HHS awarded $24.1M contract for primary outpatient health services to Central Oklahoma American Indian Health Council, Inc

Contract Overview

Contract Amount: $24,139,653 ($24.1M)

Contractor: Central Oklahoma American Indian Health Council, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2003-10-01

End Date: 2008-12-31

Contract Duration: 1,918 days

Daily Burn Rate: $12.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Healthcare

Official Description: PRIMARY OUTPATIENT MEDICAL, DENTAL & PREVENTIVE BEHAVIORAL HEALTH SERVICES

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73127

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.1 million to CENTRAL OKLAHOMA AMERICAN INDIAN HEALTH COUNCIL, INC. for work described as: PRIMARY OUTPATIENT MEDICAL, DENTAL & PREVENTIVE BEHAVIORAL HEALTH SERVICES Key points: 1. Contract value represents a significant investment in ambulatory health services for a specific demographic. 2. The contract was not competed, raising questions about potential cost efficiencies and market-based pricing. 3. Long contract duration (over 5 years) suggests a need for stable, long-term service provision. 4. The specific nature of the services (behavioral health) indicates a focus on comprehensive care. 5. The award to a single entity suggests specialized capabilities or a unique relationship with the agency.

Value Assessment

Rating: fair

The contract value of $24.1 million over approximately five years averages to about $4.8 million annually. Without comparable contract data for similar services provided to the same demographic or within the Indian Health Service (IHS) system, a precise value-for-money assessment is challenging. The 'COST NO FEE' contract type suggests that the government reimburses the contractor for allowable costs, which can sometimes lead to less price pressure compared to fixed-price contracts. Benchmarking against other IHS contracts for similar outpatient services would be necessary for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other potential providers. The justification for a sole-source award typically involves unique capabilities, a lack of other responsible sources, or specific circumstances outlined by federal acquisition regulations. The absence of competition means that the pricing and terms were negotiated directly with the selected contractor, Central Oklahoma American Indian Health Council, Inc.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers if robust price negotiation and market analysis are not thoroughly conducted. Without competition, there is less incentive for the contractor to offer the most competitive pricing.

Public Impact

Beneficiaries include American Indian individuals in the Central Oklahoma region requiring primary outpatient medical, dental, and preventive behavioral health services. The contract delivers essential healthcare services, addressing a critical need within the community. Geographic impact is focused on Oklahoma, specifically serving the population covered by the Central Oklahoma American Indian Health Council. Workforce implications include the employment of healthcare professionals and support staff by the contractor to deliver these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have limited opportunities for cost savings.
The 'COST NO FEE' contract type requires careful monitoring of allowable costs to ensure fiscal responsibility.
Long contract duration could present risks if contractor performance degrades over time without adequate recourse.

Positive Signals

Award to an established entity suggests continuity of care for a vulnerable population.
Focus on comprehensive health services (medical, dental, behavioral) indicates a holistic approach to patient well-being.
The contract supports essential healthcare infrastructure within the Indian Health Service network.

Sector Analysis

This contract falls within the broader healthcare services sector, specifically focusing on ambulatory health care. The Indian Health Service (IHS) operates within a unique segment of the healthcare market, providing services to federally recognized American Indian and Alaska Native populations. The market for such specialized services is often characterized by specific regulatory requirements and a limited pool of eligible providers. Benchmarking would ideally involve comparing this contract to other IHS-funded service agreements or similar community health programs.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. As a sole-source award to a specific organization, the focus was likely on the direct provision of services rather than leveraging the broader small business ecosystem. Further analysis would be needed to determine if the prime contractor has any small business subcontracting plans in place.

Oversight & Accountability

Oversight for this contract would primarily reside with the Indian Health Service (IHS) within the Department of Health and Human Services (HHS). Mechanisms likely include regular performance reviews, financial audits of costs incurred, and adherence to the terms and conditions of the 'COST NO FEE' agreement. Transparency would depend on the public availability of performance reports and audit findings, which may be limited for specific service contracts.

Related Government Programs

Indian Health Service Contracts
Ambulatory Health Care Services
Behavioral Health Services Contracts
Federally Qualified Health Centers (FQHCs) - analogous service providers
Community Health Centers

Risk Flags

Sole-source award
Cost-reimbursement contract type ('COST NO FEE')
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.1 million to CENTRAL OKLAHOMA AMERICAN INDIAN HEALTH COUNCIL, INC.. PRIMARY OUTPATIENT MEDICAL, DENTAL & PREVENTIVE BEHAVIORAL HEALTH SERVICES

Who is the contractor on this award?

The obligated recipient is CENTRAL OKLAHOMA AMERICAN INDIAN HEALTH COUNCIL, 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 $24.1 million.

What is the period of performance?

Start: 2003-10-01. End: 2008-12-31.

What is the track record of Central Oklahoma American Indian Health Council, Inc. in delivering similar healthcare services?

Central Oklahoma American Indian Health Council, Inc. (COAIHC) has a long-standing history of providing healthcare services to the American Indian community in Oklahoma. Established in 1975, COAIHC operates as a tribal health organization, offering a range of services including primary medical care, dental care, and behavioral health programs. Their experience is primarily focused on serving the IHS-eligible population within their service area. While specific performance metrics for this particular contract are not publicly detailed, their longevity and continued operation suggest a capacity to meet the healthcare needs of their community. Evaluating their performance would typically involve reviewing IHS contract performance reports, patient satisfaction surveys, and clinical outcome data, which are often internal to the agency.

How does the annual cost of this contract compare to similar outpatient health service contracts within the IHS or other federal agencies?

The annual cost of this contract, approximately $4.8 million ($24.1M / ~5 years), is difficult to benchmark directly without access to detailed comparative data for similar IHS contracts. IHS contracts vary significantly based on the specific services offered, the patient population served (including health status and demographics), geographic location, and the provider's cost structure. Contracts for outpatient medical, dental, and behavioral health services can range widely. For instance, a contract serving a larger or more medically complex population, or one in a higher cost-of-living area, might naturally be higher. The 'COST NO FEE' structure also means the government reimburses actual allowable costs, making direct price comparisons less straightforward than with fixed-price contracts. A comprehensive comparison would require analyzing IHS contract databases for similar scopes of work and patient volumes.

What are the primary risks associated with a sole-source award for essential healthcare services?

The primary risks associated with a sole-source award for essential healthcare services include a lack of competitive pressure, which can potentially lead to higher costs for taxpayers and less incentive for the contractor to innovate or improve efficiency. There's also a risk if the sole-source provider experiences performance issues, financial instability, or a sudden inability to deliver services, as finding and transitioning to a new provider could be lengthy and disruptive, especially for critical healthcare needs. Furthermore, without competition, there's a reduced opportunity to discover potentially more cost-effective or higher-quality solutions that other providers might offer. Ensuring robust oversight and performance management becomes paramount in sole-source situations to mitigate these risks.

What is the expected impact of this contract on the delivery of behavioral health services within the targeted community?

This contract is expected to ensure the continued and stable delivery of essential preventive behavioral health services to the American Indian population in Central Oklahoma. By providing dedicated funding, it allows the Central Oklahoma American Indian Health Council, Inc. to maintain and potentially expand its behavioral health programs, which are crucial for addressing mental health challenges within the community. The funding supports staffing, resources, and operational costs necessary for providing counseling, therapy, and preventive interventions. The 'COST NO FEE' nature suggests a commitment to covering the necessary expenses to maintain these services, thereby contributing to the overall well-being and health outcomes of the beneficiaries.

How has federal spending on primary outpatient medical, dental, and preventive behavioral health services evolved over time, particularly within the IHS?

Federal spending on primary outpatient medical, dental, and preventive behavioral health services, especially within the Indian Health Service (IHS), has generally trended upwards over the years, reflecting increased demand, rising healthcare costs, and a growing recognition of the importance of preventive and behavioral health. The IHS budget, which funds such contracts, is subject to annual appropriations and policy priorities. Historical data would show fluctuations based on congressional funding levels, specific health initiatives, and the number and scope of contracts awarded. The shift towards integrated care models also means that funding for medical, dental, and behavioral health is increasingly bundled or coordinated, as seen in this contract. Analyzing historical spending patterns for IHS would reveal trends in service delivery and investment in these critical areas.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › All Other Miscellaneous Ambulatory Health Care Services

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 4913 W RENO AVE, OKLAHOMA CITY, OK, 90

Business Categories: Category Business, Nonprofit Organization, Small Business

Financial Breakdown

Contract Ceiling: $25,340,965

Exercised Options: $25,340,965

Current Obligation: $24,139,653

Timeline