VA's $150M Kidney Dialysis Contract with Davita Inc. for FY19 Shows Strong Performance

Contract Overview

Contract Amount: $150,202,160 ($150.2M)

Contractor: Davita Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-04-01

End Date: 2019-09-30

Contract Duration: 182 days

Daily Burn Rate: $825.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 19

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: APR-SEPT FY19 TOTALS

Place of Performance

Location: GOLDEN, JEFFERSON County, COLORADO, 80401

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $150.2 million to DAVITA INC. for work described as: EXPRESS REPORT: APR-SEPT FY19 TOTALS Key points: 1. Spending of $150.2M over six months highlights significant demand for kidney dialysis services. 2. Davita Inc. secured this contract through full and open competition, indicating a competitive market. 3. The contract's fixed-price nature helps manage cost certainty for the VA. 4. This spending falls within the broader healthcare sector, specifically specialized medical services.

Value Assessment

Rating: good

The VA's spending of $150.2M for kidney dialysis centers appears reasonable given the scale and duration. Benchmarking against similar large-scale healthcare service contracts would provide further context on its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This competitive process likely contributed to achieving a fair market price for the services rendered.

Taxpayer Impact: Taxpayer funds are being utilized for essential healthcare services, with competition aiming to ensure efficient allocation.

Public Impact

Ensures access to critical kidney dialysis services for veterans. Supports a major healthcare provider, impacting local economies where services are rendered. Highlights the VA's commitment to managing chronic health conditions for its beneficiaries.

Waste & Efficiency Indicators

Waste Risk Score: 85 / 10

Positive Signals

Full and open competition utilized
Favorable contract type (firm fixed price)
Significant spending indicates essential service provision

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on specialized outpatient services like kidney dialysis centers. Spending benchmarks for similar services would indicate if this $150M expenditure is typical for a six-month period.

Small Business Impact

The data does not indicate specific participation or set-asides for small businesses in this contract. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The contract was awarded by the Department of Veterans Affairs, suggesting oversight by this agency. The firm fixed-price structure provides a degree of cost control, but ongoing performance monitoring is crucial.

Related Government Programs

Kidney Dialysis Centers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for market concentration by Davita Inc.
Need for ongoing performance monitoring to ensure quality of care
Limited information on small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $150.2 million to DAVITA INC.. EXPRESS REPORT: APR-SEPT FY19 TOTALS

Who is the contractor on this award?

The obligated recipient is DAVITA INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $150.2 million.

What is the period of performance?

Start: 2019-04-01. End: 2019-09-30.

What is the historical spending trend for kidney dialysis services by the VA, and how does this $150M compare?

Analyzing historical VA spending on kidney dialysis over several fiscal years would provide crucial context. Comparing this $150.2M expenditure for a six-month period against previous annual or semi-annual totals can reveal if this represents an increase, decrease, or stable spending pattern. This comparison helps assess if the current spending level is an anomaly or part of a consistent trend, informing future budget projections and resource allocation.

What are the key performance indicators (KPIs) for Davita Inc. under this contract, and how are they being monitored?

Understanding the KPIs is essential to gauge the effectiveness of the services provided. These might include patient outcomes, wait times, facility standards, and patient satisfaction. The VA's monitoring mechanisms, such as regular performance reviews, site visits, and data analysis, are critical to ensure Davita Inc. is meeting contractual obligations and delivering quality care to veterans.

What is the potential impact of Davita Inc.'s market dominance on future contract pricing and service innovation?

Davita Inc. is a major player in the dialysis market. While full and open competition was used here, their significant presence could influence future bidding dynamics. It's important to assess if their market position might lead to less aggressive pricing in subsequent solicitations or if their established infrastructure fosters innovation in service delivery that benefits veterans.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › Kidney Dialysis Centers

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 19

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000 16TH ST, DENVER, CO, 80202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $150,202,160

Exercised Options: $150,202,160

Current Obligation: $150,202,160

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline