CBP awarded $18.6M to Acuity-CHS for medical testing, a sole-source contract with a 4.3-year duration

Contract Overview

Contract Amount: $18,582,663 ($18.6M)

Contractor: Acuity-Chs, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2011-09-30

End Date: 2016-01-12

Contract Duration: 1,565 days

Daily Burn Rate: $11.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL TESTING FOR OFFICER APPLICANTS AND RETURN TO DUTY EMPLOYEES

Place of Performance

Location: CAPE CANAVERAL, BREVARD County, FLORIDA, 32920

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.6 million to ACUITY-CHS, LLC for work described as: MEDICAL TESTING FOR OFFICER APPLICANTS AND RETURN TO DUTY EMPLOYEES Key points: 1. The contract's value of $18.6 million over 4.3 years suggests a significant investment in officer health and readiness. 2. As a sole-source award, the absence of competition may have limited opportunities for price negotiation and potentially higher costs. 3. The firm-fixed-price structure shifts cost risk to the contractor, incentivizing efficient service delivery. 4. The contract's duration of 1565 days indicates a long-term need for these medical services. 5. The services provided are critical for ensuring the health and deployability of Customs and Border Protection personnel. 6. The geographic focus on Florida (st) suggests a concentration of officer applicant or return-to-duty populations in that region.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable sole-source awards for similar medical testing services. The firm-fixed-price nature provides some cost certainty, but the lack of competition means there's no direct market comparison to assess if the pricing is optimal. The total award of $18.6 million over approximately 4.3 years averages to about $4.3 million annually, which needs to be evaluated against the volume and scope of services provided to determine true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one contractor, Acuity-CHS, LLC, was solicited. The justification for this approach is not provided in the data, but sole-source awards typically occur when only one vendor can meet the specific requirements, or in emergency situations. The lack of competition means that the government did not benefit from a competitive bidding process, which could have led to lower prices or more innovative solutions from multiple offerors.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without competing the requirement, it's difficult to ascertain if the price reflects the best possible value.

Public Impact

Benefits Customs and Border Protection (CBP) officers by providing essential medical testing for applicant screening and return-to-duty evaluations. Ensures the health and readiness of CBP personnel, contributing to border security operations. Services are geographically concentrated in Florida, impacting personnel and applicants in that region. Supports a specialized segment of the healthcare services industry focused on occupational health and government contracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and limited vendor options.
Sole-source awards can reduce transparency and accountability in the procurement process.
The long contract duration without re-competition might lead to complacency or reduced service quality over time.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
The contract addresses a critical need for officer health and readiness.
The contractor, Acuity-CHS, LLC, has secured a significant award, indicating potential capability in this niche service area.

Sector Analysis

The healthcare services sector, particularly occupational health and specialized medical testing for government personnel, is a significant market. This contract falls under the 'Offices of Physicians' NAICS code (621111). While specific market size data for this niche is not readily available, the federal government is a major consumer of healthcare services, with significant spending allocated to ensuring the health and fitness of its workforce, especially in security-focused agencies like CBP.

Small Business Impact

This contract was not set aside for small businesses, nor does the data indicate any subcontracting requirements for small businesses. The award to Acuity-CHS, LLC, a single entity, suggests that small businesses were not directly involved as prime contractors in this specific procurement. Further analysis would be needed to determine if Acuity-CHS, LLC itself is a small business or if they utilize small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The specific Inspector General jurisdiction would be that of the DHS Office of Inspector General, which would investigate any allegations of fraud, waste, or abuse related to the contract's performance and financial execution.

Related Government Programs

Federal Employee Health Services
Occupational Health Programs
Medical Readiness Contracts
Government Employee Physical Examinations
Department of Homeland Security Healthcare Spending

Risk Flags

Sole-source award lacks competitive pricing.
Potential for higher costs due to absence of competition.
Limited transparency in procurement process.
Dependency on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.6 million to ACUITY-CHS, LLC. MEDICAL TESTING FOR OFFICER APPLICANTS AND RETURN TO DUTY EMPLOYEES

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 $18.6 million.

What is the period of performance?

Start: 2011-09-30. End: 2016-01-12.

What is the track record of Acuity-CHS, LLC in performing similar federal contracts, particularly sole-source awards?

Acuity-CHS, LLC has been awarded federal contracts, including this significant sole-source definitive contract with U.S. Customs and Border Protection (CBP) for medical testing services. While the provided data focuses on this single award, a deeper dive into contract databases like FPDS or SAM.gov would reveal the company's history, including past performance ratings, other contract vehicles, and any prior sole-source awards. Understanding their experience with similar government requirements, their performance history on other contracts, and their capacity to handle large-scale medical testing operations is crucial for assessing reliability and value. Without this broader context, it's difficult to definitively assess their track record beyond this specific contract's existence.

How does the annual cost of this contract compare to industry benchmarks for similar medical testing services?

The annual cost for this contract, averaging approximately $4.3 million ($18.6M / 4.3 years), is difficult to benchmark precisely without detailed service scope and volume data. Industry benchmarks for occupational health services vary widely based on the type of testing (e.g., physicals, drug screening, specialized medical evaluations), the number of individuals served, and geographic location. For federal contracts, especially sole-source ones, pricing can be influenced by specific government requirements and compliance standards. A direct comparison would require identifying comparable contracts (ideally competed) for similar services provided to other federal agencies or large private sector organizations, and then normalizing for differences in service scope, volume, and contract terms. The lack of competition here makes a definitive value assessment challenging.

What are the specific risks associated with a sole-source award for critical medical testing services?

The primary risks associated with a sole-source award for critical medical testing services include potential lack of price competition, leading to higher costs for taxpayers. There's also a risk of reduced innovation, as there's less incentive for the contractor to offer novel or more efficient solutions when they are the only option. Furthermore, reliance on a single provider can create vulnerabilities if the contractor experiences performance issues, financial instability, or faces unforeseen challenges, potentially disrupting essential services for CBP officers. The absence of a competitive process also limits transparency and makes it harder to ensure the government is receiving the best possible value and quality.

What is the historical spending pattern for medical testing services by U.S. Customs and Border Protection?

The provided data only details one contract ($18.6M from 2011-2016) for medical testing services awarded to Acuity-CHS, LLC. To understand historical spending patterns, a comprehensive review of CBP's procurement history for similar services over multiple fiscal years is necessary. This would involve searching contract databases for all awards related to 'medical testing,' 'occupational health,' 'applicant screening,' and 'return-to-duty evaluations' issued by CBP. Analyzing these awards would reveal trends in spending levels, the number and types of contracts awarded (competed vs. sole-source), the primary contractors, and the average duration and value of these services over time. Without this broader historical data, it's impossible to establish a spending pattern.

How does the duration of this contract (1565 days) align with typical federal contracts for similar services?

A contract duration of 1565 days, approximately 4.3 years, is within the typical range for federal definitive contracts, especially those involving ongoing services like medical testing. Federal agencies often award contracts with base periods and option years that can extend the total performance period to several years to ensure continuity of services and reduce the administrative burden of frequent re-procurement. For services that require specialized personnel, equipment, and established processes, a longer duration allows the contractor to amortize investments and provides stability for both the agency and the vendor. However, excessively long durations without opportunities for re-competition can sometimes reduce flexibility and potentially lead to higher costs if market conditions change.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HSBP1011Q0162

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 10701 PARKRIDGE BLVD STE 200, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $27,278,859

Exercised Options: $18,599,130

Current Obligation: $18,582,663

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline