DHHS awards $28.5M contract for urban Indian health services in Oklahoma City

Contract Overview

Contract Amount: $28,498,439 ($28.5M)

Contractor: Central Oklahoma American Indian Health Council, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2009-10-01

End Date: 2013-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $19.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CONTRACTOR SHALL PROVIDE PRIMARY OUTPATIENT MEDICAL, DENTAL, AND PREVENTIVE BEHAVIORAL HEALTH SERVICES FOR THE URBAN INDIAN POPULATION OF OKLAHOMA CITY OK

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73127

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.5 million to CENTRAL OKLAHOMA AMERICAN INDIAN HEALTH COUNCIL, INC. for work described as: CONTRACTOR SHALL PROVIDE PRIMARY OUTPATIENT MEDICAL, DENTAL, AND PREVENTIVE BEHAVIORAL HEALTH SERVICES FOR THE URBAN INDIAN POPULATION OF OKLAHOMA CITY OK Key points: 1. Contract focuses on primary outpatient medical, dental, and behavioral health services. 2. Services are specifically targeted towards the urban Indian population. 3. Contract duration spans four years, indicating a stable, long-term need. 4. The contract was not competitively bid, raising questions about price discovery. 5. The awarded amount is substantial, reflecting the scope of services required. 6. The North American Industry Classification System (NAICS) code 621111 points to physician offices. 7. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable data for similar urban Indian health service contracts. The total award of $28.5 million over four years suggests an average annual value of approximately $7.1 million. Given the specific target population and comprehensive service offering (medical, dental, behavioral health), the pricing appears to be in line with the expected scale of operations. However, the lack of competitive bidding prevents a robust assessment of whether this represents the best possible value for taxpayer dollars.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not open to competition from other potential providers. This approach is often used when a specific entity is uniquely qualified or when there are no other responsible sources available. The lack of competition means that the government did not benefit from the price reductions and service innovations that typically arise from a competitive bidding process.

Taxpayer Impact: The absence of competition means taxpayers may not have received the most cost-effective solution. Without multiple bids, it's difficult to ascertain if the negotiated price reflects the lowest possible cost for these essential health services.

Public Impact

The primary beneficiaries are members of the urban Indian population residing in Oklahoma City, who will receive essential healthcare services. Services include primary outpatient medical care, dental services, and preventive behavioral health support. The geographic impact is concentrated in Oklahoma City, Oklahoma. The contract supports the delivery of healthcare, potentially impacting the local healthcare workforce through employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding limits assurance of optimal value for taxpayer funds.
Sole-source award may indicate limited market availability or specific program requirements that were not met by other entities.
The specific performance metrics and quality assurance mechanisms are not detailed in the provided data, making it difficult to assess service quality.

Positive Signals

Contract addresses a specific, underserved population (urban Indians), fulfilling a critical need.
The firm-fixed-price structure provides budget certainty for the agency.
The four-year duration suggests a stable and reliable provision of services.

Sector Analysis

This contract falls within the Healthcare and Social Assistance sector, specifically focusing on outpatient care. The NAICS code 621111, Offices of Physicians (except Mental Health Specialists), indicates a focus on medical services. The market for healthcare services, particularly those targeted at specific demographic groups or with unique service requirements, can be specialized. Benchmarking against general physician office contracts might not be fully representative due to the specialized nature of serving the urban Indian population.

Small Business Impact

The provided data indicates that small business participation (both as the prime contractor and through subcontracting) was not a stated requirement or outcome for this contract (ss: false, sb: false). This suggests that the contract was not specifically set aside for small businesses, and there is no explicit information regarding subcontracting opportunities for small businesses within this award. The focus appears to be on the direct provision of services by the awarded entity.

Oversight & Accountability

Oversight for this contract would typically fall under the Indian Health Service (IHS), a division of the Department of Health and Human Services (DHHS). Specific oversight mechanisms, such as performance reviews, audits, and quality assurance checks, would be detailed in the contract's statement of work and administered by the contracting officer and program officials. Transparency is generally facilitated through contract databases, but detailed performance reporting is often internal or specific to program requirements.

Related Government Programs

Indian Health Service Programs
Urban Indian Health Programs
Outpatient Medical Services
Behavioral Health Services
Native American Healthcare

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for higher costs
Limited transparency on performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.5 million to CENTRAL OKLAHOMA AMERICAN INDIAN HEALTH COUNCIL, INC.. CONTRACTOR SHALL PROVIDE PRIMARY OUTPATIENT MEDICAL, DENTAL, AND PREVENTIVE BEHAVIORAL HEALTH SERVICES FOR THE URBAN INDIAN POPULATION OF OKLAHOMA CITY OK

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 $28.5 million.

What is the period of performance?

Start: 2009-10-01. End: 2013-09-30.

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

The provided data does not include specific details on the contractor's past performance or track record beyond the award of this contract. To assess their capabilities, one would need to review past performance evaluations, any previous contracts they held with federal or state agencies, and their organizational capacity. Given this is a sole-source award, the agency likely conducted some level of due diligence to ensure the contractor's ability to meet the requirements. Further investigation into their operational history, client satisfaction, and adherence to healthcare standards would be necessary for a comprehensive understanding of their reliability and expertise in providing primary outpatient medical, dental, and preventive behavioral health services to the urban Indian population.

How does the per-person cost of these services compare to other urban Indian health programs or similar demographic-focused healthcare initiatives?

Direct per-person cost comparison is not feasible with the provided data. The contract value is a total award amount ($28.5 million) for a duration of 1460 days (4 years), serving the 'urban Indian population of Oklahoma City.' Without knowing the estimated number of individuals served or the specific utilization rates for medical, dental, and behavioral health services, calculating a meaningful per-person cost is impossible. To perform such a comparison, one would need data on the target population size, enrollment figures, and the average number of services utilized per individual. Additionally, comparing to other urban Indian health programs would require access to their specific contract values, service populations, and cost structures, which are not publicly available in this context.

What are the primary risks associated with a sole-source contract for essential health services?

The primary risks associated with a sole-source contract for essential health services include a lack of price competition, potentially leading to higher costs for taxpayers. Without multiple bids, there's less incentive for the contractor to offer the most competitive pricing or to innovate services to reduce costs. Another risk is the potential for complacency, where the contractor may feel less pressure to maintain high service quality or efficiency since there are no immediate competitors vying for the contract. Furthermore, if the sole-source justification was based on specific capabilities that later prove insufficient or if the contractor faces significant operational challenges, transitioning to a new provider could be difficult and disruptive to service delivery for the intended beneficiaries.

What is the expected impact of this contract on the overall health outcomes for the urban Indian population in Oklahoma City?

This contract is expected to have a positive impact on the health outcomes of the urban Indian population in Oklahoma City by providing consistent access to essential healthcare services. By covering primary outpatient medical, dental, and preventive behavioral health, the contract aims to address critical health needs, potentially leading to earlier disease detection, better management of chronic conditions, improved oral health, and enhanced mental well-being. The availability of these services is crucial for a population that may face barriers to accessing mainstream healthcare. Improved health outcomes can translate to increased quality of life, reduced emergency room visits, and greater overall community health.

How has federal spending on urban Indian health services in Oklahoma evolved over time, and does this contract represent a significant shift?

The provided data only pertains to a single contract awarded from 2009 to 2013. It does not offer historical spending trends for urban Indian health services in Oklahoma or nationally. To understand the evolution of federal spending, one would need to analyze historical contract awards, appropriations for the Indian Health Service (IHS) and its urban programs, and potentially other related federal initiatives over multiple fiscal years. This single contract, valued at $28.5 million over four years, represents a significant investment for Oklahoma City's urban Indian population during its period of performance. However, without broader historical context, it's impossible to determine if it signifies a major shift in overall federal spending strategy for such services.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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: $33,313,593

Exercised Options: $33,313,593

Current Obligation: $28,498,439

Contract Characteristics

Cost or Pricing Data: YES

Timeline