VA Awards $26.8M for Kidney Dialysis Centers to Davita Inc. in Colorado

Contract Overview

Contract Amount: $26,812,688 ($26.8M)

Contractor: Davita Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-08-01

End Date: 2025-08-31

Contract Duration: 30 days

Daily Burn Rate: $893.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

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

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80202

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $26.8 million to DAVITA INC. for work described as: EXPRESS REPORT: FY 25 AUGUST NDSC EXPRESS REPORT Key points: 1. Davita Inc. secured a significant contract for kidney dialysis services. 2. The contract was awarded without competition, raising questions about price discovery. 3. The primary risk lies in the lack of competitive bidding potentially leading to higher costs. 4. The healthcare sector sees substantial spending on essential services like dialysis.

Value Assessment

Rating: questionable

The contract's value of $26.8M for a 30-day period appears high, especially without competitive pricing data. Benchmarking against similar dialysis contracts is crucial to assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The absence of competition limits price discovery and may prevent the government from securing the best possible pricing.

Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for essential dialysis services.

Public Impact

Veterans in Colorado will continue to receive essential kidney dialysis services. The sole-source nature of the award warrants scrutiny to ensure fair pricing. Future contract awards for similar services should prioritize competitive bidding to maximize taxpayer value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Potential for overpayment due to lack of competition
High contract value for a short duration

Positive Signals

Ensures continuity of essential healthcare services for veterans

Sector Analysis

The healthcare sector, particularly services like kidney dialysis, represents a significant portion of federal spending. Benchmarks for dialysis services vary widely based on location and service intensity.

Small Business Impact

There is no indication of small business participation in this sole-source award. Opportunities for small businesses in the healthcare service sector should be explored in future contracting actions.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure the government is receiving fair value. A 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
Lack of price competition
High contract value for short duration
Potential for overpayment

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $26.8 million to DAVITA INC.. EXPRESS REPORT: FY 25 AUGUST NDSC EXPRESS REPORT

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 $26.8 million.

What is the period of performance?

Start: 2025-08-01. End: 2025-08-31.

What is the justification for awarding this contract sole-source, and how does the pricing compare to market rates for similar dialysis services?

The justification for a sole-source award is not provided in the data. However, the contract value of $26.8M for a single month raises concerns. A thorough market analysis and comparison with publicly available pricing for comparable dialysis services are essential to determine if the pricing is reasonable and reflects fair market value.

What are the potential risks associated with awarding a large contract for essential healthcare services without competition?

The primary risk of awarding essential healthcare services without competition is the potential for inflated prices and reduced quality. Without competitive pressure, the contractor may have less incentive to offer the most cost-effective solutions or to innovate. This can lead to taxpayers overpaying for services and potentially impacting the accessibility or quality of care for beneficiaries.

How effective is the Department of Veterans Affairs in securing competitive pricing for healthcare services, and what steps can be taken to improve it?

The effectiveness of the VA in securing competitive pricing varies. While many contracts are competed, sole-source awards like this one suggest areas for improvement. To enhance competitiveness, the VA could increase market research, break down large requirements into smaller, more manageable contracts to attract a wider range of bidders, and actively seek out and encourage small business participation.

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: $26,812,688

Exercised Options: $26,812,688

Current Obligation: $26,812,688

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G24D0093

IDV Type: IDC

Timeline