HHS Awards $1.98M for Emergency Room RNs in Arizona to Ellsworth, LLC

Contract Overview

Contract Amount: $1,985,220 ($2.0M)

Contractor: Ellsworth, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-08-20

End Date: 2026-05-31

Contract Duration: 649 days

Daily Burn Rate: $3.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 12

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: FY2024 EMERGENCY ROOM REGISTERED NURSES - PCN MC 4852, PCN MC4853, PCN MC4854, PCN MC4855

Place of Performance

Location: CHINLE, APACHE County, ARIZONA, 86503

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.0 million to ELLSWORTH, LLC for work described as: FY2024 EMERGENCY ROOM REGISTERED NURSES - PCN MC 4852, PCN MC4853, PCN MC4854, PCN MC4855 Key points: 1. Contract awarded to Ellsworth, LLC for temporary RN services. 2. Spending is for emergency room registered nurses in Arizona. 3. The contract is for a period of approximately 649 days. 4. This falls under temporary help services, a common procurement category.

Value Assessment

Rating: good

The award amount of $1.98M for 12 registered nurses over roughly two years appears reasonable for specialized healthcare staffing. Benchmarking against similar temporary nursing contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process for awards under the federal micro-purchase and small purchase thresholds. This method generally promotes price discovery and fair market value.

Taxpayer Impact: Taxpayer funds are being used to ensure adequate staffing for emergency room services, directly impacting patient care quality and access.

Public Impact

Ensures critical staffing for emergency room services in Arizona. Supports patient care by providing necessary registered nurses. Utilizes federal funds for healthcare infrastructure support. Contract duration extends into mid-2026, providing stable support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor market rates increase significantly.
Dependence on a single contractor for critical staffing needs.

Positive Signals

Competitive award process.
Addresses a critical healthcare need.
Clear contract duration and scope.

Sector Analysis

Healthcare staffing, particularly for specialized roles like registered nurses in emergency settings, is a significant area of federal spending. Benchmarks for temporary nursing services can vary widely based on location and specialty.

Small Business Impact

The data indicates this contract was competed under SAP and does not specify if small businesses were involved or if the award went to a small business. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of Health and Human Services, specifically the Indian Health Service, is responsible for this contract. Standard procurement oversight processes should apply to ensure performance and financial accountability.

Related Government Programs

Temporary Help Services
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Potential for high labor costs.
Reliance on temporary staff.
Contract duration extends over multiple fiscal years.
Competition method (SAP) may limit the number of bidders.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.0 million to ELLSWORTH, LLC. FY2024 EMERGENCY ROOM REGISTERED NURSES - PCN MC 4852, PCN MC4853, PCN MC4854, PCN MC4855

Who is the contractor on this award?

The obligated recipient is ELLSWORTH, 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 $2.0 million.

What is the period of performance?

Start: 2024-08-20. End: 2026-05-31.

What is the projected hourly rate for these registered nurses, and how does it compare to market rates in Arizona?

The total award is $1,985,220 for 12 nurses over approximately 649 days (about 21.6 months). This averages to roughly $165,435 per nurse per year, or about $80 per hour assuming a 40-hour work week. This rate needs to be compared against prevailing wage data for ER RNs in Arizona to assess its competitiveness and ensure fair market value.

What are the risks associated with relying on temporary staffing for emergency room services?

Risks include potential inconsistencies in care quality, challenges in integrating temporary staff into existing teams and protocols, and higher costs compared to permanent hires. There's also a risk of staff turnover impacting continuity of care. Effective onboarding and supervision are crucial to mitigate these risks.

How does this contract contribute to the overall effectiveness of emergency healthcare delivery in the serviced region?

By ensuring the availability of registered nurses, this contract directly enhances the capacity and effectiveness of emergency room services. It helps prevent staff shortages that could lead to longer wait times, reduced patient throughput, and potential compromises in care quality, thereby supporting the mission of the Indian Health Service.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: IHS1492613_IHS1492614_IHS

Offers Received: 12

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2939 MILLS AVE NE, WASHINGTON, DC, 20018

Business Categories: American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,985,220

Exercised Options: $1,985,220

Current Obligation: $1,985,220

Actual Outlays: $1,081,416

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline