Radiation physicist services for hazard surveys awarded to Midwest Radiation Physicists, Inc. for $1.32M

Contract Overview

Contract Amount: $13,214 ($13.2K)

Contractor: Midwest Radiation Physicists, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2024-12-03

End Date: 2027-02-28

Contract Duration: 817 days

Daily Burn Rate: $16/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: RADIATION PHYSICIST NEEDED FOR ANNUAL RADIATION HAZARD SURVEY

Place of Performance

Location: OGEMA, BECKER County, MINNESOTA, 56569

State: Minnesota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13,214 to MIDWEST RADIATION PHYSICISTS, INC for work described as: RADIATION PHYSICIST NEEDED FOR ANNUAL RADIATION HAZARD SURVEY Key points: 1. Contract awarded for essential radiation hazard surveys, indicating a need for specialized expertise. 2. The award to a single entity suggests potential limitations in market competition for this niche service. 3. The duration of the contract (over 2.5 years) implies ongoing or recurring requirements for these services. 4. The firm-fixed-price structure aims to control costs, but the absence of competition may impact price optimality. 5. This contract supports the Indian Health Service's mission to ensure safe healthcare environments. 6. The geographic focus on Minnesota is noted, potentially limiting broader application of findings.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the lack of competitive bids and limited public data on radiation physicist survey costs. The $1.32 million award over approximately 817 days (2.24 years) suggests an annual cost of roughly $589,000. Without comparable contract data or detailed service breakdowns, it's difficult to definitively assess if this represents excellent value for money. The firm-fixed-price nature provides cost certainty, but the absence of competition raises questions about whether the price reflects the most economical option available.

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 potential offerors. This approach is typically used when only one source is capable of meeting the requirement, or in specific circumstances where full and open competition is not feasible or advantageous. The lack of competition means that the government did not benefit from a bidding process that could have potentially driven down prices or spurred innovation from multiple providers.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of a competitive bidding process. Without competing offers, there is less assurance that the awarded price is the most cost-effective available.

Public Impact

Patients and staff within facilities managed by the Indian Health Service in Minnesota will benefit from ensured radiation safety. The contract delivers critical services related to radiation hazard surveys, contributing to regulatory compliance and public health. The geographic impact is primarily focused on healthcare facilities within Minnesota. The contract supports specialized scientific roles, potentially requiring highly skilled radiation physicists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs than a competed contract.
Sole-source awards can limit opportunities for other qualified firms to secure government contracts.
Limited transparency into the justification for sole-source award could obscure potential alternatives.

Positive Signals

Ensures specialized expertise is available for critical radiation safety assessments.
Firm-fixed-price contract provides cost predictability for the agency.
Contract duration allows for consistent service delivery over an extended period.

Sector Analysis

The healthcare sector relies on specialized scientific services to ensure patient and staff safety, particularly in areas involving radiation. Contracts for radiation physicists are crucial for compliance with safety regulations and for maintaining the integrity of medical equipment. While the overall market for radiation physics services is niche, it is essential for healthcare providers, research institutions, and government agencies. This contract fits within the broader category of professional services supporting healthcare infrastructure and regulatory compliance.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The sole-source nature of the award further limits the direct opportunities for small businesses to participate in this specific contract. The impact on the small business ecosystem is likely minimal unless Midwest Radiation Physicists, Inc. itself is a small business and utilizes small business subcontractors, which is not indicated.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and the Indian Health Service (IHS). As a purchase order, it is subject to standard procurement regulations and agency oversight. Transparency regarding the justification for the sole-source award and the performance metrics would be key accountability measures. The Inspector General's office within HHS may have jurisdiction for audits and investigations if concerns arise regarding contract performance or financial integrity.

Related Government Programs

Radiation Safety Services
Medical Physics Services
Healthcare Facility Safety
Public Health Services
Environmental Health and Safety

Risk Flags

Sole-source award may limit price competition.
Lack of detailed service scope in provided data hinders value assessment.
Limited public information on contractor's federal performance history.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13,214 to MIDWEST RADIATION PHYSICISTS, INC. RADIATION PHYSICIST NEEDED FOR ANNUAL RADIATION HAZARD SURVEY

Who is the contractor on this award?

The obligated recipient is MIDWEST RADIATION PHYSICISTS, 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 $13,214.

What is the period of performance?

Start: 2024-12-03. End: 2027-02-28.

What is the typical cost range for radiation hazard survey services provided by private firms to federal agencies?

Determining a precise cost range for radiation hazard survey services is complex due to variations in scope, frequency, geographic location, and the specific expertise required. Contracts can range from tens of thousands of dollars for single-site, infrequent surveys to millions for comprehensive, multi-year programs across numerous facilities. Factors influencing cost include the number and type of facilities, the complexity of radiation-emitting equipment, the required reporting standards, and the qualifications of the physicists. Without specific details on the services rendered under this $1.32 million contract, direct comparison to a general market rate is difficult. However, given the duration and the sole-source nature, the agency likely assessed the price against internal estimates or historical data for similar specialized services.

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

The provided data indicates this contract was awarded on a sole-source basis, meaning full and open competition was not utilized. Federal procurement regulations permit sole-source awards under specific circumstances, such as when only one responsible source is available to meet the agency's needs, or when the agency determines that it is not in the public interest to use competitive procedures. For specialized services like radiation physics, agencies might justify a sole-source award if the contractor possesses unique qualifications, proprietary technology, or an established performance record that is critical for the specific requirement. A detailed justification document, typically required for sole-source procurements, would outline the specific reasons why competitive bidding was not pursued and why Midwest Radiation Physicists, Inc. was deemed the only viable option.

How does the firm-fixed-price contract type impact the risk for both the government and the contractor?

A firm-fixed-price (FFP) contract is generally preferred by the government when the scope of work is well-defined and risks are relatively low. Under an FFP contract, the contractor agrees to perform the work for a set price, regardless of the actual costs incurred. This shifts the primary cost risk to the contractor; if their costs exceed the agreed-upon price, their profit margin decreases or they may incur a loss. Conversely, if their costs are lower than anticipated, their profit increases. For the government, the primary benefit of an FFP contract is cost certainty – the total price is known upfront, simplifying budgeting and financial planning. The risk for the government lies in potentially overpaying if the contractor's actual costs are significantly lower than the fixed price, especially in the absence of robust competition to establish a competitive baseline price.

What is the track record of Midwest Radiation Physicists, Inc. with federal contracts?

The provided data indicates that Midwest Radiation Physicists, Inc. is the contractor for this specific purchase order. However, it does not offer details on their broader track record with federal contracts, such as past performance ratings, previous contract values, or the number of contracts they have held with the government. To assess their track record thoroughly, one would need to consult federal procurement databases (like SAM.gov or FPDS) for historical contract awards, performance evaluations, and any reported issues or disputes. Without this additional information, it's difficult to gauge their experience, reliability, and past success in fulfilling federal requirements.

What are the potential implications of this contract for radiation safety standards within the Indian Health Service?

This contract directly supports the Indian Health Service's (IHS) mandate to provide comprehensive health services to American Indians and Alaska Natives. By engaging a radiation physicist for annual hazard surveys, the IHS is actively working to ensure that medical facilities under its purview maintain safe environments for patients and staff. These surveys are critical for identifying potential radiation hazards, ensuring compliance with federal regulations (e.g., from the Nuclear Regulatory Commission or state agencies), and verifying the proper functioning and shielding of radiation-producing equipment. The consistent application of these services, facilitated by this contract, contributes to the overall quality of care and risk mitigation within IHS facilities.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS

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: 3202 PAR ST N, FARGO, ND, 58102

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

Financial Breakdown

Contract Ceiling: $39,514

Exercised Options: $13,214

Current Obligation: $13,214

Actual Outlays: $6,714

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline