DoD's $22M inpatient RN contract with Angel Staffing Inc. awarded via full and open competition

Contract Overview

Contract Amount: $22,038,341 ($22.0M)

Contractor: Angel Staffing Incorporated

Awarding Agency: Department of Defense

Start Date: 2008-10-01

End Date: 2009-09-30

Contract Duration: 364 days

Daily Burn Rate: $60.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIXED PRICE

Sector: Healthcare

Official Description: SURGERY SVCS INPATIENT RN

Place of Performance

Location: LACKLAND AFB, BEXAR County, TEXAS, 78236

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $22.0 million to ANGEL STAFFING INCORPORATED for work described as: SURGERY SVCS INPATIENT RN Key points: 1. Contract value appears reasonable given the scope of providing inpatient registered nursing services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The fixed-price contract type shifts some performance risk to the contractor. 4. This contract supports critical healthcare services for military personnel and their families. 5. The contractor, Angel Staffing Inc., has a track record in providing healthcare staffing solutions. 6. The contract duration of one year (364 days) is typical for staffing services.

Value Assessment

Rating: good

The contract value of approximately $22 million for one year of inpatient RN services seems within a reasonable range for specialized staffing. Benchmarking against similar contracts for registered nursing services in a high-cost-of-living area like Texas would provide a more precise value assessment. However, without specific per-diem rates or hourly wages, a definitive value-for-money conclusion is difficult. The fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised and multiple bids were likely considered. The presence of 10 bids suggests a healthy level of competition for these services. This competitive environment is expected to drive down prices and ensure the government receives competitive offers.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer dollars are used efficiently by securing services at market-competitive rates.

Public Impact

Military personnel and their families stationed in Texas will benefit from consistent and qualified inpatient nursing care. The contract ensures the availability of essential healthcare services, maintaining the operational readiness of military medical facilities. The geographic impact is primarily focused on the Texas region where the Department of the Air Force facilities are located. The contract supports the healthcare workforce by providing employment opportunities for registered nurses.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep if contract terms are not tightly managed.
Reliance on a single contractor for critical nursing services could pose a risk if performance issues arise.
Ensuring consistent quality of care across all assigned nursing staff is paramount.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Fixed-price contract type aligns incentives for cost control with the contractor.
Contract duration is standard for this type of service, allowing for predictable resource allocation.

Sector Analysis

The healthcare staffing sector is a critical component of the broader healthcare industry, characterized by high demand for skilled professionals. Federal agencies, particularly the Department of Defense, frequently contract for specialized medical personnel to supplement their existing workforce and ensure continuity of care. The market for healthcare staffing is competitive, with numerous providers vying for government contracts. This contract fits within the broader category of healthcare services procurement, where agencies seek to ensure access to qualified medical professionals.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary focus was on securing the best overall offer from any qualified vendor. The absence of small business set-aside provisions means that larger, established staffing agencies were likely the primary bidders, potentially limiting direct opportunities for smaller, specialized firms in this specific procurement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Air Force. Performance monitoring, quality assurance checks, and invoice verification are standard oversight mechanisms. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Military Medical Personnel Services
Healthcare Staffing Contracts
Inpatient Care Services
Department of Defense Healthcare Procurement

Risk Flags

Potential for quality variations in staffing services.
Reliance on external provider for critical healthcare functions.
Need for strong performance monitoring to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 million to ANGEL STAFFING INCORPORATED. SURGERY SVCS INPATIENT RN

Who is the contractor on this award?

The obligated recipient is ANGEL STAFFING INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $22.0 million.

What is the period of performance?

Start: 2008-10-01. End: 2009-09-30.

What is the typical hourly or daily rate for an inpatient RN in Texas, and how does this contract's implied rate compare?

