VA's $275M FY21 Kidney Dialysis Centers Contract Awarded to Fresenius Medical Care
Contract Overview
Contract Amount: $275,446,290 ($275.4M)
Contractor: Fresenius Medical Care Holdings Inc
Awarding Agency: Department of Veterans Affairs
Start Date: 2020-10-01
End Date: 2021-09-30
Contract Duration: 364 days
Daily Burn Rate: $756.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: EXPRESS REPORT: FY21 FSC TOTALS
Place of Performance
Location: GOLDEN, JEFFERSON County, COLORADO, 80401
State: Colorado Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $275.4 million to FRESENIUS MEDICAL CARE HOLDINGS INC for work described as: EXPRESS REPORT: FY21 FSC TOTALS Key points: 1. Significant contract value of $275.4M for essential healthcare services. 2. Fresenius Medical Care, a major player, secured the award. 3. Full and open competition was utilized, suggesting a robust process. 4. The contract supports critical kidney dialysis services for veterans.
Value Assessment
Rating: good
The contract's value of $275.4M for FY21 appears reasonable given the critical nature of kidney dialysis services. 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, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: Full and open competition aims to maximize taxpayer value by fostering a competitive environment, potentially leading to cost savings or improved service quality.
Public Impact
Ensures continued access to vital kidney dialysis services for veterans. Supports the operational needs of the Department of Veterans Affairs healthcare system. Impacts veterans in Colorado, where the service is located.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if follow-on contracts are not competitively bid.
- Reliance on a single vendor for a critical service could pose a risk.
- Geographic concentration of service delivery.
Positive Signals
- Awarded through full and open competition.
- Supports a critical healthcare need for veterans.
- Clear contract period (FY21).
Sector Analysis
The healthcare sector, particularly specialized services like kidney dialysis, represents a significant portion of federal spending. Benchmarks for similar contracts would focus on per-patient costs and service delivery models.
Small Business Impact
While this contract was awarded under full and open competition, it's important to assess if opportunities exist for small businesses in subcontracting roles or for future, smaller-scale service contracts.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight mechanisms are crucial to ensure service quality, compliance with terms, and appropriate use of funds.
Related Government Programs
- Kidney Dialysis Centers
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Critical healthcare service delivery.
- Potential for single-vendor reliance.
- Geographic concentration of service.
- Need for ongoing performance monitoring.
- Importance of competitive follow-on contracting.
Tags
kidney-dialysis-centers, department-of-veterans-affairs, co, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $275.4 million to FRESENIUS MEDICAL CARE HOLDINGS INC. EXPRESS REPORT: FY21 FSC 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 $275.4 million.
What is the period of performance?
Start: 2020-10-01. End: 2021-09-30.
What is the historical performance of Fresenius Medical Care in delivering similar services to the VA or other government agencies?
Assessing Fresenius Medical Care's past performance is crucial for understanding their reliability, quality of service, and adherence to contractual obligations. Reviewing past contract performance reports, any documented issues or commendations, and their track record with similar government healthcare contracts can provide valuable insights into their capabilities and potential risks.
How does the pricing structure compare to industry standards for kidney dialysis services, considering the specific needs of the veteran population?
A detailed pricing analysis against industry benchmarks is essential. This involves comparing the per-unit costs, service package inclusions, and overall contract value to similar contracts awarded by other federal agencies or large healthcare providers. Understanding the unique health profiles and potential complexities of veteran patients is also key to a fair comparison.
What contingency plans are in place should Fresenius Medical Care be unable to fulfill its contractual obligations?
Contingency planning is vital for critical healthcare services. The VA should have established protocols for vendor failure, including identifying alternative providers, ensuring seamless patient transfer, and mitigating service disruptions. The existence and adequacy of these plans directly impact the continuity of care for veterans and the overall risk to the government.
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
Solicitation ID: 36C79118R0022
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: $275,446,290
Exercised Options: $275,446,290
Current Obligation: $275,446,290
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
Start Date: 2020-10-01
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2023-02-03
More Contracts from Fresenius Medical Care Holdings Inc
- Express Report: FY 23 Ndsc — $350.5M (Department of Veterans Affairs)
- Express Report: FY20 Combined Totals — $301.7M (Department of Veterans Affairs)
- Ndsc Express Report Orders FY22 — $288.5M (Department of Veterans Affairs)
- Express Report: FY 25 1ST Quarter Ndsc - Fresenius — $217.7M (Department of Veterans Affairs)
- Express Report: FY 24 1ST, 2ND, and 3RD Quarter Ndsc — $186.0M (Department of Veterans Affairs)
View all Fresenius Medical Care Holdings Inc federal contracts →
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