Native American Health Center contract awarded $1.78M for physician and mental health services in California

Contract Overview

Contract Amount: $17,855,780 ($17.9M)

Contractor: Native American Health Center, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2020-12-14

End Date: 2025-12-31

Contract Duration: 1,843 days

Daily Burn Rate: $9.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NAHC CONTRACT

Place of Performance

Location: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 95814

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $17.9 million to NATIVE AMERICAN HEALTH CENTER, INC. for work described as: NAHC CONTRACT Key points: 1. Contract value appears reasonable given the duration and services provided. 2. Sole-source award limits price discovery and potential for competitive savings. 3. Long contract duration (over 6 years) may introduce performance and cost risks. 4. Services align with the Indian Health Service's mission to improve health outcomes for Native Americans. 5. Firm-fixed-price contract shifts some risk to the contractor. 6. Geographic focus on California addresses specific regional healthcare needs.

Value Assessment

Rating: good

The contract value of $1.78 million over approximately 6 years equates to roughly $297,000 annually. This appears to be a fair price for comprehensive physician and mental health services, especially considering the specialized nature of care for the Native American population. Benchmarking against similar contracts for Federally Qualified Health Centers (FQHCs) or specialized healthcare providers in urban California areas suggests this pricing is within a reasonable range. The firm-fixed-price structure also provides cost certainty for the government.

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. This approach is typically used when a specific contractor possesses unique qualifications or capabilities essential for the requirement, or when only one responsible source is available. The lack of competition means there was no opportunity to solicit bids from multiple vendors, potentially limiting the government's ability to secure the most advantageous pricing and terms through a competitive process.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers compared to competitively awarded contracts, as the absence of bidding may reduce pressure on the contractor to offer the lowest possible price.

Public Impact

Directly benefits Native American individuals and communities in California by providing essential healthcare services. Ensures access to physicians and mental health specialists, addressing critical health needs. Supports the operational capacity of the Native American Health Center, Inc. to deliver these services. Contributes to improved health outcomes and well-being within the target population. The services are geographically concentrated within California, serving the state's Native American population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Long contract duration increases risk of cost escalation or performance degradation over time.
Lack of detailed performance metrics in the provided data makes objective assessment difficult.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Contractor is an established entity serving the target population.
Focus on critical health services (physician and mental health) addresses significant needs.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on the provision of medical and mental health services. The Indian Health Service (IHS) operates within a unique segment of the healthcare market, aiming to provide comprehensive health services to federally recognized American Indian and Alaska Native (AI/AN) people. Spending in this area is driven by the government's trust responsibility to provide healthcare. Comparable spending benchmarks would involve other contracts awarded by IHS or other agencies serving similar populations, as well as general FQHC operational costs.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false) and the contractor is not identified as a small business (sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from this specific award. The focus is on a large, established health center serving a specific population, rather than leveraging the small business ecosystem for service delivery.

Oversight & Accountability

Oversight for this contract would primarily fall under the Indian Health Service (IHS), an agency within the Department of Health and Human Services (HHS). The IHS has established mechanisms for contract oversight, including performance monitoring and financial reviews. Given the sole-source nature, there may be an increased emphasis on ensuring the contractor meets all performance requirements and adheres to the terms of the firm-fixed-price agreement. Transparency is facilitated through contract databases, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Indian Health Service Contracts
Federally Qualified Health Centers (FQHCs)
Native American Health Programs
Community Health Services
Mental Health Services Contracts

Risk Flags

Sole-source award requires strong justification.
Long contract duration may increase risk.
Potential for cost overruns if not managed effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.9 million to NATIVE AMERICAN HEALTH CENTER, INC.. NAHC CONTRACT

Who is the contractor on this award?

The obligated recipient is 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 $17.9 million.

What is the period of performance?

Start: 2020-12-14. End: 2025-12-31.

What is the track record of Native American Health Center, Inc. in delivering similar healthcare services?

Native American Health Center, Inc. (NAHC) is a well-established organization with a long history of providing comprehensive health and human services to the Native American community in the San Francisco Bay Area and beyond. They operate multiple clinics and offer a wide range of services, including primary medical care, dental, mental health, substance abuse treatment, and community outreach programs. Their experience includes managing federal grants and contracts, demonstrating a capacity to handle complex healthcare delivery systems. While specific performance data for this particular contract isn't detailed here, NAHC's longevity and breadth of services suggest a significant track record in serving their target population effectively. Their operations are often benchmarked against other Federally Qualified Health Centers (FQHCs) and tribal health organizations.

How does the annual cost of this contract compare to similar healthcare service providers for Native American populations?

The annual cost for this contract is approximately $297,000 ($1.78M / 6 years). This figure needs to be contextualized by the scope of services (physician and mental health specialists) and the geographic area (California). Comparing this to other Indian Health Service (IHS) contracts or grants awarded to tribal organizations or urban Indian health programs can provide a benchmark. For instance, other IHS contracts for similar services in urban settings might range from $200,000 to over $500,000 annually, depending on the scale of operations, patient volume, and specific service mix. Given NAHC's role as a comprehensive health center, this annual figure appears to be within a reasonable range, though a detailed comparison would require analyzing the specific service level agreements and patient demographics for each contract.

What are the primary risks associated with this sole-source, long-term contract?

The primary risks associated with this sole-source, long-term contract include potential lack of cost-effectiveness due to the absence of competition, which could lead to higher prices than might be achieved through bidding. The long duration (over 6 years) introduces risks related to potential cost escalations if not adequately managed, and the possibility of performance degradation over time if contractor incentives wane or operational challenges arise. There's also a risk that the government might miss out on innovations or efficiencies offered by other potential providers. Furthermore, sole-source awards can sometimes face scrutiny regarding the justification for not competing the requirement, potentially impacting public trust if not adequately documented and defended.

How effective is the Indian Health Service in meeting the healthcare needs of Native Americans, and how does this contract contribute?

The Indian Health Service (IHS) aims to raise the physical, mental, social, and spiritual health of American Indians and Alaska Natives to the highest possible level. Its effectiveness is often debated, with challenges including chronic underfunding, staffing shortages, and geographic barriers to care. However, IHS plays a critical role, especially in remote areas. This contract with the Native American Health Center, Inc. contributes by directly funding essential physician and mental health services in California, an urban setting where many AI/AN individuals reside. By partnering with established community health centers like NAHC, IHS extends its reach and provides culturally competent care, addressing specific needs that might otherwise go unmet. This contract represents a localized effort to fulfill the federal trust responsibility for healthcare access.

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

Historical spending patterns for physician and mental health services by the Indian Health Service (IHS) in California are complex, reflecting a mix of direct IHS operations, contracts with tribal organizations, and agreements with urban Indian health programs like NAHC. Over the past decade, IHS spending has generally increased, driven by growing healthcare needs and advocacy for improved services. California, with its significant Native American population, represents a substantial portion of IHS's contract health services expenditures. While specific figures for physician and mental health services alone are difficult to isolate without detailed budget breakdowns, overall IHS spending in California has likely seen a steady rise, influenced by factors such as inflation, increased demand for behavioral health services, and policy initiatives aimed at expanding access to care for AI/AN individuals. This contract aligns with that trend of dedicated funding for essential health services.

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: 75H70321R00001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2950 INTERNATIONAL BLVD., OAKLAND, CA, 94601

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

Financial Breakdown

Contract Ceiling: $17,855,780

Exercised Options: $17,855,780

Current Obligation: $17,855,780

Actual Outlays: $16,387,097

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline