HHS awards $3.79M contract for nursing services at Phoenix Indian Medical Center, highlighting a need for specialized healthcare support

Contract Overview

Contract Amount: $3,790,024 ($3.8M)

Contractor: Maat Enterprises Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2023-01-26

End Date: 2027-02-14

Contract Duration: 1,480 days

Daily Burn Rate: $2.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THE CONTRACTOR SHALL PROVIDE PROFESSIONAL NURSING AND RELATED SERVICES FOR PHOENIX INDIAN MEDICAL CENTER (PIMC) IN PHOENIX, ARIZONA. SHIFT TIMES AND SCHEDULES ARE SUBJECT TO CHANGE BASED ON THE MEDICAL NEEDS OF THE PATIENT POPULATION AND HOSPITAL/CLI

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85016

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.8 million to MAAT ENTERPRISES INC for work described as: THE CONTRACTOR SHALL PROVIDE PROFESSIONAL NURSING AND RELATED SERVICES FOR PHOENIX INDIAN MEDICAL CENTER (PIMC) IN PHOENIX, ARIZONA. SHIFT TIMES AND SCHEDULES ARE SUBJECT TO CHANGE BASED ON THE MEDICAL NEEDS OF THE PATIENT POPULATION AND HOSPITAL/CLI Key points: 1. The contract addresses a critical need for professional nursing and related services, ensuring continuity of care at a key federal medical facility. 2. Competition dynamics for this contract are not fully detailed, but its 'COMPETED UNDER SAP' status suggests a streamlined process for smaller value procurements. 3. Risk indicators appear low given the defined scope of services and fixed-price nature, though staffing changes based on medical needs introduce some operational flexibility. 4. Performance context is tied to the specific operational requirements of the Phoenix Indian Medical Center, emphasizing patient population needs. 5. Sector positioning is within healthcare services, specifically supporting the Indian Health Service's mission to provide medical care to Native Americans. 6. The contract's duration of approximately 4 years (1480 days) indicates a stable, long-term requirement for these essential services.

Value Assessment

Rating: good

The contract value of $3.79 million over approximately four years for nursing services at a federal medical center appears reasonable. Benchmarking against similar contracts for nursing support in federal facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the flexibility for shift changes could impact actual service delivery hours and associated costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), indicating it was likely solicited among a smaller pool of vendors or through a more streamlined process than full and open competition. The number of bidders (7) suggests a moderate level of interest, but the specific competition strategy under SAP limits the ability to definitively assess the breadth of market engagement.

Taxpayer Impact: Competing under SAP may result in less aggressive pricing compared to full and open competition, potentially leading to slightly higher costs for taxpayers. However, it also allows for more efficient procurement of necessary services.

Public Impact

Beneficiaries include Native American patients receiving care at the Phoenix Indian Medical Center. Services delivered are professional nursing and related healthcare support, crucial for patient well-being and facility operations. Geographic impact is focused on Phoenix, Arizona, serving the local community and the broader region covered by the Indian Health Service. Workforce implications include the provision of nursing jobs, potentially supporting local healthcare professionals and contributing to the healthcare labor market in Arizona.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if patient needs necessitate more frequent or extended shifts than initially anticipated.
Reliance on a single contractor for critical nursing services could pose a risk if the contractor faces staffing shortages or performance issues.
The 'COMPETED UNDER SAP' designation might limit the extent of competitive pressure on pricing compared to full and open competition.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
A defined contract period of nearly four years offers stability in service provision.
The contractor's ability to adapt to changing medical needs demonstrates operational flexibility.

Sector Analysis

This contract falls within the healthcare services sector, specifically supporting government-provided medical care. The Indian Health Service (IHS) is a significant entity within this sector, responsible for a large network of facilities. Spending on professional nursing services is a common and essential component of healthcare operations, with market rates varying based on location, specialization, and contract structure. This contract's value is moderate within the context of federal healthcare procurements.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. Given the contract was competed under SAP, it's possible that small business participation was encouraged or mandated depending on the specific solicitation details. Further analysis would be needed to determine the extent of small business involvement and its impact on the broader small business ecosystem.

Oversight & Accountability

Oversight of this contract would typically fall under the Indian Health Service and the Department of Health and Human Services. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified services. Transparency is facilitated through federal procurement databases, though detailed performance metrics and specific oversight activities are not publicly disclosed in this summary.

Related Government Programs

Indian Health Service Contracts
Federal Nursing Services
Healthcare Staffing Contracts
Department of Health and Human Services Procurements

Risk Flags

Potential for increased demand impacting cost
Contractor staffing reliability
Limited competition under SAP

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.8 million to MAAT ENTERPRISES INC. THE CONTRACTOR SHALL PROVIDE PROFESSIONAL NURSING AND RELATED SERVICES FOR PHOENIX INDIAN MEDICAL CENTER (PIMC) IN PHOENIX, ARIZONA. SHIFT TIMES AND SCHEDULES ARE SUBJECT TO CHANGE BASED ON THE MEDICAL NEEDS OF THE PATIENT POPULATION AND HOSPITAL/CLI

Who is the contractor on this award?

The obligated recipient is MAAT ENTERPRISES 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 $3.8 million.

What is the period of performance?

Start: 2023-01-26. End: 2027-02-14.

What is the contractor's track record with federal healthcare contracts, particularly with the Indian Health Service?

Specific details on MAAT ENTERPRISES INC's track record with federal healthcare contracts, especially with the Indian Health Service (IHS), are not provided in the summary data. A comprehensive assessment would require reviewing past performance evaluations, any contract disputes or awards, and their history of providing similar nursing and medical services. Understanding their experience with IHS facilities and patient populations would be crucial for evaluating their capability to meet the needs of the Phoenix Indian Medical Center effectively. Without this historical data, it's difficult to gauge their reliability and expertise beyond the information presented in this single contract award.

How does the per-hour cost of nursing services under this contract compare to market rates for similar services in Phoenix, Arizona?

The provided data does not include a per-hour cost breakdown, making a direct comparison to market rates challenging. The total contract value is $3.79 million over approximately 1480 days (roughly 4 years). To estimate a per-hour rate, one would need to know the expected number of nursing hours to be delivered. Assuming a standard 40-hour work week for a certain number of nurses, an approximate hourly cost could be derived. However, without knowing the exact staffing levels, shift differentials, and specific services included, any calculation would be speculative. Market rates for registered nurses in Phoenix can vary significantly based on experience, specialty, and facility type (e.g., hospital vs. clinic). A detailed analysis would require obtaining the contract's labor hour breakdown and comparing it against current industry salary surveys and agency rates in the Phoenix metropolitan area.

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

The primary risks associated with this contract include potential staffing shortages by the contractor, leading to gaps in essential nursing services, and the possibility of cost overruns if patient needs necessitate significantly more hours or specialized care than initially projected, despite the firm-fixed-price structure. Another risk is the contractor's ability to adapt to the specific cultural and medical needs of the Native American patient population served by the IHS. Mitigation strategies are likely embedded within the contract's performance standards and reporting requirements. The flexibility for shift changes suggests an acknowledgment of fluctuating patient needs. However, specific details on performance monitoring, contingency plans for staffing issues, or penalties for non-performance are not provided. The IHS would be responsible for actively managing the contract and ensuring the contractor meets all obligations.

How effective has the Indian Health Service been in managing similar nursing service contracts in the past?

The effectiveness of the Indian Health Service (IHS) in managing similar nursing service contracts is a broad question that cannot be answered with the data provided for this specific contract. The IHS manages numerous contracts across its facilities, and their overall effectiveness can vary. Factors influencing effectiveness include the clarity of contract requirements, the robustness of performance monitoring, the responsiveness to contractor issues, and the adequacy of funding. Historically, federal agencies, including the IHS, have faced challenges in contract management, sometimes related to administrative burdens, staffing limitations within the agency itself, or difficulties in attracting and retaining qualified contractors. A thorough assessment would require analyzing IHS's historical contract performance data, audit reports, and stakeholder feedback across multiple contracts.

What has been the historical spending trend for nursing services at the Phoenix Indian Medical Center prior to this contract?

The provided data focuses solely on the current contract award and does not offer historical spending trends for nursing services at the Phoenix Indian Medical Center (PIMC). To understand historical spending, one would need to access procurement records for PIMC over previous years, identifying contracts for similar nursing and medical support services. Analyzing these past contracts would reveal the total amounts spent, the types of services procured, the contractors utilized, and the competition levels. This historical context is crucial for identifying any significant increases or decreases in spending, understanding the evolution of service needs, and assessing whether the current contract represents a continuation, expansion, or reduction of previous efforts.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Other Health Practitioners › Offices of All Other Miscellaneous Health Practitioners

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75H71223R00002

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12500 LANDING GREEN DR, CHARLOTTE, NC, 28277

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,510,808

Exercised Options: $3,790,024

Current Obligation: $3,790,024

Actual Outlays: $2,012,394

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline