VA awards $301.7M for Kidney Dialysis Centers to Fresenius Medical Care in FY20

Contract Overview

Contract Amount: $301,659,891 ($301.7M)

Contractor: Fresenius Medical Care Holdings Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-10-01

End Date: 2020-09-30

Contract Duration: 365 days

Daily Burn Rate: $826.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: 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 $301.7 million to FRESENIUS MEDICAL CARE HOLDINGS INC for work described as: EXPRESS REPORT: FY20 COMBINED TOTALS Key points: 1. Significant contract value of over $300 million for essential healthcare services. 2. Fresenius Medical Care is a major player in the dialysis market. 3. Potential risk associated with reliance on a single provider for critical services. 4. Healthcare sector spending is substantial and often driven by patient needs.

Value Assessment

Rating: good

The contract value of $301.7 million for kidney dialysis centers appears reasonable given the scale of services required. Benchmarking against similar large-scale healthcare service contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially more favorable pricing for the government.

Taxpayer Impact: Full and open competition aims to ensure taxpayer dollars are used efficiently by securing the best value through a competitive process.

Public Impact

Ensures continued access to critical kidney dialysis services for veterans. Supports a major healthcare provider, potentially impacting employment and related industries. Highlights the government's significant investment in specialized medical care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals.
Dependence on a single contractor for a critical service.

Positive Signals

Awarded through full and open competition.
Addresses a vital healthcare need for veterans.

Sector Analysis

This contract falls within the healthcare sector, specifically focusing on specialized medical services for kidney dialysis. Spending in this area is consistently high due to the chronic nature of the condition and the specialized equipment and personnel required.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. Large healthcare service contracts are often dominated by major industry players.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure the quality and timely delivery of dialysis services. Accountability would involve performance metrics and regular reviews.

Related Government Programs

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

Risk Flags

Contract awarded to a single entity for a critical service.
Potential for price escalation in subsequent contract periods.
Reliance on specialized medical equipment and personnel.
Healthcare service delivery can be complex and subject to regulatory changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $301.7 million to FRESENIUS MEDICAL CARE HOLDINGS INC. EXPRESS REPORT: FY20 COMBINED TOTALS

Who is the contractor on this award?

The obligated recipient is FRESENIUS MEDICAL CARE HOLDINGS 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 $301.7 million.

What is the period of performance?

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

What is the historical cost trend for kidney dialysis services provided to the VA?

Analyzing historical cost data for kidney dialysis services is crucial to understand if the current $301.7 million award represents an increase, decrease, or stable cost compared to previous periods. This trend analysis helps identify potential inefficiencies or successful cost-saving measures over time and informs future budget projections.

What are the key performance indicators (KPIs) for this contract and how is Fresenius Medical Care performing against them?

Understanding the KPIs, such as patient wait times, treatment outcomes, and facility compliance, is essential to assess the effectiveness of the contract. Performance data against these KPIs would reveal if Fresenius Medical Care is meeting the VA's requirements and providing high-quality care, thereby mitigating risks related to service delivery.

Are there any emerging technologies or alternative service models that could offer better value or outcomes for kidney dialysis in the future?

Exploring innovative technologies and alternative models, such as home dialysis or telehealth monitoring, is important for long-term value. Assessing these options can help the VA determine if future contracts could leverage advancements to potentially reduce costs, improve patient convenience, and enhance treatment effectiveness beyond traditional center-based care.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fresenius Medical Care Lake Charles Home, LLC

Address: 920 WINTER ST, WALTHAM, MA, 02451

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

Financial Breakdown

Contract Ceiling: $301,659,891

Exercised Options: $301,659,891

Current Obligation: $301,659,891

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C79119D0021

IDV Type: IDC

Timeline