VA awards $3M+ for liver-kidney transplant services to Vanderbilt University Medical Center

Contract Overview

Contract Amount: $3,011,851 ($3.0M)

Contractor: Vanderbilt University Medical Center

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2024-10-01

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LIVER-LIVER/KIDNEY TRANSPLANT SERVICES

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37212

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.0 million to VANDERBILT UNIVERSITY MEDICAL CENTER for work described as: LIVER-LIVER/KIDNEY TRANSPLANT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Pricing appears reasonable given the specialized nature of transplant services. 3. Performance risk is mitigated by selecting an established medical institution. 4. This contract supports critical healthcare services for veterans. 5. The award falls within the higher education and medical research sector.

Value Assessment

Rating: good

The contract value of $3,011,850.72 for liver-kidney transplant services appears to be within a reasonable range for specialized medical procedures. Benchmarking against similar contracts is challenging due to the highly specific nature of transplant services and the unique capabilities of institutions like Vanderbilt University Medical Center. However, the firm fixed-price structure provides cost certainty for the VA. The value proposition hinges on the successful delivery of life-saving procedures and the expertise of the chosen provider.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances preclude full and open competition. The lack of competition means that the VA did not benefit from a bidding process that could have potentially driven down prices or offered alternative solutions. The justification for sole-source awards should be carefully reviewed to ensure it aligns with federal procurement regulations.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to ensure the best possible price. This necessitates a thorough justification and review process to ensure fair and reasonable pricing.

Public Impact

Veterans requiring liver or kidney transplants will receive essential medical care. The services provided are critical for improving the health and longevity of beneficiaries. The geographic impact is primarily focused on veterans served by the VA healthcare system, with potential reach to those in the vicinity of Vanderbilt University Medical Center. The contract supports highly skilled medical professionals and support staff within the transplant field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing opportunities.
Potential for cost overruns if unforeseen complications arise, though mitigated by fixed-price structure.

Positive Signals

Award to a reputable medical institution with established transplant programs.
Firm fixed-price contract provides budget certainty.
Addresses a critical healthcare need for veterans.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on advanced medical services. The market for organ transplant services is highly specialized, dominated by a limited number of academic medical centers and research institutions with the necessary expertise, infrastructure, and accreditations. Spending in this area is driven by medical necessity and the availability of qualified providers. Comparable spending benchmarks are difficult to establish due to the unique nature of each transplant case and the provider's specific capabilities.

Small Business Impact

This contract does not appear to involve small business set-asides. Given the highly specialized nature of organ transplant services, it is unlikely that small businesses would be primary providers. Subcontracting opportunities for small businesses may exist in supporting roles, such as logistics, administrative services, or medical supplies, but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs' procurement and healthcare administration departments. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is generally maintained through federal procurement databases, though specific performance metrics and outcomes may be subject to healthcare privacy regulations. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Medical Care Programs
Organ Transplantation Services
Specialized Medical Procedures Contracts

Risk Flags

Sole-source award justification required.
Potential for higher costs due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.0 million to VANDERBILT UNIVERSITY MEDICAL CENTER. LIVER-LIVER/KIDNEY TRANSPLANT SERVICES

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 $3.0 million.

What is the period of performance?

Start: 2024-10-01. End: 2024-10-01.

What is the track record of Vanderbilt University Medical Center in performing liver and kidney transplants?

Vanderbilt University Medical Center (VUMC) has a well-established and highly regarded organ transplant program. They perform a significant volume of liver and kidney transplants annually and are recognized for their expertise in complex cases. VUMC is a leading academic medical center with extensive experience in patient care, surgical innovation, and post-transplant management. Their track record includes successful outcomes and a commitment to advancing transplant medicine through research and education. The VA's decision to award this contract to VUMC likely stems from their proven capabilities and reputation in providing these critical, life-saving services.

How does the awarded amount compare to typical costs for similar transplant services?

Determining a precise benchmark for transplant services is complex due to the highly specialized nature of the procedures, patient-specific factors, and variations in institutional costs. However, liver and kidney transplants are among the most expensive medical procedures, often costing hundreds of thousands of dollars per procedure, excluding long-term follow-up care. The $3,011,850.72 awarded to Vanderbilt for a delivery order suggests it covers a defined scope of services, potentially including multiple transplants or a comprehensive care package over a period. Without more granular data on the specific services covered (e.g., number of transplants, pre- and post-operative care, immunosuppression management), a direct cost-per-procedure comparison is difficult. However, the amount is consistent with the high cost associated with advanced organ transplantation.

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

The primary risk associated with this sole-source contract is the lack of competitive pressure, which could potentially lead to less favorable pricing than if the contract had been competed. This means the VA may not have achieved the lowest possible cost for these services. Another risk, inherent in any transplant service, relates to potential medical complications, although this is mitigated by the fixed-price nature of the contract and the expertise of Vanderbilt. Furthermore, reliance on a single provider could pose a risk if VUMC experiences unforeseen operational disruptions, though their established reputation suggests a high degree of operational stability. The VA must ensure robust oversight to monitor performance and value.

What is the expected effectiveness of this contract in meeting veteran healthcare needs?

This contract is expected to be highly effective in meeting the critical healthcare needs of veterans requiring liver or kidney transplants. By securing services from a leading institution like Vanderbilt University Medical Center, the VA ensures that veterans have access to high-quality, specialized care. The firm fixed-price structure provides cost certainty, allowing the VA to budget effectively for these essential procedures. The effectiveness will be measured by the successful completion of transplant procedures, positive patient outcomes, and the overall improvement in the quality of life for the veteran recipients. This award directly addresses a life-saving need within the veteran population.

What has been the historical spending pattern for similar transplant services by the VA?

Historical spending patterns for similar transplant services by the VA would likely show a consistent need for these specialized procedures, often awarded to major medical centers and academic institutions. The VA has historically contracted with various healthcare providers to offer a range of medical services to veterans, including complex surgeries like organ transplants. Spending in this area is typically driven by medical necessity and the availability of specialized facilities. While specific historical dollar amounts for liver-kidney transplants are not provided here, it can be inferred that the VA allocates significant resources to ensure veterans receive necessary advanced medical care, often through sole-source or limited competition contracts due to the specialized nature of the services.

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 AVAILABLE FOR COMPETITION

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: $3,011,851

Exercised Options: $3,011,851

Current Obligation: $3,011,851

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24925D0008

IDV Type: IDC

Timeline