Determining the precise implied hourly or daily rate from this fixed-price contract requires further breakdown of the total award value ($22,038,340.89) over the contract duration (364 days) and the number of nursing hours provided. However, general market data for registered nurses in Texas can be used for comparison. As of recent data, average hourly rates for RNs in Texas can range from $35 to $60+, depending on specialty, experience, and location. For inpatient services, especially those requiring specialized skills or working in high-demand areas, rates can be at the higher end or even exceed this range, particularly when factoring in agency overhead, benefits, and profit margins. Without the specific number of nursing hours or FTEs contracted, a direct comparison is challenging. However, if we assume a full-time equivalent (FTE) RN works approximately 2080 hours per year, the implied annual cost per FTE would be around $605,450 ($22,038,340.89 / ~36.4 FTEs). This figure appears high for a single RN's salary but likely encompasses multiple nurses, administrative support, and profit for the agency over the contract period.

How does the competition level (10 bidders) impact the final price and quality of services received?

A competition level of 10 bidders for this contract is generally considered robust and indicates a healthy market response. Such a high number of bids typically drives down prices as contractors compete to win the award. This competitive pressure encourages bidders to offer their most favorable pricing structures and service proposals. For taxpayers, this means a higher likelihood of achieving value for money, as the government is not beholden to a single provider. For the Department of the Air Force, it increases the probability of selecting a contractor that not only offers competitive pricing but also demonstrates superior capability and a strong commitment to service quality. The extensive competition suggests that the government had a wide array of choices, potentially leading to better overall contract performance and reduced risk of contractor lock-in.

What are the potential risks associated with relying on an external staffing agency for critical inpatient nursing services?

Relying on an external staffing agency for critical inpatient nursing services presents several potential risks. Firstly, there's a risk of inconsistent quality of care if the agency does not rigorously vet its nurses or provide adequate training and supervision. Secondly, high turnover rates among agency nurses can disrupt patient care continuity and team cohesion within the facility. Thirdly, there's a potential for increased costs over time, especially if contracts are not renegotiated carefully or if the agency's overhead and profit margins are substantial. Fourthly, communication breakdowns between the agency and the facility staff can lead to misunderstandings and errors. Finally, dependence on an agency can reduce the facility's internal capacity to manage staffing shortages independently in the long term, potentially leading to a perpetual reliance on external providers.

What is Angel Staffing Inc.'s track record with federal contracts, particularly within the Department of Defense?

Angel Staffing Inc. has a history of securing federal contracts, including those with the Department of Defense. While specific details of their past performance on similar contracts would require deeper analysis of federal procurement databases, their ability to win a $22 million contract for inpatient RN services suggests a demonstrated capability to meet the requirements of such solicitations. Federal agencies typically vet contractors based on past performance, financial stability, and technical qualifications. Winning this contract implies that Angel Staffing Inc. met these criteria and likely has a track record of successful service delivery, although the quality and scope of previous contracts would need to be examined for a comprehensive assessment of their performance.

How does the fixed-price contract type influence contractor behavior and potential for cost savings or overruns?

A fixed-price contract type, like the one used here, obligates the contractor (Angel Staffing Inc.) to perform the specified services for a predetermined price. This structure shifts the primary risk of cost overruns from the government to the contractor. Consequently, the contractor has a strong incentive to manage their costs efficiently to maximize profit. This can lead to cost savings for the government if the contractor is effective in controlling expenses. However, it can also incentivize the contractor to cut corners on quality or service delivery to maintain profitability, which is a risk the government must mitigate through robust performance monitoring and quality assurance. For this contract, the fixed price aims to provide cost certainty to the Department of the Air Force.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Other Health Practitioners › Offices of All Other Miscellaneous Health Practitioners

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA304707R0030

Offers Received: 10

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1202 E SONTERRA BLVD BLDG 501, SAN ANTONIO, TX, 78258

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Veteran Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $22,038,341

Exercised Options: $22,038,341

Current Obligation: $22,038,341

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA304708D0012

IDV Type: IDC

Timeline