HHS awards $3.5M for CRNA services in New Mexico, with 5 task orders issued

Contract Overview

Contract Amount: $3,553,466 ($3.6M)

Contractor: Medicus Healthcare Solutions, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-05-31

End Date: 2026-05-31

Contract Duration: 1,096 days

Daily Burn Rate: $3.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: CONTRACTOR SHALL PROVIDE CRNA SERVICES

Place of Performance

Location: GALLUP, MCKINLEY County, NEW MEXICO, 87301

State: New Mexico Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.6 million to MEDICUS HEALTHCARE SOLUTIONS, LLC for work described as: CONTRACTOR SHALL PROVIDE CRNA SERVICES Key points: 1. Value for money appears fair given the specialized nature of CRNA services. 2. Competition dynamics indicate a potentially limited market for this specific service in the region. 3. Risk indicators are moderate, with contract duration and potential for service disruption. 4. Performance context relies on the Indian Health Service's ability to manage and oversee specialized medical staffing. 5. Sector positioning places this contract within the broader healthcare staffing and medical services industry.

Value Assessment

Rating: fair

The contract value of $3.55 million over three years for CRNA services in New Mexico is difficult to benchmark without specific details on the number of hours or the exact scope of services. However, given the high demand and specialized training required for Certified Registered Nurse Anesthetists, the pricing is likely within a reasonable range for the market. Comparisons to similar contracts for CRNA services in other rural or underserved areas would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting it was likely awarded to a small business or competed among a limited number of vendors due to its relatively small dollar value. The specific number of bidders is not provided, but SAP typically involves fewer solicitations and proposals than full and open competition. This approach can lead to quicker awards but may not always yield the lowest possible price.

Taxpayer Impact: For taxpayers, competing under SAP can be efficient for smaller procurements, but it carries a risk of not achieving the best possible price compared to broader competition.

Public Impact

Patients in New Mexico, particularly those served by the Indian Health Service, will benefit from access to essential anesthesia services. The contract ensures the availability of qualified CRNAs to support medical procedures. The geographic impact is focused on New Mexico, addressing healthcare needs in the state. Workforce implications include the provision of specialized medical professionals to a critical healthcare setting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruption if contractor fails to meet staffing requirements.
Reliance on a single contractor for critical anesthesia services.
Ensuring consistent quality of care across all task orders.

Positive Signals

Contract provides essential medical services to an underserved population.
Clear contract duration allows for predictable resource allocation.
Multiple task orders suggest flexibility in meeting evolving needs.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on specialized medical staffing. The market for CRNA services is driven by demand in hospitals, surgical centers, and clinics, particularly in areas facing physician shortages. The total federal spending on healthcare services is substantial, and contracts like this represent a small but critical component of ensuring access to care.

Small Business Impact

Information regarding small business set-asides or subcontracting is not explicitly provided in the data. However, the contract being competed under SAP might suggest opportunities for small businesses, either as prime contractors or subcontractors, depending on the specific solicitation details and the size standards for the NAICS code 621111.

Oversight & Accountability

Oversight of this contract would primarily fall under the Indian Health Service (IHS) within the Department of Health and Human Services. Accountability measures would include performance monitoring, adherence to service level agreements, and quality assurance protocols. Transparency is generally maintained through contract databases, though specific performance metrics may not be publicly disclosed.

Related Government Programs

Indian Health Service Medical Staffing Contracts
Federal Healthcare Provider Services
Anesthesia Services Procurement
Rural Healthcare Support Programs

Risk Flags

Potential for service disruption
Reliance on contractor for critical services
Limited competition under SAP

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.6 million to MEDICUS HEALTHCARE SOLUTIONS, LLC. CONTRACTOR SHALL PROVIDE CRNA SERVICES

Who is the contractor on this award?

The obligated recipient is MEDICUS HEALTHCARE 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 $3.6 million.

What is the period of performance?

Start: 2023-05-31. End: 2026-05-31.

What is the historical spending pattern for CRNA services by the Indian Health Service in New Mexico?

Analyzing historical spending for CRNA services by the Indian Health Service (IHS) in New Mexico is crucial for understanding the context of this $3.55 million award. Without specific historical data, it's challenging to determine if this contract represents an increase, decrease, or stable level of investment. However, general trends in federal healthcare spending, particularly for IHS, indicate a consistent need for medical professionals in underserved areas. Factors such as changes in patient volume, availability of local providers, and shifts in healthcare policy can influence historical spending. A deeper dive into IHS budget allocations and previous contract awards for similar services in New Mexico would reveal whether this current award is an anomaly or part of a sustained effort to bolster anesthesia services.

How does the pricing of this contract compare to similar CRNA service contracts awarded by other federal agencies or in different regions?

Benchmarking the pricing of this $3.55 million contract against similar CRNA service contracts is essential for assessing value for money. Factors influencing CRNA rates include geographic location (cost of living, demand), the specific healthcare setting (e.g., hospital, clinic), the complexity of procedures, and the required level of experience. Contracts awarded by agencies like the Department of Veterans Affairs (VA) or other components of HHS in different regions could serve as comparators. If this contract's per-hour or per-service rate is significantly higher than comparable contracts, it might indicate less competitive bidding, higher operational costs in New Mexico, or a greater urgency in filling the need. Conversely, if it aligns with or is lower than benchmarks, it suggests efficient procurement or favorable market conditions.

What are the specific performance metrics and quality assurance measures in place for this contract?

The effectiveness and value of this contract hinge on robust performance metrics and quality assurance measures. While the provided data doesn't detail these, typical metrics for CRNA services would include adherence to schedules, patient outcomes related to anesthesia, compliance with medical protocols, and provider qualifications. The Indian Health Service (IHS) would likely have established standards for credentialing and privileging CRNAs, alongside regular audits or reviews of their performance. The contract's success relies on the IHS's ability to actively monitor these metrics and address any deficiencies promptly. Without transparency into these specific measures, it's difficult to fully assess the contractor's performance and the overall quality of care delivered.

What is the contractor's track record in providing similar medical services to federal agencies, particularly the IHS?

Assessing the track record of Medicus Healthcare Solutions, LLC in providing similar medical services, especially to the Indian Health Service (IHS), is critical for evaluating the reliability and effectiveness of this contract. A history of successful contract performance, including timely staffing, adherence to quality standards, and positive client feedback from federal agencies, would indicate a lower risk. Conversely, past performance issues, such as staffing shortages, quality concerns, or contract disputes, would raise red flags. Information from sources like the Federal Awardee Performance and Integrity Information System (FAPIIS) or past performance reviews within the IHS could provide valuable insights into Medicus Healthcare Solutions' capabilities and reliability in fulfilling federal healthcare staffing needs.

What is the potential impact of this contract on the availability of CRNA services for other federal healthcare facilities or civilian populations in New Mexico?

This $3.55 million contract for CRNA services with the Indian Health Service (IHS) in New Mexico could have implications for the availability of these specialized professionals elsewhere. If Medicus Healthcare Solutions is a primary provider of CRNAs in the region, their allocation of resources to the IHS contract might reduce the pool of available providers for other federal facilities (like VA hospitals) or civilian hospitals and surgical centers within New Mexico. The extent of this impact depends on the overall supply and demand dynamics for CRNAs in the state and whether this contract represents a significant portion of the available workforce. A tight labor market could mean that securing CRNAs for other entities becomes more challenging or costly.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75H71023P00030

Offers Received: 5

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 22 ROULSTON RD, WINDHAM, NH, 03087

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

Financial Breakdown

Contract Ceiling: $3,553,466

Exercised Options: $3,553,466

Current Obligation: $3,553,466

Actual Outlays: $3,008,384

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline