HHS Awards $28.8M Pest Control Contract to KCSR Inc. for Indian Health Service

Contract Overview

Contract Amount: $28,800 ($28.8K)

Contractor: Kcsr Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2025-08-20

End Date: 2027-07-31

Contract Duration: 710 days

Daily Burn Rate: $41/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY25 GSU THC PEST CONTROL BASE+3 OPTIONS

Place of Performance

Location: TOHATCHI, MCKINLEY County, NEW MEXICO, 87325

State: New Mexico Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28,800 to KCSR INC for work described as: FY25 GSU THC PEST CONTROL BASE+3 OPTIONS Key points: 1. Contract value of $28.8M over approximately 2 years. 2. Competed under SAP, suggesting a potentially limited but competitive process. 3. Risk of service disruption if KCSR Inc. underperforms. 4. Sector is Facilities Support Services (NAICS 561710).

Value Assessment

Rating: fair

The contract value of $28.8M for approximately 2 years of service appears reasonable for pest control services. Benchmarking against similar government contracts for exterminating services would provide a clearer picture of its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically applies to procurements under $250,000. However, the contract value is significantly higher, suggesting potential limitations in the competition scope or a misunderstanding of the data provided. If truly competed under SAP for this value, it may indicate limited market research or a restricted solicitation process.

Taxpayer Impact: The use of competitive procedures, even if limited, aims to secure fair pricing for taxpayers. The actual taxpayer impact depends on the effectiveness of the competition and the final negotiated price.

Public Impact

Ensures essential pest control services for IHS facilities in New Mexico. Supports public health by maintaining sanitary conditions. Potential impact on local employment through KCSR Inc.'s operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential ambiguity in 'COMPETED UNDER SAP' for a $28.8M contract.
Limited competition may lead to suboptimal pricing.
Contract duration and options need careful monitoring.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Contract supports critical health services for IHS.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically exterminating and pest control. Government spending in this area is consistent across agencies to maintain operational facilities and public health standards.

Small Business Impact

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

Oversight & Accountability

Standard contract clauses and oversight by the Department of Health and Human Services and the Indian Health Service should ensure compliance and performance.

Related Government Programs

Exterminating and Pest Control Services
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Potential for limited competition due to SAP designation.
Lack of detailed cost breakdown for value assessment.
Dependence on a single contractor for essential services.
Need for clear performance metrics and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28,800 to KCSR INC. FY25 GSU THC PEST CONTROL BASE+3 OPTIONS

Who is the contractor on this award?

The obligated recipient is KCSR INC.

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 $28,800.

What is the period of performance?

Start: 2025-08-20. End: 2027-07-31.

What is the specific justification for using SAP for a contract valued at $28.8M, and what was the scope of competition?

The designation 'COMPETED UNDER SAP' for a $28.8M contract is unusual, as SAP is typically for procurements under $250,000. Clarification is needed on whether this refers to a specific agency's internal process or if the contract was awarded in phases. Understanding the actual solicitation process and the number of bids received is crucial to assessing the level of competition and potential value for taxpayers.

How does the per-unit cost of pest control services compare to industry benchmarks for similar government facilities?

Without detailed service breakdowns and specific unit metrics (e.g., cost per square foot treated, cost per service call), a direct per-unit cost benchmark is difficult. However, the overall contract value of $28.8M over approximately two years suggests a significant investment. A comparative analysis against similar contracts for IHS or other federal facilities in comparable geographic regions would be necessary to determine if the pricing is competitive.

What are the key performance indicators (KPIs) for this contract, and how will service effectiveness be measured?

The effectiveness of pest control services is typically measured by the reduction in pest sightings, adherence to integrated pest management plans, and timely response to service requests. The contract should outline specific KPIs and reporting requirements for KCSR Inc. Regular performance reviews by the Indian Health Service contracting officer's representative (COR) are essential to ensure the contractor is meeting all service level agreements and maintaining the required standards for facility health and safety.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Exterminating and Pest Control Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75H71025Q00119

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 245 S PLUMER AVE, TUCSON, AZ, 85719

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $57,600

Exercised Options: $28,800

Current Obligation: $28,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline