Interior Department awards $597K for physical therapy services to LSG Educational Services LLC

Contract Overview

Contract Amount: $59,660 ($59.7K)

Contractor: LSG Educational Services LLC

Awarding Agency: Department of the Interior

Start Date: 2025-09-22

End Date: 2027-09-21

Contract Duration: 729 days

Daily Burn Rate: $82/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: PHYSICAL THERAPIST AND PHYSICAL THERAPIST ASSISTANT

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87107

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $59,660 to LSG EDUCATIONAL SERVICES LLC for work described as: PHYSICAL THERAPIST AND PHYSICAL THERAPIST ASSISTANT Key points: 1. Contract awarded to a single vendor, raising questions about competitive pricing. 2. Services are for physical therapists and assistants, a critical healthcare need. 3. The contract duration is 729 days, indicating a medium-term need. 4. The award falls under Simplified Acquisition Procedures, suggesting a focus on smaller procurements. 5. The geographic focus is New Mexico, potentially serving specific tribal communities.

Value Assessment

Rating: fair

The contract value of $596,600 for physical therapy services over two years appears reasonable for the scope. However, without more detailed service requirements or benchmarks for similar contracts within the Bureau of Indian Affairs or Bureau of Indian Education, a definitive value-for-money assessment is challenging. The pricing structure based on labor hours necessitates careful monitoring to ensure efficiency and prevent cost overruns. Comparison to market rates for physical therapists and assistants in New Mexico would provide a clearer picture of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than sole-source awards but may not reach the full and open competition level. The data does not specify the number of bidders, but SAP awards are often made to a limited pool of vendors. This level of competition might result in prices that are not as aggressively negotiated as those from a full and open competition, potentially impacting the overall value.

Taxpayer Impact: The limited competition under SAP means taxpayers may not be receiving the absolute lowest possible price for these essential services. While SAP aims for efficiency, it can sometimes lead to higher costs compared to robust, open bidding processes.

Public Impact

Beneficiaries include individuals requiring physical therapy and physical therapist assistant services, likely within the scope of the Bureau of Indian Affairs and Bureau of Indian Education's service areas. Services delivered will focus on physical rehabilitation and support, addressing health and wellness needs. The geographic impact is concentrated in New Mexico, where the services will be provided. Workforce implications include the employment of physical therapists and assistants by the contractor, LSG Educational Services LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing.
Lack of detailed performance metrics makes assessing service quality difficult.
Reliance on labor hours could incentivize longer service durations rather than efficiency.

Positive Signals

Addresses a critical healthcare need for physical therapy services.
Contract awarded to a vendor with an apparent existing presence or capability in the service area.
Simplified Acquisition Procedures can expedite the delivery of needed services.

Sector Analysis

The healthcare services sector, specifically allied health professions, is characterized by a high demand for skilled professionals like physical therapists. The market size for these services is substantial, driven by an aging population and increased awareness of rehabilitation benefits. This contract fits within the broader federal healthcare spending, which includes services provided to specific populations such as Native Americans through agencies like the Bureau of Indian Affairs and Bureau of Indian Education. Comparable spending benchmarks would typically involve analyzing per diem rates or hourly wages for similar professional services across federal agencies and private healthcare providers.

Small Business Impact

The 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 necessary services through the most efficient means available under SAP. The impact on the small business ecosystem is neutral to potentially negative if small businesses capable of providing these services were not actively solicited or considered.

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 would be tied to the terms and conditions of the purchase order, including service delivery standards and payment terms. Transparency is facilitated by public contract databases, but detailed performance reports and specific oversight activities are not publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Indian Health Service Contracts
Department of Veterans Affairs Medical Services
Federal Occupational Health Services

Risk Flags

Limited Competition
Potential for Non-Competitive Pricing
Lack of Detailed Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $59,660 to LSG EDUCATIONAL SERVICES LLC. PHYSICAL THERAPIST AND PHYSICAL THERAPIST ASSISTANT

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 $59,660.

What is the period of performance?

Start: 2025-09-22. End: 2027-09-21.

What is the typical hourly rate for a physical therapist and physical therapist assistant in New Mexico?

The typical hourly rate for a physical therapist in New Mexico can range from $40 to $70 per hour, depending on experience, location, and facility type. Physical therapist assistants generally earn between $25 and $45 per hour. These rates are based on general market data and may not reflect specialized services or specific contract requirements. The Department of the Interior's contract with LSG Educational Services LLC is based on labor hours, and without knowing the exact mix of therapists and assistants, or their specific roles and experience levels, a direct comparison to these market rates is difficult. However, the total contract value of $596,600 over approximately 729 days suggests an average daily expenditure of around $818, which, if spread over 8-hour workdays, would equate to an average hourly cost of approximately $102. This figure would need to cover all labor, overhead, and profit, making a direct comparison to raw hourly wages insufficient without further breakdown.

How does the contract duration of 729 days compare to similar physical therapy service contracts?

A contract duration of 729 days (approximately two years) for professional services like physical therapy is relatively standard for federal procurements. Many service contracts, especially those under Simplified Acquisition Procedures, are awarded for one or two-year base periods, often with options for extension. This duration allows for consistent service delivery while providing the agency with flexibility to re-evaluate needs and market conditions. Longer durations (e.g., 5 years) are more common for large-scale, complex service contracts that require significant contractor investment or stability. Shorter durations (e.g., less than a year) might be used for pilot programs or very specific, short-term needs. The 729-day term for this contract suggests a stable, ongoing requirement for physical therapy services within the Bureau of Indian Affairs and Bureau of Indian Education.

What are the potential risks associated with a limited competition award for healthcare services?

A limited competition award for healthcare services, such as this physical therapy contract, carries several potential risks. Primarily, it can lead to higher costs for taxpayers, as the lack of robust competition may reduce the incentive for contractors to offer their most competitive pricing. There's also a risk of reduced service quality or innovation if the contractor faces less pressure to excel. Furthermore, limited competition can create barriers for other qualified small or large businesses that could potentially offer better value or specialized services. Agencies may also miss out on identifying more cost-effective or efficient service delivery models that might emerge from a broader bidding process. Finally, it can raise concerns about fairness and equal opportunity in government contracting.

What is LSG Educational Services LLC's track record with federal contracts?

Information regarding LSG Educational Services LLC's specific track record with federal contracts, beyond this award, is not detailed in the provided data. A comprehensive analysis would require accessing federal procurement databases like SAM.gov or FPDS to review past awards, performance ratings, and any history of contract disputes or terminations. Without this broader context, it's difficult to assess their overall reliability, past performance quality, or experience in delivering similar healthcare services to federal agencies. The current award is under Simplified Acquisition Procedures, which often involves vendors who may have less extensive federal contracting histories compared to those bidding on larger, more complex contracts.

How does the $596,600 award amount compare to overall federal spending on physical therapy services?

The $596,600 award amount for physical therapy services by the Department of the Interior is relatively modest when compared to the vast scale of overall federal spending on healthcare. Federal agencies, including the Department of Veterans Affairs (VA), Indian Health Service (IHS), and TRICARE (managed by the Defense Health Agency), collectively spend billions of dollars annually on a wide range of medical services, including physical therapy. For instance, the VA alone has a substantial budget dedicated to rehabilitative and therapeutic services. This specific contract represents a small fraction of that total expenditure, likely serving a localized need within specific Bureau of Indian Affairs or Bureau of Indian Education facilities or programs in New Mexico. Its significance lies in its targeted application rather than its contribution to the overall federal healthcare budget.

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: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 140A2325Q0264

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

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: $90,060

Exercised Options: $59,660

Current Obligation: $59,660

Actual Outlays: $3,442

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline