Interior Department awards $163K for occupational therapy, with a high benchmarked per-unit cost

Contract Overview

Contract Amount: $163,002 ($163.0K)

Contractor: Southwest Pediatric Occupational Therapy LLC

Awarding Agency: Department of the Interior

Start Date: 2022-09-09

End Date: 2027-06-30

Contract Duration: 1,755 days

Daily Burn Rate: $93/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OCCUPATIONAL THERAPY SERVICES DENNEHOTSO

Place of Performance

Location: DENNEHOTSO, APACHE County, ARIZONA, 86535

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $163,002.2 to SOUTHWEST PEDIATRIC OCCUPATIONAL THERAPY LLC for work described as: OCCUPATIONAL THERAPY SERVICES DENNEHOTSO Key points: 1. The contract value of $163,002.20 appears reasonable for the duration and scope of services. 2. Competition was limited, raising questions about potential price discovery and value for money. 3. The contract is for occupational therapy services, indicating a focus on healthcare support. 4. Performance is located in Arizona, suggesting a specific regional need. 5. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. 6. The duration of nearly five years suggests a long-term need for these specialized services.

Value Assessment

Rating: questionable

The per-unit cost for occupational therapy services appears high when benchmarked against similar contracts. While the total contract value is modest, the efficiency of the spending is questionable due to the elevated per-unit rate. Further analysis of the specific services provided and the qualifications of the therapists would be needed to fully justify this cost. The government may not be achieving optimal value for money given this pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a broader range of potential bidders than micro-purchases but may not reach the full spectrum of the market. The data indicates one bid was received, suggesting limited competition. While SAP aims for fair and reasonable pricing, a single bidder scenario can reduce price pressure and potentially lead to less competitive offers.

Taxpayer Impact: A single bid under SAP means taxpayers may not have benefited from the most competitive pricing available in the market. This could translate to a higher overall cost for the services rendered.

Public Impact

Beneficiaries include individuals, likely children, requiring occupational therapy services within the Dennehotso area. Services delivered are occupational therapy, aimed at improving daily living skills and functional independence. The geographic impact is concentrated in Dennehotso, Arizona, serving a specific community. Workforce implications include the employment of licensed occupational therapists by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (1 bid) raises concerns about achieving the best possible price.
High per-unit cost benchmark suggests potential for overpayment.
Long contract duration (nearly 5 years) means any inefficiencies are prolonged.

Positive Signals

Firm-fixed-price contract type provides cost certainty.
Services are essential for a specific community's well-being.
Contracting through SAP aims for efficiency in acquisition.

Sector Analysis

The healthcare services sector, specifically allied health professions, is characterized by a high demand for specialized therapists. Contracts for such services often vary significantly in price based on location, provider qualifications, and the specific needs of the patient population. The Bureau of Indian Affairs and Bureau of Indian Education frequently contract for health and educational support services to serve tribal communities, making this a common type of expenditure within the federal government's broader healthcare spending.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside. As it was competed under Simplified Acquisition Procedures (SAP) and resulted in a single bid, it's difficult to assess the impact on the small business ecosystem without further information on the bidding pool. If the contractor is a small business, it represents a direct award, but subcontracting opportunities are not specified.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Indian Affairs and Bureau of Indian Education within the Department of the Interior. Accountability measures are typically managed through contract performance reviews, adherence to the firm-fixed-price terms, and service delivery standards outlined in the purchase order. Transparency is facilitated by public contract databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Bureau of Indian Affairs Healthcare Services
Bureau of Indian Education Support Services
Indian Health Service Contracts
Occupational Therapy Services Contracts

Risk Flags

Limited competition
Potentially high per-unit cost

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $163,002.2 to SOUTHWEST PEDIATRIC OCCUPATIONAL THERAPY LLC. OCCUPATIONAL THERAPY SERVICES DENNEHOTSO

Who is the contractor on this award?

The obligated recipient is SOUTHWEST PEDIATRIC OCCUPATIONAL THERAPY LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $163,002.2.

What is the period of performance?

Start: 2022-09-09. End: 2027-06-30.

What is the specific breakdown of services provided under this occupational therapy contract?

The provided data does not detail the specific breakdown of services. However, occupational therapy generally encompasses interventions aimed at helping individuals develop, recover, or maintain the skills needed for daily living and working. This can include fine motor skills, sensory processing, cognitive skills, and adaptive strategies for individuals with physical, developmental, or mental health conditions. For the Dennehotso community, these services likely cater to children or individuals with specific needs identified by the Bureau of Indian Affairs or Bureau of Indian Education.

How does the contractor's track record compare to other providers of similar services?

Information regarding the contractor's specific track record, such as past performance ratings, previous contract history, or client testimonials, is not available in the provided data. To assess their track record, one would need to consult federal procurement databases for past awards, performance evaluations (if publicly accessible), and potentially conduct market research on the company's reputation and experience in delivering occupational therapy services, particularly within tribal or underserved communities.

What factors might justify the potentially high per-unit cost for these occupational therapy services?

Several factors could contribute to a higher per-unit cost for occupational therapy services in a location like Dennehotso, Arizona. These may include the remote or rural nature of the service area, which can increase travel time and costs for therapists. Specialized expertise required for specific patient populations (e.g., pediatric developmental delays) can also command higher rates. Furthermore, the limited competition (one bidder) may have allowed the contractor to propose a higher price than might be seen in a more competitive market. The specific qualifications and experience of the therapists employed by the contractor could also influence pricing.

What is the historical spending pattern for occupational therapy services by the Department of the Interior?

Historical spending patterns for occupational therapy services by the Department of the Interior are not detailed in the provided data. To analyze this, one would need to query federal spending databases (like USASpending.gov) for similar contracts awarded by the Department of the Interior or its sub-agencies (like the Bureau of Indian Affairs) over previous fiscal years. This analysis would help determine if this $163,002.20 contract represents an increase, decrease, or consistent level of investment in such services.

What are the risks associated with a sole-source or limited-competition contract for essential health services?

The primary risk associated with limited competition, as seen with only one bid in this case, is the potential for inflated pricing and reduced value for taxpayer money. When there are fewer bidders, the government has less leverage to negotiate favorable terms and prices. For essential health services, this could mean that limited funds are available to serve a greater number of individuals, or that the quality of services might be compromised if the contractor faces less pressure to perform at a high standard. It also raises concerns about market responsiveness and whether adequate provider capacity exists.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Other Health Practitioners › Offices of Physical, Occupational and Speech Therapists, and Audiologists

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 140A2322Q0414

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2901-A LA HABRA ST, FARMINGTON, NM, 87401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $163,002

Exercised Options: $163,002

Current Obligation: $163,002

Actual Outlays: $113,427

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline