HHS awards $2.58M for dental lab services to East Orthodontic Laboratory Inc. in New Mexico

Contract Overview

Contract Amount: $257,838 ($257.8K)

Contractor: East Orthodontic Labortory Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2020-05-16

End Date: 2025-05-31

Contract Duration: 1,841 days

Daily Burn Rate: $140/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DENTAL LABORATORY SERVICES FOR THE ALBUQUERQUE INDIAN DENTAL CLINIC

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87193

State: New Mexico Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $257,838 to EAST ORTHODONTIC LABORTORY INC for work described as: DENTAL LABORATORY SERVICES FOR THE ALBUQUERQUE INDIAN DENTAL CLINIC Key points: 1. Contract awarded to a single vendor, raising questions about competitive pricing. 2. The contract duration is over 5 years, indicating a long-term need for these services. 3. Services are for the Albuquerque Indian Dental Clinic, highlighting a specific regional healthcare need. 4. The contract type is Firm Fixed Price, which can offer cost certainty but may limit flexibility. 5. The North American Industry Classification System (NAICS) code 621511 points to medical laboratories. 6. The award was made under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller procurements.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service specifications and market data for specialized dental laboratory services in the Albuquerque area. However, the award to a single vendor under SAP suggests a potentially less competitive environment, which could impact overall value. Comparing the per-unit cost of specific dental prosthetics or services would be necessary for a more precise value assessment against industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broader range of competition than sole-source but may not always achieve the same level of price discovery as larger, full-and-open competitions. The data indicates two bids were received, suggesting some level of competition, but the specifics of the bidding process and the qualifications of the bidders are not detailed.

Taxpayer Impact: With two bids received, taxpayers likely benefited from some price negotiation, but the limited number of bidders may have prevented the most competitive pricing achievable in a wider competition.

Public Impact

Beneficiaries include Native American patients receiving dental care at the Albuquerque Indian Dental Clinic. Services delivered are likely related to the fabrication and repair of dental prosthetics and appliances. The geographic impact is concentrated in Albuquerque, New Mexico, serving the local patient population. The contract supports specialized dental laboratory technicians and potentially administrative staff within the awarded company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than could have been achieved through a more robust bidding process.
The long contract duration could lead to price increases over time if not managed effectively.
Lack of detailed performance metrics makes it difficult to assess the quality and efficiency of services provided.

Positive Signals

The contract was competed, indicating an effort to solicit offers.
Firm Fixed Price contract type provides cost certainty for the government.
Services are directed towards a specific underserved population, addressing a critical healthcare need.

Sector Analysis

The dental laboratory services sector involves the creation of custom dental prosthetics and appliances. This contract falls under the broader healthcare services industry, specifically supporting dental care. The market for dental laboratories can range from small, local businesses to larger operations serving multiple clinics or regions. The value of this contract, approximately $2.58 million over five years, is moderate within the context of federal healthcare procurements, but significant for the specific clinic it serves.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information on subcontracting plans. The awardee, East Orthodontic Laboratory Inc., is not specified as a small business in the provided data. Further investigation would be needed to determine if small business participation was encouraged or required through subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Indian Health Service (IHS) within the Department of Health and Human Services (HHS). Accountability measures would be tied to the terms of the purchase order, including delivery schedules, quality standards, and payment terms. Transparency is facilitated by the public nature of federal contract awards, though specific performance data may not be readily available.

Related Government Programs

Indian Health Service Dental Programs
Federal Dental Laboratory Contracts
Healthcare Services for Native American Populations
Albuquerque Indian Health Service Facilities

Risk Flags

Limited Competition
Potential for Price Inflation
Quality Control Concerns
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $257,838 to EAST ORTHODONTIC LABORTORY INC. DENTAL LABORATORY SERVICES FOR THE ALBUQUERQUE INDIAN DENTAL CLINIC

Who is the contractor on this award?

The obligated recipient is EAST ORTHODONTIC LABORTORY 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 $257,838.

What is the period of performance?

Start: 2020-05-16. End: 2025-05-31.

What is the track record of East Orthodontic Laboratory Inc. with federal contracts?

Information regarding East Orthodontic Laboratory Inc.'s prior federal contract history is not detailed in the provided data. A comprehensive review would require searching federal procurement databases like SAM.gov or FPDS for previous awards, performance evaluations, and any history of contract disputes or terminations. Understanding their past performance, especially with government entities, is crucial for assessing reliability and value in fulfilling this current contract for the Albuquerque Indian Dental Clinic.

How does the awarded price compare to market rates for similar dental laboratory services?

A precise comparison of the awarded price to market rates is difficult without specific details on the services rendered (e.g., types of prosthetics, materials used, complexity). However, the contract value of approximately $2.58 million over 1841 days (roughly $1,400 per day) suggests a need for detailed analysis of unit costs for specific dental appliances. Benchmarking against commercial dental laboratories in the Albuquerque area, considering factors like overhead, labor, and material costs, would be necessary to determine if this represents fair market value.

What are the primary risks associated with this contract?

Key risks include potential quality control issues with dental prosthetics, delivery delays impacting patient care, and the possibility of cost overruns if the Firm Fixed Price contract does not adequately account for all service variables. Given the limited competition (two bids), there's also a risk that the pricing may not be as competitive as it could be in a more open market. Ensuring the contractor maintains adequate staffing and adheres to stringent quality standards will be critical for mitigating these risks.

How effective is the Indian Health Service in managing dental laboratory service contracts?

The effectiveness of IHS in managing dental laboratory service contracts can be assessed by examining contract performance metrics, patient satisfaction surveys related to dental services, and the overall efficiency of dental care delivery within IHS facilities. While this specific contract award is noted, a broader analysis of IHS's procurement processes and contract administration capabilities across its dental programs would be needed. Factors like timely payments, adherence to specifications, and responsiveness to issues are indicators of effective management.

What has been the historical spending pattern for dental laboratory services by the Albuquerque Indian Dental Clinic or similar IHS facilities?

Historical spending data for dental laboratory services at the Albuquerque Indian Dental Clinic or comparable IHS facilities is not provided. Analyzing past contract values, durations, and awardees for similar services would reveal trends in spending, identify potential increases or decreases in demand, and highlight any shifts in contracting strategies (e.g., from sole-source to competed). This context is vital for understanding if the current $2.58 million award represents a significant change or a continuation of established spending levels.

Industry Classification

NAICS: Health Care and Social Assistance › Medical and Diagnostic Laboratories › Medical Laboratories

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6300 MONTANO RD NW STE B, ALBUQUERQUE, NM, 87120

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $257,838

Exercised Options: $257,838

Current Obligation: $257,838

Actual Outlays: $205,588

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline