HHS awards $983K for inpatient pediatric care at Gallup Indian Medical Center to Prairie Band Health Services Inc

Contract Overview

Contract Amount: $983,100 ($983.1K)

Contractor: Prairie Band Health Services Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2025-07-24

End Date: 2026-07-31

Contract Duration: 372 days

Daily Burn Rate: $2.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: INPATIENT PEDIATRICIAN, GALLUP INDIAN MEDICAL CENTER

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 $983,100 to PRAIRIE BAND HEALTH SERVICES INC for work described as: INPATIENT PEDIATRICIAN, GALLUP INDIAN MEDICAL CENTER Key points: 1. Contract awarded for essential pediatric services, indicating a need for specialized medical care. 2. The contract's value is moderate, suggesting a focused scope of services. 3. Competition dynamics for this contract need further examination to assess value for money. 4. Performance context will be crucial to understand the quality and effectiveness of services delivered. 5. The contract falls within the healthcare sector, specifically serving the Indian Health Service. 6. Potential for workforce implications in the Gallup, New Mexico area.

Value Assessment

Rating: fair

The contract value of $983,100 for a 372-day period appears reasonable for specialized inpatient pediatric services. Benchmarking against similar contracts for IHS facilities or comparable rural healthcare providers would offer a clearer picture of value for money. Without specific details on the scope of services and required qualifications, a definitive assessment of pricing efficiency is challenging. However, the duration and estimated value suggest a focused engagement rather than a broad, long-term commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under SAP (Simplified Acquisition Procedures), which typically implies a competition among a smaller pool of vendors or potentially a streamlined process for smaller dollar amounts. The number of bidders is not specified, making it difficult to assess the level of competition. While SAP aims for efficiency, it may not always yield the most competitive pricing compared to full and open competition. Further details on the solicitation process would be needed to determine if adequate price discovery was achieved.

Taxpayer Impact: The use of SAP suggests an effort to expedite the acquisition process. The level of competition will directly impact taxpayer value; a robust competition would likely lead to better pricing, while limited competition could result in higher costs.

Public Impact

Beneficiaries include pediatric patients requiring inpatient care at the Gallup Indian Medical Center. Services delivered are inpatient pediatric medical care, ensuring continuity of care for young patients. Geographic impact is focused on Gallup, New Mexico, and surrounding communities served by the IHS facility. Workforce implications may include the direct employment of pediatricians and support staff by the contractor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to SAP procedures, which might impact cost-effectiveness.
Scope of services needs clear definition to ensure all pediatric needs are met effectively.
Geographic isolation of Gallup may present logistical challenges for service delivery and oversight.

Positive Signals

Addresses a critical need for specialized pediatric healthcare within the Indian Health Service.
Contract duration provides a stable period for service provision.
Focus on a specific medical specialty ensures targeted expertise.

Sector Analysis

This contract falls within the Healthcare sector, specifically serving the Indian Health Service (IHS), a division of the Department of Health and Human Services. The IHS provides healthcare services to federally recognized American Indian and Alaska Native people. Contracts like this are essential for fulfilling the federal government's trust responsibility to provide healthcare. Comparable spending benchmarks would involve analyzing other IHS contracts for physician services, particularly in remote or underserved areas, and considering the specific medical specialties required.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not provided in the data. As the contract was competed under SAP, it's possible that small business participation was considered, but without explicit details, its impact on the small business ecosystem remains unclear. Further investigation into the solicitation documents would be necessary to determine any specific provisions for small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Indian Health Service, a component of HHS. The contract type is a Purchase Order, which typically has defined terms and conditions. Accountability measures would be tied to the performance standards outlined in the contract. Transparency is facilitated through federal procurement databases, but detailed performance reviews and Inspector General jurisdiction would depend on specific contract clauses and any reported issues.

Related Government Programs

Indian Health Service Contracts
Pediatric Healthcare Services
Federal Medical Facilities
Purchase Orders
Simplified Acquisition Procedures

Risk Flags

Potential for limited competition under SAP
Dependence on contractor performance for critical services
Geographic challenges in remote locations

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $983,100 to PRAIRIE BAND HEALTH SERVICES INC. INPATIENT PEDIATRICIAN, GALLUP INDIAN MEDICAL CENTER

Who is the contractor on this award?

The obligated recipient is PRAIRIE BAND HEALTH SERVICES 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 $983,100.

What is the period of performance?

Start: 2025-07-24. End: 2026-07-31.

What is the track record of Prairie Band Health Services Inc. in providing similar inpatient pediatric services to federal agencies?

Assessing the track record of Prairie Band Health Services Inc. requires a review of their past performance on federal contracts, particularly those involving inpatient pediatric care or similar medical services within the Indian Health Service or other federal healthcare systems. Information on contract history, past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented successes or failures would be crucial. A positive track record would indicate reliability and competence, while a history of issues might raise concerns about future performance and the value for money provided under this new contract. Without specific data on their past performance, it is difficult to definitively assess their suitability and the associated risks.

How does the awarded amount of $983,100 compare to the average cost of similar inpatient pediatric services procured by the IHS?

To benchmark the $983,100 award, one would need to analyze historical IHS contract data for inpatient pediatric services, ideally within the same geographic region or for facilities of similar size and complexity. Key metrics to compare would include the average cost per patient day, cost per physician hour, or total contract value relative to the scope of services provided. If this contract's value is significantly higher or lower than comparable awards, it could indicate either exceptional value or potential overpricing/underbidding. The duration of the contract (372 days) is also a factor; a pro-rated comparison or analysis of the labor hours and associated rates would provide a more granular understanding of its cost-effectiveness relative to market rates and historical IHS spending patterns.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this contract could include contractor performance issues (e.g., failure to provide adequate staffing or quality of care), potential cost overruns if the scope of services expands or unforeseen circumstances arise, and challenges in service continuity if the contractor faces operational difficulties. Given the specialized nature of inpatient pediatric care, a key risk is the availability of qualified personnel. Mitigation strategies would typically involve robust contract oversight by the IHS, clear performance standards and metrics, regular performance reviews, and contingency plans for service disruption. The use of Simplified Acquisition Procedures (SAP) might also introduce risks related to insufficient competition, potentially leading to suboptimal pricing. The contract's reliance on a single awardee for critical services also presents a risk if that awardee falters.

How effective is the Indian Health Service in managing contracts for specialized medical services in remote locations like Gallup, NM?

The effectiveness of the Indian Health Service (IHS) in managing contracts for specialized medical services, particularly in remote locations, is a complex issue often subject to scrutiny. IHS has historically faced challenges related to funding, staffing, and infrastructure, which can impact contract management capabilities. Success often depends on the specific program office, the availability of skilled contracting officers and technical monitors, and the clarity and enforceability of contract terms. For contracts like this one in Gallup, NM, effective management would involve diligent oversight of service delivery, quality assurance, financial accountability, and ensuring timely payments. Assessing effectiveness would require examining performance metrics, audit reports, and feedback from the facility and patient population.

What are the historical spending patterns of the IHS for inpatient pediatric care, and how does this award fit within those trends?

Analyzing historical spending patterns for IHS inpatient pediatric care would involve examining aggregate data over several fiscal years to identify trends in contract values, types of services procured, and geographic distribution of awards. This $983,100 award for Gallup Indian Medical Center needs to be viewed within this broader context. If IHS spending in this category has been increasing, this award might reflect a growing demand or inflationary pressures. Conversely, if spending has been stable or decreasing, it could indicate a shift in service delivery models or a more competitive bidding environment. Understanding these trends helps determine if this specific award represents a typical investment or an outlier, providing insights into resource allocation and priorities within the IHS for pediatric healthcare.

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: 75H71025Q00139

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 19035 US HIGHWAY 75, HOLTON, KS, 66436

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,586,300

Exercised Options: $983,100

Current Obligation: $983,100

Actual Outlays: $269,700

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline