HHS Awards $5.2M Telehealth Contract to Avel eCare LLC for Indian Health Service

Contract Overview

Contract Amount: $2,601,975 ($2.6M)

Contractor: Avel Ecare LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-12-31

End Date: 2026-06-30

Contract Duration: 181 days

Daily Burn Rate: $14.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TELEHEALTH BRIDGE AWARDED 5,203,949.40

Place of Performance

Location: BILLINGS, YELLOWSTONE County, MONTANA, 59101

State: Montana Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.6 million to AVEL ECARE LLC for work described as: TELEHEALTH BRIDGE AWARDED 5,203,949.40 Key points: 1. Contract value of $5,203,949.40 for telehealth services. 2. Awarded to Avel eCare LLC, a single vendor. 3. No competition was utilized for this award. 4. The contract falls under 'All Other Miscellaneous Ambulatory Health Care Services'.

Value Assessment

Rating: questionable

The contract value of $5.2M for 18 months of service is significant. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar telehealth solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition raises concerns about the optimal use of taxpayer funds, as a more competitive process could have yielded cost savings.

Public Impact

Ensures continued telehealth access for IHS beneficiaries in Montana. Potential for higher costs due to sole-source nature. Limited transparency on vendor selection and pricing justification.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The contract is in the healthcare sector, specifically telehealth services. Spending benchmarks for similar telehealth contracts are difficult to ascertain without competitive data, but $5.2M for 18 months is a substantial investment.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Further review of the justification for not competing the contract is needed to ensure accountability and responsible spending.

Related Government Programs

Risk Flags

Tags

all-other-miscellaneous-ambulatory-healt, department-of-health-and-human-services, mt, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.6 million to AVEL ECARE LLC. TELEHEALTH BRIDGE AWARDED 5,203,949.40

Who is the contractor on this award?

The obligated recipient is AVEL ECARE 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 $2.6 million.

What is the period of performance?

Start: 2025-12-31. End: 2026-06-30.

What was the specific justification for awarding this contract on a sole-source basis instead of conducting a competitive procurement?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling circumstances. A thorough review of the agency's justification documentation would be necessary to understand the rationale.

How does the per-unit cost of this telehealth service compare to industry benchmarks, given the lack of competitive pricing?

Without competitive bids or publicly available pricing data for similar services procured competitively, it is impossible to establish a reliable per-unit cost benchmark. The absence of competition means there's no market validation for the price. The agency should have conducted market research to establish a fair and reasonable price, but this information is not provided.

What measures are in place to ensure the effectiveness and quality of telehealth services provided by Avel eCare LLC under this contract?

The contract type is Firm Fixed Price, which sets the price regardless of the contractor's cost. While this provides cost certainty, it doesn't inherently guarantee effectiveness. The Department of Health and Human Services and the Indian Health Service would typically have performance standards, service level agreements, and quality assurance processes outlined in the contract to monitor and ensure the quality and effectiveness of the telehealth services delivered.

Industry Classification

NAICS: Health Care and Social AssistanceOther Ambulatory Health Care ServicesAll Other Miscellaneous Ambulatory Health Care Services

Product/Service Code: MEDICAL SERVICESGENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75H70926BAO_018

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4500 N LEWIS AVE, SIOUX FALLS, SD, 57104

Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $5,203,949

Exercised Options: $2,601,975

Current Obligation: $2,601,975

Actual Outlays: $498,150

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2025-12-31

Current End Date: 2026-06-30

Potential End Date: 2026-12-31 00:00:00

Last Modified: 2026-02-17

More Contracts from Avel Ecare LLC

View all Avel Ecare LLC federal contracts →

Other Department of Health and Human Services Contracts

View all Department of Health and Human Services contracts →

Explore Related Government Spending