Native American Health Center awarded $2.1M contract for physician and mental health services in California

Contract Overview

Contract Amount: $2,129,067 ($2.1M)

Contractor: Native American Health Center, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2025-12-30

End Date: 2026-12-31

Contract Duration: 366 days

Daily Burn Rate: $5.8K/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: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94110

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.1 million to NATIVE AMERICAN HEALTH CENTER, INC. for work described as: NAHC CONTRACT Key points: 1. Contract awarded on a firm-fixed-price basis, providing cost certainty for the government. 2. The contract duration of 366 days suggests a need for ongoing services. 3. Awarded to a single entity, raising questions about the extent of competition. 4. The North American Industry Classification System (NAICS) code 621112 indicates services provided by physicians and mental health specialists. 5. The contract is not competitively procured, potentially impacting price discovery. 6. The geographic focus is California, serving a specific regional need.

Value Assessment

Rating: fair

The contract value of $2.1 million for a 366-day period for physician and mental health services appears within a reasonable range for specialized healthcare provision. However, without specific details on the scope of services, number of personnel, or patient volume, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for comparable services in California would provide a clearer picture of whether the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The absence of a competitive bidding process means that multiple potential providers were not evaluated, and the government did not benefit from a range of proposals and pricing structures. This approach is typically used when only one source is capable of meeting the requirement, or in specific circumstances where competition is not feasible or advantageous.

Taxpayer Impact: A sole-source award limits the government's ability to leverage competition to secure the best possible pricing and terms for taxpayers. It suggests that taxpayers may not have received the full benefit of market competition.

Public Impact

The primary beneficiaries of this contract are likely Native American communities in California requiring access to healthcare and mental health services. The contract will facilitate the delivery of essential medical and psychological support, addressing critical health needs. The geographic impact is concentrated within California, specifically serving the population covered by the Native American Health Center. The contract supports healthcare professionals and administrative staff, contributing to employment within the healthcare sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Limited transparency in the procurement process due to sole-source award.
Potential for vendor lock-in if future needs are solely met by this contractor.

Positive Signals

Firm-fixed-price contract provides budget predictability.
Award to an established entity (Native American Health Center) may indicate reliability.
Focus on critical health services addresses a significant public need.

Sector Analysis

The healthcare sector, particularly services for underserved populations, is a critical area of federal spending. This contract falls under the provision of physician and mental health services, a sub-sector that requires specialized expertise. The market for such services is often influenced by regulatory requirements, patient demographics, and the availability of qualified providers. Benchmarking this contract's value against similar sole-source or competitively awarded contracts for health services to specific demographic groups would be informative.

Small Business Impact

This contract does not appear to have a small business set-aside. The award is made directly to the Native American Health Center, Inc. There is no explicit information regarding subcontracting plans for small businesses. The impact on the small business ecosystem is likely minimal unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and its Indian Health Service (IHS) agency. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract.

Related Government Programs

Indian Health Service Programs
Native American Healthcare Initiatives
Community Health Centers
Mental Health Services Contracts
Physician Services Contracts

Risk Flags

Sole-source award limits competition.
Lack of detailed performance metrics in summary data.
Geographic concentration of services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.1 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 $2.1 million.

What is the period of performance?

Start: 2025-12-30. End: 2026-12-31.

What is the specific scope of services to be provided under this contract?

The contract is associated with NAICS code 621112, which covers 'Offices of Physicians, Mental Health Specialists.' This indicates that the services will encompass medical care provided by physicians and specialized mental health services. While the exact deliverables are not detailed in the provided data, it is reasonable to infer that the contract will cover a range of diagnostic, treatment, and consultative services related to both physical and mental well-being for the target population. Further details on the specific patient population, service locations, and required personnel qualifications would be necessary for a comprehensive understanding of the scope.

Why was this contract awarded on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' classifying it as a sole-source award. The specific justification for this determination is not included in the data. Typically, sole-source awards are made when only one responsible source is available to satisfy the agency's needs, or when there is a compelling justification for excluding full and open competition, such as urgent and compelling circumstances, or when the contract is for a specialized service that only one entity can provide. Without further documentation from the awarding agency (Department of Health and Human Services, Indian Health Service), the precise reason for the sole-source award remains unknown.

How does the contract value compare to similar services provided by the Native American Health Center, Inc. in the past?

The current contract is valued at $2,129,067 for a period of 366 days. To compare this to past services, one would need historical contract data for Native American Health Center, Inc. from the same or similar agencies (like IHS or other HHS components) for comparable services (physician and mental health). Analyzing the value, duration, and scope of previous awards would reveal trends in spending and whether the current contract represents an increase, decrease, or stable level of investment. Without access to this historical data, a direct comparison cannot be made.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics that will be used to evaluate the success of this contract. Typically, for healthcare service contracts, KPIs might include patient satisfaction scores, wait times for appointments, health outcome improvements (e.g., reduced hospital readmissions, improved mental health status), adherence to treatment plans, and provider performance metrics. These would be detailed within the contract's statement of work and performance work statement, which are not included in the provided summary data.

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

The provided data focuses on a single contract award and does not offer historical spending trends for the Indian Health Service (IHS) in California for physician and mental health services. To determine such trends, one would need to analyze IHS contract databases over several fiscal years, filtering for contracts within California that fall under relevant NAICS codes (like 621112) or service descriptions. This analysis would reveal the overall investment in these services, whether spending has increased or decreased, and the distribution of funds between competitive and non-competitive awards.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2920 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: $10,645,335

Exercised Options: $4,258,134

Current Obligation: $2,129,067

Actual Outlays: $2,129,067

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline