VA awards $14.7M for heart transplant services to Vanderbilt University Medical Center for FY25

Contract Overview

Contract Amount: $14,728,752 ($14.7M)

Contractor: Vanderbilt University Medical Center

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $40.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HEART TRANSPLANT SERVICES - OPTION PERIOD 2

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37232

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.7 million to VANDERBILT UNIVERSITY MEDICAL CENTER for work described as: HEART TRANSPLANT SERVICES - OPTION PERIOD 2 Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Focus on specialized medical services indicates a high-value, critical need. 3. Performance period aligns with the federal fiscal year, ensuring continuity of care. 4. The contractor, Vanderbilt University Medical Center, is a known entity in academic medicine. 5. The contract type is firm fixed price, providing cost certainty for the government. 6. Geographic focus on Tennessee suggests regional service delivery.

Value Assessment

Rating: fair

Benchmarking heart transplant services is challenging due to the highly specialized nature and variability in patient needs. However, the firm fixed-price structure provides a degree of cost control. Without competitive bids, it's difficult to definitively assess if this represents the best value for money. The price appears substantial, reflecting the complexity and criticality of the service. Further analysis would require comparison with similar sole-source contracts for specialized medical procedures.

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 approach is typically used when only one responsible source is available or capable of meeting the requirement. The lack of competition means there was no opportunity for multiple bidders to offer proposals, which can limit price discovery and potentially lead to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that can arise from a competitive bidding process. This can result in a higher overall expenditure for the government.

Public Impact

Veterans in Tennessee and surrounding regions will have access to critical heart transplant services. Ensures continuity of care for patients requiring complex cardiac procedures. Supports the specialized medical workforce at Vanderbilt University Medical Center. Maintains the VA's capacity to provide advanced surgical interventions for veterans.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of competition may obscure potential cost efficiencies.
High dollar value warrants close monitoring of service delivery and outcomes.

Positive Signals

Firm fixed-price contract provides budget certainty.
Contractor is an established medical institution with relevant expertise.
Ensures critical service continuity for beneficiaries.

Sector Analysis

The healthcare sector, particularly specialized medical services like organ transplantation, represents a significant area of federal spending. This contract falls within the broader category of medical services and equipment. The market for such highly specialized procedures is often concentrated among a few leading academic medical centers, which can influence competition dynamics. Benchmarking is difficult due to the unique nature of each transplant case and the limited number of providers.

Small Business Impact

This contract does not appear to involve small business set-asides. As a sole-source award to a large academic medical center, there are no direct subcontracting opportunities for small businesses indicated within the provided data. The focus is on specialized, high-acuity medical services that are typically performed by large, established healthcare institutions.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for overseeing this contract. Oversight mechanisms would include regular performance reviews, monitoring of service delivery against contract requirements, and financial audits. Transparency is generally maintained through contract databases, though specific performance metrics and detailed cost breakdowns may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Medical Services Contracts
Organ Transplant Programs
Specialized Healthcare Services
Federal Healthcare Procurement

Risk Flags

Sole-source award limits price competition.
High dollar value requires diligent performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.7 million to VANDERBILT UNIVERSITY MEDICAL CENTER. HEART TRANSPLANT SERVICES - OPTION PERIOD 2

Who is the contractor on this award?

The obligated recipient is VANDERBILT UNIVERSITY MEDICAL CENTER.

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 $14.7 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the historical spending pattern for heart transplant services by the VA at Vanderbilt University Medical Center?

Historical spending data for heart transplant services specifically at Vanderbilt University Medical Center by the VA is not directly available in this dataset. However, the current award of $14.7 million for a one-year period (FY25) suggests a significant and ongoing need for these specialized services. To understand historical patterns, one would need to access VA contract databases for previous years, looking for similar awards to Vanderbilt or other institutions for heart transplants. This would reveal trends in contract value, duration, and frequency, providing context for the current expenditure and assessing whether this award represents an increase, decrease, or stable level of investment in this critical service area for veterans.

How does the cost of these heart transplant services compare to similar contracts or market rates?

Direct comparison of the $14.7 million cost for heart transplant services is challenging due to the highly specialized and variable nature of these procedures. Unlike standardized goods, transplant costs are influenced by patient acuity, pre-operative care, surgical complexity, post-operative recovery, and the specific services bundled. As this is a sole-source award, there is no direct competitive benchmark. To assess value, one would need to compare this contract against other VA sole-source awards for similar high-acuity transplant services, or against data from other large academic medical centers performing transplants, adjusting for differences in service scope and patient populations. Without such comparative data, it's difficult to definitively state if this price is optimal.

What are the key performance indicators (KPIs) for this heart transplant service contract?

The specific Key Performance Indicators (KPIs) for this heart transplant services contract are not detailed in the provided summary data. However, for such a critical medical service, typical KPIs would likely include patient survival rates post-transplant (e.g., 1-year, 5-year survival), graft survival rates, complication rates (e.g., infection, rejection), patient satisfaction scores, waitlist times, and adherence to VA and medical best practice protocols. The contract would stipulate these metrics, and performance would be monitored by the VA contracting officer's representative (COR) to ensure the quality and effectiveness of the care provided. Meeting or exceeding these KPIs would be crucial for continued contract performance.

What is the track record of Vanderbilt University Medical Center in providing heart transplant services to the VA or other federal agencies?

Vanderbilt University Medical Center (VUMC) is a well-established academic medical institution with a recognized transplant program. While specific contract history with the VA for heart transplants isn't detailed here, VUMC's reputation in the medical community suggests a strong capability. Federal agencies, including the VA, often partner with leading medical centers for specialized care. VUMC's track record would likely be assessed based on its overall performance in transplant outcomes, patient care quality, and its capacity to handle complex cases. The VA's decision to award this contract sole-source implies confidence in VUMC's ability to meet the demanding requirements of heart transplantation for veterans.

What are the potential risks associated with a sole-source award for critical medical services like heart transplants?

The primary risk associated with a sole-source award for critical medical services like heart transplants is the lack of competitive pressure, which can lead to suboptimal pricing and potentially less incentive for the contractor to innovate or enhance efficiency. Taxpayers may bear a higher cost than if the contract were competed. Additionally, reliance on a single provider, even a reputable one, can create vulnerability if that provider experiences unforeseen operational issues, staffing shortages, or changes in their ability to deliver services. This could disrupt care for veterans. Ensuring robust oversight and performance management becomes even more critical in sole-source situations.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1161 21ST AVE S STE D3300 MCN, NASHVILLE, TN, 37232

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

Financial Breakdown

Contract Ceiling: $14,728,752

Exercised Options: $14,728,752

Current Obligation: $14,728,752

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24923D0002

IDV Type: IDC

Timeline