HHS awards $747K for radiology techs, with 3 bidders and 1153 labor hours

Contract Overview

Contract Amount: $747,832 ($747.8K)

Contractor: AB Staffing Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-05-04

End Date: 2026-06-30

Contract Duration: 1,153 days

Daily Burn Rate: $649/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: RADIOLOGY TECHS

Place of Performance

Location: CHINLE, APACHE County, ARIZONA, 86503

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $747,832.13 to AB STAFFING SOLUTIONS LLC for work described as: RADIOLOGY TECHS Key points: 1. Value for money appears reasonable given the labor hours and duration. 2. Competition dynamics indicate a healthy bidding environment for this service. 3. Risk indicators are low, with a clear service need and defined scope. 4. Performance context suggests a need for temporary staffing in radiology. 5. Sector positioning is within healthcare support services.

Value Assessment

Rating: good

The contract's value of $747,832.13 for 1153 labor hours over approximately 2.5 years suggests a blended hourly rate of roughly $649. This rate is within a reasonable range for specialized temporary healthcare staffing, especially considering potential geographic differentials and the need for qualified professionals. Benchmarking against similar contracts for radiology technicians would provide a more precise value assessment, but initial indicators suggest fair pricing.

Cost Per Unit: $649 per labor hour

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bidders participating. The presence of multiple bidders suggests that the market was adequately informed and that the government received competitive proposals. This level of competition is generally favorable for price discovery and ensuring that the government obtains services at a reasonable cost.

Taxpayer Impact: The full and open competition process likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award.

Public Impact

Benefits Native American communities by ensuring access to radiology services through the Indian Health Service. Delivers essential radiology technician services to support diagnostic imaging. Geographic impact is focused on Arizona, serving IHS facilities within the state. Workforce implications involve providing temporary staffing to supplement existing healthcare personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for reliance on temporary staff impacting long-term workforce planning.
Ensuring consistent quality of care with temporary personnel requires robust oversight.

Positive Signals

Addresses immediate staffing needs for critical radiology services.
Competition ensures a pool of qualified providers is available.
Clear contract duration provides predictability for staffing.

Sector Analysis

The healthcare staffing sector is a critical component of the broader healthcare industry, addressing the persistent need for qualified medical professionals. Temporary staffing services, like those provided by AB Staffing Solutions LLC, play a vital role in filling immediate gaps, managing fluctuating patient loads, and providing specialized skills. The market for healthcare staffing is competitive, with numerous firms vying for government and private sector contracts. This contract fits within the niche of providing specialized clinical support personnel.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. The primary focus appears to be on securing qualified radiology technicians through a competitive process. Further analysis would be needed to determine if small businesses were among the bidders or if they are involved in subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Indian Health Service (IHS) within the Department of Health and Human Services. The contract's performance will likely be monitored by contracting officers and program managers to ensure adherence to labor hour requirements, service quality, and delivery timelines. Transparency is facilitated through contract databases, and any significant issues could be subject to Inspector General review.

Related Government Programs

Temporary Healthcare Staffing Services
Radiology and Imaging Services
Indian Health Service Contracts
Department of Health and Human Services Procurements

Risk Flags

Potential for high hourly rate requires further justification against market benchmarks.
Reliance on temporary staffing may impact service continuity.
Need for robust quality assurance to ensure consistent patient care.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $747,832.13 to AB STAFFING SOLUTIONS LLC. RADIOLOGY TECHS

Who is the contractor on this award?

The obligated recipient is AB STAFFING SOLUTIONS 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 $747,832.13.

What is the period of performance?

Start: 2023-05-04. End: 2026-06-30.

What is the track record of AB Staffing Solutions LLC in providing similar healthcare staffing services to the federal government?

AB Staffing Solutions LLC has a history of providing staffing services, including healthcare professionals, to various federal agencies. While this specific contract focuses on radiology technicians for the Indian Health Service, the company's broader portfolio likely includes other clinical and administrative support roles. A deeper dive into their past performance evaluations, contract history, and client feedback would provide a more comprehensive understanding of their reliability, quality of service, and ability to meet federal requirements. Examining their experience with similar contract types (e.g., labor hour, fixed price) and their success in meeting performance metrics on previous awards would be crucial for assessing their track record.

How does the awarded hourly rate of $649 compare to market rates for radiology technicians in Arizona?

The benchmarked hourly rate of approximately $649 for radiology technicians is derived from the total contract value ($747,832.13) divided by the total labor hours (1153). This rate needs to be contextualized within the specific geographic location (Arizona) and the specialized nature of the role. Market research indicates that average hourly wages for radiology technologists can range significantly based on experience, certifications, and location. For temporary or contract positions, rates are often higher than permanent staff due to overhead, benefits, and recruitment costs borne by the staffing agency. While $649 per hour appears high at first glance, it may be justified if it includes agency overhead, profit, and the cost of sourcing highly specialized or difficult-to-find talent within the IHS system in Arizona. A direct comparison with other federal or commercial contracts for similar roles in the same region is necessary for a definitive assessment.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential disruptions in service delivery due to the temporary nature of the staffing, challenges in maintaining consistent quality of care with a fluctuating workforce, and the possibility of increased costs if labor hours exceed projections or if specialized skills are harder to source than anticipated. Mitigation strategies likely involve robust oversight by the Indian Health Service contracting officer's representative (COR) to monitor performance and ensure adherence to quality standards. The contract's defined duration and labor hour limitations provide some control over cost and scope. Furthermore, the competitive bidding process aims to ensure that AB Staffing Solutions LLC has the capacity and processes in place to manage these risks effectively. Clear performance work statements and regular communication channels are also critical for proactive risk management.

What is the historical spending pattern for radiology technician services by the Indian Health Service?

Analyzing historical spending patterns for radiology technician services by the Indian Health Service (IHS) is crucial for understanding the context of this $747,832.13 award. Without specific historical data, it's difficult to determine if this contract represents an increase, decrease, or stable level of spending. However, general trends in healthcare indicate a consistent demand for diagnostic imaging services, suggesting a sustained need for radiology technicians. Examining prior IHS contracts for similar services, including their values, durations, and number of bidders, would reveal whether this award is typical, an outlier, or part of a larger strategic shift in how the IHS procures these essential services. Understanding past spending can also highlight any recurring issues or successful strategies employed by the IHS in acquiring radiology support.

How does the number of bidders (3) impact the potential for cost savings for the government?

A competition with three bidders generally provides a reasonable level of price discovery. While more bidders could potentially drive prices down further, three offers typically indicate sufficient market interest and a competitive environment. This number suggests that the government received multiple proposals, allowing for a comparison of technical approaches and pricing. The contracting officer would have evaluated these proposals against the solicitation's criteria to determine the best value. The presence of three bidders implies that the government was not limited to a single source or a small, restricted pool, which is a positive indicator for achieving cost savings compared to less competitive scenarios. However, the actual cost savings achieved depend on the government's negotiation leverage and the specific pricing strategies of the bidders.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2680 S VAL VISTA DR STE 152, GILBERT, AZ, 85295

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $747,832

Exercised Options: $747,832

Current Obligation: $747,832

Actual Outlays: $546,634

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: V797D40126

IDV Type: FSS

Timeline