts
Federal Physician Services Contracts
Customs and Border Protection Personnel Support
Healthcare Services for Federal Agencies

Risk Flags

High Contract Value for Short Duration
Lack of Specific Service Details
Potential for Contractor Performance Issues

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.8 million to ACUITY-CHS, LLC. MEDICAL SERVICES

Who is the contractor on this award?

The obligated recipient is ACUITY-CHS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $13.8 million.

What is the period of performance?

Start: 2006-10-01. End: 2007-09-30.

What specific medical services were provided under this contract, and what was the rationale for the $13.8 million expenditure over 364 days?

The provided data indicates the contract (NAICS 621111) is for 'Offices of Physicians (except Mental Health Specialists)'. However, the specific medical services rendered are not detailed. The rationale for the $13.8 million expenditure over 364 days would stem from the scope of work defined in the contract's statement of work (SOW). This could include primary care, specialized physician consultations, occupational health services, or emergency medical support for U.S. Customs and Border Protection personnel, potentially in high-demand or remote areas within Florida. Without the SOW, it's impossible to ascertain the exact services and justify the cost. A high expenditure could be attributed to the number of physicians required, the hours they are on duty, the complexity of medical cases handled, or the specific medical specialties contracted.

How does the awarded amount of $13.8 million compare to similar physician service contracts awarded by DHS or other federal agencies?

Benchmarking the $13.8 million award requires comparing it to contracts with similar scopes, durations, and geographic locations. For a 364-day contract, this equates to approximately $37,972 per day (calculated as $13,821,959 / 364). If this contract involved multiple physicians or extensive on-site coverage, the daily rate might be reasonable. However, if it was for a smaller number of physicians or limited hours, it could be considered high. A comprehensive comparison would involve analyzing data from similar contracts for physician services within DHS or other agencies like the Department of Defense or Veterans Affairs, looking at factors such as the number of physicians, specialty, and service hours to determine if this contract represents competitive pricing and good value for money.

What is the track record of Acuity-CHS, LLC in performing federal contracts, particularly in healthcare services?

Acuity-CHS, LLC, has been awarded federal contracts, as evidenced by this $13.8 million delivery order. To assess their track record, a review of their past performance on similar healthcare service contracts would be necessary. This would involve examining contract databases for previous awards, their values, durations, and any reported performance evaluations or past performance questionnaires. Understanding their history with government agencies, including adherence to schedules, quality of service, and compliance with contract terms, is crucial for evaluating their reliability and capability in fulfilling the current contract requirements. Information on any contract disputes, terminations, or awards for excellence would also provide valuable insights into their performance history.

What are the potential risks associated with this contract, given its value and duration?

Potential risks associated with this $13.8 million, 364-day contract include cost overruns if the fixed-price nature doesn't adequately account for unforeseen service demands, although fixed-price contracts generally shift risk to the contractor. There's also a risk related to the quality and availability of physicians, especially if the contractor struggles to recruit or retain qualified medical staff. Performance risk exists if the services provided do not meet the required standards, potentially impacting the health and readiness of the personnel they serve. Furthermore, if this is a delivery order under an IDIQ, there's a risk of scope creep or inadequate competition for subsequent orders if not managed properly. The short duration also poses a risk if it leads to a continuous cycle of short-term contracts rather than a stable, long-term solution.

How does this contract fit into the broader spending patterns for medical services within the Department of Homeland Security?

This $13.8 million contract represents a specific expenditure within DHS's broader budget for medical services. To understand its place in overall spending, one would need to analyze historical DHS expenditures on healthcare and physician services. This includes examining trends in contract values, the number of contracts awarded, and the types of services procured over several fiscal years. Comparing this contract's value to the total DHS medical services budget or to spending on similar services by agencies like CBP would provide context. If DHS has a consistent need for physician services, this contract might be part of a recurring procurement strategy. Conversely, if it's an outlier, it might represent a new or expanded requirement.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Comprehensive Health Services Holdings Inc (UEI: 078411793)

Address: 8229 BOONE BLVD STE 700, VIENNA, VA, 22182

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,821,959

Exercised Options: $13,821,959

Current Obligation: $13,821,959

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSBP1006D01259

IDV Type: IDC

Timeline