VA awards $478K for transplant surgical services to University of Alabama at Birmingham under a sole-source contract

Contract Overview

Contract Amount: $478,730 ($478.7K)

Contractor: University of Alabama AT Birmingham

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-20

End Date: 2025-09-19

Contract Duration: 730 days

Daily Burn Rate: $656/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TRANSPLANT SURGICAL SERVICES

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35294

State: Alabama Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $478,729.73 to UNIVERSITY OF ALABAMA AT BIRMINGHAM for work described as: TRANSPLANT SURGICAL SERVICES Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price efficiencies and market competition. 2. The contract duration of two years suggests a need for ongoing specialized medical services. 3. The specific North American Industry Classification System (NAICS) code 621111 points to physician services, aligning with the contract's description. 4. The contract is a definitive contract with a firm fixed price, providing cost certainty for the government. 5. The award was made by the Department of Veterans Affairs, indicating a focus on serving veteran healthcare needs. 6. The contractor, University of Alabama at Birmingham, is a known entity in healthcare provision.

Value Assessment

Rating: fair

Without a competitive bidding process, it is difficult to benchmark the value for money. The fixed price of $478,729.73 over two years for transplant surgical services is a significant investment. However, without comparable contract data or market analysis for similar specialized services, a definitive assessment of pricing fairness is challenging. The sole-source nature limits the ability to compare against market rates that might emerge from a competitive environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source is available or capable of providing the required services. The lack of competition means there were no other bidders to compare against, potentially impacting price discovery and the government's ability to secure the most advantageous pricing.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of benefiting from cost savings that could arise from a competitive bidding process. The government may be paying a premium due to the absence of competing offers.

Public Impact

Veterans in Alabama will benefit from access to specialized transplant surgical services. The contract ensures the provision of critical medical services for patients requiring organ transplants. The geographic impact is focused on Alabama, where the services will be delivered. The contract supports healthcare professionals and potentially ancillary staff at the University of Alabama at Birmingham.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can limit transparency in pricing and service delivery.
Potential for contractor lock-in if alternatives are not explored.

Positive Signals

Ensures continuity of care for a critical medical service.
Award to a known healthcare provider suggests established capabilities.
Firm fixed price provides budget predictability.

Sector Analysis

The healthcare sector, particularly specialized medical services like transplant surgery, represents a critical area of federal spending. This contract falls under the physician services sub-sector. The market for such highly specialized services is often characterized by a limited number of qualified providers, which can influence contracting approaches. Benchmarking is difficult without specific data on transplant service costs across different institutions.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of transplant surgical services, it is unlikely that small businesses would be primary providers. There is no explicit mention of subcontracting requirements for small businesses, which could limit their participation in this specific contract's execution.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Accountability measures would typically be embedded within the contract terms and performance standards. Transparency is limited due to the sole-source nature of the award. The VA's Office of Inspector General may conduct audits or investigations if concerns arise regarding performance or financial management.

Related Government Programs

VA Medical Services Contracts
Organ Transplant Programs
Physician Services Contracts
Healthcare Services for Veterans

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $478,729.73 to UNIVERSITY OF ALABAMA AT BIRMINGHAM. TRANSPLANT SURGICAL SERVICES

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF ALABAMA AT BIRMINGHAM.

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 $478,729.73.

What is the period of performance?

Start: 2023-09-20. End: 2025-09-19.

What is the track record of the University of Alabama at Birmingham in providing transplant surgical services to the VA or other federal agencies?

The provided data does not include historical contract information for the University of Alabama at Birmingham (UAB) with the Department of Veterans Affairs (VA) or other federal agencies specifically for transplant surgical services. To assess UAB's track record, a deeper dive into federal procurement databases (like FPDS or SAM.gov) would be necessary to identify past awards, performance reviews, and any reported issues. Without this historical data, it's challenging to evaluate their past performance, reliability, and experience in fulfilling similar government contracts. However, as a major academic medical center, UAB is generally recognized for its extensive medical services, including transplant programs, suggesting a strong foundation of expertise.

How does the per-year cost of this contract compare to similar transplant surgical service contracts awarded by the VA or other agencies?

The annual cost of this contract is approximately $239,364.87 ($478,729.73 / 2 years). Benchmarking this against similar transplant surgical service contracts is difficult without access to a broader dataset of comparable awards. Transplant services are highly specialized and vary significantly based on the type of transplant (e.g., kidney, liver, heart), the complexity of the procedure, and the specific services included (e.g., pre-operative care, surgery, post-operative management). Furthermore, the fact that this contract is sole-source limits the ability to compare pricing against what might have been achieved through competition. A comprehensive comparison would require identifying contracts with similar scope, patient populations, and geographic locations, which are not readily available in the provided data.

What are the primary risks associated with awarding a sole-source contract for specialized medical services like transplant surgery?

The primary risks associated with awarding a sole-source contract for specialized medical services like transplant surgery include: 1. **Higher Costs:** Without competition, the contractor may not have the same incentive to offer the lowest possible price, potentially leading to inflated costs for the government and taxpayers. 2. **Limited Innovation:** A sole-source award can stifle innovation as there is no competitive pressure to develop more efficient or effective service delivery methods. 3. **Reduced Accountability:** While performance standards exist, the lack of alternative providers can reduce the contractor's urgency to meet or exceed expectations, as switching providers would be difficult and costly. 4. **Potential for Contractor Lock-in:** The government may become dependent on a single provider, making it challenging to transition to a new contractor in the future if performance issues arise or market conditions change.

What is the expected effectiveness of these transplant surgical services in improving veteran health outcomes?

The effectiveness of these transplant surgical services in improving veteran health outcomes is expected to be high, assuming the University of Alabama at Birmingham (UAB) provides services consistent with their established reputation. Transplant surgery is a life-saving intervention for individuals with end-stage organ failure. By providing access to these services, the VA aims to significantly improve the quality of life and longevity for veterans who require transplants. The effectiveness will be measured by patient survival rates, graft survival rates, reduction in symptoms, and overall improvement in functional status post-transplant. The VA's commitment to funding these services underscores their importance in comprehensive veteran healthcare.

How does this contract's value compare to the overall VA spending on physician services or specialized medical procedures?

The value of this contract, at approximately $478,730 over two years, represents a small fraction of the Department of Veterans Affairs' (VA) overall budget for physician services and specialized medical procedures. The VA is one of the largest healthcare providers in the United States, with an annual budget in the tens of billions of dollars. Spending on physician services alone constitutes a significant portion of this budget, encompassing a vast array of specialties and services across numerous medical centers. While transplant surgery is a high-cost, high-impact service, its total expenditure within the VA is likely dwarfed by broader categories like primary care, mental health, and general surgical services. This specific contract highlights the VA's commitment to providing critical, albeit niche, specialized care to its beneficiaries.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C24723Q0958

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 701 S 20TH ST, BIRMINGHAM, AL, 35294

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Public), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $693,601

Exercised Options: $693,601

Current Obligation: $478,730

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline