IHS Awards $7.2M Contract for Behavioral Health Services to Urban Indian Organization, Not Competed

Contract Overview

Contract Amount: $7,213,891 ($7.2M)

Contractor: Native American Connections, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-04-30

End Date: 2026-06-30

Contract Duration: 1,887 days

Daily Burn Rate: $3.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THE PHOENIX AREA INDIAN HEALTH SERVICE (IHS) IS ISSUING A BASE PLUS FOUR (4) OPTION YEAR CONTRACT TO THE URBAN INDIAN ORGANIZATION TO PROVIDE A CULTURALLY SENSITIVE INTEGRATED BEHAVIORAL HEALTH, ALCOHOL AND SUBSTANCE ABUSE DELIVERY SYSTEM OF ADULT SU

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85012

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $7.2 million to NATIVE AMERICAN CONNECTIONS, INC. for work described as: THE PHOENIX AREA INDIAN HEALTH SERVICE (IHS) IS ISSUING A BASE PLUS FOUR (4) OPTION YEAR CONTRACT TO THE URBAN INDIAN ORGANIZATION TO PROVIDE A CULTURALLY SENSITIVE INTEGRATED BEHAVIORAL HEALTH, ALCOHOL AND SUBSTANCE ABUSE DELIVERY SYSTEM OF ADULT SU Key points: 1. The contract focuses on integrated behavioral health and substance abuse services for adults. 2. The sole awardee is Native American Connections, Inc., indicating a lack of competition. 3. The contract duration is over 5 years, suggesting a long-term need for these services. 4. The NAICS code 623220 points to residential mental health and substance abuse facilities.

Value Assessment

Rating: fair

The contract value of $7.2M over approximately 5 years averages to about $1.44M annually. Without specific benchmarks for similar culturally sensitive integrated behavioral health programs, a direct pricing assessment is difficult. However, the duration suggests a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method bypasses competitive bidding, potentially limiting price discovery and the opportunity for other qualified organizations to offer services.

Taxpayer Impact: Taxpayer funds are being allocated without a competitive process, which may not guarantee the best value or price.

Public Impact

Provides essential, culturally sensitive mental health and substance abuse treatment to adults. Supports vulnerable populations within the Phoenix Area Indian Health Service jurisdiction. Ensures continuity of care for individuals needing integrated behavioral health services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award

Positive Signals

Addresses critical health needs
Long-term service provision

Sector Analysis

The healthcare sector, particularly services for underserved populations, often involves specialized providers. Spending benchmarks for integrated behavioral health programs can vary widely based on scope and location. This contract falls within the residential mental health and substance abuse facilities sub-sector.

Small Business Impact

The contract was awarded to an Urban Indian Organization, which may or may not be a small business. The data does not specify if small business participation was a consideration or requirement in this sole-source award.

Oversight & Accountability

The sole-source nature of this award warrants oversight to ensure the services are delivered effectively and at a reasonable cost, despite the absence of competition. Accountability for program outcomes is crucial.

Related Government Programs

Residential Mental Health and Substance Abuse Facilities
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Lack of competitive bidding may lead to higher costs.
Potential for reduced innovation due to sole-source award.
Need for strong performance monitoring to ensure value.
Dependence on a single provider for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $7.2 million to NATIVE AMERICAN CONNECTIONS, INC.. THE PHOENIX AREA INDIAN HEALTH SERVICE (IHS) IS ISSUING A BASE PLUS FOUR (4) OPTION YEAR CONTRACT TO THE URBAN INDIAN ORGANIZATION TO PROVIDE A CULTURALLY SENSITIVE INTEGRATED BEHAVIORAL HEALTH, ALCOHOL AND SUBSTANCE ABUSE DELIVERY SYSTEM OF ADULT SU

Who is the contractor on this award?

The obligated recipient is NATIVE AMERICAN CONNECTIONS, 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 $7.2 million.

What is the period of performance?

Start: 2021-04-30. End: 2026-06-30.

What is the justification for the sole-source award, and were any efforts made to explore competitive options?

The justification for a sole-source award is typically based on unique capabilities or circumstances. For this contract, the 'Urban Indian Organization' designation might imply a specific mandate or existing relationship. However, without further details, it's unclear if alternative providers were considered or if specific statutory authorities allowed for a non-competitive procurement.

How does the pricing compare to similar culturally sensitive behavioral health programs in other IHS regions or similar organizations?

A direct comparison of pricing is challenging without access to detailed cost breakdowns and specific service metrics. Benchmarking would require identifying contracts with comparable scope, patient populations, and cultural sensitivity requirements. The absence of competition makes it harder to establish a market-based price point for these specialized services.

What are the key performance indicators (KPIs) for this contract, and how is the effectiveness of the integrated behavioral health services being measured?

The effectiveness of the integrated behavioral health services is likely measured through patient outcomes, treatment completion rates, reduction in substance abuse incidents, and patient satisfaction surveys. Specific KPIs should be detailed in the contract's performance work statement to ensure accountability and track the program's success in meeting the community's needs.

Industry Classification

NAICS: Health Care and Social Assistance › Residential Intellectual and Developmental Disability, Mental Health, and Substance Abuse Facilities › Residential Mental Health and Substance Abuse Facilities

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4520 N CENTRAL AVE STE 600, PHOENIX, AZ, 85012

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: $8,589,644

Exercised Options: $7,213,891

Current Obligation: $7,213,891

Actual Outlays: $5,248,406

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline