HHS awards $2M for mobile MRI services, with competition and pricing under review

Contract Overview

Contract Amount: $1,996,800 ($2.0M)

Contractor: Advanced Imaging Management, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-03-26

End Date: 2027-03-31

Contract Duration: 1,100 days

Daily Burn Rate: $1.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MOBILE MRI SERVICES - CLINTON

Place of Performance

Location: CLINTON, CUSTER County, OKLAHOMA, 73601

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.0 million to ADVANCED IMAGING MANAGEMENT, LLC for work described as: MOBILE MRI SERVICES - CLINTON Key points: 1. Value for money is assessed by comparing per-unit costs to market benchmarks and similar contracts. 2. Competition dynamics indicate a competed award, suggesting potential for price discovery. 3. Risk indicators are monitored through contract performance and contractor track record. 4. Performance context is evaluated based on the delivery of diagnostic imaging services. 5. Sector positioning places this contract within the healthcare services industry, specifically diagnostic imaging. 6. The contract type is firm fixed price, which shifts cost risk to the contractor.

Value Assessment

Rating: fair

The awarded amount of $1.99M for mobile MRI services appears reasonable for a multi-year contract. However, without specific details on the number of units, service days, or geographic coverage, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for mobile MRI services within the Indian Health Service or other federal agencies would provide a clearer picture of pricing efficiency. The firm fixed-price nature of the contract offers cost certainty but requires careful monitoring to ensure the contractor is not overcharging for services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), suggesting a competitive process for awards under the federal micro-purchase and small purchase thresholds. The presence of two bidders indicates some level of competition, which is generally positive for price discovery. However, the limited number of bidders might suggest potential barriers to entry or a niche market. Further analysis would be needed to confirm if the competition was robust enough to drive optimal pricing.

Taxpayer Impact: The competed nature of this award, even under SAP, suggests that taxpayers likely benefited from a more competitive pricing environment compared to a sole-source award.

Public Impact

Beneficiaries include Native American communities served by the Indian Health Service in Oklahoma. Services delivered are diagnostic imaging through mobile MRI units. Geographic impact is focused on the state of Oklahoma, providing essential healthcare access. Workforce implications may include support staff for the mobile units and utilization of local medical professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to specialized nature of mobile MRI services.
Ensuring consistent service quality and availability across the contract duration.
Managing potential cost overruns if service demands exceed initial projections.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded under a competitive process, indicating potential for good value.
Contract duration allows for sustained service delivery to the target population.

Sector Analysis

The healthcare services sector, particularly diagnostic imaging, is a critical component of public health infrastructure. Mobile MRI services address accessibility challenges, especially in rural or underserved areas. The market for such services involves specialized equipment and logistics, often dominated by a few key providers. Federal spending in this area supports the delivery of essential medical diagnostics to specific populations, such as those served by the IHS.

Small Business Impact

The contract was competed under Simplified Acquisition Procedures, and there is no indication of a small business set-aside. The prime contractor, Advanced Imaging Management, LLC, is not explicitly identified as a small business in the provided data. Subcontracting opportunities for small businesses are not detailed but could arise if the prime contractor utilizes local support services or specialized personnel.

Oversight & Accountability

Oversight for this contract would typically fall under the Indian Health Service's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver services as specified. Transparency is facilitated by federal contract databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Indian Health Service Medical Equipment Contracts
Federal Diagnostic Imaging Services
Mobile Healthcare Solutions
Rural Health Initiatives

Risk Flags

Potential for limited competition
Dependence on specialized equipment and logistics
Ensuring consistent quality of care in remote areas

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.0 million to ADVANCED IMAGING MANAGEMENT, LLC. MOBILE MRI SERVICES - CLINTON

Who is the contractor on this award?

The obligated recipient is ADVANCED IMAGING MANAGEMENT, 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 $2.0 million.

What is the period of performance?

Start: 2024-03-26. End: 2027-03-31.

What is the track record of Advanced Imaging Management, LLC with federal contracts, particularly within the IHS?

A review of federal procurement data would be necessary to fully assess the track record of Advanced Imaging Management, LLC. This would involve examining past contract awards, performance evaluations (if available), and any history of disputes or corrective actions. Understanding their experience with similar mobile imaging services and their performance within the IHS specifically would provide crucial context for evaluating their reliability and capability in fulfilling the current contract. Without this specific data, the assessment relies on general assumptions about contractor performance.

How does the per-unit cost of this mobile MRI service compare to similar contracts awarded by the IHS or other federal agencies?

To benchmark the per-unit cost, one would need to identify comparable contracts for mobile MRI services. This involves looking at contracts with similar service scopes, geographic coverage, and contract durations. Key metrics for comparison would include cost per scan, cost per service day, or cost per mobile unit deployment. If this contract's pricing is significantly higher than benchmarks, it could indicate potential overpricing or unique service requirements. Conversely, if it's lower, it might suggest favorable negotiation or efficient service delivery.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential service disruptions due to equipment malfunction or logistical challenges, ensuring consistent quality of care across diverse locations, and managing the firm fixed-price structure if unforeseen operational costs arise. Mitigation strategies likely involve robust performance standards in the contract, clear communication protocols between IHS and the contractor, and potentially contingency plans for equipment failure. The contractor's own risk management practices, including maintenance schedules and staffing, are also critical.

How effective is the mobile MRI service in improving access to diagnostic imaging for the target population in Oklahoma?

The effectiveness of the mobile MRI service in improving access can be measured by several factors. These include the reduction in patient travel times and costs, the increase in the number of diagnostic procedures performed, and patient satisfaction surveys. Data on appointment wait times before and after the implementation of mobile services would be a key indicator. Additionally, feedback from referring physicians regarding the utility and timeliness of the diagnostic reports generated would provide insights into the service's impact on patient care pathways.

What has been the historical federal spending trend for mobile MRI services, particularly through the IHS?

Analyzing historical federal spending on mobile MRI services, especially within the IHS, would reveal trends in demand and investment. This involves aggregating contract data over several fiscal years to identify patterns in award values, contract types, and the number of awarded contracts. A rising trend might indicate increasing reliance on such services, while a stable or declining trend could suggest shifts in healthcare delivery strategies or budget constraints. Understanding this history provides context for the current award's significance and potential future spending.

Are there any specific performance metrics or KPIs tied to this contract that indicate success?

While the provided data does not detail specific Key Performance Indicators (KPIs), typical metrics for mobile MRI services contracts include appointment availability within a certain timeframe (e.g., X days), patient no-show rates, equipment uptime percentages, turnaround time for image interpretation and reporting, and patient satisfaction scores. The contract likely specifies requirements for these or similar metrics, with potential financial incentives or penalties tied to performance outcomes.

Industry Classification

NAICS: Health Care and Social Assistance › Medical and Diagnostic Laboratories › Diagnostic Imaging Centers

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 246-24-Q-0014

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Advanced Imaging Management LLC

Address: 4007 MASTERS DR, LEAGUE CITY, TX, 77573

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,328,000

Exercised Options: $1,996,800

Current Obligation: $1,996,800

Actual Outlays: $1,052,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline