HHS awards $3.18M for temporary healthcare staffing, with a base value of $1.59M

Contract Overview

Contract Amount: $3,781,303 ($3.8M)

Contractor: Watanabe Enterprises LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-05-15

End Date: 2026-11-30

Contract Duration: 564 days

Daily Burn Rate: $6.7K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NCSU: TEMPORARY HEALTHCARE STAFFING SERVICES PERIOD OF PERFORMANCE: 6/01/2025 - 5/31/2026 BASE: $1,588,826.00 OBLIGATED TOTAL AWARD: $3,177,650.00

Place of Performance

Location: LAME DEER, ROSEBUD County, MONTANA, 59043

State: Montana Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.8 million to WATANABE ENTERPRISES LLC for work described as: NCSU: TEMPORARY HEALTHCARE STAFFING SERVICES PERIOD OF PERFORMANCE: 6/01/2025 - 5/31/2026 BASE: $1,588,826.00 OBLIGATED TOTAL AWARD: $3,177,650.00 Key points: 1. Value for money appears fair given the obligated amount significantly exceeds the base. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery. 3. Risk indicators include a sole-source award and a relatively short performance period. 4. Performance context shows a need for temporary staffing services within the Indian Health Service. 5. Sector positioning is within healthcare support services, a critical area for government operations.

Value Assessment

Rating: fair

The obligated total of $3,177,650.00 is double the base amount of $1,588,826.00, suggesting potential for significant future spending or scope expansion. Without comparable contracts for temporary healthcare staffing in Montana, a precise value-for-money assessment is challenging. However, the firm-fixed-price contract type provides some cost certainty for the base period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under simplified acquisition procedures, indicating a sole-source award. This means only one vendor, WATANABE ENTERPRISES LLC, was solicited. The lack of competition limits the government's ability to explore alternative pricing and service models, potentially leading to higher costs than a competitive process might yield.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive bidding. The government missed an opportunity to leverage market forces to drive down costs for essential healthcare staffing.

Public Impact

Beneficiaries include patients served by the Indian Health Service, who will receive care facilitated by the temporary staff. Services delivered are temporary healthcare staffing, crucial for maintaining operational capacity. Geographic impact is focused on Montana, where the Indian Health Service facilities are located. Workforce implications involve supplementing the existing healthcare workforce, potentially alleviating staffing shortages.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Obligated amount significantly exceeds base, raising questions about initial cost estimation.
Short performance period may necessitate future contract actions, increasing administrative burden.

Positive Signals

Firm-fixed-price contract provides cost certainty for the base period.
Addresses a critical need for healthcare staffing within the Indian Health Service.
Contract awarded to a specific entity, potentially indicating a pre-existing relationship or specialized capability.

Sector Analysis

The healthcare staffing sector is a vital component of the broader healthcare industry, characterized by high demand and ongoing workforce challenges. Government agencies, particularly those serving specific populations like the Indian Health Service, often rely on temporary staffing to bridge gaps and ensure continuity of care. Spending in this area can fluctuate based on immediate needs and regional shortages. Comparable spending benchmarks are difficult to establish without more specific service details and geographic scope.

Small Business Impact

This contract was not competed under simplified acquisition procedures and the small business flag is false, indicating it was not set aside for small businesses. There is no explicit information regarding subcontracting plans for small businesses. This award does not appear to directly benefit the small business ecosystem through a set-aside, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services and the Indian Health Service contracting officers. Transparency is limited due to the sole-source nature of the award. Accountability measures would be tied to the performance clauses within the firm-fixed-price purchase order. There is no specific mention of an Inspector General's jurisdiction for this particular award, though the HHS OIG has broad authority.

Related Government Programs

Healthcare Staffing Services
Temporary Personnel Services
Indian Health Service Contracts
Department of Health and Human Services Procurement

Risk Flags

Sole-source award
Obligated amount significantly exceeds base amount
Lack of detailed performance metrics in award data

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.8 million to WATANABE ENTERPRISES LLC. NCSU: TEMPORARY HEALTHCARE STAFFING SERVICES PERIOD OF PERFORMANCE: 6/01/2025 - 5/31/2026 BASE: $1,588,826.00 OBLIGATED TOTAL AWARD: $3,177,650.00

Who is the contractor on this award?

The obligated recipient is WATANABE ENTERPRISES 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 $3.8 million.

What is the period of performance?

Start: 2025-05-15. End: 2026-11-30.

What is the track record of WATANABE ENTERPRISES LLC in performing similar healthcare staffing contracts for the federal government?

Information regarding WATANABE ENTERPRISES LLC's specific track record with federal healthcare staffing contracts is not detailed in the provided data. A comprehensive review would require accessing contract databases to identify past performance, client feedback, and any history of contract modifications or disputes. Without this historical data, it is difficult to assess their reliability and past success in fulfilling similar requirements. Further investigation into their past performance is recommended to validate their capability to meet the needs of the Indian Health Service.

How does the per-unit cost of this temporary healthcare staffing compare to market rates or similar federal contracts?

The provided data does not include specific per-unit cost breakdowns for the temporary healthcare staffing services. The contract is a firm-fixed-price purchase order with a total obligated amount of $3,177,650.00. To benchmark the value, one would need to know the types of healthcare professionals being hired (e.g., nurses, technicians), their hours, and the specific rates negotiated. Without this granular detail, a direct comparison to market rates or similar federal contracts is not feasible. The significant difference between the base and obligated amounts also complicates a simple per-unit cost analysis.

What are the primary risks associated with a sole-source award for essential healthcare staffing?

The primary risks associated with a sole-source award for essential healthcare staffing include a lack of competitive pricing, potentially leading to higher costs for taxpayers. It can also reduce the incentive for the awarded contractor to innovate or provide exceptional service, as there is no immediate threat of losing business to competitors. Furthermore, sole-source awards may limit the government's access to a broader pool of qualified vendors and specialized expertise that might be available through a competitive process. This can also raise concerns about fairness and equal opportunity for other capable businesses.

How effective is the Indian Health Service in managing temporary staffing contracts to ensure quality of care?

The effectiveness of the Indian Health Service (IHS) in managing temporary staffing contracts is not directly assessed by this data. However, the IHS's reliance on such contracts, especially sole-source awards, suggests a persistent need to supplement its permanent workforce to meet patient care demands. Effective management would involve robust oversight, clear performance metrics, and timely evaluation of contractor performance to ensure that temporary staff meet required qualifications and contribute positively to patient outcomes. Challenges in recruitment and retention within the IHS may necessitate these staffing solutions, but their long-term effectiveness depends heavily on the agency's contract management capabilities.

What is the historical spending pattern for temporary healthcare staffing services by the Indian Health Service?

This single contract award does not provide sufficient data to establish a historical spending pattern for temporary healthcare staffing services by the Indian Health Service (IHS). To understand historical trends, one would need to analyze IHS's procurement data over several fiscal years, looking at the volume, value, and types of temporary staffing contracts awarded. Factors such as changes in patient demand, federal appropriations, and workforce availability would influence these patterns. A broader analysis would reveal if this $3.18 million award represents a typical expenditure or an outlier for the IHS in this category.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

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: 1135 SANDTRAP CIR, NORTH SALT LAKE, UT, 84054

Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,781,303

Exercised Options: $3,781,303

Current Obligation: $3,781,303

Actual Outlays: $595,118

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline