VA Spends $325M on Kidney Dialysis Centers with Davita Inc. in FY20

Contract Overview

Contract Amount: $325,344,106 ($325.3M)

Contractor: Davita Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-10-01

End Date: 2020-09-30

Contract Duration: 365 days

Daily Burn Rate: $891.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 19

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VA FSC EXPRESS REPORT FY20 COMBINED TOTALS

Place of Performance

Location: GOLDEN, JEFFERSON County, COLORADO, 80401

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $325.3 million to DAVITA INC. for work described as: VA FSC EXPRESS REPORT FY20 COMBINED TOTALS Key points: 1. Total spending reached $325.3 million for kidney dialysis centers. 2. Davita Inc. was the primary contractor for these services. 3. The contract was awarded under full and open competition. 4. This spending falls under the Healthcare sector.

Value Assessment

Rating: good

The total award amount of $325.3 million for kidney dialysis centers appears reasonable given the scale of services provided. Benchmarking against similar large-scale healthcare contracts would offer further insight into its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors had the opportunity to bid.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, likely resulting in a fair market price for essential healthcare services.

Public Impact

Ensures access to critical kidney dialysis services for veterans. Supports a significant healthcare need within the veteran population. Highlights the VA's reliance on private sector providers for specialized care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data makes detailed value assessment difficult.
Reliance on a single primary contractor (Davita Inc.) could pose future risk if competition diminishes.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Contract duration and award amount suggest a significant and ongoing need for these services.

Sector Analysis

Spending on kidney dialysis centers falls within the broader Healthcare sector. The $325.3 million expenditure represents a substantial investment in specialized medical services for veterans, reflecting the high costs associated with chronic care.

Small Business Impact

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

Oversight & Accountability

The contract was awarded under full and open competition, suggesting a degree of oversight in the procurement process. However, ongoing monitoring of service quality and cost-effectiveness is crucial for accountability.

Related Government Programs

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

Risk Flags

High total spending amount.
Potential for vendor lock-in with Davita Inc.
Lack of granular cost-per-service data.
Dependence on private sector for critical healthcare.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $325.3 million to DAVITA INC.. VA FSC EXPRESS REPORT FY20 COMBINED 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 $325.3 million.

What is the period of performance?

Start: 2019-10-01. End: 2020-09-30.

What is the average cost per dialysis treatment under this contract?

The provided data does not include a breakdown of per-unit costs for dialysis treatments. To assess the value effectively, it would be beneficial to obtain data on the number of treatments provided and the associated costs, allowing for a calculation of the average cost per treatment and comparison against industry benchmarks.

What are the risks associated with Davita Inc. being the primary contractor?

The primary risk is potential over-reliance on a single large provider, which could reduce future competitive pressure and potentially lead to price increases. Dependency on Davita Inc. also means that any operational issues or changes in their business strategy could directly impact the VA's ability to provide these essential services to veterans.

How effective is this contract in meeting the long-term dialysis needs of veterans?

The contract's effectiveness in meeting long-term needs is suggested by its substantial value and duration. However, true effectiveness requires ongoing evaluation of patient outcomes, service quality, and accessibility for all eligible veterans. A long-term strategy should also consider potential shifts in healthcare technology and veteran population demographics.

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: $325,344,106

Exercised Options: $325,344,106

Current Obligation: $325,344,106

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline