Interior's $71.7M contract for educational therapy services awarded to LSG Educational Services LLC

Contract Overview

Contract Amount: $71,700 ($71.7K)

Contractor: LSG Educational Services LLC

Awarding Agency: Department of the Interior

Start Date: 2025-08-01

End Date: 2026-07-31

Contract Duration: 364 days

Daily Burn Rate: $197/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OT/COTA SERVICES FOR SY 25/26

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87107

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $71,700 to LSG EDUCATIONAL SERVICES LLC for work described as: OT/COTA SERVICES FOR SY 25/26 Key points: 1. Value for money assessed through competitive bidding process. 2. Competition dynamics indicate a potentially favorable pricing environment. 3. Risk indicators appear low given the contract type and duration. 4. Performance context relies on the contractor's ability to deliver specialized therapy. 5. Sector positioning within healthcare support services for educational institutions.

Value Assessment

Rating: good

The contract value of $71.7 million over one year for OT/COTA services appears reasonable given the specialized nature of the services. Benchmarking against similar contracts for educational therapy services in New Mexico or for the Bureau of Indian Affairs would provide a more precise value assessment. The firm fixed-price structure helps control costs, but the ultimate value depends on the quality and effectiveness of the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), suggesting a limited competition environment. While two bids were received, the specifics of the solicitation and the number of potential bidders are not detailed. Limited competition can sometimes lead to higher prices compared to full and open competition, but the SAP process is designed for efficiency in acquiring goods and services below certain thresholds.

Taxpayer Impact: Taxpayers benefit from a streamlined acquisition process, but the limited competition may mean that a more aggressive price was not achieved compared to a broader solicitation.

Public Impact

Students within the Bureau of Indian Affairs and Bureau of Indian Education systems will benefit from essential occupational, physical, and speech therapy services. Services aim to support the educational development and well-being of Native American students. Geographic impact is concentrated in New Mexico, where the contractor is based. Workforce implications include the employment of licensed therapists and support staff by LSG Educational Services LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service delivery gaps if contractor faces staffing shortages.
Ensuring consistent quality of therapy across all service locations.
Monitoring contractor performance to ensure adherence to educational and therapeutic standards.

Positive Signals

Contractor's focus on specialized therapy services suggests relevant expertise.
Firm fixed-price contract provides cost certainty for the agency.
One-year base period with potential for renewal allows for flexibility.

Sector Analysis

This contract falls within the healthcare support services sector, specifically focusing on allied health professionals providing therapy services in an educational context. The market for such specialized services is often niche, with a limited number of providers possessing the necessary licenses and experience to work with specific student populations, such as those served by the Bureau of Indian Affairs. Comparable spending benchmarks would likely be found within federal and state education budgets allocated for special education and related services.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. The contractor, LSG Educational Services LLC, is likely a small business itself based on typical industry profiles, but without specific size standard data, this cannot be confirmed. The impact on the broader small business ecosystem would be minimal unless subcontracting opportunities were mandated or voluntarily pursued.

Oversight & Accountability

Oversight will likely be managed by the Bureau of Indian Affairs and Bureau of Indian Education contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of services as specified. Transparency is facilitated through federal contract databases, though detailed performance metrics and quality assessments may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Bureau of Indian Affairs Education Programs
Bureau of Indian Education Student Support Services
Special Education Grants to Local Educational Agencies
Therapeutic Services for Children

Risk Flags

Potential for limited competition due to SAP.
Need for culturally competent service delivery.
Ensuring adequate therapist availability in potentially remote locations.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $71,700 to LSG EDUCATIONAL SERVICES LLC. OT/COTA SERVICES FOR SY 25/26

Who is the contractor on this award?

The obligated recipient is LSG EDUCATIONAL SERVICES 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 $71,700.

What is the period of performance?

Start: 2025-08-01. End: 2026-07-31.

What is the track record of LSG Educational Services LLC in delivering similar therapy services to federal agencies or educational institutions?

Information regarding LSG Educational Services LLC's specific track record with federal agencies or educational institutions is not provided in the data. A thorough assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes in delivering occupational, physical, or speech therapy services. Understanding their experience with similar student populations and educational settings would be crucial for evaluating their capability to fulfill this contract effectively. Without this data, the assessment relies on the assumption that the competitive process adequately vetted the contractor's qualifications.

How does the $71.7 million contract value compare to historical spending on similar services by the Bureau of Indian Affairs and Bureau of Indian Education?

The provided data does not include historical spending figures for similar services by the Bureau of Indian Affairs (BIA) and Bureau of Indian Education (BIE). To compare, one would need to access historical contract databases or agency budget reports to identify previous awards for OT/COTA services, their values, durations, and the scope of work. A significant increase or decrease in spending compared to prior periods could indicate changes in service needs, market pricing, or agency priorities. Understanding this context is vital for assessing whether the current award represents value for money or a potential over/under-investment.

What are the key performance indicators (KPIs) that will be used to measure the success of this contract?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. Typically, for therapy services, KPIs would focus on metrics such as the number of students served, frequency and duration of therapy sessions, student progress towards therapeutic goals (e.g., improved motor skills, communication abilities), client satisfaction (from students, parents, and educators), and adherence to professional standards and timelines. The contracting officer's representative (COR) would be responsible for monitoring these KPIs to ensure the contractor meets the contract's objectives and delivers quality services.

What is the potential impact of 'COMPETED UNDER SAP' on the overall cost-effectiveness of this contract?

Competing under Simplified Acquisition Procedures (SAP) is designed for efficiency and speed in acquiring goods and services below certain dollar thresholds. While SAP can reduce administrative burden and potentially lead to faster contract awards, it typically involves a less extensive competition pool than full and open competition. For a contract valued at $71.7 million, which is significantly above the standard SAP thresholds, the use of SAP might indicate specific circumstances or a potential deviation from standard procurement practices. The cost-effectiveness depends on whether the limited competition under SAP still yielded competitive pricing, which is suggested by the receipt of two bids, but requires further analysis of the bid details and market conditions.

Are there any specific risks associated with providing therapy services to students within the Bureau of Indian Affairs and Bureau of Indian Education systems?

Providing therapy services to students within the Bureau of Indian Affairs (BIA) and Bureau of Indian Education (BIE) systems can present unique risks. These may include challenges related to geographic isolation of schools, diverse cultural backgrounds and needs of the student population, potential for high student mobility, and the need for culturally competent service delivery. Additionally, ensuring consistent access to qualified therapists in remote areas can be difficult. The contractor must demonstrate an understanding of these specific contextual factors and have robust strategies to mitigate them to ensure effective and equitable service provision.

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: 140A2325Q0121

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 600 CAMINO ESPANOL NW, ALBUQUERQUE, NM, 87107

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

Financial Breakdown

Contract Ceiling: $71,700

Exercised Options: $71,700

Current Obligation: $71,700

Actual Outlays: $33,374

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline