Avera Mckennan

Avera McKennan Hospital & University Health Center, a South Dakota-based nonprofit healthcare provider and subsidiary of Avera Health, delivers radiology physician services, inmate medical care, and health research services to the Department of Veterans Affairs, the Department of Justice Bureau of Prisons, and the National Institutes of Health as a prime contractor competing without set-aside designation. The organization holds a $8.15 million indefinite delivery contract with Veterans Integrated Service Network 23 for radiology services running through March 2026, with multiple delivery orders active across South Dakota and the Black Hills region, and maintains an active federal grant portfolio focused on behavioral health workforce development, perinatal health equity, and rural health innovation.

Avera McKennan's customer concentration reflects its regional healthcare mission. The top five customers by potential value account for 74 percent of recent awards, anchored by Veterans Integrated Service Network 23 (26 awards, $36.2 million combined potential value) for radiology physician services including on-site interpretations, fluoroscopic procedures, and 24/7 teleradiology coverage. The Department of Justice Bureau of Prisons Central Office and Federal Prison Camp Yankton account for $4.8 million combined across 65 purchase orders for specialized inmate medical procedures and emergency surgical services. The Department of Health and Human Services Indian Health Service (47 awards, $1.1 million) and National Institutes of Health (17 awards) round out the active set. By award count, Federal Prison Camp Yankton dominates with 59 small-dollar purchase orders for individual inmate procedures, contrasting sharply with VISN 23's delivery-order structure; this split signals both transactional inmate care work and sustained VA physician services.

Avera McKennan's primary IDV vehicles reflect its healthcare delivery footprint. The organization places task orders under five named indefinite delivery contracts: HHSI241201500029I (27 task orders, $140 thousand combined potential value), V438P1966 (8 task orders, $475 thousand), DJB200875 (7 task orders, $180 thousand), the $8.15 million VISN 23 radiology IDC (36C26321D0033, 6 task orders, $8.4 million), and J40020C024 (5 task orders, $68 thousand). The VISN 23 vehicle anchors most of Avera McKennan's dollar value; the balance consists of smaller indefinite delivery arrangements with HHS Indian Health Service and DOJ Bureau of Prisons that support granular inmate care purchasing and rural health services.

Award activity has shown modest growth over the recent period — 11 awards in 2022 rising to 22 in 2024 — with eight awards (combined potential value $777 thousand) completing within the next twenty-four months. The vendor competes across 34 distinct federal agencies as a prime contractor (91 percent of awards), with no parent vehicles or government-wide acquisition contracts in the award portfolio. SCI-reported invoicing of $3.5 million across FY2022–FY2024 (with zero FY2024 invoicing reported) suggests service-contract activity at the $150,000-plus threshold was concentrated in FY2022 ($1.9 million) and FY2023 ($1.6 million), delivering roughly 1.4 and 1.1 FTEs respectively. Median government-paid hourly rates for SCI-reportable work ran $646.55/hr, consistent with physician and specialized clinical labor. The organization performs its own delivery across SCI-reportable contracts with zero sub-engagement.

Avera McKennan's federal grant footprint centers on health workforce development and rural health innovation. The organization holds prime grants from the Bureau of Health Professionals for behavioral health workforce education ($2024 award through June 2029, training 12 students annually in Master of Social Work, Master of Arts in Counseling, and Master of Addiction Counseling programs) and integrated substance use disorder training ($2023 award through June 2028, establishing three rural mental health hubs in South Dakota). The Bureau of Justice Assistance awarded a cooperative agreement ($2024 through September 2027) for a "No Wrong Door" research initiative on staffing models and workforce development at a community-based behavioral health triage center in Sioux Falls. The Maternal and Child Health Bureau funded an AVERA BIRTHS healthy start initiative ($2024 through March 2029) targeting rural infant mortality reduction, and the Federal Office of Rural Health Policy awarded a rural maternity and obstetrics management strategies grant ($2022 through August 2026) leveraging telehealth solutions across six rural South Dakota counties and tribal communities. The National Institute of Child Health and Human Development funded a Maternal American-Indian Rural Community Health (M.A.R.C.H.) cooperative agreement ($2023 through July 2030) addressing maternal health equity in American Indian and rural populations. Congressionally directed construction funding from the Healthcare Systems Bureau supported an Avera Behavioral Health Facility Expansion ($2023 through September 2026, adding 16 adult mental health beds) and an Avera Virtual Patient Care Program ($2024 through September 2027) deploying AI-enabled telehealth infrastructure across five Avera facilities. Avera McKennan also acts as a subrecipient on approximately 30 federal grants from universities and state agencies, including data coordination work for the ECHO pediatric clinical trials network (University of Arkansas for Medical Sciences), research on prenatal substance exposure and neurodevelopmental outcomes (Duke University, UAMS), and tribal health initiatives (University of Nebraska, South Dakota state agencies).

NAICS concentration shows Avera McKennan's core healthcare identity: 78 awards in General Medical and Surgical Hospitals, 74 in Offices of Physicians, and 17 in Psychiatric and Substance Abuse Hospitals. By PSC, Medical-Other dominates (123 awards), followed by Lease/Rental of Office Buildings (41 awards), Medical-Radiology (19 awards), Behavioral and Mental Health (13 awards), and Medical-Managed Healthcare (10 awards). Avera McKennan competes full-and-open across all customers and vehicles with no set-aside designations, positioning itself as an established regional healthcare system capable of delivering complex medical and research services to federal agencies.