HHS awards $2M+ contract for urban Indian health services in Arizona, focusing on substance abuse

Contract Overview

Contract Amount: $2,031,243 ($2.0M)

Contractor: Native Americans for Community Action, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2026-01-27

End Date: 2026-12-31

Contract Duration: 338 days

Daily Burn Rate: $6.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NAVAJO AREA URBAN INDIAN ORGANIZATION HEALTH CARE, ALCOHOL & SUBSTANCE ABUSE, AND REFERRAL SERVICES IDIQ CONTRACT WITH NACA FOR URBAN INDIAN BENEFICIARIES RESIDING IN FLAGSTAFF AND COCONINO COUNTY, AZ

Place of Performance

Location: FLAGSTAFF, COCONINO County, ARIZONA, 86004

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.0 million to NATIVE AMERICANS FOR COMMUNITY ACTION, INC. for work described as: NAVAJO AREA URBAN INDIAN ORGANIZATION HEALTH CARE, ALCOHOL & SUBSTANCE ABUSE, AND REFERRAL SERVICES IDIQ CONTRACT WITH NACA FOR URBAN INDIAN BENEFICIARIES RESIDING IN FLAGSTAFF AND COCONINO COUNTY, AZ Key points: 1. Contract aims to provide essential health, substance abuse, and referral services to urban Native Americans. 2. The award is a firm-fixed-price contract, indicating predictable costs for the government. 3. The duration of the contract is over one year, suggesting ongoing service needs. 4. The specific geographic focus on Flagstaff and Coconino County, AZ, targets a defined beneficiary population. 5. The contract type is 'Not Available for Competition,' raising questions about market research and justification. 6. The primary service category is outpatient care, aligning with community-based health needs.

Value Assessment

Rating: fair

The contract value of over $2 million for a period of approximately one year appears reasonable for specialized health services targeting a specific demographic. Benchmarking against similar contracts for urban Indian health programs would provide a clearer picture of value for money. The firm-fixed-price structure helps manage cost certainty. However, without more detailed service breakdowns or comparisons to similar service delivery models, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'Not Available for Competition,' indicating a sole-source procurement. This suggests that the Indian Health Service identified Native Americans for Community Action, Inc. (NACA) as the only responsible source capable of meeting the requirement. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to higher costs than if multiple vendors had competed.

Taxpayer Impact: The absence of competition means taxpayers did not benefit from potential cost savings that could arise from a competitive bidding environment. The justification for a sole-source award needs to be robust to ensure taxpayer funds are used efficiently.

Public Impact

Urban American Indian beneficiaries residing in Flagstaff and Coconino County, Arizona, are the direct recipients of these vital health and support services. The contract ensures the provision of health care, alcohol and substance abuse treatment, and referral services, addressing critical community needs. The geographic impact is concentrated in Flagstaff and Coconino County, AZ, ensuring localized support for the target population. The services delivered are expected to improve health outcomes and provide a crucial safety net for vulnerable individuals within the urban Native American community.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits opportunities for other qualified organizations and potentially reduces price competition.
Lack of detailed performance metrics in the provided data makes it difficult to assess the effectiveness of services delivered.
The specific nature of the services (substance abuse) requires specialized expertise, and the justification for sole-source needs to confirm NACA's unique qualifications.

Positive Signals

The contract directly addresses critical health and social needs within a specific underserved population.
The firm-fixed-price contract provides cost predictability for the government.
The award supports an organization with a clear mission to serve the urban Indian community.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on outpatient care and substance abuse treatment. The Indian Health Service (IHS) within HHS is responsible for providing healthcare to federally recognized American Indians and Alaska Natives. Contracts like this are crucial for extending services to urban populations who may not have direct access to IHS facilities. The market for such specialized services is often niche, with organizations deeply embedded in specific communities being key providers.

Small Business Impact

The provided data indicates that small business participation (both set-aside and subcontracting) is not applicable or was not a factor in this specific award. As this is a sole-source award to a specific organization, there are no direct subcontracting opportunities for small businesses stemming from this contract. The focus is on direct service delivery by the awarded entity.

Oversight & Accountability

Oversight for this contract would typically fall under the Indian Health Service (IHS) within the Department of Health and Human Services. Accountability measures would be defined in the contract's statement of work, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases, though specific performance details may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Indian Health Service Programs
Urban Indian Health Organizations
Substance Abuse and Mental Health Services Administration (SAMHSA) Grants
Community Health Centers Program

Risk Flags

Sole-source award requires strong justification to ensure fair pricing and opportunity.
Performance metrics and outcomes are not detailed, making effectiveness assessment difficult.
Geographic limitation may not capture all urban Native Americans in need within a broader region.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.0 million to NATIVE AMERICANS FOR COMMUNITY ACTION, INC.. NAVAJO AREA URBAN INDIAN ORGANIZATION HEALTH CARE, ALCOHOL & SUBSTANCE ABUSE, AND REFERRAL SERVICES IDIQ CONTRACT WITH NACA FOR URBAN INDIAN BENEFICIARIES RESIDING IN FLAGSTAFF AND COCONINO COUNTY, AZ

Who is the contractor on this award?

The obligated recipient is NATIVE AMERICANS FOR COMMUNITY ACTION, 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 $2.0 million.

What is the period of performance?

Start: 2026-01-27. End: 2026-12-31.

What specific services are included under 'Alcohol & Substance Abuse, and Referral Services'?

The contract likely encompasses a range of services aimed at addressing alcohol and substance abuse within the urban Native American community. This could include counseling, treatment programs (outpatient or intensive outpatient), detoxification support, relapse prevention, and referral to higher levels of care or specialized facilities. Referral services would involve connecting beneficiaries with other necessary health and social services, such as primary care, mental health services, housing assistance, or employment support. The exact scope would be detailed in the contract's Statement of Work (SOW), outlining specific activities, performance metrics, and reporting requirements.

What is the justification for awarding this contract on a sole-source basis?

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the government's needs. For the Navajo Area Urban Indian Organization Health Care contract, the justification likely stems from Native Americans for Community Action, Inc. (NACA) possessing unique qualifications, established community relationships, specialized expertise, or a specific geographic presence that makes them the only viable provider. The Indian Health Service would have conducted market research to confirm the lack of other suitable sources. This could be due to NACA's long-standing service in the Flagstaff area, specific cultural competency, or existing infrastructure tailored to the target population's needs.

How does this contract compare to previous spending on similar services for this population?

To compare this contract's value to previous spending, one would need historical data on contracts awarded by the Indian Health Service (IHS) or other relevant agencies for similar services in the Arizona region or for urban Indian populations nationally. The current award of approximately $2 million for a period ending December 31, 2026, represents a significant investment. Analyzing prior contract values, durations, and the scope of services provided in previous years would reveal trends in spending and whether this award represents an increase, decrease, or stable level of funding for these critical services. Without access to that historical data, a direct comparison is not possible.

What are the performance metrics and expected outcomes for this contract?

Performance metrics and expected outcomes are crucial for assessing the effectiveness of this contract but are not detailed in the provided summary. Typically, such a contract would include specific, measurable, achievable, relevant, and time-bound (SMART) goals. These could include targets for the number of individuals served, successful completion rates of treatment programs, reduction in substance abuse incidents among participants, successful referrals to other services, and patient satisfaction scores. The Statement of Work (SOW) within the contract document would outline these metrics, along with the methods for monitoring and reporting on performance, allowing the IHS to evaluate the contractor's success in meeting program objectives.

What is the track record of Native Americans for Community Action, Inc. (NACA) in delivering these services?

Native Americans for Community Action, Inc. (NACA) has a history of providing community-based services to Native Americans in the Flagstaff and Coconino County area. As an organization focused on community action, their track record likely includes experience in health, social services, and potentially substance abuse programs. Their longevity and focus on the urban Indian population suggest a deep understanding of the community's needs and established operational capabilities. A thorough assessment would involve reviewing their past performance on government contracts, program outcomes, financial stability, and client testimonials or evaluations, which are typically available through government contract databases or organizational reports.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › All Other Outpatient Care Centers

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1500 E CEDAR AVE STE 56, FLAGSTAFF, AZ, 86004

Business Categories: Category Business, Government, Native American Tribal Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $2,031,243

Exercised Options: $2,031,243

Current Obligation: $2,031,243

Actual Outlays: $2,031,243

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75H71024D00003

IDV Type: IDC

Timeline