HHS awards $2.3M for temporary medical staffing, with a 83-day duration

Contract Overview

Contract Amount: $232,330 ($232.3K)

Contractor: Nativearc, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-08

End Date: 2026-06-30

Contract Duration: 83 days

Daily Burn Rate: $2.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TASK ORDER FOR PHYSICIAN ASSISTANT, NURSE PRACTITIONER, CERTIFIED NURSE MIDWIFE SERVICES.

Place of Performance

Location: ROSEBUD, TODD County, SOUTH DAKOTA, 57570

State: South Dakota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $232,330 to NATIVEARC, LLC for work described as: TASK ORDER FOR PHYSICIAN ASSISTANT, NURSE PRACTITIONER, CERTIFIED NURSE MIDWIFE SERVICES. Key points: 1. Value for money appears fair given the short-term, specialized nature of the services. 2. Competition dynamics indicate a competed award, suggesting potential for price discovery. 3. Risk indicators are moderate, primarily related to the short performance period and reliance on temporary staff. 4. Performance context is within the Indian Health Service, highlighting a need for critical medical personnel. 5. Sector positioning is within healthcare staffing, a consistently high-demand area for federal agencies.

Value Assessment

Rating: fair

The contract's value of $2.32 million for an 83-day period suggests a daily rate of approximately $27,990. This rate needs to be benchmarked against similar task orders for physician assistants, nurse practitioners, and certified nurse midwives, especially considering the specific geographic location (South Dakota) and the urgency often associated with temporary staffing needs. Without direct comparisons, it's difficult to definitively assess if this represents excellent or questionable value, but it falls within a plausible range for specialized medical personnel.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), indicating it was likely a full and open competition among eligible vendors. The data does not specify the number of bidders, but the use of SAP suggests a streamlined process for smaller dollar value procurements. This method generally aims to maximize competition within the applicable dollar thresholds.

Taxpayer Impact: A competed award under SAP suggests that taxpayers benefited from a competitive bidding process, which should have driven a reasonable price for the required medical services.

Public Impact

Beneficiaries include Native American communities served by the Indian Health Service in South Dakota. Services delivered are critical temporary medical staffing, including physician assistants, nurse practitioners, and certified nurse midwives. Geographic impact is focused on South Dakota, addressing potential staffing shortages in IHS facilities. Workforce implications involve supplementing existing medical staff to ensure continuity of care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short performance duration may lead to frequent re-competition and potential disruption in service continuity.
Reliance on temporary staff can sometimes impact institutional knowledge and long-term patient relationships.
Geographic isolation of South Dakota facilities could present logistical challenges for staffing.

Positive Signals

Addresses an immediate need for specialized medical professionals, ensuring patient care continuity.
Utilizes a competitive process to secure services, aiming for cost-effectiveness.
Supports the Indian Health Service's mission to provide healthcare to Native Americans.

Sector Analysis

This contract falls within the healthcare staffing sector, specifically focusing on temporary medical personnel. The federal government, particularly agencies like HHS and IHS, frequently procures such services to fill critical gaps and manage fluctuating demand. The market for healthcare staffing is robust, with numerous providers capable of meeting these specialized needs. Benchmarking would involve comparing rates for similar temporary medical roles across federal and commercial sectors.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While not a direct set-aside, the use of Simplified Acquisition Procedures (SAP) can sometimes be more accessible to small businesses. However, without specific subcontracting plans or further details on the awardee's size, the direct impact on the small business ecosystem is unclear. It's possible larger firms may utilize small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services, specifically the Indian Health Service contracting and program officials. The contract type (Firm Fixed Price) helps define the scope and cost. Transparency is generally facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Indian Health Service Medical Staffing Contracts
Temporary Healthcare Personnel Services
Physician Assistant and Nurse Practitioner Services
Federal Healthcare Staffing Solutions

Risk Flags

Short contract duration may impact service continuity.
Potential for higher per-diem rates due to temporary nature of services.
Geographic challenges in South Dakota could affect recruitment and retention of staff.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $232,330 to NATIVEARC, LLC. TASK ORDER FOR PHYSICIAN ASSISTANT, NURSE PRACTITIONER, CERTIFIED NURSE MIDWIFE SERVICES.

Who is the contractor on this award?

The obligated recipient is NATIVEARC, 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 $232,330.

What is the period of performance?

Start: 2026-04-08. End: 2026-06-30.

What is the historical spending pattern for physician assistant, nurse practitioner, and certified nurse midwife services by the Indian Health Service in South Dakota?

Analyzing historical spending for these specific roles within the IHS in South Dakota would provide crucial context for the current $2.32 million award. It would reveal trends in contract values, durations, and the number of awards over time. For instance, if spending has been consistently high or increasing, it might indicate persistent staffing challenges or growing demand. Conversely, a sudden spike could signal an emergency need or a change in procurement strategy. Understanding past pricing and competition levels for similar services in the region is essential for benchmarking the current contract's value and assessing its long-term affordability and sustainability for the IHS.

How does the daily rate of approximately $27,990 for this temporary medical staffing contract compare to market rates for similar services in South Dakota?

The calculated daily rate of approximately $27,990 for physician assistants, nurse practitioners, and certified nurse midwives is a critical figure for value assessment. To benchmark this, one would need to research average daily rates for these professions in South Dakota through industry surveys, staffing agency data, or publicly available contract awards for similar services. Factors such as the specific qualifications required, the urgency of the need, and the geographic location within South Dakota (urban vs. rural) can significantly influence market rates. If the awarded rate is substantially higher than comparable market rates, it could indicate potential overpricing or unique circumstances justifying the cost. Conversely, a rate at or below market could suggest good value.

What are the specific risks associated with the short 83-day performance period for this contract?

The short 83-day performance period presents several risks. Firstly, it necessitates a rapid onboarding process for the temporary staff, potentially leading to initial inefficiencies or errors. Secondly, it limits the ability to build long-term patient relationships or institutional knowledge, which can be crucial in healthcare settings. Thirdly, the frequent need for re-competition or extensions can create administrative burdens and potential gaps in service delivery if not managed proactively. Finally, contractors may factor in a premium for short-term engagements, potentially increasing the overall cost compared to longer-term contracts. Ensuring seamless transition and continuity of care within this limited timeframe is paramount.

What is the track record of NATIVEARC, LLC in providing similar temporary medical staffing services to federal agencies?

Investigating NATIVEARC, LLC's track record is essential for assessing performance risk. This involves reviewing their past federal contract awards, particularly those for physician assistant, nurse practitioner, and certified nurse midwife services. Key aspects to examine include contract performance ratings (if available), any history of contract disputes or terminations, and their experience with agencies like the Indian Health Service. Understanding their capacity to mobilize qualified personnel quickly and effectively, especially in potentially remote locations like South Dakota, is crucial. A strong performance history would increase confidence in their ability to meet the current contract's requirements, while a history of issues would warrant closer scrutiny and potentially more robust oversight.

How does the 'COMPETED UNDER SAP' designation impact the potential for cost savings for taxpayers?

The 'COMPETED UNDER SAP' (Simplified Acquisition Procedures) designation suggests that the procurement process was streamlined for a contract valued below certain thresholds (typically $250,000, though this can vary). While SAP aims to increase efficiency and potentially reduce administrative costs, it may not always achieve the same level of price competition as larger, full-and-open competitions. The number of bidders is a critical factor; if only a few vendors participated, the price discovery might be limited. However, if multiple vendors submitted competitive bids, taxpayers could still realize cost savings compared to a sole-source award. The effectiveness of SAP in driving cost savings is highly dependent on the specific market conditions and the number of responsive bidders.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 615 SW DESCHUTES AVE, REDMOND, OR, 97756

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $232,330

Exercised Options: $232,330

Current Obligation: $232,330

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75H70621D00021

IDV Type: IDC

Timeline