VA awards $4.18M contract for hospitalist services to SI2 LLC, with a 729-day duration

Contract Overview

Contract Amount: $4,182,348 ($4.2M)

Contractor: SI2 LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-15

End Date: 2027-03-14

Contract Duration: 729 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HOSPITALIST

Place of Performance

Location: BATH, STEUBEN County, NEW YORK, 14810

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.2 million to SI2 LLC for work described as: HOSPITALIST Key points: 1. The contract value of $4.18 million for hospitalist services appears reasonable given the 729-day duration, suggesting a focus on consistent staffing. 2. Full and open competition was utilized, indicating a broad market search and potential for competitive pricing. 3. The firm-fixed-price contract type helps mitigate cost overrun risks for the agency. 4. Performance is expected to occur in New York, a major metropolitan area with a significant healthcare labor market. 5. The contract is for temporary help services, suggesting a need for flexible staffing solutions. 6. The award to SI2 LLC, a single entity, requires scrutiny of their capacity and past performance.

Value Assessment

Rating: good

The contract value of $4.18 million over approximately two years for hospitalist services is within a typical range for such staffing needs in a major metropolitan area like New York. Without specific details on the number of physicians or hours required, a direct per-unit cost comparison is difficult. However, the firm-fixed-price structure suggests the agency has a clear understanding of the expected costs and has negotiated a price that aims to provide value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to present their best pricing and service offerings. The presence of 4 bids (no: 4) suggests a moderate level of interest and competition for these hospitalist services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives competitive offers, leading to better value for public funds.

Public Impact

Veterans in New York will benefit from consistent and reliable hospitalist staffing at VA facilities. The contract ensures the delivery of essential medical services, contributing to the overall health and well-being of the veteran population. The geographic impact is concentrated in New York, addressing specific staffing needs within the VA's regional healthcare network. This contract supports the healthcare workforce by providing employment opportunities for hospitalists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues if SI2 LLC lacks sufficient qualified hospitalists.
Risk of service disruption if the temporary staffing model proves inadequate for long-term needs.
Dependency on a single awardee for critical hospitalist services.

Positive Signals

Firm-fixed-price contract provides cost certainty for the VA.
Full and open competition suggests a robust selection process.
Awarded to a single entity, potentially simplifying management and oversight.

Sector Analysis

The healthcare staffing sector, particularly for specialized medical professionals like hospitalists, is a critical component of the broader healthcare industry. This contract falls within the temporary help services sub-sector, addressing the ongoing need for flexible and qualified medical personnel. The Department of Veterans Affairs is a significant purchaser of healthcare services, and contracts for physician staffing are common across federal health agencies.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (sb: false). There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless SI2 LLC voluntarily engages small businesses for support services.

Oversight & Accountability

Oversight will likely be managed by the Department of Veterans Affairs contracting officers and program managers responsible for healthcare services in the New York region. Accountability measures are embedded in the firm-fixed-price contract terms, requiring SI2 LLC to deliver services as specified. Transparency is generally maintained through contract award databases, though specific performance metrics may not be publicly disclosed.

Related Government Programs

VA Physician Staffing Contracts
Temporary Medical Staffing Services
Federal Healthcare Provider Agreements

Risk Flags

Potential for performance issues if contractor lacks sufficient qualified personnel.
Reliance on a single awardee for critical staffing needs.
Need for robust oversight to ensure service quality under fixed-price terms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.2 million to SI2 LLC. HOSPITALIST

Who is the contractor on this award?

The obligated recipient is SI2 LLC.

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 $4.2 million.

What is the period of performance?

Start: 2025-03-15. End: 2027-03-14.

What is the track record of SI2 LLC in providing hospitalist services to the federal government?

Information regarding SI2 LLC's specific track record in providing hospitalist services to the federal government is not detailed in the provided data. As a temporary help services provider, their experience would ideally include a history of successfully placing qualified medical professionals in similar healthcare settings. A thorough review of past performance evaluations, contract history, and client references would be necessary to fully assess their capabilities and reliability for this $4.18 million contract with the Department of Veterans Affairs. Without this detailed performance history, there is an inherent risk associated with the award.

How does the awarded price compare to market rates for hospitalist staffing in New York?

The provided data does not include specific details on the number of hospitalists, their hours, or the exact scope of services, making a direct per-unit cost comparison to market rates challenging. However, the total contract value of $4.18 million over approximately 729 days (about 2 years) suggests an average annual value of roughly $2.09 million. For a major metropolitan area like New York, this figure needs to be benchmarked against the average salaries and overhead costs for hospitalist staffing agencies. Factors such as the required qualifications, shift differentials, and administrative support will influence the final cost. A deeper analysis would require understanding the volume of services expected.

What are the primary risks associated with this contract award?

The primary risks associated with this contract include potential performance issues if SI2 LLC fails to provide adequately qualified and sufficient hospitalists, leading to staffing shortages and impacting veteran care. There's also a risk of service disruption if the temporary staffing model is not robust enough to ensure continuity. Furthermore, reliance on a single awardee for critical services can create vulnerabilities. The firm-fixed-price nature, while beneficial for cost control, could also incentivize cost-cutting by the contractor that might affect service quality if not closely monitored. Ensuring SI2 LLC has a strong pipeline of qualified professionals is paramount.

How effective is the firm-fixed-price contract type in ensuring value for this hospitalist service?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for hospitalist services by providing cost certainty to the Department of Veterans Affairs. Under an FFP contract, the contractor, SI2 LLC, assumes the primary risk for cost overruns, meaning they are obligated to perform the work for the agreed-upon price. This incentivizes the contractor to manage their resources efficiently and deliver the services within budget. For the VA, this means the total cost of the contract is known upfront, simplifying budget management and protecting against unexpected price increases. However, the effectiveness in terms of service quality depends on robust performance standards and monitoring.

What are the historical spending patterns for hospitalist services by the Department of Veterans Affairs?

The provided data does not include historical spending patterns for hospitalist services by the Department of Veterans Affairs. To assess this contract's context, one would need to analyze previous VA contracts for similar services, including their values, durations, awardees, and competition levels. Understanding historical spending can reveal trends in pricing, identify frequently used contractors, and highlight any significant shifts in demand or cost for hospitalist staffing. Without this historical data, it is difficult to definitively state whether the $4.18 million award represents an increase, decrease, or stable level of spending for these services.

What is the significance of the contract being for 'Temporary Help Services'?

Classifying this contract as 'Temporary Help Services' (NAICS code 561320) signifies that the Department of Veterans Affairs is procuring hospitalist staffing solutions on a non-permanent basis. This suggests the VA may be experiencing fluctuating demand, temporary staff shortages due to permanent staff leave or vacancies, or a strategic decision to utilize external providers for flexibility rather than hiring permanent employees. This classification implies that SI2 LLC is expected to provide qualified personnel to fill specific roles for the duration of the contract, rather than undertaking a broader, long-term healthcare provision responsibility.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1456 WATERSEDGE DR, VIRGINIA BEACH, VA, 23452

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,182,348

Exercised Options: $4,182,348

Current Obligation: $4,182,348

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79723D0031

IDV Type: FSS

Timeline