VA awards $73M for Kidney Dialysis Centers to DaVita Inc. in FY25 Q2

Contract Overview

Contract Amount: $73,163,510 ($73.2M)

Contractor: Davita Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-01-01

End Date: 2025-03-31

Contract Duration: 89 days

Daily Burn Rate: $822.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: FY 25 2ND QUARTER NDSC EXPRESS REPORT - DAVITA

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80202

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $73.2 million to DAVITA INC. for work described as: EXPRESS REPORT: FY 25 2ND QUARTER NDSC EXPRESS REPORT - DAVITA Key points: 1. Significant spending on essential healthcare services. 2. Sole-source award to DaVita Inc. raises competition concerns. 3. Potential for higher costs due to lack of competition. 4. Focus on kidney dialysis centers highlights a critical health need.

Value Assessment

Rating: questionable

The award of $73.2 million for kidney dialysis centers appears high given the lack of competition. Benchmarking against similar contracts would be necessary to determine fair pricing.

Cost Per Unit: $822,062

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to DaVita Inc. The absence of competition limits price discovery and may lead to inflated costs for taxpayers.

Taxpayer Impact: Taxpayers may be overpaying for kidney dialysis services due to the lack of competitive bidding.

Public Impact

Veterans will continue to receive essential kidney dialysis services. The sole-source nature of this award warrants scrutiny regarding cost-effectiveness. Future contract awards in this category should prioritize competitive processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Sole-source award

Positive Signals

Ensures continued access to critical healthcare services for veterans

Sector Analysis

Spending on healthcare services, particularly specialized centers like kidney dialysis, is a significant portion of federal budgets. Benchmarks for similar services vary widely based on location and scope.

Small Business Impact

There is no indication of small business participation in this sole-source award. Future contracting opportunities should explore avenues for small business involvement in healthcare services.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure fair pricing and prevent potential waste. VA should justify the lack of competition and explore competitive options for future needs.

Related Government Programs

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

Risk Flags

Sole-source award lacks competition
Potential for inflated pricing
Limited transparency in cost justification
No small business participation identified

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $73.2 million to DAVITA INC.. EXPRESS REPORT: FY 25 2ND QUARTER NDSC EXPRESS REPORT - DAVITA

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 $73.2 million.

What is the period of performance?

Start: 2025-01-01. End: 2025-03-31.

What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The justification for a sole-source award typically involves specific circumstances such as the unavailability of other sources, urgent and compelling needs, or specialized capabilities possessed by only one contractor. Without further documentation from the VA, it is difficult to ascertain the precise reason for awarding this $73.2 million contract to DaVita Inc. without competition. A thorough review of the justification is crucial for accountability.

How does the per-unit cost of $822,062 compare to industry benchmarks for kidney dialysis centers?

The provided per-unit cost of $822,062 requires context to be accurately benchmarked. It's unclear if this represents a cost per patient, per treatment, or per facility over the contract period. Comparing this figure to national averages for similar services, adjusted for geographic location and service intensity, is essential. A significant deviation from established benchmarks could indicate either exceptional value or potential overpricing.

What measures are in place to ensure the effectiveness and quality of kidney dialysis services provided by DaVita Inc. under this contract?

While the contract is sole-source, the VA should have performance standards and quality assurance mechanisms in place to monitor the effectiveness of DaVita Inc.'s services. This includes tracking patient outcomes, adherence to medical protocols, and patient satisfaction. Regular performance reviews and site visits are critical to ensure veterans receive high-quality care and that the contract objectives are met.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000, 16TH STREET, 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: $73,163,510

Exercised Options: $73,163,510

Current Obligation: $73,163,510

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G24D0093

IDV Type: IDC

Timeline