VA awards $15.8M for ER physician staffing, with 13 bids received in Minnesota

Contract Overview

Contract Amount: $15,822,482 ($15.8M)

Contractor: White Stone Spectrum Healthcare Resources LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-30

End Date: 2025-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ER PHYSICIAN STAFFING SERVICES

Place of Performance

Location: CHANHASSEN, CARVER County, MINNESOTA, 55317

State: Minnesota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $15.8 million to WHITE STONE SPECTRUM HEALTHCARE RESOURCES LLC for work described as: ER PHYSICIAN STAFFING SERVICES Key points: 1. Contract awarded at a competitive price point, suggesting good value for taxpayer dollars. 2. Strong competition with 13 bidders indicates a healthy market for these services. 3. Potential for cost savings due to firm fixed-price structure and competitive bidding. 4. Contract duration of 1460 days provides stability for essential healthcare services. 5. Focus on emergency physician staffing highlights critical healthcare needs within the VA system. 6. Geographic concentration in Minnesota may indicate specific regional demand.

Value Assessment

Rating: good

The contract value of $15.8 million over approximately four years appears reasonable given the critical nature of emergency physician staffing. Benchmarking against similar contracts for ER physician services would provide a more precise value assessment, but the presence of 13 bidders suggests competitive pricing was achieved. The firm fixed-price structure helps control costs and provides predictability for the agency.

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, indicating a robust bidding process. The participation of 13 bidders suggests a competitive marketplace for emergency physician staffing services. This level of competition is generally favorable for price discovery and ensures the government receives offers from a wide range of qualified providers.

Taxpayer Impact: The high number of bidders in this full and open competition is beneficial for taxpayers, as it drives down prices and increases the likelihood of securing services at the best possible value. It demonstrates that the contract requirements were well-defined and accessible to a broad base of potential suppliers.

Public Impact

Veterans in Minnesota will benefit from consistent and high-quality emergency physician staffing at VA facilities. Ensures the availability of critical emergency medical care, reducing wait times and improving patient outcomes. Supports the operational capacity of VA emergency departments, allowing them to handle patient surges effectively. Provides employment opportunities for physicians and related medical professionals within the healthcare sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for physician burnout due to the demanding nature of ER services.
Ensuring consistent quality of care across all shifts and providers.
Managing potential staffing shortages if demand exceeds contracted capacity.

Positive Signals

Firm fixed-price contract provides cost certainty for the VA.
Multiple bidders indicate a healthy and responsive market.
Longer contract duration offers stability in service provision.

Sector Analysis

Emergency physician staffing is a critical component of the healthcare sector, particularly within government facilities serving specific populations like veterans. The market for such services is competitive, with numerous staffing agencies and physician groups vying for contracts. This contract fits within the broader healthcare services procurement category, where ensuring access to specialized medical professionals is paramount for patient care and operational efficiency.

Small Business Impact

While this contract does not appear to have a specific small business set-aside, the broad competition could still indirectly benefit small businesses if they are part of larger subcontracting teams. The analysis does not provide explicit details on subcontracting plans, but the presence of multiple bidders suggests opportunities may exist within the supply chain.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm fixed-price nature provides a degree of financial oversight. Transparency is generally maintained through contract award databases. Further oversight would typically involve performance reviews by the contracting officer and potentially audits by the VA Office of Inspector General if performance or financial concerns arise.

Related Government Programs

Physician Staffing Contracts
Emergency Department Services
Veterans Health Administration
Healthcare Services Procurement

Risk Flags

Potential for cost overruns if market physician rates increase significantly.
Risk of service disruption if contractor faces staffing challenges.
Need for robust performance monitoring to ensure quality of care.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $15.8 million to WHITE STONE SPECTRUM HEALTHCARE RESOURCES LLC. ER PHYSICIAN STAFFING SERVICES

Who is the contractor on this award?

The obligated recipient is WHITE STONE SPECTRUM HEALTHCARE RESOURCES 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 $15.8 million.

What is the period of performance?

Start: 2021-09-30. End: 2025-09-29.

What is the historical spending pattern for ER physician staffing services by the Department of Veterans Affairs?

Analyzing historical spending for ER physician staffing by the VA is crucial for understanding trends, identifying potential cost increases or decreases over time, and establishing a baseline for future contract negotiations. Without specific historical data for this exact service category, a general review of VA healthcare expenditures reveals a consistent and significant investment in medical staffing to meet the needs of veterans. The VA's overall budget for healthcare services is substantial, and physician staffing, particularly for critical areas like emergency medicine, represents a significant portion of that expenditure. Examining past awards for similar staffing contracts, including their values, durations, and number of bidders, would provide valuable context for assessing the current $15.8 million award. Trends might indicate whether the VA is increasingly relying on contracted services versus direct hires, or if specific regions are experiencing higher demand or costs for these specialized services.

How does the number of bidders (13) compare to similar VA contracts for physician staffing?

A total of 13 bidders for this ER physician staffing contract with the VA is a strong indicator of robust competition. To provide a precise comparison, one would need to analyze a dataset of similar VA physician staffing contracts, ideally within the same or adjacent fiscal years and for comparable service types (e.g., emergency medicine, critical care). Generally, a higher number of bids suggests that the contract requirements were well-defined, the opportunity was attractive to the market, and the barriers to entry were not excessively high. For many specialized professional services, receiving more than 5-7 bids is often considered good competition. Therefore, 13 bidders likely signifies a healthy market response and suggests the VA likely received a range of competitive proposals, increasing the probability of achieving a favorable price and selecting a highly qualified contractor. Conversely, contracts with very few bidders (1-2) might raise concerns about market saturation, unclear requirements, or potential barriers to entry.

What are the potential risks associated with a firm fixed-price contract for physician staffing?

While firm fixed-price (FFP) contracts are generally favored for cost control, they can introduce specific risks in the context of physician staffing. The primary risk is that the contractor may face unforeseen increases in labor costs (e.g., higher physician salaries due to market demand, increased malpractice insurance premiums) or operational expenses that are not adequately accounted for in the fixed price. If these costs rise significantly, the contractor might struggle to maintain profitability, potentially leading to reduced service quality, difficulty in retaining qualified physicians, or even contractor default. For the government, the risk is that the fixed price, while predictable, might not reflect the true market value if costs escalate unexpectedly for the contractor. This could lead to the government paying a premium if the contractor's actual costs are lower than anticipated, or conversely, facing service disruptions if the contractor cannot absorb rising expenses. Effective performance monitoring and clear contract terms are essential to mitigate these risks.

What is the typical geographic scope for VA physician staffing contracts, and how does Minnesota fit?

The geographic scope for VA physician staffing contracts can vary significantly, ranging from single facility support to multi-state regional coverage. Contracts are often awarded based on the specific needs of a particular VA Medical Center (VAMC) or a network of facilities within a defined region. Minnesota, being a state with several VA facilities, represents a distinct geographic market for healthcare services. This contract's focus on Minnesota suggests a localized demand for emergency physician services within the state's VA system. The VA typically assesses staffing needs on a facility-by-facility or regional basis, considering factors like veteran population density, existing medical staff capacity, and the specific services offered by each VAMC. Awards concentrated in a particular state like Minnesota often reflect the agency's strategy to address specific regional healthcare delivery challenges or to ensure adequate staffing levels at VAMCs located there.

How does the NAICS code 621493 (Freestanding Ambulatory Surgical and Emergency Centers) relate to ER physician staffing?

The North American Industry Classification System (NAICS) code 621493, 'Freestanding Ambulatory Surgical and Emergency Centers,' is relevant to ER physician staffing as these centers often require specialized medical personnel, including emergency physicians, to operate effectively. While the code primarily classifies the facilities themselves, the services provided within them necessitate the employment or contracting of physicians. Emergency physicians are essential for the core function of any emergency center, whether it's a hospital-based department or a freestanding facility. Therefore, contracts for ER physician staffing directly support the operational capabilities of entities classified under NAICS 621493. The VA's use of this code in conjunction with the contract for physician staffing indicates that the services procured are intended to support or enhance the operations of its own emergency and ambulatory care facilities, ensuring they are adequately staffed to provide critical medical services to veterans.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › Freestanding Ambulatory Surgical and Emergency Centers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24621R0008

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 525 SUMMERFIELD DR STE 100, CHANHASSEN, MN, 55317

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $15,822,482

Exercised Options: $15,822,482

Current Obligation: $15,822,482

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline