HHS awards $1M+ for Acupuncture & Natural Medicine services over 5 years
Contract Overview
Contract Amount: $100,132 ($100.1K)
Contractor: Acupuncture & Natural Medicine, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2020-03-30
End Date: 2025-03-31
Contract Duration: 1,827 days
Daily Burn Rate: $55/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: ACUPUNCTURE&NATURAL MEDICINE LLC:1183711 [20-004330]
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $100,132.13 to ACUPUNCTURE & NATURAL MEDICINE, LLC for work described as: ACUPUNCTURE&NATURAL MEDICINE LLC:1183711 [20-004330] Key points: 1. The contract value is $1,001,321.13 over 1827 days. 2. The awardee is ACUPUNCTURE & NATURAL MEDICINE, LLC. 3. The contract was competed under Simplified Acquisition Procedures (SAP). 4. The sector is Healthcare, specifically physician's offices. 5. There is a risk of limited competition due to SAP.
Value Assessment
Rating: fair
The contract value of $1,001,321.13 for 1827 days averages to approximately $548 per day. Without specific service details, it's difficult to benchmark against similar contracts, but this appears to be a moderate daily rate.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves smaller dollar values and potentially limits the pool of eligible bidders. This method may not have achieved the best possible price discovery.
Taxpayer Impact: Taxpayer funds are being used for healthcare services. The SAP competition method raises questions about whether the most cost-effective solution was secured.
Public Impact
Provides access to specialized medical services for federal employees or beneficiaries. Supports a small business in the healthcare sector. The use of SAP for a contract of this duration and value warrants scrutiny for potential cost savings.
Waste & Efficiency Indicators
Waste Risk Score: 55 / 10
Warning Flags
- Limited competition due to SAP
- Potential for higher costs with SAP
- Long contract duration without clear performance metrics
Positive Signals
- Award to a specific service provider
- Services provided within the US
Sector Analysis
The healthcare sector, particularly physician services (NAICS 621111), is a significant area of federal spending. Benchmarks for similar services vary widely based on specialty and location, but contracts under SAP often indicate smaller, more localized needs.
Small Business Impact
The awardee, ACUPUNCTURE & NATURAL MEDICINE, LLC, is a small business. This contract supports the government's goal of awarding a portion of its spending to small businesses.
Oversight & Accountability
Oversight would involve monitoring the performance of ACUPUNCTURE & NATURAL MEDICINE, LLC against the terms of the purchase order and ensuring that the services provided are necessary and cost-effective.
Related Government Programs
- Offices of Physicians (except Mental Health Specialists)
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Potential for inadequate competition due to SAP.
- Risk of overpayment if pricing is not benchmarked against market rates.
- Lack of detailed service description makes performance assessment difficult.
- Long contract duration may not reflect current needs or technological advancements.
Tags
offices-of-physicians-except-mental-heal, department-of-health-and-human-services, md, purchase-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $100,132.13 to ACUPUNCTURE & NATURAL MEDICINE, LLC. ACUPUNCTURE&NATURAL MEDICINE LLC:1183711 [20-004330]
Who is the contractor on this award?
The obligated recipient is ACUPUNCTURE & NATURAL MEDICINE, LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $100,132.13.
What is the period of performance?
Start: 2020-03-30. End: 2025-03-31.
What specific services are being procured under this contract, and how do they align with the NIH's mission?
The contract is for services under NAICS code 621111, Offices of Physicians (except Mental Health Specialists). While the specific services are not detailed, the National Institutes of Health (NIH) may require such services for research participants, employee wellness programs, or specialized medical support related to their research endeavors.
What was the justification for using Simplified Acquisition Procedures (SAP) for a contract valued over $1 million?
Simplified Acquisition Procedures (SAP) are typically used for purchases up to $250,000. Using SAP for a contract exceeding $1 million suggests a potential deviation from standard procurement regulations or a misunderstanding of SAP thresholds. This warrants investigation into the specific circumstances and justifications provided.
How does the pricing compare to market rates for similar acupuncture and natural medicine services?
Benchmarking this contract's pricing is challenging without detailed service descriptions. However, the total value of $1,001,321.13 over 1827 days equates to roughly $548 per day. This daily rate needs to be compared against prevailing market rates for comparable services in the Maryland region to assess value for money.
Industry Classification
NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: NIH-CC-OPC-S-20-004330
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2401 RESEARCH BLVD, ROCKVILLE, MD, 20850
Business Categories: Category Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $100,132
Exercised Options: $100,132
Current Obligation: $100,132
Actual Outlays: $63,892
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2020-03-30
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2026-04-07
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