HHS awards $218K for emergency podiatry services in Wyoming, lacking competition

Contract Overview

Contract Amount: $21,830 ($21.8K)

Contractor: White Stone Healthcare Resources, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2020-04-23

End Date: 2021-01-31

Contract Duration: 283 days

Daily Burn Rate: $77/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EMERGENCY BRIDGE CONTRACT FOR CONTINUED PODIATRY SERVICES AT THE WRSU AND WRCFHC. DOS: 5/1/20-10/31/20.

Place of Performance

Location: RIVERTON, FREMONT County, WYOMING, 82501

State: Wyoming Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21,829.5 to WHITE STONE HEALTHCARE RESOURCES, LLC for work described as: EMERGENCY BRIDGE CONTRACT FOR CONTINUED PODIATRY SERVICES AT THE WRSU AND WRCFHC. DOS: 5/1/20-10/31/20. Key points: 1. The contract for podiatry services was awarded without competition, raising concerns about price discovery. 2. The duration of the contract (283 days) suggests a need for ongoing services. 3. The specific services fall under 'All Other Miscellaneous Ambulatory Health Care Services'. 4. The award was made via a Purchase Order, a common method for smaller procurements.

Value Assessment

Rating: questionable

The contract value of $218,295 for approximately 9 months of service is difficult to benchmark without specific service details. The lack of competition prevents a direct comparison to similar, competitively awarded contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under Simplified Acquisition Procedures (SAP), indicating it was likely awarded through other limited sources. The absence of a competitive process limits the government's ability to ensure the best possible price and value.

Taxpayer Impact: Taxpayer funds may have been spent at a higher price due to the lack of competition, potentially leading to suboptimal value for money.

Public Impact

Ensures continued access to essential podiatry services for patients at WRSU and WRCFHC. Addresses an immediate need for healthcare services, preventing potential disruptions. Highlights potential inefficiencies in government contracting processes when emergency needs arise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment due to no price discovery
Emergency nature may have bypassed standard procurement best practices

Positive Signals

Ensures continuity of care
Addresses an urgent need

Sector Analysis

This contract falls within the healthcare services sector, specifically ambulatory care. Spending in this area can vary widely based on patient population, service complexity, and geographic location. Benchmarking is challenging without more granular data.

Small Business Impact

The contract was awarded to WHITE STONE HEALTHCARE RESOURCES, LLC, a single entity. There is no indication that this contract specifically supported small businesses or that small business set-asides were considered.

Oversight & Accountability

The award was made via a Purchase Order, which typically has less stringent oversight than larger, competed contracts. Further review would be needed to assess the specific oversight applied to this emergency procurement.

Related Government Programs

All Other Miscellaneous Ambulatory Health Care Services
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Lack of competition
Potential for price gouging
Limited transparency
No clear small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21,829.5 to WHITE STONE HEALTHCARE RESOURCES, LLC. EMERGENCY BRIDGE CONTRACT FOR CONTINUED PODIATRY SERVICES AT THE WRSU AND WRCFHC. DOS: 5/1/20-10/31/20.

Who is the contractor on this award?

The obligated recipient is WHITE STONE HEALTHCARE RESOURCES, 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 $21,829.5.

What is the period of performance?

Start: 2020-04-23. End: 2021-01-31.

What was the justification for not competing this contract, even under SAP, given the relatively modest value?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP'. Without further documentation, the specific justification remains unclear. It's possible the emergency nature or specific vendor qualifications were cited, but this bypasses standard procedures designed to ensure fair pricing and broad market access.

What is the risk of inflated pricing given the sole-source nature of this award?

The primary risk is inflated pricing. Without competition, the vendor had less incentive to offer their most competitive rate. The government's ability to negotiate or verify fair market price is significantly diminished, potentially leading to overpayment for the services rendered.

How effective was this contract in ensuring timely access to podiatry services?

The contract appears effective in ensuring timely access, as it was awarded to cover an emergency period (May-October 2020, with an extended end date). The primary concern is not the effectiveness of service delivery but the potential inefficiency and higher cost associated with the non-competitive award.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › All Other Miscellaneous Ambulatory Health Care Services

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 525 SUMMERFIELD DR STE 100, CHANHASSEN, MN, 55317

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $28,958

Exercised Options: $28,958

Current Obligation: $21,830

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline