Indian Health Service awards $59.6K for propane tanks and delivery to Suburban Propane

Contract Overview

Contract Amount: $59,584 ($59.6K)

Contractor: Suburban Propane Partners, L.P

Awarding Agency: Department of Health and Human Services

Start Date: 2025-03-07

End Date: 2027-03-09

Contract Duration: 732 days

Daily Burn Rate: $81/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE INDIAN HEALTH SERVICE, SACRED OAKS HEALING CENTER HAS A REQUIREMENT FOR THE PURCHASE OF 3 PROPANE TANKS, AND PROPANE DELIVERY SERVICE, IN ACCORDANCE WITH THE ATTACHED PERFORMANCE WORK STATEMENT.

Place of Performance

Location: DAVIS, YOLO County, CALIFORNIA, 95616

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $59,584.1 to SUBURBAN PROPANE PARTNERS, L.P for work described as: THE INDIAN HEALTH SERVICE, SACRED OAKS HEALING CENTER HAS A REQUIREMENT FOR THE PURCHASE OF 3 PROPANE TANKS, AND PROPANE DELIVERY SERVICE, IN ACCORDANCE WITH THE ATTACHED PERFORMANCE WORK STATEMENT. Key points: 1. Spending on propane tanks and delivery is relatively low. 2. Competition was not sought for this purchase. 3. Risk of price escalation exists due to fuel market volatility. 4. The sector is wholesale petroleum products.

Value Assessment

Rating: fair

The total award amount is $59,584.10 for 3 propane tanks and delivery over approximately two years. Without specific unit pricing or detailed service scope, a direct comparison to similar contracts is difficult, but the overall value appears reasonable for the quantity and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under Simplified Acquisition Procedures (SAP), indicating a limited competition approach. The lack of open competition may have limited price discovery and potentially led to a higher price than could have been achieved through a more competitive process.

Taxpayer Impact: Taxpayer funds are used for this purchase. The limited competition raises concerns about whether the best possible price was secured.

Public Impact

Ensures essential heating and operational fuel for the Sacred Oaks Healing Center. Supports the Indian Health Service's mission to provide healthcare services. Potential for higher costs due to lack of competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 81 / 10

Warning Flags

Limited competition
Potential for price volatility

Positive Signals

Essential service provision
Clear performance period

Sector Analysis

The Indian Health Service is procuring petroleum products, specifically propane, for a healing center. Spending in this sub-sector can vary significantly based on regional prices, contract duration, and volume. This specific award is for a small quantity and short duration.

Small Business Impact

There is no indication that small businesses were considered or solicited for this procurement. The award was made to Suburban Propane Partners, L.P., a large entity.

Oversight & Accountability

The award is a Purchase Order, which is a standard contract vehicle. Oversight would involve monitoring delivery and service against the Performance Work Statement to ensure compliance and value.

Related Government Programs

Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Limited competition
Potential for price volatility
Lack of small business consideration
Unclear justification for limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $59,584.1 to SUBURBAN PROPANE PARTNERS, L.P. THE INDIAN HEALTH SERVICE, SACRED OAKS HEALING CENTER HAS A REQUIREMENT FOR THE PURCHASE OF 3 PROPANE TANKS, AND PROPANE DELIVERY SERVICE, IN ACCORDANCE WITH THE ATTACHED PERFORMANCE WORK STATEMENT.

Who is the contractor on this award?

The obligated recipient is SUBURBAN PROPANE PARTNERS, L.P.

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 $59,584.1.

What is the period of performance?

Start: 2025-03-07. End: 2027-03-09.

What is the primary driver for not competing this requirement?

The provided data states the contract was 'NOT COMPETED UNDER SAP'. This suggests it might have been procured through a limited source justification or a specific contract vehicle that did not require full and open competition. Understanding the specific reason for limited competition is crucial to assess if it was appropriate or if it potentially led to suboptimal pricing for the government.

What is the risk associated with the firm fixed price contract type for propane?

A firm fixed price (FFP) contract provides price certainty for the government. However, for a commodity like propane, where market prices can fluctuate significantly, an FFP contract could disadvantage the contractor if prices rise substantially, potentially impacting service reliability or leading to future price increase requests. Conversely, if prices fall, the government benefits.

How does this spending align with the IHS's overall budget for facility maintenance and operations?

This $59.6K award represents a small portion of the Indian Health Service's overall budget for facility maintenance and operations. While essential for the Sacred Oaks Healing Center, its impact on the broader IHS budget is minimal. A full assessment would require comparing this expenditure against similar facility needs across the IHS and its total operational funding.

Industry Classification

NAICS: Wholesale Trade › Petroleum and Petroleum Products Merchant Wholesalers › Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 240 STATE ROUTE 10, WHIPPANY, NJ, 07981

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $59,584

Exercised Options: $59,584

Current Obligation: $59,584

Actual Outlays: $48,525

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline