HHS Awards $9.6M for Physician Services to Bay Area Anesthesia LLC in New Mexico
Contract Overview
Contract Amount: $9,585,608 ($9.6M)
Contractor: BAY Area Anesthesia LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2023-06-02
End Date: 2027-07-16
Contract Duration: 1,505 days
Daily Burn Rate: $6.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: PHYSICIAN NON-PERSONAL HEALTHCARE SERVICES - ASU
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87106
Plain-Language Summary
Department of Health and Human Services obligated $9.6 million to BAY AREA ANESTHESIA LLC for work described as: PHYSICIAN NON-PERSONAL HEALTHCARE SERVICES - ASU Key points: 1. The contract is for physician non-personal healthcare services, a critical component of healthcare delivery. 2. Bay Area Anesthesia LLC is the sole awardee, raising questions about the extent of competition. 3. The contract value of $9.6 million over approximately 4 years presents a significant financial commitment. 4. The sector is healthcare, specifically physician services, which is a consistently high-spending area.
Value Assessment
Rating: fair
The contract value of $9.6 million for physician services over roughly 4 years appears to be within a reasonable range for specialized medical support. However, without specific benchmarks for physician non-personal services in New Mexico, a precise comparison is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. This method might limit the pool of potential bidders and potentially impact price discovery.
Taxpayer Impact: The $9.6 million awarded represents taxpayer funds allocated to essential healthcare services. The effectiveness of the competition method will determine if this represents optimal value for the investment.
Public Impact
Ensures continued access to physician services for patients served by the Indian Health Service. Supports healthcare infrastructure in New Mexico by providing necessary medical personnel. Potential for improved patient outcomes through dedicated medical staffing.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Limited competition method could lead to higher costs.
- Lack of specific performance metrics in provided data.
- Geographic concentration of awardee may limit local provider engagement.
Positive Signals
- Addresses a critical healthcare need.
- Long-term contract provides stability for service delivery.
- Fixed-price contract offers cost predictability.
Sector Analysis
This contract falls within the healthcare sector, specifically physician services, which is a substantial and often complex area of government spending. Benchmarks for physician services can vary widely based on specialty, location, and the nature of the services (personal vs. non-personal).
Small Business Impact
The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight of this contract would likely fall under the Indian Health Service's purview, focusing on ensuring the quality and timeliness of physician services provided. Accountability would be tied to contract performance and adherence to the terms and conditions.
Related Government Programs
- Offices of Physicians (except Mental Health Specialists)
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Limited competition
- Potential for cost overruns due to limited bidding
- Lack of transparency in source exclusion
- Dependence on a single provider for critical services
Tags
offices-of-physicians-except-mental-heal, department-of-health-and-human-services, nm, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $9.6 million to BAY AREA ANESTHESIA LLC. PHYSICIAN NON-PERSONAL HEALTHCARE SERVICES - ASU
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 $9.6 million.
What is the period of performance?
Start: 2023-06-02. End: 2027-07-16.
What specific physician services are included under this contract, and how do they align with the needs of the Indian Health Service population?
The contract specifies 'PHYSICIAN NON-PERSONAL HEALTHCARE SERVICES.' This generally refers to services provided by physicians who are not employees of the contracting agency but are contracted to perform specific medical duties. The exact services would need to be detailed in the contract's statement of work, ensuring they address the healthcare requirements of the IHS beneficiaries in the relevant service area.
How was the 'exclusion of sources' justified in the full and open competition process, and did it significantly limit potential bidders?
The justification for excluding specific sources under a 'full and open competition after exclusion of sources' award is crucial. Agencies typically must demonstrate that excluding certain sources is necessary for reasons such as national security, specific technical requirements, or prior successful performance. Without this justification, it raises concerns about whether the exclusion unnecessarily limited competition and potentially inflated the contract price.
What are the key performance indicators (KPIs) for this contract, and how will the Indian Health Service measure the effectiveness of Bay Area Anesthesia LLC's services?
Effective oversight requires clearly defined KPIs related to physician availability, patient wait times, quality of care metrics, and patient satisfaction. The Indian Health Service should have established these metrics within the contract's performance work statement to objectively assess the contractor's performance and ensure the services meet the required standards for patient care.
Industry Classification
NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)
Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 75H70723Q00023
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3451 S MERCY RD, GILBERT, AZ, 85297
Business Categories: American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $12,817,928
Exercised Options: $9,585,608
Current Obligation: $9,585,608
Actual Outlays: $1,938,321
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2023-06-02
Current End Date: 2027-07-16
Potential End Date: 2028-07-16 00:00:00
Last Modified: 2026-03-16
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