HHS Awards $2.4M for Registered Nurses in Arizona via Competed SAP Purchase Order

Contract Overview

Contract Amount: $2,396,255 ($2.4M)

Contractor: Ellsworth, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-01-06

End Date: 2026-08-31

Contract Duration: 602 days

Daily Burn Rate: $4.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 9

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: FY 2025 OCU DEPARTMENT REGISTERED NURSES - PCN MD3602, PCN MD3605, PCN MD3609, PCN MD3610

Place of Performance

Location: CHINLE, APACHE County, ARIZONA, 86503

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.4 million to ELLSWORTH, LLC for work described as: FY 2025 OCU DEPARTMENT REGISTERED NURSES - PCN MD3602, PCN MD3605, PCN MD3609, PCN MD3610 Key points: 1. Spending focuses on essential healthcare services for the Indian Health Service. 2. Competition was utilized, suggesting potential for price discovery. 3. Risk is moderate, tied to contract performance and nurse availability. 4. The sector is healthcare staffing, a critical but often competitive area.

Value Assessment

Rating: good

The award amount of $2.4M for temporary nursing services appears reasonable given the duration and number of labor hours. Benchmarking against similar contracts for registered nurses in the region would provide further validation.

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 micro-purchase threshold. This method generally allows for adequate price discovery among qualified vendors.

Taxpayer Impact: The use of a competed process for this award aims to ensure taxpayer funds are used efficiently for necessary healthcare services.

Public Impact

Ensures continued access to registered nursing services for the Indian Health Service. Supports healthcare delivery in Arizona, potentially improving patient outcomes. Provides temporary staffing to meet fluctuating healthcare demands.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for nurse shortages impacting service delivery.
Reliance on temporary staff may affect continuity of care.

Positive Signals

Awarded through a competitive process.
Addresses a critical healthcare need.

Sector Analysis

Healthcare staffing, particularly for specialized roles like registered nurses, is a vital but often challenging sector. Spending benchmarks vary significantly based on location, skill level, and contract duration.

Small Business Impact

The data does not indicate if small businesses were involved in this procurement. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The award was made via a Purchase Order, which is a common method for acquiring goods and services. Oversight would focus on performance monitoring and adherence to contract terms.

Related Government Programs

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

Risk Flags

Nurse availability and retention
Quality of care provided by temporary staff
Potential for cost overruns if labor hours exceed estimates
Contract performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.4 million to ELLSWORTH, LLC. FY 2025 OCU DEPARTMENT REGISTERED NURSES - PCN MD3602, PCN MD3605, PCN MD3609, PCN MD3610

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 $2.4 million.

What is the period of performance?

Start: 2025-01-06. End: 2026-08-31.

What is the average hourly rate for these registered nurses compared to market rates?

The average hourly rate can be calculated by dividing the total award amount by the total labor hours. Comparing this to regional market data for registered nurses with similar experience and specialties will determine if the pricing is competitive and offers good value for taxpayer dollars.

What are the specific risks associated with relying on temporary nursing staff for the IHS?

Risks include potential disruptions in patient care continuity, challenges in integrating temporary staff into existing teams, and the possibility of higher turnover rates. Ensuring adequate credentialing and onboarding processes are crucial to mitigate these risks.

How effective is this contract in ensuring consistent and quality healthcare services for the target population?

Effectiveness will be measured by the contractor's ability to consistently provide qualified nurses, meet staffing requirements, and maintain high standards of patient care. Patient satisfaction surveys and clinical outcome data will be key indicators of success.

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: IHS5425050_IHS5425051_IHS

Offers Received: 9

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: $2,396,255

Exercised Options: $2,396,255

Current Obligation: $2,396,255

Actual Outlays: $774,746

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline