HHS awards $2.1M for temporary staffing, with 10 bids received for services in Arizona

Contract Overview

Contract Amount: $2,101,531 ($2.1M)

Contractor: Ethos Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-02-23

End Date: 2026-06-30

Contract Duration: 858 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: ER MD AT CCHCF

Place of Performance

Location: CHINLE, APACHE County, ARIZONA, 86503

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.1 million to ETHOS SOLUTIONS LLC for work described as: ER MD AT CCHCF Key points: 1. The contract value appears reasonable given the duration and scope of temporary staffing services. 2. Full and open competition suggests a healthy market for these services, potentially leading to competitive pricing. 3. The number of bids indicates moderate interest, but further analysis is needed to confirm if it represents the full market potential. 4. Performance will be key to ensuring value for money in delivering essential healthcare support. 5. This contract falls within the broader category of healthcare support services, a significant area of federal spending. 6. The use of purchase orders for temporary staffing is common, but requires diligent oversight.

Value Assessment

Rating: good

The contract value of $2.1 million over approximately 2.75 years for temporary staffing services in Arizona seems within a reasonable range. Benchmarking against similar contracts for healthcare support staff in the region would provide a more precise assessment. The pricing structure, likely based on labor hours, needs to be monitored to ensure it aligns with market rates for qualified personnel.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with ten bids received. This indicates that the solicitation was widely advertised, allowing any interested and capable vendor to participate. The presence of ten bidders suggests a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces. The government can secure services at a price reflecting true market value rather than a negotiated premium.

Public Impact

Beneficiaries include the Indian Health Service, which will receive essential temporary staffing support. Services delivered will likely focus on administrative, clinical, or technical support roles within healthcare facilities. The geographic impact is concentrated in Arizona, where the services will be rendered. Workforce implications include the provision of temporary employment opportunities for individuals in the healthcare sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on temporary staff impacting long-term institutional knowledge.
Need for robust vetting processes to ensure quality and suitability of temporary personnel.
Risk of fluctuating costs if labor rates are not carefully managed throughout the contract period.

Positive Signals

Full and open competition provides a wide pool of potential vendors, increasing the likelihood of finding qualified candidates.
The use of a purchase order allows for flexibility in acquiring services as needed.
A defined contract period helps manage expectations and budget allocation for temporary staffing.

Sector Analysis

The federal government consistently spends significant amounts on temporary staffing across various agencies to fill critical roles, manage fluctuating workloads, and access specialized skills. This contract for the Indian Health Service falls within the broader healthcare support services sector, which is a substantial component of federal procurement. Comparable spending benchmarks would involve analyzing other contracts for similar temporary staffing needs within HHS and other health-focused agencies.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it mention subcontracting goals. As it was awarded under full and open competition, small businesses had the opportunity to bid directly. Further investigation would be needed to determine if any small businesses were awarded subcontracts.

Oversight & Accountability

Oversight for this purchase order will likely reside with the contracting officer and program managers within the Indian Health Service. Accountability measures would include performance monitoring, adherence to labor hour reporting, and quality assurance checks. Transparency is facilitated through federal procurement databases where contract awards are recorded.

Related Government Programs

Healthcare Staffing Services
Temporary Employment Services
Indian Health Service Contracts
HHS Procurement

Risk Flags

Potential for inconsistent service quality due to temporary nature of staff.
Need for robust vetting and onboarding to ensure compliance and competence.
Risk of increased administrative overhead for managing temporary personnel.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.1 million to ETHOS SOLUTIONS LLC. ER MD AT CCHCF

Who is the contractor on this award?

The obligated recipient is ETHOS 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 $2.1 million.

What is the period of performance?

Start: 2024-02-23. End: 2026-06-30.

What is the typical hourly rate for temporary healthcare support staff in Arizona, and how does this contract's pricing compare?

Determining the exact hourly rate requires access to the specific labor categories and rates within the contract. However, based on general market data for temporary healthcare support staff in Arizona, rates can vary significantly by role (e.g., administrative assistant, medical assistant, licensed practical nurse). For administrative roles, rates might range from $20-$40 per hour, while clinical support roles could be $30-$60+ per hour, excluding overhead and profit. The contract's total value of $2.1 million over approximately 858 days (2.75 years) suggests an average daily expenditure of roughly $2,450. If we assume an average of 10-15 full-time equivalent temporary staff working 8-hour days, this translates to an average loaded hourly rate of approximately $20-$30. This appears to be competitive, especially if the roles are primarily administrative or entry-level clinical support, but a detailed breakdown of labor categories is necessary for a precise comparison.

How does the number of bidders (10) compare to similar temporary staffing contracts awarded by the Indian Health Service or HHS?

The number of bidders (10) for this $2.1 million temporary staffing contract awarded under full and open competition suggests a moderately competitive environment. For contracts of this size and nature within the healthcare support services sector, the number of bids can typically range from 3 to 15. A higher number of bidders generally indicates greater market interest and potentially more competitive pricing. While 10 bids is a healthy number, it's not exceptionally high. To provide a more robust comparison, one would need to analyze historical data for similar IHS or HHS contracts, looking at the average number of bids received for procurements of comparable value and scope (e.g., temporary staffing, administrative support) within the last 2-3 fiscal years. This would help determine if 10 bids represents a typical, above-average, or below-average level of competition for this specific market segment.

What are the specific risks associated with using temporary staffing services for healthcare support roles within the Indian Health Service?

Several risks are associated with temporary staffing in healthcare. A primary concern is the potential for inconsistent quality of service, as temporary staff may lack the institutional knowledge and long-term commitment of permanent employees. This can impact patient care and operational efficiency. There's also a risk of increased administrative burden for onboarding, training, and managing a rotating pool of temporary workers. Furthermore, ensuring compliance with healthcare regulations (like HIPAA) and maintaining data security can be more challenging with temporary personnel. Finally, a high turnover rate among temporary staff can lead to disruptions and increased recruitment costs, potentially negating the intended cost savings or flexibility benefits.

What performance metrics or key performance indicators (KPIs) are likely being used to evaluate the success of this contract?

For a temporary staffing contract, key performance indicators would likely focus on the reliability and quality of the personnel provided, as well as the efficiency of the staffing process. Common KPIs could include: fill rate (percentage of requested positions filled within a specified timeframe), staff retention rate (how long temporary staff remain on assignment), client satisfaction (feedback from the facility managers), compliance (adherence to background checks, credentialing, and regulatory requirements), and accuracy of billing and reporting. The government would monitor these metrics to ensure the contractor is meeting its obligations and delivering value. Failure to meet KPIs could result in corrective actions or termination of the contract.

How has federal spending on temporary staffing services, particularly within the healthcare sector, trended in recent years?

Federal spending on temporary staffing services, especially within the healthcare sector, has generally seen an upward trend in recent years. This is driven by several factors, including increased demand for healthcare services, workforce shortages in critical medical roles, and the need for flexibility in managing personnel during fluctuating public health emergencies or budget cycles. Agencies like HHS, including the Indian Health Service, often utilize temporary staffing to fill immediate needs, cover extended leaves, or access specialized skills without the long-term commitment of permanent hires. Data from federal procurement databases often shows consistent growth in this category, reflecting its strategic importance for agency operations and service delivery.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: IHS1482053-52-94

Offers Received: 10

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 26 COLONIAL DR, PERKIOMENVILLE, PA, 18074

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, 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: $2,101,531

Exercised Options: $2,101,531

Current Obligation: $2,101,531

Actual Outlays: $1,495,220

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline