HHS awards $24.6M for clearinghouse services to Badger Health & Associates LLC

Contract Overview

Contract Amount: $24,582 ($24.6K)

Contractor: Badger Health & Associates LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-05-12

End Date: 2026-04-30

Contract Duration: 353 days

Daily Burn Rate: $70/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CLEARINGHOUSE SERVICES - UMUHC

Place of Performance

Location: TOWAOC, MONTEZUMA County, COLORADO, 81334

State: Colorado Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24,582.4 to BADGER HEALTH & ASSOCIATES LLC for work described as: CLEARINGHOUSE SERVICES - UMUHC Key points: 1. Value for money appears fair given the fixed-price contract type and 353-day duration. 2. Competition dynamics indicate a competed award, suggesting potential for price discovery. 3. Risk indicators are moderate, with a fixed-price contract and a single award. 4. Performance context is for computing infrastructure and data processing services. 5. Sector positioning is within healthcare IT services, supporting the Indian Health Service.

Value Assessment

Rating: fair

The contract value of $24.6 million for a 353-day period suggests a daily rate of approximately $69,750. Benchmarking this against similar IT service contracts requires more granular data on the specific services provided. However, the firm fixed-price structure provides cost certainty for the government. Without specific performance metrics or comparisons to similar clearinghouse services, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process for awards below certain thresholds. With 4 bidders identified, this suggests a reasonable level of competition. The SAP process aims to balance efficiency with competition, and the presence of multiple bidders generally supports fair price discovery.

Taxpayer Impact: A competed award under SAP suggests that taxpayers likely benefited from competitive pricing, although the specific savings compared to a sole-source award are not quantifiable without further analysis.

Public Impact

Beneficiaries include the Indian Health Service, which will receive clearinghouse services. Services delivered encompass computing infrastructure, data processing, and web hosting. Geographic impact is primarily focused on supporting the operational needs of the IHS. Workforce implications are likely related to the IT and data management sectors supporting the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized.
Reliance on a single vendor for critical data processing could pose continuity risks.
Scope creep could increase costs if not managed tightly under the fixed-price contract.

Positive Signals

Firm fixed-price contract provides cost predictability.
Awarded to a single entity, potentially simplifying management and oversight.
Competition under SAP suggests a structured procurement process.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on data processing and hosting. The market for such services is large and competitive, with numerous providers offering cloud hosting, data management, and IT infrastructure solutions. The Indian Health Service's need for clearinghouse services is a niche within this broader market, likely involving specialized data handling and compliance requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and does not explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this specific award, though larger prime contractors often have subcontracting goals on other, larger contracts.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of Health and Human Services, specifically the Indian Health Service contracting office. Accountability measures are embedded in the firm fixed-price contract terms and performance period. Transparency is facilitated by the contract award notice, though detailed performance reports are usually internal.

Related Government Programs

Indian Health Service IT Modernization
HHS Data Management Services
Federal Cloud Computing Services
Healthcare Data Processing Contracts

Risk Flags

Potential for performance issues impacting critical IHS operations.
Risk of data security breaches or non-compliance with health data regulations.
Dependence on a single vendor for essential IT infrastructure and data processing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24,582.4 to BADGER HEALTH & ASSOCIATES LLC. CLEARINGHOUSE SERVICES - UMUHC

Who is the contractor on this award?

The obligated recipient is BADGER HEALTH & ASSOCIATES 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 $24,582.4.

What is the period of performance?

Start: 2025-05-12. End: 2026-04-30.

What is the track record of Badger Health & Associates LLC in performing similar federal contracts?

A review of Badger Health & Associates LLC's federal contracting history would be necessary to assess their track record. This would involve examining past performance on similar IT services, data processing, and hosting contracts, particularly with agencies like the Department of Health and Human Services or the Indian Health Service. Key indicators would include contract values, durations, types of services rendered, and any reported performance issues or awards. Without access to a detailed contract performance database, it's difficult to definitively state their track record. However, winning a competed award suggests they met the basic qualifications and competitive requirements of the procurement.

How does the daily rate of approximately $69,750 compare to market rates for similar clearinghouse services?

Determining if the daily rate of approximately $69,750 is competitive requires a detailed comparison against market benchmarks for clearinghouse services, which often include data aggregation, processing, and secure storage. Factors influencing this rate include the complexity of data, security requirements (e.g., HIPAA compliance), uptime guarantees, and the specific functionalities offered. Benchmarking would involve analyzing similar contracts awarded by other federal agencies or large healthcare organizations, considering the scope of work, service level agreements, and contractor overhead. Given the specialized nature of healthcare data and the need for robust IT infrastructure, this rate may fall within a reasonable range, but a definitive assessment necessitates access to detailed market analysis and comparable contract data.

What are the primary risks associated with this contract for the Indian Health Service?

The primary risks for the Indian Health Service (IHS) in this contract revolve around service delivery and vendor performance. As this is a firm fixed-price contract, the IHS bears less financial risk from cost overruns, but performance risk remains significant. If Badger Health & Associates LLC fails to deliver the required computing infrastructure, data processing, or web hosting services to the agreed-upon standards, it could disrupt IHS operations. Other risks include potential data breaches or security vulnerabilities, given the sensitive nature of health data, and the possibility of vendor lock-in if the services are highly proprietary or difficult to transition away from. Ensuring robust Service Level Agreements (SLAs) and continuous monitoring of performance are crucial mitigation strategies.

What is the historical spending pattern for clearinghouse services by the Indian Health Service?

Analyzing historical spending patterns for clearinghouse services by the Indian Health Service (IHS) would provide context for the current $24.6 million award. This involves examining previous contract awards for similar services, including their values, durations, and the contractors involved. Understanding whether spending has been consistent, increasing, or decreasing can indicate trends in the IHS's reliance on external IT and data processing support. It would also reveal if Badger Health & Associates LLC has been a previous provider or if this represents a new relationship. Significant shifts in spending could signal changes in program requirements, technological adoption, or strategic sourcing decisions within the IHS.

How does the 'COMPETED UNDER SAP' designation impact the overall value and competition for this contract?

The 'COMPETED UNDER SAP' (Simplified Acquisition Procedures) designation indicates that this contract was procured using a streamlined process designed for purchases below certain dollar thresholds, typically $250,000, though this can vary. While SAP aims for efficiency, it still requires competition. The fact that it was competed and received 4 bids suggests that the process allowed for multiple vendors to propose solutions, fostering price discovery and potentially leading to a more favorable price for the government than a sole-source award. However, SAP processes may not involve the same level of extensive market research or broad solicitation as full and open competition, which could mean a smaller pool of potential bidders and potentially less aggressive pricing compared to larger, more complex procurements.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75H70725Q00066

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 800 65D TESUQUE PUEBLO, SANTA FE, NM, 87506

Business Categories: American Indian Owned Business, Category Business, 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: $120,882

Exercised Options: $24,582

Current Obligation: $24,582

Actual Outlays: $19,458

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline