HHS awards $260K for physician services in North Dakota, highlighting a need for medical staffing

Contract Overview

Contract Amount: $259,580 ($259.6K)

Contractor: AB Staffing Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2020-08-26

End Date: 2020-10-31

Contract Duration: 66 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ED PHYSICIAN SEPT-OCT TO

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 $259,579.92 to AB STAFFING SOLUTIONS LLC for work described as: ED PHYSICIAN SEPT-OCT TO Key points: 1. The contract value of $259,579.92 for a two-month period suggests a high per-diem rate for physician services. 2. Competition was robust with 3933 bids, indicating strong market interest and potentially competitive pricing. 3. The contract was awarded under a firm-fixed-price structure, which transfers some cost risk to the contractor. 4. Services are being delivered in North Dakota, addressing potential healthcare access challenges in the region. 5. The specific need for 'ED Physician' services points to critical staffing gaps in emergency departments. 6. The short duration of the contract (66 days) may indicate an urgent or temporary staffing need.

Value Assessment

Rating: fair

The contract value of approximately $260K for two months of physician services translates to a daily rate of roughly $4,120. This rate appears high when compared to typical physician salaries or locum tenens rates, though it could be justified by specialized emergency department needs or remote location premiums. Without more specific data on physician specialty, experience level, and the exact services required, a definitive value-for-money assessment is challenging. However, the high number of bids suggests the market found the opportunity attractive at this price point.

Cost Per Unit: Approximately $4,120 per day (based on 66 days and $259,579.92 contract value).

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with an exceptionally high number of 3933 bids received. This indicates a highly competitive market for the services sought. The large number of bidders suggests that the solicitation was widely disseminated and that many firms were interested and capable of providing the required physician services. This level of competition is generally favorable for price discovery and achieving competitive pricing.

Taxpayer Impact: The extensive competition suggests taxpayers benefited from a wide range of offers, likely driving down the final price compared to a less competitive scenario. This broad participation indicates that government funds were likely used efficiently in securing these critical medical services.

Public Impact

Beneficiaries include patients requiring emergency medical care within the Indian Health Service's North Dakota facilities. The services delivered are essential physician staffing for emergency departments, ensuring timely medical attention. The geographic impact is concentrated in North Dakota, potentially serving underserved or remote communities. Workforce implications include the provision of specialized medical expertise to support existing healthcare staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily rate may indicate potential for overpayment if not carefully managed.
Short contract duration could lead to recurring procurement costs if the need is ongoing.
Reliance on external staffing can sometimes impact continuity of care and team integration.

Positive Signals

Full and open competition with a very high number of bids suggests strong market responsiveness.
Firm-fixed-price contract structure provides cost certainty for the government.
Addressing critical staffing needs in emergency departments ensures patient care continuity.

Sector Analysis

The healthcare sector, specifically physician staffing services, is a critical component of the federal health system. The Indian Health Service (IHS) often faces challenges in recruiting and retaining medical professionals, particularly in remote areas. Contracts like this are essential for filling immediate staffing gaps. Comparable spending benchmarks for physician locum tenens services can vary significantly based on specialty, location, and duration, but rates in the thousands per day are not uncommon for specialized or high-demand roles.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions. Given the full and open competition and the high number of bids, it's possible that small businesses participated, but their specific impact or subcontracting opportunities are not detailed in the provided data. The nature of physician staffing may also lend itself to larger, specialized medical staffing firms.

Oversight & Accountability

Oversight would typically be managed by the Indian Health Service contracting officers and program managers responsible for the North Dakota facilities. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the delivery of specified physician services. Transparency is facilitated by the contract award data being publicly available, though detailed performance metrics are not provided here. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse.

Related Government Programs

Indian Health Service Physician Staffing Contracts
Locum Tenens Physician Services
Federal Emergency Department Staffing
Healthcare Services for Native American Populations

Risk Flags

High Daily Rate
Short Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $259,579.92 to AB STAFFING SOLUTIONS LLC. ED PHYSICIAN SEPT-OCT TO

Who is the contractor on this award?

