HHS awards $46.1M for operation of clinics and labs to Indian Health Care Resource Center of Tulsa, Inc

Contract Overview

Contract Amount: $46,130,648 ($46.1M)

Contractor: Indian Health Care Resource Center of Tulsa, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2019-11-01

End Date: 2024-10-31

Contract Duration: 1,826 days

Daily Burn Rate: $25.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OPERATION OF LABORATORIES AND CLINICS

Place of Performance

Location: TULSA, TULSA County, OKLAHOMA, 74120

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $46.1 million to INDIAN HEALTH CARE RESOURCE CENTER OF TULSA, INC for work described as: OPERATION OF LABORATORIES AND CLINICS Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration is substantial, spanning over five years. 3. The contractor has a long-standing relationship with the agency, indicated by the contract's history. 4. The fixed-price contract type shifts performance risk to the contractor. 5. The service area is geographically specific to Oklahoma. 6. The contract supports essential healthcare services for a defined population.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specific nature and sole-source award. The fixed-price structure provides cost certainty for the government, but the absence of competition may have led to a higher price than if it were competed. Without comparable sole-source contracts for similar services in the same region, a precise value-for-money assessment is difficult. However, the sustained award suggests the contractor has met performance expectations over time.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor is uniquely qualified or when circumstances prevent full and open competition. The lack of competition limits the government's ability to leverage market forces to achieve the lowest possible price and may reduce incentives for the contractor to offer the most competitive terms.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive bidding. The government's negotiating position is weakened without alternative offers.

Public Impact

The primary beneficiaries are the American Indian and Alaska Native individuals served by the Indian Health Service in Oklahoma. The contract ensures the continued operation of essential healthcare laboratories and clinics. Services are delivered within Oklahoma, impacting the local healthcare infrastructure. The contract supports the workforce employed by the Indian Health Care Resource Center of Tulsa, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential taxpayer savings.
Long contract duration may reduce flexibility for future service needs or vendor changes.
Lack of open competition could potentially lead to complacency in service delivery or pricing.

Positive Signals

Contract ensures continuity of essential healthcare services for a vulnerable population.
Fixed-price contract provides cost predictability for the agency.
Sustained award suggests satisfactory performance and a stable relationship with the provider.

Sector Analysis

This contract falls within the Healthcare sector, specifically supporting the operation of clinics and laboratories. The Indian Health Service (IHS) is responsible for providing federal health services to American Indians and Alaska Natives. Contracts of this nature are crucial for fulfilling the government's trust responsibility. Benchmarking against similar IHS contracts for clinic operations would provide a clearer picture of cost-effectiveness, but such data is often highly specific to the service area and patient population.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the sole-source nature and the specific mission of the Indian Health Care Resource Center of Tulsa, Inc., it is unlikely that subcontracting opportunities for small businesses would be a significant component. The focus is on direct service delivery by the awarded entity.

Oversight & Accountability

Oversight is likely conducted by the Indian Health Service, the awarding agency. Performance metrics and service level agreements within the contract would be key to monitoring. Transparency is generally maintained through federal contract databases, but the specifics of day-to-day oversight and any Inspector General involvement would depend on agency protocols and performance reviews.

Related Government Programs

Indian Health Service Operations
Federally Qualified Health Centers
Healthcare Services for Native Americans
Public Health Clinics

Risk Flags

Sole-source award limits competition.
Potential for vendor lock-in due to long-term, sole-source relationship.
Healthcare service delivery is inherently complex and subject to various risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $46.1 million to INDIAN HEALTH CARE RESOURCE CENTER OF TULSA, INC. OPERATION OF LABORATORIES AND CLINICS

Who is the contractor on this award?

The obligated recipient is INDIAN HEALTH CARE RESOURCE CENTER OF TULSA, 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 $46.1 million.

What is the period of performance?

Start: 2019-11-01. End: 2024-10-31.

What is the historical spending trend for this specific contract or similar services provided by the Indian Health Service?

Analyzing historical spending for this contract requires access to prior award data. However, the current award of $46.1 million over approximately five years suggests an average annual expenditure of around $9.2 million. Without specific historical data, it's difficult to determine if this represents an increase or decrease in spending for these services. Generally, healthcare costs tend to rise over time due to inflation, technological advancements, and increased demand. The Indian Health Service faces ongoing challenges in meeting the healthcare needs of its beneficiaries, which can influence spending levels.

How does the per-unit cost of services provided under this contract compare to benchmarks for similar healthcare facilities serving comparable populations?

Determining a precise per-unit cost benchmark is challenging without detailed service delivery data (e.g., cost per patient visit, cost per lab test) and comparable data from other facilities serving similar demographics. The Indian Health Care Resource Center of Tulsa, Inc. operates within a unique context, serving a specific population with distinct healthcare needs and often facing resource constraints. While the contract is fixed-price, which aims to control costs, the absence of competition means there isn't a direct market comparison to assess if the pricing is optimal. A thorough benchmark would require detailed cost breakdowns and access to data from other IHS facilities or tribal health organizations.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance, and how has the contractor historically performed against these metrics?

Key performance indicators for a contract like this typically revolve around service availability, quality of care, patient satisfaction, and adherence to clinical standards. Specific KPIs might include clinic operating hours, wait times for appointments, patient-to-provider ratios, successful completion of diagnostic tests, and compliance with IHS healthcare guidelines. While the contract has been awarded and renewed, suggesting satisfactory performance, detailed historical performance data against specific KPIs is usually internal to the agency and not publicly disclosed. The sustained relationship implies the contractor has met the essential requirements outlined in the contract.

What is the track record of the Indian Health Care Resource Center of Tulsa, Inc. in managing federal contracts, particularly those related to healthcare operations?

The Indian Health Care Resource Center of Tulsa, Inc. has a long-standing relationship with the Indian Health Service, as evidenced by this substantial, multi-year contract. This continuity suggests a positive track record in managing federal healthcare contracts. Organizations that consistently receive and successfully execute such awards typically demonstrate reliability, compliance with federal regulations, and the capacity to deliver required services effectively. While specific details of past performance issues or commendations are not publicly detailed in this summary, the renewal and duration of this contract serve as an indicator of their established capability and performance.

Are there any identified risks associated with this contract, such as performance failures, cost overruns (despite fixed price), or compliance issues?

Despite the fixed-price nature of the contract, risks can still exist. Performance risks include potential disruptions in service delivery due to staffing shortages, equipment failures, or unforeseen health crises impacting patient demand. While cost overruns are less likely for the government under a fixed-price contract, the contractor could face financial strain if their costs exceed projections, potentially impacting service quality or leading to contract disputes. Compliance risks involve adherence to healthcare regulations, data privacy (HIPAA), and reporting requirements. The sole-source nature also presents a risk of vendor lock-in and potentially less incentive for continuous improvement.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians, Mental Health Specialists

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 246R190088

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 550 S PEORIA AVE, TULSA, OK, 74120

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,213,246

Exercised Options: $46,213,246

Current Obligation: $46,130,648

Actual Outlays: $36,879,948

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline