Yale University awarded $4.8M VA contract for interventional cardiology services in Connecticut

Contract Overview

Contract Amount: $4,794,838 ($4.8M)

Contractor: Yale Univ

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-04-01

End Date: 2027-03-31

Contract Duration: 2,555 days

Daily Burn Rate: $1.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: INTERVENTIONAL CARDIOLOGY SERVICES

Place of Performance

Location: WEST HAVEN, NEW HAVEN County, CONNECTICUT, 06516

State: Connecticut Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.8 million to YALE UNIV for work described as: INTERVENTIONAL CARDIOLOGY SERVICES Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost savings through broader competition. 2. The contract duration of 2555 days (nearly 7 years) suggests a long-term need for these specialized services. 3. The fixed-price structure with economic price adjustment may offer some cost certainty while accounting for inflation. 4. The specific North American Industry Classification System (NAICS) code 611310 points to educational services, indicating a potential academic or research component. 5. The absence of small business set-aside suggests this contract was not specifically targeted to support small businesses. 6. The Department of Veterans Affairs is the primary agency, indicating a focus on serving the veteran population.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable sole-source awards for interventional cardiology services. The fixed-price with economic price adjustment structure is common for long-term service contracts, but the lack of competition makes it difficult to assess if the pricing is optimal. The total value of $4.8 million over nearly seven years suggests a significant but not exceptionally large contract in the healthcare sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' status, indicating that the VA determined only Yale University could fulfill the requirement. This sole-source approach bypasses the standard competitive bidding process, which typically leads to a wider range of proposals and potentially lower prices due to market forces. The lack of competition means taxpayers may not be benefiting from the most cost-effective solution.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not leverage competitive pressures to drive down prices. This limits opportunities for other qualified providers to offer their services.

Public Impact

Veterans in Connecticut will benefit from continued access to specialized interventional cardiology services. The contract supports the delivery of critical medical services, potentially including diagnostic and treatment procedures. The geographic impact is focused on Connecticut, where the services will be rendered. The contract may have implications for the healthcare workforce, potentially supporting medical professionals at Yale University.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Sole-source award limits transparency and potential for cost savings.
Long contract duration without competitive re-evaluation could lead to price creep.

Positive Signals

Ensures continuity of specialized cardiology services for veterans.
Award to a known entity (Yale University) may imply established quality and expertise.
Fixed-price with economic adjustment provides some budget predictability.

Sector Analysis

The healthcare sector, particularly specialized medical services, is a significant area of federal spending. Contracts for cardiology services are crucial for agencies like the VA to provide comprehensive care to beneficiaries. While many healthcare contracts are competed, sole-source awards can occur for highly specialized or unique requirements. The market for such services involves academic medical centers, large hospital systems, and specialized clinics.

Small Business Impact

This contract does not appear to include any specific small business set-aside provisions. The award to a large academic institution like Yale University suggests that subcontracting opportunities for small businesses may be limited, unless Yale actively seeks them out for specific support services. The overall impact on the small business ecosystem for this particular contract is likely minimal.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures would be tied to the performance work statement and service delivery requirements. Transparency is limited due to the sole-source nature of the award, with less public information available compared to competitively bid contracts. The VA's Office of Inspector General would have jurisdiction for investigating any potential fraud, waste, or abuse.

Related Government Programs

VA Medical Services Contracts
Interventional Cardiology Services
Academic Medical Center Contracts
Healthcare Services for Veterans

Risk Flags

Sole-source award
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.8 million to YALE UNIV. INTERVENTIONAL CARDIOLOGY SERVICES

Who is the contractor on this award?

The obligated recipient is YALE UNIV.

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 $4.8 million.

What is the period of performance?

Start: 2020-04-01. End: 2027-03-31.

What is the historical spending pattern for interventional cardiology services by the Department of Veterans Affairs?

Analyzing historical spending patterns for interventional cardiology services by the VA is crucial for understanding trends and identifying potential areas for cost optimization. While specific aggregate data for this sub-specialty can be difficult to isolate without detailed contract-level analysis, the VA consistently allocates significant resources to healthcare services for veterans. This includes a broad range of medical and surgical treatments, with specialized services like cardiology being a priority. Past spending would likely show a mix of competitive and non-competitive awards, with fluctuations based on regional needs, facility capabilities, and the availability of qualified providers. Examining trends over the last 5-10 years could reveal whether spending has increased, decreased, or remained stable, and whether the proportion of sole-source awards has changed.

What specific interventional cardiology procedures are covered under this contract?

The contract specifies 'INTERVENTIONAL CARDIOLOGY SERVICES' broadly. This typically encompasses a range of diagnostic and therapeutic procedures performed by cardiologists using catheters and other minimally invasive techniques. Common procedures include coronary angiography, angioplasty (ballooning) and stenting for blocked arteries, percutaneous valve repair or replacement, and procedures to treat congenital heart defects. It may also include services related to cardiac catheterization, electrophysiology studies, and the implantation of devices like pacemakers or defibrillators, depending on the specific scope defined in the contract's statement of work. The exact list of covered procedures would be detailed in the contract's performance work statement (PWS), which outlines the expected services, quality standards, and deliverables.

How does the pricing structure (Fixed Price with Economic Price Adjustment) compare to other cardiology service contracts?

The 'Fixed Price with Economic Price Adjustment' (FPEPA) pricing structure is common for long-term service contracts, especially in healthcare, where input costs (like labor, supplies, and pharmaceuticals) can fluctuate. This structure provides a baseline fixed price for services while allowing for adjustments based on pre-defined economic indices (e.g., Consumer Price Index, specific healthcare cost indices). Compared to purely fixed-price contracts, FPEPA offers more cost certainty for the contractor, potentially leading to more competitive initial bids. However, it also introduces variability for the government, as costs can increase over the contract term. Purely fixed-price contracts offer the most cost certainty for the government but may carry higher initial prices to account for contractor risk. Cost-plus contracts, on the other hand, have the least cost certainty for the government but can be used when the scope is highly uncertain.

What is Yale University's track record in providing services to the Department of Veterans Affairs?

Yale University, as a major academic medical center, likely has a history of collaborating with the Department of Veterans Affairs, potentially through various contracts and research grants. While this specific contract is sole-source, the university's established reputation in medical education, research, and patient care suggests a foundation of expertise. To assess their track record thoroughly, one would need to examine past VA contracts awarded to Yale, looking at performance reviews, any reported issues, and the overall success in meeting contract requirements. Their role as an academic institution often means they are involved in training future medical professionals, which aligns with the VA's mission to provide high-quality care and support medical education. Without specific past performance data for this exact service line, it's assumed their general standing as a leading medical institution implies a capable provider.

What are the potential risks associated with a sole-source award for specialized medical services?

The primary risk associated with a sole-source award for specialized medical services is the potential for inflated costs due to the lack of competition. When only one provider is considered, the government loses the benefit of competitive bidding, which typically drives down prices and encourages innovation. This can lead to taxpayers paying more than necessary for the services. Another risk is reduced transparency in the procurement process, making it harder to scrutinize the fairness of the price and the necessity of the award. Furthermore, a sole-source award might stifle competition in the long run by discouraging other qualified providers from developing capabilities or seeking to contract with the agency, potentially limiting future options. There's also a risk that the sole-source provider may become complacent without competitive pressure, potentially impacting service quality or responsiveness over time.

Industry Classification

NAICS: Educational Services › Colleges, Universities, and Professional Schools › Colleges, Universities, and Professional Schools

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C24119R0107

Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 105 WALL ST, NEW HAVEN, CT, 06511

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), School of Forestry, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,789,223

Exercised Options: $4,794,838

Current Obligation: $4,794,838

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline