HHS awards $16.5M contract to Sacramento Native American Health Center for physician and mental health services

Contract Overview

Contract Amount: $16,501,681 ($16.5M)

Contractor: Sacramento Native American Health Center Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2020-12-07

End Date: 2025-12-31

Contract Duration: 1,850 days

Daily Burn Rate: $8.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SNAHC-HEALTH

Place of Performance

Location: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 95811

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.5 million to SACRAMENTO NATIVE AMERICAN HEALTH CENTER INC for work described as: SNAHC-HEALTH Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration of 1850 days suggests a long-term need for these specialized health services. 3. Awarded to a single entity, raising questions about the extent of competition and potential price discovery. 4. The services provided fall under the 'Offices of Physicians, Mental Health Specialists' NAICS code. 5. Geographically focused on California, serving a specific regional population. 6. No small business set-aside was utilized for this award.

Value Assessment

Rating: fair

The contract's value of $16.5 million over approximately five years for physician and mental health services requires careful benchmarking. Without specific performance metrics or comparisons to similar contracts for the same services in the region, it is difficult to definitively assess value for money. The firm-fixed-price structure provides cost certainty, but the lack of competitive bidding may have led to a higher price than could have been achieved through a more open process. Further analysis would involve comparing the per-provider cost or service unit cost to industry standards and other IHS contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or is the only responsible source capable of meeting the government's needs. The lack of competition means that the government did not benefit from a bidding process that could drive down prices through market forces. The rationale for this sole-source award would need to be thoroughly documented by the agency to ensure it was justified.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price for the services rendered. Without competitive pressure, the awarded price may be higher than if multiple vendors had vied for the contract.

Public Impact

Beneficiaries include Native American individuals in California requiring physician and mental health specialist services. Delivers essential healthcare services, including primary care and mental health support, to an underserved population. Geographic impact is concentrated within California, specifically serving the community associated with the Sacramento Native American Health Center. Supports a workforce of physicians and mental health specialists, contributing to healthcare employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing for taxpayers.
Sole-source awards require strong justification to ensure necessity and fairness.
Performance metrics and outcomes are not detailed, making value assessment challenging.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Long contract duration indicates a sustained commitment to providing critical health services.
Award to a specialized health center suggests alignment with specific community needs.

Sector Analysis

The healthcare sector, particularly within the Indian Health Service (IHS) domain, focuses on providing medical services to Native American populations. Contracts in this area often involve specialized care, including primary, mental, and behavioral health. The market size for such specialized services can be significant, driven by federal mandates and the unique health needs of the target demographic. Benchmarking this contract would involve comparing its total value and per-unit costs against other IHS contracts for similar physician and mental health services, as well as against private sector benchmarks for comparable services in California.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The focus is on a direct award to the Sacramento Native American Health Center. This means that opportunities for small businesses to participate in delivering these specific services through subcontracting are not explicitly defined within this award's parameters. The impact on the small business ecosystem is therefore limited unless the prime contractor voluntarily engages small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and the Indian Health Service (IHS). Accountability measures would be tied to the terms and conditions of the firm-fixed-price contract, including service delivery requirements and performance expectations. Transparency is facilitated through federal contract databases, but detailed operational oversight and Inspector General jurisdiction would depend on specific contractual clauses and agency policies regarding performance monitoring and audits.

Related Government Programs

Indian Health Service Contracts
Physician Services Contracts
Mental Health Services Contracts
Federal Health IT Contracts
HHS Grants and Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Performance metrics not detailed, hindering value assessment.
Potential for higher costs due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.5 million to SACRAMENTO NATIVE AMERICAN HEALTH CENTER INC. SNAHC-HEALTH

Who is the contractor on this award?

The obligated recipient is SACRAMENTO NATIVE AMERICAN HEALTH CENTER INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $16.5 million.

What is the period of performance?

Start: 2020-12-07. End: 2025-12-31.

What is the historical spending pattern for physician and mental health services by the Indian Health Service in California?

Analyzing historical spending patterns for physician and mental health services by the Indian Health Service (IHS) in California is crucial for context. While specific historical data for this exact contract is not provided, the IHS generally allocates significant resources to meet the healthcare needs of Native American communities. Spending in this sector can fluctuate based on federal appropriations, evolving health priorities, and the specific needs of different service areas. Examining past IHS contract awards for similar services in California, including their values, durations, and whether they were competed or sole-sourced, would reveal trends. For instance, a consistent pattern of sole-source awards to specific organizations might indicate a lack of market competition or a reliance on established providers. Conversely, a trend towards competitive bidding could suggest a more dynamic market. Understanding these historical patterns helps in evaluating whether the current $16.5 million award represents an increase, decrease, or stable level of investment in these critical services for the region.

How does the awarded amount of $16.5 million compare to similar contracts for physician and mental health services within the IHS or other federal agencies?

Comparing the $16.5 million award to similar contracts is essential for assessing value. The Indian Health Service (IHS) often awards contracts for physician and mental health services to organizations serving Native American populations. Benchmarking this contract against other IHS awards for comparable services in different regions, or against contracts awarded by agencies like the Department of Veterans Affairs (VA) for similar populations, would provide valuable context. Factors to consider include the contract duration (1850 days, approximately 5 years), the scope of services (physicians, mental health specialists), and the number of beneficiaries served. A firm-fixed-price contract, like this one, offers cost certainty. However, without detailed service unit costs or per-patient costs, a direct comparison is challenging. If similar contracts were competed and awarded at a lower total value or with better defined performance metrics, it could indicate that this sole-source award may not represent the best possible value for the government. Conversely, if other comparable contracts are of similar or higher value, it might suggest the pricing is within an expected range for these specialized services.

What are the specific performance metrics and deliverables associated with this $16.5 million contract?

The provided data does not specify the performance metrics and deliverables for this $16.5 million contract. Typically, federal contracts, especially those for healthcare services, include detailed statements of work (SOW) outlining expected outcomes, quality standards, reporting requirements, and key performance indicators (KPIs). For physician and mental health services, these might include patient wait times, patient satisfaction scores, adherence to clinical guidelines, availability of specialists, and successful treatment plan execution. The absence of this information in the summary data makes a thorough assessment of the contractor's performance and the overall effectiveness of the services challenging. The Indian Health Service would be responsible for monitoring the contractor's adherence to these deliverables and metrics to ensure the quality and appropriateness of care provided to the beneficiaries.

What is the justification for awarding this contract on a sole-source basis to Sacramento Native American Health Center Inc.?

The justification for awarding this $16.5 million contract on a sole-source basis to Sacramento Native American Health Center Inc. is not detailed in the provided data. Federal procurement regulations permit sole-source awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling requirements where competition is not feasible. For the Indian Health Service (IHS), this might involve a unique relationship with an organization that has a long-standing history of serving a specific Native American community, possesses specialized cultural competency, or holds unique accreditations or certifications vital for that population. The agency would need to formally document the rationale, demonstrating why other qualified entities could not fulfill the requirement. Without this documented justification, it is difficult to ascertain if the sole-source award was the most appropriate procurement method and if it served the government's best interest in terms of cost and quality.

What is the track record of Sacramento Native American Health Center Inc. in managing federal contracts, particularly with the IHS?

Information regarding the specific track record of Sacramento Native American Health Center Inc. in managing federal contracts, particularly with the Indian Health Service (IHS), is not provided in the summary data. A comprehensive assessment would require reviewing their past performance on similar contracts, including adherence to schedules, budget management, quality of services delivered, and compliance with federal regulations. Examining past performance evaluations, any disputes or contract terminations, and their overall history with federal agencies would offer insight into their capabilities and reliability. For a sole-source award of this magnitude ($16.5 million over five years), a strong and proven track record is typically a prerequisite to ensure successful contract execution and effective service delivery to the intended beneficiaries.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians, Mental Health Specialists

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75H70321R00002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2020 J ST, SACRAMENTO, CA, 95811

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Tax Exempt, Minority Owned Business, Native American Owned Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $22,837,562

Exercised Options: $16,501,681

Current Obligation: $16,501,681

Actual Outlays: $15,559,029

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline