VA Awards $131M for Kidney Dialysis Centers to Davita Inc. Across Multiple Delivery Orders

Contract Overview

Contract Amount: $131,332,191 ($131.3M)

Contractor: Davita Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-01

End Date: 2024-06-30

Contract Duration: 273 days

Daily Burn Rate: $481.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: FY 24 1ST, 2ND, AND 3RD QUARTER NDSC

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80202

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $131.3 million to DAVITA INC. for work described as: EXPRESS REPORT: FY 24 1ST, 2ND, AND 3RD QUARTER NDSC Key points: 1. Significant contract value of $131.3M awarded for essential healthcare services. 2. Davita Inc. is a major player in the kidney 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 $131.3M appears substantial for kidney dialysis services. Benchmarking against similar large-scale healthcare contracts would be necessary for a precise pricing 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 promotes price discovery and potentially better value for the government.

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

Public Impact

Ensures continued access to critical kidney dialysis services for veterans. Supports a major healthcare provider, potentially impacting employment in the sector. Highlights the government's role in funding essential medical treatments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Davita is the primary provider long-term.
Healthcare service costs can escalate, requiring ongoing budget vigilance.

Positive Signals

Awarded through full and open competition, indicating market responsiveness.
Supports a critical healthcare need for a vulnerable patient population.

Sector Analysis

The healthcare sector, particularly specialized services like kidney dialysis, represents a significant portion of federal spending. Benchmarks for similar services vary widely based on patient volume and complexity.

Small Business Impact

This award does not appear to directly benefit small businesses, as it is a large contract likely awarded to an established provider. Further analysis would be needed to determine if subcontracting opportunities exist.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for healthcare service delivery and quality assurance would apply.

Related Government Programs

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

Risk Flags

Healthcare service cost inflation
Dependence on a single large provider
Potential for service disruptions
Regulatory changes in healthcare

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $131.3 million to DAVITA INC.. EXPRESS REPORT: FY 24 1ST, 2ND, AND 3RD QUARTER 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 $131.3 million.

What is the period of performance?

Start: 2023-10-01. End: 2024-06-30.

What is the historical performance of Davita Inc. with the VA for similar services?

Historical performance data for Davita Inc. with the VA is crucial for assessing reliability and quality. Past contract adherence, patient satisfaction scores, and any documented issues or commendations would provide valuable insight into their capabilities and suitability for continued service delivery.

Are there any emerging technologies or alternative treatment models that could impact the long-term cost-effectiveness of traditional dialysis?

Emerging technologies and alternative treatment models, such as home dialysis or kidney transplantation advancements, could significantly influence the long-term cost-effectiveness of traditional in-center dialysis. Monitoring these innovations is vital for future procurement strategies and ensuring the VA adopts the most efficient and effective care pathways.

How does the per-patient cost of this contract compare to national averages for Medicare or private insurance?

Comparing the per-patient cost of this VA contract to national averages for Medicare or private insurance is essential for evaluating value. Significant deviations could indicate either exceptional service delivery or potential overspending, necessitating a deeper dive into the contract's specifics and the patient population served.

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: $131,332,191

Exercised Options: $131,332,191

Current Obligation: $131,332,191

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