VA awards $31.6M contract for Anesthesiology Physician Services to Private Diagnostic Clinic, PLLC

Contract Overview

Contract Amount: $31,627,421 ($31.6M)

Contractor: Private Diagnostic Clinic, PLLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-12-01

End Date: 2025-11-30

Contract Duration: 1,825 days

Daily Burn Rate: $17.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: ANESTHESIOLOGY PHYSICIAN SERVICES

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27705

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $31.6 million to PRIVATE DIAGNOSTIC CLINIC, PLLC for work described as: ANESTHESIOLOGY PHYSICIAN SERVICES Key points: 1. The contract value is $31.6 million over its term. 2. The award was made to a single private diagnostic clinic. 3. The contract type is Fixed Price with Economic Price Adjustment. 4. The contract duration is 5 years, ending November 2025.

Value Assessment

Rating: fair

The contract value of $31.6 million for 5 years suggests a significant investment in specialized medical services. Without specific benchmarks for anesthesiology physician services in similar VA facilities or geographic regions, it's difficult to definitively assess pricing competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning competition was not sought. This approach limits price discovery and may result in higher costs compared to a competitive bidding process.

Taxpayer Impact: Taxpayer funds are being used for this contract. The lack of competition raises concerns about whether the government secured the best possible price for these essential services.

Public Impact

Veterans in North Carolina will receive anesthesiology services. The contract ensures continuity of care for patients requiring anesthesia. The sole-source nature of the award may limit options for future service providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Fixed Price with Economic Price Adjustment can lead to cost increases.
Contract duration of 5 years locks in terms.

Positive Signals

Ensures provision of critical anesthesiology services.
Long-term contract provides stability for service delivery.

Sector Analysis

The healthcare sector, particularly specialized physician services, often involves complex contracting. Anesthesiology is a critical component of surgical and procedural care, and ensuring adequate staffing and quality is paramount for patient outcomes.

Small Business Impact

This contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the VA adequately justified the lack of competition and that the pricing is reasonable. Further review of the justification for sole-source procurement is recommended.

Related Government Programs

Colleges, Universities, and Professional Schools
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competition
Potential for cost overruns due to EPA
Long contract duration
No small business participation identified

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $31.6 million to PRIVATE DIAGNOSTIC CLINIC, PLLC. ANESTHESIOLOGY PHYSICIAN SERVICES

Who is the contractor on this award?

The obligated recipient is PRIVATE DIAGNOSTIC CLINIC, PLLC.

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 $31.6 million.

What is the period of performance?

Start: 2020-12-01. End: 2025-11-30.

What was the justification for awarding this contract sole-source?

The justification for a sole-source award typically involves demonstrating that only one responsible source can provide the required services or that a compelling urgency exists. Without access to the specific justification document, it's impossible to confirm the rationale. However, sole-source awards are generally disfavored due to the lack of competitive pricing.

How does the economic price adjustment clause impact the total cost?

The economic price adjustment (EPA) clause allows for adjustments to the contract price based on changes in specific economic factors, such as inflation or labor costs. While intended to protect contractors from unforeseen cost increases, EPAs can lead to higher overall spending for the government, especially if inflation rates are high or unpredictable.

What is the benchmark cost for similar anesthesiology services within the VA system?

Establishing a precise benchmark for anesthesiology physician services is complex due to variations in service scope, geographic location, provider qualifications, and facility needs. A comprehensive analysis would require comparing this contract's unit costs and overall value against similar contracts awarded by the VA or other federal agencies for comparable services, considering all influencing factors.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C24619R0124

Offers Received: 1

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

Evaluated Preference: NONE

Contractor Details

Parent Company: Duke University

Address: 40 DUKE MEDICINE CIR STE 1287, DURHAM, NC, 27710

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,627,421

Exercised Options: $31,627,421

Current Obligation: $31,627,421

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline