VA awards $31.3M for Kidney Dialysis Centers to Fresenius Medical Care in FY25

Contract Overview

Contract Amount: $31,298,769 ($31.3M)

Contractor: Fresenius Medical Care Holdings Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-04-01

End Date: 2025-04-30

Contract Duration: 29 days

Daily Burn Rate: $1.1M/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: FY 25 APRIL NDSC EXPRESS REPORT

Place of Performance

Location: WALTHAM, MIDDLESEX County, MASSACHUSETTS, 02451

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $31.3 million to FRESENIUS MEDICAL CARE HOLDINGS INC for work described as: EXPRESS REPORT: FY 25 APRIL NDSC EXPRESS REPORT Key points: 1. Significant contract value of $31.3 million for essential healthcare services. 2. Sole-source award to Fresenius Medical Care highlights potential lack of competition. 3. Risk of inflated pricing due to limited competition. 4. Healthcare sector spending on critical patient services.

Value Assessment

Rating: fair

The contract's firm fixed price structure provides some cost certainty. However, without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar dialysis services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Fresenius Medical Care. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in the government paying a premium for these essential dialysis services.

Public Impact

Ensures continued access to vital kidney dialysis services for veterans. Potential for higher costs impacts the VA's budget for other healthcare needs. Highlights the importance of competitive contracting for government healthcare.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Ensures continuity of care
Firm fixed price contract

Sector Analysis

This contract falls within the healthcare sector, specifically for kidney dialysis centers. Spending in this area is critical for patient well-being and can be substantial due to the ongoing nature of treatment.

Small Business Impact

No information is provided regarding small business participation in this sole-source award. The focus appears to be on a large, established provider.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the VA obtained fair value. Further review of the justification for not competing the contract is recommended.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for non-competitive pricing.
Lack of transparency in price justification.
Dependency on a single provider.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $31.3 million to FRESENIUS MEDICAL CARE HOLDINGS INC. EXPRESS REPORT: FY 25 APRIL NDSC EXPRESS REPORT

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 $31.3 million.

What is the period of performance?

Start: 2025-04-01. End: 2025-04-30.

What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?

The provided data does not include the specific justification for the sole-source award. Typically, such justifications might include factors like unique capabilities, urgent need, or lack of available alternatives. A thorough review would require accessing the contract's justification documentation to understand the rationale and assess its validity.

How does the awarded price compare to benchmarks for similar kidney dialysis services in other VA facilities or government contracts?

Without access to a comprehensive database of comparable contracts or market analysis, it is difficult to provide a precise benchmark. However, the absence of competition inherently raises concerns about whether this price represents the best value achievable. Further analysis would involve researching industry pricing standards and other government contracts for similar services.

What is the potential impact on veteran patient care if this sole-source provider were unable to fulfill the contract?

A sole-source award to a single provider like Fresenius Medical Care creates a significant dependency. If they were unable to fulfill the contract, veterans requiring kidney dialysis could face disruptions in care, potentially leading to adverse health outcomes. This underscores the risk associated with non-competitive awards for essential services.

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

Parent Company: Bio-Medical Applications of Missouri, Inc.

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: $31,298,769

Exercised Options: $31,298,769

Current Obligation: $31,298,769

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G24D0088

IDV Type: IDC

Timeline