HHS Awards $8.6M Telehealth Contract to Averra Health for Indian Health Service
Contract Overview
Contract Amount: $25,222,840 ($25.2M)
Contractor: Avera Health
Awarding Agency: Department of Health and Human Services
Start Date: 2019-09-27
End Date: 2025-03-31
Contract Duration: 2,012 days
Daily Burn Rate: $12.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: AREA TELE-HEALTH SERVICES; DOS: 10/01/2019 - 09/30/2020; YEAR 1 OF 5 TOTAL: $8,604,992.00
Place of Performance
Location: BILLINGS, YELLOWSTONE County, MONTANA, 59101
State: Montana Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $25.2 million to AVERA HEALTH for work described as: AREA TELE-HEALTH SERVICES; DOS: 10/01/2019 - 09/30/2020; YEAR 1 OF 5 TOTAL: $8,604,992.00 Key points: 1. The contract, valued at $8.6 million over five years, supports telehealth services for the Indian Health Service. 2. Avera Health, the sole awardee, will provide general medical and surgical hospital services. 3. The contract was awarded under full and open competition, indicating a competitive bidding process. 4. The firm-fixed-price contract structure aims to control costs for the duration of the agreement.
Value Assessment
Rating: good
The contract's total value of $8.6 million over five years appears reasonable for comprehensive telehealth services. Benchmarking against similar large-scale telehealth contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method allows multiple vendors to bid, potentially leading to more competitive pricing.
Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for essential telehealth services.
Public Impact
Improved access to healthcare services for Native American communities through telehealth. Potential for enhanced patient outcomes and reduced healthcare disparities. Supports the modernization of healthcare delivery within the Indian Health Service. Ensures continuity of care for beneficiaries relying on IHS services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if service definitions are not strictly managed.
- Dependence on a single vendor for critical telehealth infrastructure.
Positive Signals
- Awarded through full and open competition.
- Firm-fixed-price contract helps manage cost uncertainty.
- Long-term contract provides stability for service delivery.
Sector Analysis
This contract falls within the healthcare sector, specifically focusing on telehealth services for a government agency. Telehealth spending has seen significant growth, driven by technological advancements and the need for remote care solutions.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract's duration and value suggest a need for ongoing oversight by the Department of Health and Human Services to ensure performance standards and financial accountability are met.
Related Government Programs
- General Medical and Surgical Hospitals
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Vendor lock-in potential
- Service quality variability
- Cybersecurity risks associated with telehealth data
- Dependence on technology infrastructure
Tags
general-medical-and-surgical-hospitals, department-of-health-and-human-services, mt, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $25.2 million to AVERA HEALTH. AREA TELE-HEALTH SERVICES; DOS: 10/01/2019 - 09/30/2020; YEAR 1 OF 5 TOTAL: $8,604,992.00
Who is the contractor on this award?
The obligated recipient is AVERA HEALTH.
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 $25.2 million.
What is the period of performance?
Start: 2019-09-27. End: 2025-03-31.
What is the specific scope of telehealth services covered under this contract?
The provided data indicates 'AREA TELE-HEALTH SERVICES' and 'General Medical and Surgical Hospitals' as the service category. However, a detailed breakdown of specific services, such as remote patient monitoring, virtual consultations, or specialized telehealth programs, is not included. Understanding the precise service scope is crucial for evaluating the contract's value and effectiveness.
How will the effectiveness of these telehealth services be measured and reported?
The contract's effectiveness will likely be measured through key performance indicators (KPIs) related to patient access, satisfaction, clinical outcomes, and cost-efficiency. The Department of Health and Human Services, through the Indian Health Service, should establish clear metrics and reporting requirements to ensure the telehealth services are meeting their intended goals and providing value.
What are the contingency plans if Avera Health fails to meet its contractual obligations?
As with any government contract, there are typically clauses addressing vendor performance and default. Contingency plans would likely involve remedies such as contract termination, seeking alternative providers, or imposing penalties. The specific remedies available would be detailed within the contract's terms and conditions.
Industry Classification
NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals
Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: RFP244190001REL
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Avel Ecare LLC
Address: 3900 W AVERA DR, SIOUX FALLS, SD, 57108
Business Categories: Category Business, Corporate Entity Tax Exempt, Government, Native American Tribal Government, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $44,318,074
Exercised Options: $44,318,074
Current Obligation: $25,222,840
Actual Outlays: $19,879,616
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2019-09-27
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2025-07-23
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