HHS awards $807K for temporary nursing services in Montana, with a high per-unit cost

Contract Overview

Contract Amount: $807,475 ($807.5K)

Contractor: Dt-Trak Consulting, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-21

End Date: 2024-01-31

Contract Duration: 132 days

Daily Burn Rate: $6.1K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NCSU-REGISTERED NURSING SERVICES SHALL BE AUTHORIZED ON INDIVIDUAL TASK ORDERS FOR THE SPECIFIED OUTPATIENT, EMERGENCY ROOM, MEDICAL/SURGICAL, OBSTETRICT DEPARTMENT, PUBLIC HEALTH, AND SURGICAL-CIRCULATING NURSES

Place of Performance

Location: LAME DEER, ROSEBUD County, MONTANA, 59043

State: Montana Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $807,474.68 to DT-TRAK CONSULTING, INC. for work described as: NCSU-REGISTERED NURSING SERVICES SHALL BE AUTHORIZED ON INDIVIDUAL TASK ORDERS FOR THE SPECIFIED OUTPATIENT, EMERGENCY ROOM, MEDICAL/SURGICAL, OBSTETRICT DEPARTMENT, PUBLIC HEALTH, AND SURGICAL-CIRCULATING NURSES Key points: 1. The contract focuses on providing essential nursing staff across various hospital departments. 2. Competition was robust, suggesting potential for competitive pricing, though per-unit costs warrant scrutiny. 3. The short duration of the contract indicates a need for immediate staffing solutions. 4. Performance is tied to the successful delivery of nursing services as authorized by task orders. 5. This contract falls within the broader healthcare staffing and temporary services sector. 6. The agency aims to ensure continuity of care through these supplemental nursing resources.

Value Assessment

Rating: fair

The contract's value is assessed based on the provided data, which includes a total award amount and duration. Benchmarking against similar contracts for registered nursing services is crucial for a comprehensive value assessment. The per-unit cost appears high when considering the total award over the contract period, suggesting that either the hourly rates are elevated or the utilization is intensive. Further analysis would involve comparing these rates to prevailing market wages for similar nursing roles in Montana and nationally.

Cost Per Unit: The average daily cost is approximately $6,117.49 ($807,474.68 / 132 days), which translates to a high hourly rate if assuming standard 8-hour shifts. This rate is likely above average for temporary nursing services, indicating a potential premium for immediate or specialized staffing needs.

Competition Analysis

Competition Level: full-and-open

The contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition for awards below a certain threshold. The specific number of bidders is not provided, but the 'COMPETED UNDER SAP' designation suggests that multiple offers were solicited and evaluated. This level of competition is generally favorable for price discovery and ensuring the government receives a reasonable price.

Taxpayer Impact: A competed award under SAP generally benefits taxpayers by fostering competition, which should drive down costs and encourage efficient service delivery. This process helps ensure that public funds are used judiciously.

Public Impact

Patients in outpatient, emergency room, medical/surgical, obstetrics, public health, and surgical-circulating departments will benefit from continuous nursing care. The services delivered are critical for maintaining operational capacity and quality of care within the Indian Health Service facilities in Montana. The geographic impact is concentrated in Montana, serving the healthcare needs of specific communities. The contract directly impacts the nursing workforce by providing temporary staffing solutions, potentially alleviating strain on existing staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost may indicate premium pricing for specialized or immediate needs.
Short contract duration necessitates ongoing procurement efforts for sustained staffing.
Reliance on temporary staff could impact team cohesion and institutional knowledge transfer.

Positive Signals

Full and open competition suggests a robust bidding process.
Awarded to a single entity (DT-TRAK CONSULTING, INC.) for focused service delivery.
Contract addresses critical healthcare staffing needs within the Indian Health Service.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on temporary staffing services for medical facilities. The market for healthcare staffing is substantial, driven by persistent shortages of qualified medical professionals and the need for flexible workforce solutions. Comparable spending benchmarks would involve analyzing other federal and commercial contracts for registered nursing services, particularly those procured through similar competitive processes and for similar geographic regions or facility types.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. As the contract was competed under SAP, it's possible that small businesses participated in the bidding process. However, without explicit set-aside information or subcontracting goals, the direct impact on the small business ecosystem is unclear. Further investigation into the bidding pool and awardee's subcontracting practices would be needed.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and the Indian Health Service (IHS). Task orders issued under the contract will specify performance requirements and delivery schedules, which will be monitored by the contracting officer's representative (COR). Performance metrics and quality assurance surveillance plans (QASP) are typically established to ensure adherence to contract terms. Transparency is facilitated through contract award databases, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Temporary Healthcare Staffing Services
Indian Health Service Contracts
Nursing Services Procurement
Federal Healthcare Staffing

Risk Flags

High per-unit cost
Short contract duration
Potential for inconsistent quality of care

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $807,474.68 to DT-TRAK CONSULTING, INC.. NCSU-REGISTERED NURSING SERVICES SHALL BE AUTHORIZED ON INDIVIDUAL TASK ORDERS FOR THE SPECIFIED OUTPATIENT, EMERGENCY ROOM, MEDICAL/SURGICAL, OBSTETRICT DEPARTMENT, PUBLIC HEALTH, AND SURGICAL-CIRCULATING NURSES

Who is the contractor on this award?

The obligated recipient is DT-TRAK CONSULTING, 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 $807,474.68.

What is the period of performance?

Start: 2023-09-21. End: 2024-01-31.

What is the track record of DT-TRAK CONSULTING, INC. in providing federal healthcare staffing services?

DT-TRAK CONSULTING, INC. has been awarded this delivery order for registered nursing services by the Indian Health Service. To assess their track record, a review of their past federal contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations would be necessary. Information on their experience with similar task orders, the types of nursing specialties they typically provide, and their geographic reach would offer further insight into their capabilities and reliability as a federal contractor in the healthcare staffing domain.

How does the per-unit cost of these nursing services compare to market rates for similar temporary staffing in Montana?

The average daily cost of approximately $6,117.49 suggests a potentially high per-unit cost for temporary nursing services. To benchmark this against market rates, one would need to consult industry reports on travel nursing and temporary staffing agencies operating in Montana. Factors such as the specific nursing specialties required (e.g., ER, ICU, surgical), the urgency of the need, and the prevailing wage rates for registered nurses in the region would influence this comparison. If this daily cost translates to significantly higher hourly rates than typically offered by commercial staffing agencies for comparable roles and qualifications, it could indicate an overpayment or a premium for specialized, immediate, or hard-to-fill positions.

What are the primary risks associated with relying on temporary nursing staff for critical healthcare functions?

Relying on temporary nursing staff introduces several risks. Firstly, there's a potential for variability in the quality of care and adherence to established protocols, as temporary staff may be less familiar with specific facility procedures and electronic health record systems. Secondly, continuity of care can be compromised, impacting patient outcomes and team coordination. Thirdly, there can be increased administrative overhead associated with onboarding, credentialing, and managing multiple temporary providers. Finally, high turnover among temporary staff can lead to inefficiencies and potentially higher overall costs if not managed effectively, despite potentially competitive hourly rates.

What is the historical spending pattern for temporary nursing services by the Indian Health Service in Montana?

Analyzing historical spending patterns for temporary nursing services by the Indian Health Service (IHS) in Montana would require accessing federal procurement data over several fiscal years. This would involve searching for contracts with similar North American Industry Classification System (NAICS) codes (e.g., 561320 - Temporary Help Services) and service descriptions related to nursing. Examining trends in award amounts, contract durations, number of competitors, and average costs per contract would reveal whether this $807K award is an anomaly or part of a consistent pattern of utilizing temporary nursing support in the region. Understanding these patterns can inform future budgeting and procurement strategies.

What specific nursing specialties are covered under this contract, and how does their demand influence pricing?

The contract specifies authorization for 'SPECIFIED OUTPATIENT, EMERGENCY ROOM, MEDICAL/SURGICAL, OBSTETRICT DEPARTMENT, PUBLIC HEALTH, AND SURGICAL-CIRCULATING NURSES.' The demand for these specialties significantly influences pricing. For instance, emergency room and surgical-circulating nurses often command higher rates due to the critical nature of their work, the need for specialized skills, and potentially higher stress levels. Public health nurses might have different rate structures depending on the services required. The IHS's need for a mix of these roles, especially if certain specialties are in high demand or short supply within the local healthcare workforce, would drive up the overall cost of the temporary staffing solution.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 210 N BROADWAY AVE, MILLER, SD, 57362

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,035,995

Exercised Options: $807,475

Current Obligation: $807,475

Actual Outlays: $807,475

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 75H70923D00002

IDV Type: IDC

Timeline