VA awards $6.7M patient escort services contract to Durham Exchange Club Industries, Inc

Contract Overview

Contract Amount: $6,670,509 ($6.7M)

Contractor: Durham Exchange Club Industries, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-01

End Date: 2026-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $6.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PATIENT ESCORT SERVICES FOR DURHAM VAMC.

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27705

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.7 million to DURHAM EXCHANGE CLUB INDUSTRIES, INC for work described as: PATIENT ESCORT SERVICES FOR DURHAM VAMC. Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract was not competed under simplified acquisition procedures, suggesting potential for limited competition. 3. Services are for elderly and disabled persons, aligning with specific VA care objectives. 4. The contract duration is three years, providing stable service delivery. 5. The awardee, Durham Exchange Club Industries, Inc., is a non-profit organization. 6. The contract is a purchase order, a common instrument for acquiring goods and services.

Value Assessment

Rating: fair

The contract value of $6.7 million over three years for patient escort services at a single VAMC appears to be within a reasonable range for such specialized support. However, without specific benchmarks for patient escort services per capita or per patient encounter, a precise value-for-money assessment is challenging. The firm-fixed-price structure helps control costs, but the lack of competitive bidding limits the ability to definitively benchmark pricing against market alternatives. Further analysis would require data on the volume of services provided and the complexity of patient needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED UNDER SAP,' which typically indicates a sole-source or limited competition award. The absence of a competitive bidding process means that the government did not solicit offers from multiple vendors. This approach can be used when only one vendor can provide the required services, or for other specific justifications. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and service.

Taxpayer Impact: The lack of competition means taxpayers may not have received the benefit of potentially lower prices that could have resulted from a competitive bidding process. This could lead to higher overall spending for the services provided.

Public Impact

Veterans, particularly the elderly and those with disabilities, will benefit from essential patient escort services. The services ensure safe and timely transport of patients within the Durham VAMC facility. This contract supports the operational efficiency of the Durham VAMC. The contract provides employment opportunities through Durham Exchange Club Industries, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and limited vendor options for future needs.
Absence of detailed performance metrics in the provided data makes it difficult to assess service quality and effectiveness.
The 'NOT COMPETED UNDER SAP' designation warrants further investigation into the justification for sole-source award.

Positive Signals

Award to a non-profit organization (Durham Exchange Club Industries, Inc.) may align with social mission objectives.
Firm-fixed-price contract provides cost certainty for the government.
Long-term contract (3 years) ensures continuity of essential patient support services.

Sector Analysis

The healthcare services sector, particularly within the federal government, relies heavily on a variety of support services to ensure efficient patient care. Patient escort services are a critical component of hospital operations, facilitating patient movement between departments, appointments, and admissions/discharges. While specific market data for patient escort services is not readily available, the broader healthcare support services market is substantial. This contract represents a small but vital expenditure within the Department of Veterans Affairs' overall healthcare spending, aimed at enhancing the patient experience and operational flow.

Small Business Impact

The provided data indicates that this contract was not awarded to a small business (sb: false) and does not appear to be a small business set-aside (ss: false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus of this contract is on service delivery by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers responsible for the Durham VAMC. As a purchase order, it falls under standard procurement regulations. Transparency is facilitated by public contract databases, but detailed operational oversight and accountability measures are internal to the agency. The Inspector General's office for the VA would have jurisdiction for investigating fraud, waste, or abuse related to this contract.

Related Government Programs

VA Medical Care
Ancillary Health Services
Patient Support Services
Non-profit Contractor Support

Risk Flags

Sole-source award without clear justification
Potential for limited price competition
Lack of performance metrics for quality assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.7 million to DURHAM EXCHANGE CLUB INDUSTRIES, INC. PATIENT ESCORT SERVICES FOR DURHAM VAMC.

Who is the contractor on this award?

The obligated recipient is DURHAM EXCHANGE CLUB INDUSTRIES, INC.

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 $6.7 million.

What is the period of performance?

Start: 2023-10-01. End: 2026-09-30.

What is the track record of Durham Exchange Club Industries, Inc. in providing patient escort services?

Durham Exchange Club Industries, Inc. is a non-profit organization. While the provided data confirms they are the awardee for this specific contract, it does not detail their prior experience or performance history in providing patient escort services. Further investigation into their operational history, client references, and any past performance evaluations would be necessary to fully assess their track record. Information on previous contracts, their duration, value, and client satisfaction would provide a clearer picture of their capabilities and reliability in delivering these essential services.

How does the contract value compare to similar patient escort services contracts?

Benchmarking this $6.7 million contract for patient escort services is challenging without access to a comprehensive database of similar contracts. Factors such as the size of the facility, patient volume, complexity of services (e.g., specialized equipment transport, patient assistance levels), and geographic location significantly influence pricing. Given that this is a sole-source award, direct price comparisons are limited. A thorough analysis would require identifying comparable VAMC contracts or civilian hospital contracts for similar services and adjusting for relevant variables to determine if the pricing is competitive.

What are the primary risks associated with this sole-source contract?

The primary risks associated with this sole-source contract include potential lack of price competition, leading to higher costs for the government compared to a fully competed contract. There is also a risk of vendor complacency due to the absence of competitive pressure, potentially impacting service quality or innovation. Furthermore, reliance on a single provider limits flexibility if the contractor's performance deteriorates or if unforeseen needs arise that require a broader vendor pool. The justification for the sole-source award needs to be robust to mitigate the risk of inefficient resource allocation.

How effective is the firm-fixed-price (FFP) contract type in managing costs for patient escort services?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for services like patient escort, as it shifts the risk of cost overruns to the contractor. This provides the government with cost certainty, meaning the price is set and unlikely to change unless the contract scope is formally modified. For predictable service requirements, FFP helps prevent budget overruns. However, if the contractor underestimates costs, they may cut corners on service quality to maintain profitability, which is a risk that needs to be monitored through performance management.

What are the historical spending patterns for patient escort services at the Durham VAMC or similar facilities?

Historical spending data for patient escort services at the Durham VAMC or similar facilities is not provided in the current data. To establish historical spending patterns, one would need to analyze past contracts for these services at this specific VAMC or comparable facilities within the VA system or civilian healthcare networks. This analysis would reveal trends in contract values, durations, and potentially the number of competitors over time, offering insights into cost evolution and the agency's reliance on such services.

What is the justification for awarding this contract on a sole-source basis?

The provided data states the contract was 'NOT COMPETED UNDER SAP,' which implies a sole-source or limited competition award. The specific justification for this determination is not detailed. Typically, sole-source awards are made when only one responsible source is available or capable of providing the required services, or under specific circumstances like urgent and compelling needs, or when it's deemed not in the government's best interest to compete. Without the official justification document, it's impossible to ascertain the precise reason for bypassing full and open competition.

Industry Classification

NAICS: Health Care and Social Assistance › Individual and Family Services › Services for the Elderly and Persons with Disabilities

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24623Q1360

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1717 LAWSON ST, DURHAM, NC, 27703

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,670,509

Exercised Options: $6,670,509

Current Obligation: $6,670,509

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline