VA Spends $249M on Kidney Dialysis Centers in FY23 with Davita Inc

Contract Overview

Contract Amount: $249,448,664 ($249.4M)

Contractor: Davita Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-01

End Date: 2023-09-30

Contract Duration: 364 days

Daily Burn Rate: $685.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: FY 23 NDSC

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80202

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $249.4 million to DAVITA INC. for work described as: EXPRESS REPORT: FY 23 NDSC Key points: 1. Significant spending on essential healthcare services. 2. Davita Inc. is a major provider in the kidney dialysis market. 3. Potential for high costs due to specialized medical services. 4. Healthcare sector spending is consistently high.

Value Assessment

Rating: good

The $249.4M awarded to Davita Inc. for kidney dialysis centers appears reasonable given the specialized nature of the service and the duration of the contract. Benchmarking against similar contracts for dialysis services 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 lower costs for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical healthcare services.

Public Impact

Ensures access to vital kidney dialysis treatment for veterans. Supports a critical component of the VA's healthcare mission. Impacts veterans with end-stage renal disease, improving their quality of life.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single large provider for a critical service.
Potential for price increases in future contract renewals.
Ensuring consistent quality of care across all locations.

Positive Signals

Awarded through full and open competition.
Addresses a critical healthcare need for veterans.
Contract duration aligns with FY23 spending.

Sector Analysis

The healthcare sector, particularly specialized services like dialysis, represents a significant portion of federal spending. Benchmarks for similar medical service contracts can vary widely based on patient volume and service intensity.

Small Business Impact

This contract does not appear to have specific set-asides for small businesses. Large contracts for specialized medical services are often awarded to established, larger healthcare providers.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for healthcare service delivery and contract performance would be in place.

Related Government Programs

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

Risk Flags

High contract value.
Dependence on a single large contractor.
Specialized and critical nature of the service.
Potential for long-term reliance on Davita Inc.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $249.4 million to DAVITA INC.. EXPRESS REPORT: FY 23 NDSC

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 $249.4 million.

What is the period of performance?

Start: 2022-10-01. End: 2023-09-30.

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

The provided data does not specify the cost per dialysis session. The total award of $249.4M over 364 days suggests a significant volume of services. A detailed cost breakdown would be needed to determine the per-session cost and compare it to industry averages.

What are the key performance indicators (KPIs) for Davita Inc. under this contract?

Key performance indicators would likely focus on patient outcomes, adherence to treatment schedules, quality of care standards, and patient satisfaction. The VA would monitor these KPIs to ensure the effectiveness of the contracted dialysis services.

How does the VA ensure continuity of care if Davita Inc. faces operational challenges?

The VA would have contingency plans in place, potentially including identifying alternative providers or increasing capacity at VA-operated facilities. Contractual clauses regarding service disruption and remedies would also be critical.

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

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: $249,448,664

Exercised Options: $249,448,664

Current Obligation: $249,448,664

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C79119D0018

IDV Type: IDC

Timeline