VA awards $3.7M contract for anesthesiologist staffing, highlighting need for specialized medical personnel

Contract Overview

Contract Amount: $3,726,376 ($3.7M)

Contractor: Aspire-Luke JV LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-04-01

End Date: 2025-09-30

Contract Duration: 182 days

Daily Burn Rate: $20.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: 3.0 FTE ANESTHESIOLOGIST STAFFING SERVICES AT VA WNY HEALTHCARE SYSTEM

Place of Performance

Location: BUFFALO, ERIE County, NEW YORK, 14215

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.7 million to ASPIRE-LUKE JV LLC for work described as: 3.0 FTE ANESTHESIOLOGIST STAFFING SERVICES AT VA WNY HEALTHCARE SYSTEM Key points: 1. Contract value of $3.7 million for 6 months indicates a high per-diem cost for specialized medical services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The short duration of the contract (182 days) may point to a temporary staffing need or an interim solution. 4. The award to ASPIRE-LUKE JV LLC suggests a specialized provider in healthcare staffing. 5. The primary agency is the Department of Veterans Affairs, indicating a focus on serving veterans. 6. The North American Industry Classification System (NAICS) code 561320 points to temporary help services.

Value Assessment

Rating: fair

The contract value of $3.7 million for approximately six months of anesthesiologist staffing services translates to a significant daily rate. While specific benchmarks for anesthesiologist staffing at VA facilities are not readily available, the cost per day is substantial. This suggests either a high demand for these specialized services or potentially a premium for the convenience and expertise provided by the contractor. Further analysis would require comparing this rate to similar contracts for anesthesiologist staffing at other VA medical centers or comparable healthcare systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that the solicitation was broadly advertised, but certain sources were excluded from the initial bidding process. The fact that there were two bidders (no) indicates a degree of competition. However, the exclusion of sources warrants further investigation to understand its impact on the overall competitiveness and potential price discovery.

Taxpayer Impact: The full and open competition, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to bid, which can lead to more competitive pricing. However, the specific exclusions could limit the pool of potential bidders and potentially impact the final price achieved.

Public Impact

Veterans receiving care at the VA WNY Healthcare System will benefit from the availability of anesthesiologist services. The contract ensures the provision of critical medical services, specifically anesthesiology, for surgical and other medical procedures. The geographic impact is focused on the Western New York region served by the VA WNY Healthcare System. The contract supports specialized healthcare professionals, contributing to the healthcare workforce in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in the 'full and open competition' process raises questions about the breadth of competition and potential impact on pricing.
The high daily rate implied by the contract value and duration may warrant scrutiny to ensure optimal value for taxpayer funds.
The short contract duration could indicate a stop-gap measure, potentially leading to recurring contract costs if a long-term solution is not identified.

Positive Signals

The award was made through a competitive process, indicating that multiple vendors had the opportunity to bid.
The Department of Veterans Affairs is utilizing a specialized contractor, ASPIRE-LUKE JV LLC, which may bring specific expertise to the role.
The contract ensures the continuity of essential anesthesiology services for veterans.

Sector Analysis

The healthcare staffing sector, particularly for specialized medical professionals like anesthesiologists, is a critical component of the healthcare industry. Demand for these services is driven by the need for surgical procedures and pain management across various healthcare settings, including government facilities like the VA. The market is characterized by a mix of large staffing agencies and smaller, specialized firms. Spending in this area is often high due to the required qualifications and the critical nature of the services provided. Comparable spending benchmarks would typically involve analyzing per-diem rates for anesthesiologists across different healthcare systems and geographic locations.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss' being false. There is no explicit information provided regarding subcontracting plans for small businesses. The focus on a specialized service like anesthesiologist staffing may limit opportunities for broad small business subcontracting, though specific administrative or support roles could potentially be outsourced.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs. Accountability measures would include performance standards outlined in the contract, regular reporting by the contractor, and potential site visits or audits by VA personnel. Transparency is generally facilitated through contract award databases, though detailed performance metrics and specific oversight activities are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Medical Staffing Contracts
Anesthesiology Services Procurement
Temporary Healthcare Personnel Services
Federal Healthcare Provider Contracts

Risk Flags

Potential for high cost per unit
Limited competition due to source exclusions
Short contract duration may lead to recurring costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.7 million to ASPIRE-LUKE JV LLC. 3.0 FTE ANESTHESIOLOGIST STAFFING SERVICES AT VA WNY HEALTHCARE SYSTEM

Who is the contractor on this award?

The obligated recipient is ASPIRE-LUKE JV 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 $3.7 million.

What is the period of performance?

Start: 2025-04-01. End: 2025-09-30.

What is the typical cost per anesthesiologist per day for similar contracts within the VA system or other federal healthcare facilities?

Determining the precise 'typical' cost per anesthesiologist per day is complex due to variations in contract scope, duration, geographic location, required qualifications, and the specific needs of the facility. However, based on industry reports and analysis of similar federal contracts, daily rates for contracted anesthesiologists can range significantly, often from $1,500 to $3,000 or more. This contract's value of $3.7 million over approximately 182 days suggests a daily rate of roughly $20,495. This figure appears exceptionally high when compared to general market rates for individual anesthesiologists. It is crucial to investigate whether this rate reflects a team of anesthesiologists, specialized services beyond basic anesthesia, or other factors contributing to the elevated cost. Without further details on the specific staffing requirements (e.g., number of anesthesiologists, hours of coverage, complexity of procedures), a direct comparison is difficult, but the current implied rate warrants closer examination for value for money.

How many sources were excluded from the 'full and open competition' and what were the reasons for their exclusion?

The data provided states the contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' and lists the number of bidders as two ('no': 2). However, the specific number of excluded sources and the rationale behind their exclusion are not detailed in the provided data. Typically, exclusions in a full and open competition might occur due to reasons such as a contractor's past performance issues, failure to meet specific technical requirements in a prior stage, or if the contract is a follow-on to a previous award where only certain vendors possess the necessary knowledge or capabilities. Understanding these exclusions is vital for assessing the true level of competition and whether the government received the best possible offers. Further investigation into the solicitation documents and award justification would be necessary to ascertain the details of these exclusions and their impact.

What is the track record of ASPIRE-LUKE JV LLC in providing similar healthcare staffing services to the federal government?

Information regarding the specific track record of ASPIRE-LUKE JV LLC in providing anesthesiologist staffing services to the federal government is not detailed in the provided data. As a joint venture, its operational history and performance may be a composite of its constituent members or a newly established entity. To assess their track record, one would typically review past performance evaluations on similar federal contracts, any reported issues or disputes, and the duration and scope of their previous engagements. A thorough review of federal procurement databases (like SAM.gov or FPDS) and agency performance assessment reports would be necessary to gauge their reliability, quality of service, and experience in meeting federal healthcare staffing requirements. Without this information, it is difficult to definitively assess their suitability and past performance.

What are the potential risks associated with a short-term contract for critical medical staffing like anesthesiologists?

Short-term contracts for critical medical staffing, such as anesthesiologists, present several potential risks. Firstly, there's a risk of continuity of care disruption if the contract is not seamlessly transitioned or renewed, potentially impacting patient treatment schedules and outcomes. Secondly, short durations can lead to higher per-diem or hourly rates as contractors may factor in the administrative costs and uncertainties of short engagements, potentially resulting in less favorable pricing for the government. Thirdly, it can hinder the development of institutional knowledge and long-term relationships between the staffing provider and the facility, which can be beneficial for understanding specific operational needs and improving service quality over time. Finally, frequent re-competition for short-term needs can consume significant administrative resources for both the agency and potential bidders.

How does this contract's value compare to the overall spending on medical staffing services by the Department of Veterans Affairs?

The provided data indicates a contract value of $3.7 million for anesthesiologist staffing services. To compare this to the overall VA spending on medical staffing, one would need access to comprehensive VA budget data and procurement reports. The VA is a massive healthcare provider, and its annual spending on medical personnel, including physicians, nurses, and specialized staff, runs into billions of dollars. This $3.7 million contract represents a specific, albeit significant, expenditure for a particular service and location. It is likely a small fraction of the VA's total medical staffing budget. However, analyzing the proportion of spending on contracted services versus direct hires, and the cost-effectiveness of such contracts across different medical specialties, would provide a broader perspective on the VA's staffing strategy and financial management.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12500 SAN PEDRO AVE STE 325, SAN ANTONIO, TX, 78216

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, 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: $9,330,926

Exercised Options: $3,726,376

Current Obligation: $3,726,376

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X24D0004

IDV Type: IDC

Timeline