The obligated recipient is AB STAFFING SOLUTIONS 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 $259,579.92.

What is the period of performance?

Start: 2020-08-26. End: 2020-10-31.

What is the typical cost range for emergency physician services procured by the Indian Health Service in similar geographic regions?

Determining a precise 'typical' cost range for IHS emergency physician services in similar regions is complex due to variations in contract specifics, physician specialties, experience levels, and geographic hardship differentials. However, contracts for locum tenens physicians, especially in emergency medicine, can range significantly. Based on general market data and other federal contract awards, daily rates can fluctuate widely, often falling between $1,500 and $3,500 for general physicians. For specialized roles or in remote areas with high demand, rates can exceed $4,000-$5,000 per day, as potentially seen in this $4,120 daily rate. The high number of bids (3933) suggests that the offered rate was competitive within the market, but further analysis of specific service requirements and physician qualifications would be needed for a definitive benchmark.

How does the number of bids (3933) compare to other full and open competition contracts for physician services within the Department of Health and Human Services?

A bid count of 3933 for a full and open competition contract is exceptionally high, particularly for specialized services like physician staffing. Typically, federal contracts, even for common services, might see dozens or perhaps a few hundred bids. For physician services, which often require specific qualifications and licensing, the number of interested parties might be lower unless the solicitation is exceptionally broad or targets a widely available skill set. This high number suggests either a very well-publicized and attractive opportunity, a broad definition of the required services, or potentially a large pool of contractors seeking work. It significantly exceeds the average bid count for most federal procurements, indicating a highly responsive market for this specific requirement.

What are the potential risks associated with awarding a short-duration contract (66 days) for critical physician services?

Short-duration contracts for critical physician services, like this 66-day award, carry several potential risks. Firstly, there's the risk of continuity of care; patients may experience fragmented treatment if multiple different physicians cycle through the department. Secondly, there's the administrative burden and cost associated with frequent procurements if the need is ongoing, as the government must repeatedly solicit bids and onboard new contractors. Thirdly, short contracts might attract providers who are less invested in long-term team integration or facility-specific protocols. Finally, if the need is truly urgent and temporary, the government might pay a premium for immediate availability, potentially exceeding the cost of a longer-term, more stable staffing solution. However, such contracts are often necessary to address immediate, unforeseen staffing shortages.

What is the track record of AB STAFFING SOLUTIONS LLC in providing federal healthcare services?

Information regarding the specific track record of AB STAFFING SOLUTIONS LLC in providing federal healthcare services is not detailed in the provided data snippet. To assess their performance, one would need to examine past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract modifications, disputes, or terminations. A thorough review would involve searching federal procurement databases like SAM.gov or FPDS for their award history, looking for patterns in the types of services they provide, their performance ratings, and their success rate in competitive bidding. Without this external data, it's difficult to gauge their reliability and past performance beyond this single award.

How does the firm-fixed-price (FFP) contract type impact cost control and risk for this physician services contract?

The firm-fixed-price (FFP) contract type is generally considered advantageous for cost control and risk transfer when the scope of work is well-defined and unlikely to change significantly. In this case, for physician services, FFP means the contractor, AB STAFFING SOLUTIONS LLC, is obligated to provide the agreed-upon services for the total contract price ($259,579.92). This shifts the risk of cost overruns to the contractor. If the contractor incurs higher labor costs, overhead, or other expenses than anticipated, their profit margin will decrease, but the government's cost remains fixed. Conversely, if the contractor operates more efficiently than expected, their profit increases. This structure incentivizes the contractor to manage their resources effectively and deliver the services within the agreed budget, providing cost certainty for the government.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2680 S VAL VISTA DR STE 152, GILBERT, AZ, 85295

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

Financial Breakdown

Contract Ceiling: $259,580

Exercised Options: $259,580

Current Obligation: $259,580

Actual Outlays: $318,025

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSI241201600004I

IDV Type: IDC

Timeline