HHS awards $949K for emergency room services at Standing Rock IHS Hospital

Contract Overview

Contract Amount: $94,924 ($94.9K)

Contractor: BAY Area Anesthesia LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2019-12-23

End Date: 2020-05-02

Contract Duration: 131 days

Daily Burn Rate: $725/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TASK ORDER TO PROVIDE EMERGENCY ROOM SERVICES AT THE STANDING ROCK IHS HOSPITAL, FORT YATES, NORTH DAKOTA.

Place of Performance

Location: FORT YATES, SIOUX County, NORTH DAKOTA, 58538

State: North Dakota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $94,924 to BAY AREA ANESTHESIA LLC for work described as: TASK ORDER TO PROVIDE EMERGENCY ROOM SERVICES AT THE STANDING ROCK IHS HOSPITAL, FORT YATES, NORTH DAKOTA. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 131 days indicates a short-term need for services. 3. The firm-fixed-price contract type helps manage cost certainty for the government. 4. Services are for emergency room operations, a critical healthcare function. 5. The awardee, Bay Area Anesthesia LLC, is a new entity in federal contracting based on available data. 6. The contract is geographically focused on North Dakota, serving the Standing Rock Indian Reservation.

Value Assessment

Rating: fair

The contract value of $949,240 for approximately four months of emergency room services appears reasonable given the critical nature of the need. Benchmarking against similar contracts for IHS facilities is challenging due to the specific location and emergency nature. However, the per-diem cost for hospital services can vary significantly by region and facility type. Without more granular data on patient volume and acuity, a precise value-for-money assessment is difficult, but the price seems within a plausible range for specialized emergency medical support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally promotes price discovery and allows the government to select the best value. The open competition suggests that the agency sought to leverage the market to meet its needs efficiently.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to cost savings.

Public Impact

Beneficiaries include patients requiring emergency medical care at the Standing Rock IHS Hospital. Services delivered are essential emergency room operations, ensuring immediate medical attention. Geographic impact is concentrated on the Standing Rock Indian Reservation in North Dakota. Workforce implications include the provision of specialized anesthesia and emergency medical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited track record of the awardee, Bay Area Anesthesia LLC, in federal contracting.
Short contract duration may suggest a temporary solution rather than a long-term strategic approach.
Geographic isolation of the service location could impact logistical costs and vendor availability.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Firm-fixed-price contract provides cost certainty for the government.
Addresses a critical healthcare need for emergency services in an underserved area.

Sector Analysis

This contract falls within the Healthcare sector, specifically supporting hospital operations. The General Medical and Surgical Hospitals (NAICS 622110) industry encompasses establishments primarily engaged in providing general medical and surgical services. Federal spending in this area often supports healthcare access for specific populations, such as Native Americans through the Indian Health Service. The market for emergency medical services is competitive, but specialized contracts for remote or underserved areas can present unique challenges and opportunities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses related to this specific award. The primary focus was on securing emergency room services through open competition, without a specific small business preference.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services (HHS) and the Indian Health Service (IHS). As a task order under a larger contract vehicle (implied by 'DELIVERY ORDER'), oversight mechanisms would be tied to the parent contract's terms. Transparency is generally maintained through federal procurement databases like FPDS. The Inspector General for HHS would have jurisdiction over potential fraud, waste, or abuse related to this spending.

Related Government Programs

Indian Health Service Contracts
Emergency Medical Services Contracts
Rural Healthcare Support
Hospital Operations Contracts

Risk Flags

New Contractor
Short Contract Duration
Geographic Isolation

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $94,924 to BAY AREA ANESTHESIA LLC. TASK ORDER TO PROVIDE EMERGENCY ROOM SERVICES AT THE STANDING ROCK IHS HOSPITAL, FORT YATES, NORTH DAKOTA.

Who is the contractor on this award?

The obligated recipient is BAY AREA ANESTHESIA LLC.

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 $94,924.

What is the period of performance?

Start: 2019-12-23. End: 2020-05-02.

What is the specific experience of Bay Area Anesthesia LLC in providing federal healthcare services prior to this award?

Based on the provided data, Bay Area Anesthesia LLC appears to be a relatively new entrant into federal contracting. Information regarding their prior federal experience is limited. This specific award is a delivery order for emergency room services. Further investigation into their corporate structure, state-level contracts, or commercial healthcare operations would be necessary to fully assess their track record and capacity to fulfill federal requirements. The lack of extensive federal contracting history might represent a moderate risk factor that warrants close monitoring of performance during the contract period.

How does the cost per day for these emergency room services compare to similar IHS facilities or other federal hospitals?

Benchmarking the cost per day for these emergency room services is challenging without more specific operational data and comparable contract details. The total award of $949,240 over approximately 131 days equates to roughly $7,246 per day. This figure encompasses all aspects of emergency room operations, including staffing, supplies, and facility overhead. IHS facilities and other federal hospitals can have vastly different cost structures due to location, patient volume, acuity, and the scope of services offered. Rural facilities, like the one in Fort Yates, North Dakota, may incur higher per-diem costs due to logistical challenges and potentially lower patient volumes spread across fixed operational costs. A direct comparison would require analyzing contracts with similar geographic constraints and service scopes.

What are the primary risks associated with a short-duration contract for essential emergency services?

The primary risks associated with a short-duration contract for essential emergency services include potential disruptions in care continuity if a follow-on contract is not secured promptly, and the possibility that the contractor may not fully invest in long-term operational improvements due to the temporary nature of the engagement. For the government, there's a risk of needing to re-compete the requirement frequently, leading to administrative overhead and potential price increases if market conditions change. Additionally, a short-term contract might limit the ability to attract highly specialized personnel who prefer longer-term commitments. Ensuring a smooth transition and uninterrupted service delivery is paramount.

What is the historical spending pattern for emergency room services at the Standing Rock IHS Hospital?

The provided data pertains to a specific delivery order awarded in December 2019 for services from December 2019 to May 2020. It does not offer historical spending patterns for emergency room services at the Standing Rock IHS Hospital. To understand historical spending, one would need to access procurement data for previous years, looking for contracts awarded to the IHS or its predecessors for similar services at this specific facility or within the region. Analyzing trends in contract values, durations, and awardees over time would reveal patterns in demand, pricing, and contractor engagement.

What performance metrics are likely being used to evaluate the success of Bay Area Anesthesia LLC's services?

While specific performance metrics are not detailed in the provided data, typical evaluations for emergency room services contracts would focus on several key areas. These likely include patient wait times, patient satisfaction scores, adherence to clinical protocols and quality standards, availability of qualified medical personnel, and compliance with reporting requirements. The firm-fixed-price nature of the contract suggests that meeting the defined scope of services reliably and efficiently is a primary performance indicator. The government would monitor the contractor's ability to maintain operational readiness and provide timely, effective emergency care as outlined in the contract's statement of work.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFQ-20-022

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3451 S MERCY ROAD, GILBERT, AZ, 85297

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $94,924

Exercised Options: $94,924

Current Obligation: $94,924

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75H70418D00003

IDV Type: IDC

Timeline