HHS awards $3.1M firm-fixed-price contract for urban Indian health services in Santa Barbara

Contract Overview

Contract Amount: $3,114,179 ($3.1M)

Contractor: American Indian Health & Services Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2025-03-27

End Date: 2027-03-31

Contract Duration: 734 days

Daily Burn Rate: $4.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: COMPREHENSIVE HEALTH SERVICES FOR THE ELIGIBLE URBAN INDIAN POPULATION OF SANTA BARBARA, CALIFORNIA. THE AWARD WILL BE DONE PRIOR TO APRIL 1, 2025 FOR A NEW UIO FAR FIRM FIXED PRICED CONTRACT FOR SANTA BARBARA CA.

Place of Performance

Location: SANTA BARBARA, SANTA BARBARA County, CALIFORNIA, 93105

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.1 million to AMERICAN INDIAN HEALTH & SERVICES CORPORATION for work described as: COMPREHENSIVE HEALTH SERVICES FOR THE ELIGIBLE URBAN INDIAN POPULATION OF SANTA BARBARA, CALIFORNIA. THE AWARD WILL BE DONE PRIOR TO APRIL 1, 2025 FOR A NEW UIO FAR FIRM FIXED PRICED CONTRACT FOR SANTA BARBARA CA. Key points: 1. Contract aims to provide comprehensive health services to the urban Indian population. 2. Awarded as a definitive contract, indicating a commitment to a specific service period. 3. The contract is firm-fixed-price, offering cost certainty for the government. 4. Service delivery is geographically focused on Santa Barbara, California. 5. The contract duration is approximately two years, aligning with service needs. 6. This award supports the Indian Health Service's mission to improve health outcomes.

Value Assessment

Rating: fair

The contract value of $3.1 million over two years for comprehensive health services appears reasonable for a specialized population. Benchmarking against similar contracts for urban Indian health programs would provide a clearer picture of value for money. The firm-fixed-price structure helps manage cost fluctuations. However, without detailed service line breakdowns or comparisons to private sector healthcare costs for similar demographics, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach may be justified if there is only one capable provider or if it's a continuation of services. However, the lack of competition limits price discovery and may not yield the most cost-effective solution for taxpayers. The rationale for not competing the award needs further examination to ensure fairness and optimal resource allocation.

Taxpayer Impact: Sole-source awards can sometimes lead to higher prices compared to competitive bids, potentially increasing costs for taxpayers. It also bypasses opportunities to foster broader market engagement and innovation.

Public Impact

Urban American Indian and Alaska Native individuals residing in Santa Barbara, California, will benefit from comprehensive health services. Services are expected to include general medical and surgical care, addressing a range of health needs. The geographic impact is concentrated within Santa Barbara, California, ensuring local access to care. The contract supports the employment of healthcare professionals and administrative staff within the service area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may limit opportunities for cost savings and innovation.
Sole-source awards require strong justification to ensure fair market value.
Performance metrics and quality assurance will be critical to monitor service delivery.

Positive Signals

Directly addresses the healthcare needs of a specific, underserved population.
Firm-fixed-price contract provides budget predictability.
Supports the mission of the Indian Health Service.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on services for the American Indian population. The Indian Health Service (IHS) operates within a unique healthcare landscape, often contracting with tribal organizations and urban Indian organizations to deliver care. The market for such specialized services is distinct, with a focus on cultural competency and meeting the specific health disparities faced by this demographic. Comparable spending benchmarks are difficult to establish due to the specialized nature and limited number of providers.

Small Business Impact

This contract does not appear to include a small business set-aside. Given the specialized nature of providing healthcare services to the urban Indian population, it is possible that the primary contractor is the most suitable entity. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract.

Oversight & Accountability

Oversight will likely be managed by the Indian Health Service (IHS) contracting officers and program managers. Accountability measures will be embedded in the contract terms, including performance standards and reporting requirements. Transparency regarding the justification for the sole-source award and ongoing performance monitoring is crucial for public trust.

Related Government Programs

Indian Health Service Programs
Urban Indian Health Organizations
Community Health Centers

Risk Flags

Sole-source award lacks competitive pricing pressure.
Need for robust performance monitoring to ensure quality of care.
Potential for limited innovation due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.1 million to AMERICAN INDIAN HEALTH & SERVICES CORPORATION. COMPREHENSIVE HEALTH SERVICES FOR THE ELIGIBLE URBAN INDIAN POPULATION OF SANTA BARBARA, CALIFORNIA. THE AWARD WILL BE DONE PRIOR TO APRIL 1, 2025 FOR A NEW UIO FAR FIRM FIXED PRICED CONTRACT FOR SANTA BARBARA CA.

Who is the contractor on this award?

The obligated recipient is AMERICAN INDIAN HEALTH & SERVICES CORPORATION.

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 $3.1 million.

What is the period of performance?

Start: 2025-03-27. End: 2027-03-31.

What is the historical spending pattern for urban Indian health services in Santa Barbara?

Historical spending data for urban Indian health services specifically in Santa Barbara is not readily available in the provided data. The Indian Health Service (IHS) generally allocates funds to support urban Indian health programs across the nation, often through grants or contracts with designated Urban Indian Organizations (UIOs). The current award of $3.1 million for a definitive contract from March 2025 to March 2027 suggests a new or renewed commitment to this service area. Without prior contract details for this specific location or provider, it's difficult to establish a direct historical spending trend. However, the IHS budget has seen fluctuations over the years, influenced by appropriations and evolving healthcare needs of Native American communities.

What specific services are included under 'comprehensive health services' for this contract?

The provided data indicates the contract is for 'COMPREHENSIVE HEALTH SERVICES FOR THE ELIGIBLE URBAN INDIAN POPULATION OF SANTA BARBARA, CALIFORNIA.' While the specific breakdown of services is not detailed, 'comprehensive health services' typically encompass a broad range of medical care. This often includes primary care, preventive services, chronic disease management, behavioral health services, and potentially referrals for specialized care. Given the contract's classification under NAICS code 622110 (General Medical and Surgical Hospitals), it suggests a significant component of medical and surgical treatment will be provided. The exact scope would be detailed in the contract's Statement of Work (SOW).

What is the justification for awarding this contract on a sole-source basis?

The provided data explicitly states the contract was 'NOT COMPETED,' indicating a sole-source award. The justification for a sole-source award typically falls under specific exceptions to full and open competition, such as when only one responsible source is available or qualified, or when the agency determines that a public exigency requires immediate contract award. For healthcare services targeting specific populations like the urban Indian community, there might be a limited number of organizations with the necessary expertise, cultural competency, and established infrastructure to provide these services effectively. The Indian Health Service (IHS) may have determined that AMERICAN INDIAN HEALTH & SERVICES CORPORATION is the only entity capable of meeting the unique requirements of this contract in Santa Barbara.

How does this contract compare to other IHS contracts for urban Indian health services?

Comparing this $3.1 million, two-year contract to other Indian Health Service (IHS) contracts for urban Indian health services requires access to a broader database of IHS awards. However, the contract's structure as a firm-fixed-price definitive contract is common for service delivery. The value appears to be in line with contracts for specialized health services in a specific geographic area. IHS contracts with various Urban Indian Organizations (UIOs) across the country, and contract values can vary significantly based on the size of the eligible population, the scope of services, and the cost of healthcare in the region. Without specific comparable contract data, it's difficult to definitively benchmark this award, but it represents a significant investment in the health of the Santa Barbara urban Indian community.

What are the potential risks associated with a sole-source contract for health services?

Sole-source contracts for health services carry several potential risks. Firstly, the absence of competition can lead to higher costs for the government and taxpayers, as there is less pressure on the contractor to offer the most competitive pricing. Secondly, it may limit innovation, as the agency doesn't benefit from the diverse approaches and solutions that multiple bidders might propose. Thirdly, there's a risk of complacency from the sole provider, potentially impacting service quality or efficiency if robust oversight mechanisms are not in place. Finally, it can create a perception of unfairness or lack of transparency, even if the award is justified.

Industry Classification

NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BMC Software, Inc.

Address: 3227 STATE ST, SANTA BARBARA, CA, 93105

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

Financial Breakdown

Contract Ceiling: $3,114,179

Exercised Options: $3,114,179

Current Obligation: $3,114,179

Actual Outlays: $1,563,625

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline