American Indian Council on Alcoholism receives $2.78M for substance abuse services from HHS Indian Health Service

Contract Overview

Contract Amount: $2,776,102 ($2.8M)

Contractor: American Indian Council on Alcoholism Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2021-01-01

End Date: 2022-12-31

Contract Duration: 729 days

Daily Burn Rate: $3.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ALCOHOL SUBSTANCE ABUSE SERVICES

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53220

State: Wisconsin Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.8 million to AMERICAN INDIAN COUNCIL ON ALCOHOLISM INC for work described as: ALCOHOL SUBSTANCE ABUSE SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration of 729 days suggests a need for sustained services. 3. Fixed-price contract type may offer cost certainty but could limit flexibility. 4. Services are targeted towards outpatient mental health and substance abuse centers. 5. The awardee has a single contract with the federal government. 6. Geographic focus on Wisconsin indicates a specific regional need.

Value Assessment

Rating: fair

The contract value of $2.78 million for substance abuse services appears to be a significant investment. Without comparable contract data for similar services provided to American Indian communities, a precise value-for-money assessment is challenging. The fixed-price nature of the contract provides some cost predictability for the government. However, the lack of competition raises concerns about whether the pricing reflects the best possible value.

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 is uniquely qualified or when there are other compelling reasons to bypass full and open competition. The absence of multiple bidders means there was no direct price comparison or negotiation driven by market forces, potentially leading to a higher price than if it had been competed.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to secure the lowest possible prices, potentially resulting in less favorable terms for taxpayers.

Public Impact

Beneficiaries include American Indian individuals in Wisconsin requiring substance abuse treatment. Services delivered are outpatient mental health and substance abuse care. Geographic impact is concentrated within Wisconsin. The contract supports the provision of essential healthcare services to a specific demographic.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Lack of transparency in the justification for sole-source award.
Potential for vendor lock-in due to single award.

Positive Signals

Addresses critical substance abuse needs within the American Indian community.
Fixed-price contract provides budget certainty.
Award to a specialized provider potentially ensures relevant expertise.

Sector Analysis

The healthcare sector, particularly specialized services like substance abuse treatment, often sees targeted federal funding. This contract falls under the 'Outpatient Mental Health and Substance Abuse Centers' NAICS code (621420). Federal spending in this area aims to address public health crises and provide care to underserved populations. Benchmarking this contract's value would require comparing it to similar sole-source or competed contracts for substance abuse services within tribal health programs or similar community-based organizations.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a single entity suggests that opportunities for small businesses to participate as subcontractors may be limited unless proactively sought by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Indian Health Service (IHS), a division of the Department of Health and Human Services (HHS). The IHS has established protocols for contract monitoring and performance evaluation. However, the specific oversight mechanisms and transparency measures for this sole-source award are not detailed in the provided data. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Indian Health Service Programs
Substance Abuse and Mental Health Services Administration (SAMHSA) Grants
Tribal Health Services Contracts

Risk Flags

Sole-source award raises concerns about competition and potential value.
Limited information on contractor's federal contracting history.
Lack of detailed performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.8 million to AMERICAN INDIAN COUNCIL ON ALCOHOLISM INC. ALCOHOL SUBSTANCE ABUSE SERVICES

Who is the contractor on this award?

The obligated recipient is AMERICAN INDIAN COUNCIL ON ALCOHOLISM 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 $2.8 million.

What is the period of performance?

Start: 2021-01-01. End: 2022-12-31.

What is the track record of American Indian Council on Alcoholism Inc. with federal contracts?

Based on the provided data, American Indian Council on Alcoholism Inc. has one federal contract, which is this specific award from the Department of Health and Human Services (Indian Health Service). This suggests a limited history of direct federal contracting. Further investigation into their performance on this contract, as well as any state or local government contracts they may hold, would be necessary to fully assess their track record. Information on past performance, successful delivery of services, and client satisfaction would be crucial for a comprehensive evaluation.

How does the value of this contract compare to similar substance abuse treatment contracts?

A direct comparison of this $2.78 million contract value is difficult without access to a broader dataset of similar federal contracts for substance abuse services, particularly those targeting American Indian communities or operating within Wisconsin. Sole-source awards, by their nature, lack a competitive benchmark. To assess value, one would ideally compare the cost per patient, the scope of services provided, and the duration against other contracts. If this contract is for a significant population or a comprehensive suite of services, the value might be justified, but without comparative data, it remains an assumption.

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

The primary risks associated with this sole-source contract include potential overpayment due to the lack of competitive bidding, which could lead to suboptimal value for taxpayer money. There's also a risk of vendor dependency, where the government becomes reliant on a single provider, potentially reducing leverage for future negotiations or service improvements. Furthermore, without a competitive process, there's a reduced incentive for the contractor to innovate or aggressively seek efficiencies. The effectiveness of the services delivered and the contractor's ability to meet the program's objectives also represent inherent risks.

How effective are the services provided under this contract likely to be?

The effectiveness of the services provided hinges on several factors not fully detailed in the data. The contract is for 'Outpatient Mental Health and Substance Abuse Centers,' suggesting a focus on accessible, non-residential care. The effectiveness will depend on the quality of care, the qualifications of the staff, the specific treatment methodologies employed, and the engagement of the target population. The fact that the Indian Health Service is funding these services implies an identified need and a belief in the potential for positive outcomes. However, measuring the actual impact on substance abuse rates and community well-being would require specific performance metrics and outcome evaluations.

What are the historical spending patterns for substance abuse services within the Indian Health Service?

Historical spending patterns for substance abuse services within the Indian Health Service (IHS) generally reflect a commitment to addressing the disproportionately high rates of substance use disorders within American Indian and Alaska Native communities. The IHS allocates significant resources towards behavioral health, including prevention, treatment, and recovery support. Spending fluctuates based on congressional appropriations, public health priorities, and the specific needs identified across different tribal service areas. This contract represents a portion of that broader spending, aimed at fulfilling the federal government's trust responsibility to provide healthcare services.

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

The provided data indicates the contract was 'NOT COMPETED,' which typically implies a sole-source or limited-source justification. Common reasons for sole-source awards include the unique capabilities of the contractor, the urgent need for services where competition is impractical, or when only one responsible source exists. For tribal health services, it might also relate to established relationships, cultural competency, or specific program requirements unique to serving American Indian populations. A formal justification document, usually required for sole-source awards, would detail the specific rationale and satisfy federal acquisition regulations.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › Outpatient Mental Health and Substance Abuse Centers

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: 6510 W LAYTON AVE STE 101, GREENFIELD, WI, 53220

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

Financial Breakdown

Contract Ceiling: $2,776,102

Exercised Options: $2,776,102

Current Obligation: $2,776,102

Actual Outlays: $2,226,296

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline