Homeland Security's $39M ambulance services contract awarded to American Medical Response, Inc. for Colorado

Contract Overview

Contract Amount: $39,016,941 ($39.0M)

Contractor: American Medical Response, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2012-10-27

End Date: 2012-12-04

Contract Duration: 38 days

Daily Burn Rate: $1.0M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IGF::OT::IGF OTHER FUNCTIONS FOR ZONES 1&2 FOR NATIONAL MEDICAL TRANSPORT AND SUPPORT SERVICES.

Place of Performance

Location: GREENWOOD VILLAGE, ARAPAHOE County, COLORADO, 80111

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $39.0 million to AMERICAN MEDICAL RESPONSE, INC. for work described as: IGF::OT::IGF OTHER FUNCTIONS FOR ZONES 1&2 FOR NATIONAL MEDICAL TRANSPORT AND SUPPORT SERVICES. Key points: 1. Value for money assessed through comparison to similar contracts and market rates. 2. Competition dynamics indicate a full and open process, potentially leading to better pricing. 3. Risk indicators are monitored through contract performance and contractor track record. 4. Performance context is framed by the duration and fixed-price nature of the award. 5. Sector positioning places this contract within the broader healthcare and emergency services domain.

Value Assessment

Rating: good

The contract value of approximately $39 million for ambulance services appears reasonable given the scope and duration. Benchmarking against similar federal contracts for emergency medical services in similar geographic regions would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator for the government if the price was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit offers. The number of bidders is not specified, but a full and open competition generally suggests a healthy level of market interest. This process is designed to foster price discovery and ensure the government receives competitive pricing by allowing multiple vendors to vie for the contract.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at the most competitive price, thereby optimizing the use of public funds.

Public Impact

Beneficiaries include residents and visitors in Colorado requiring emergency medical transport. Services delivered encompass ambulance transportation and related medical support. Geographic impact is concentrated within the state of Colorado. Workforce implications involve the employment of paramedics, EMTs, and support staff by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service gaps if contractor performance falters.
Reliance on a single contractor for critical emergency services.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed-price contract shifts cost risk to the contractor.
Contractor has experience in providing medical transport services.

Sector Analysis

This contract falls within the healthcare sector, specifically emergency medical services. The market for ambulance services is often characterized by local or regional providers, with significant operational costs related to vehicles, equipment, and trained personnel. Federal spending in this area typically supports disaster response, remote area coverage, or specialized medical transport needs not adequately met by local entities. Benchmarks for similar contracts would consider the population density and geographic challenges of the service area.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly provided in the data. However, given the nature of the service and the size of the contract, it is possible that larger prime contractors may engage small businesses for specialized support or components, though this is not guaranteed without specific subcontracting requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. Accountability measures would include performance monitoring, adherence to service level agreements, and financial reporting. Transparency is generally maintained through contract award databases, though specific performance details may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Medical Transport Services
Emergency Medical Services Contracts
Disaster Response Medical Support

Risk Flags

Short contract duration may indicate an emergency or gap-filling need.
Limited performance data available due to short contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $39.0 million to AMERICAN MEDICAL RESPONSE, INC.. IGF::OT::IGF OTHER FUNCTIONS FOR ZONES 1&2 FOR NATIONAL MEDICAL TRANSPORT AND SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is AMERICAN MEDICAL RESPONSE, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $39.0 million.

What is the period of performance?

Start: 2012-10-27. End: 2012-12-04.

What is the track record of American Medical Response, Inc. in fulfilling federal contracts for medical transport services?

American Medical Response, Inc. (AMR) is a major provider of emergency medical services in the United States. While this specific contract with FEMA was for a short duration (October 2012 - December 2012) and valued at approximately $39 million, AMR holds numerous other contracts with federal, state, and local government agencies for ambulance and medical transport services. Their track record generally involves extensive experience in responding to both routine medical calls and large-scale emergencies and disasters. Performance on federal contracts can vary, and it's important to review specific contract performance reports and any associated corrective actions or awards. However, their widespread presence suggests a capacity to manage complex logistical and medical operations required by government entities.

How does the awarded price of $39 million compare to market rates for similar ambulance services in Colorado?

Determining the precise market rate comparison for this $39 million contract is challenging without detailed service specifications and geographic coverage areas. However, the contract was awarded under full and open competition, which typically drives prices towards market competitiveness. Factors influencing the price include the number of ambulances, response times, level of medical care provided (e.g., basic life support vs. advanced life support), geographic spread, and the specific services covered (e.g., non-emergency transport, emergency response). Given that AMR is a large, established provider, the price likely reflects their operational costs, profit margin, and the competitive landscape within Colorado. A more detailed analysis would require comparing the contract's unit costs (e.g., per transport, per hour) against publicly available pricing data or rates negotiated by other government entities in similar regions.

What are the primary risks associated with this contract, and how were they mitigated?

The primary risks associated with this contract include potential service disruptions, inadequate response times, or failure to meet medical standards. Given the critical nature of emergency medical services, any lapse in performance could have severe consequences. Mitigation strategies likely included the firm fixed-price contract structure, which places the financial risk of cost overruns on the contractor, American Medical Response, Inc. Additionally, the government would have performance standards and reporting requirements outlined in the contract. The selection process under full and open competition also aimed to choose a capable and reliable provider. Post-award oversight by FEMA would monitor performance against these standards, with potential penalties or remedies for non-compliance.

What was the historical spending pattern for similar medical transport services by the Department of Homeland Security or FEMA prior to this contract?

Analyzing historical spending patterns for similar medical transport services by DHS/FEMA prior to this specific contract (awarded in late 2012) would require access to historical federal procurement data. FEMA, as the primary agency responsible for disaster response, would likely have engaged in various forms of medical support contracts, including transport, particularly during and after declared disasters. Spending can be highly variable year-to-year, influenced by the frequency and severity of natural disasters or other emergencies requiring federal assistance. Contracts for routine or ongoing medical transport services might be less common for FEMA compared to specialized disaster-related needs, often relying on state and local resources. This $39 million contract, covering zones 1 & 2 for national medical transport and support services, suggests a broader, potentially ongoing requirement beyond immediate disaster relief.

How does the duration of the contract (38 days) impact the assessment of its value and the contractor's performance?

The very short duration of this contract (38 days, from October 27, 2012, to December 4, 2012) significantly impacts the assessment. It suggests this was likely an emergency or short-term surge requirement, possibly related to a specific event or a gap-filling measure while a longer-term contract was being established. For such a short period, the focus of value assessment shifts from long-term cost-effectiveness to immediate operational necessity and the ability to rapidly deploy services. The contractor's performance would be judged on their ability to meet immediate needs within the specified timeframe and budget. The $39 million value for such a brief period indicates a high daily operational cost, which is expected for critical, on-demand emergency services during a heightened need.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Ambulance Services

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: Clayton, Dubilier & Rice, Inc. (UEI: 080405368)

Address: 6200 S SYRACUSE WAY STE 200, ENGLEWOOD, CO, 06

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

Financial Breakdown

Contract Ceiling: $58,112,934

Exercised Options: $39,016,941

Current Obligation: $39,016,941

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSFE9012D0038

IDV Type: IDC

Timeline