VA awards $3.27M contract for Savannah CBOC services to Sterling Medical Associates, Inc

Contract Overview

Contract Amount: $3,274,595 ($3.3M)

Contractor: Sterling Medical Associates, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $9.0K/day

Competition Type: NOT COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: INTERIM SAVANNAH CBOC SERVICES

Place of Performance

Location: SAVANNAH, HARDIN County, TENNESSEE, 38372

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.3 million to STERLING MEDICAL ASSOCIATES, INC for work described as: INTERIM SAVANNAH CBOC SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration is one year, suggesting a need for ongoing, consistent services. 3. The award was not competed under simplified acquisition procedures, raising questions about competition. 4. The North American Industry Classification System (NAICS) code 621498 covers 'All Other Outpatient Care Centers'. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle. 6. The service location is Savannah, Tennessee, indicating a specific geographic focus for the healthcare services.

Value Assessment

Rating: fair

The contract value of $3.27 million for one year of outpatient care services appears to be within a reasonable range for such a facility. However, without specific details on the scope of services, patient volume, or staffing levels, a precise value-for-money assessment is challenging. Benchmarking against similar VA community-based outpatient clinics (CBOCs) or other federal healthcare contracts would provide a clearer picture of whether this pricing is competitive or represents a premium.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was noted as 'NOT COMPETED UNDER SAP,' which typically means it was not competed using simplified acquisition procedures. This could indicate it was awarded under a pre-existing IDIQ contract or a specific set-aside. The lack of explicit competition details makes it difficult to assess the number of bidders or the implications for price discovery. Further information on the contracting vehicle is needed to understand the competitive landscape.

Taxpayer Impact: When contracts are not openly competed, taxpayers may not benefit from the lowest possible prices achievable through robust competition. This can lead to potentially higher costs if alternative sources were not adequately explored.

Public Impact

Veterans in the Savannah, Tennessee area will benefit from continued access to outpatient healthcare services. The contract ensures the provision of essential medical services, likely including primary care, diagnostics, and potentially specialty referrals. The geographic impact is localized to Savannah and surrounding communities within the service area of the CBOC. The contract supports healthcare professionals and administrative staff employed by Sterling Medical Associates, Inc. at the facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information raises concerns about potential missed savings for taxpayers.
The 'NOT COMPETED UNDER SAP' designation requires further investigation into the contracting strategy and justification for limited competition.
Absence of specific performance metrics makes it difficult to assess the quality and efficiency of services delivered.

Positive Signals

The contract provides essential healthcare services to a specific veteran population, addressing a critical need.
A firm-fixed-price contract offers cost certainty for the government over the contract period.
The one-year duration allows for regular reassessment of needs and contractor performance.

Sector Analysis

The healthcare services sector, particularly outpatient care centers, is a significant area of federal spending, especially within the Department of Veterans Affairs. This contract falls under the broader category of healthcare services, which includes a wide range of medical facilities and support services. The market for these services is competitive, with numerous private providers capable of delivering care. Benchmarking against similar contracts for CBOCs or other outpatient facilities managed by the VA or other agencies would be crucial for a comprehensive analysis.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, was not provided in the data. Without this information, it is difficult to assess the impact on the small business ecosystem or whether opportunities were made available to small businesses for this contract.

Oversight & Accountability

Oversight of this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. The VA has established Inspector General (IG) offices responsible for investigating fraud, waste, and abuse within its programs. Transparency regarding the contract's performance metrics and any audits or reviews would be key to assessing accountability.

Related Government Programs

VA Community Care Network (CCN)
VA Medical Services Contracts
Outpatient Healthcare Services

Risk Flags

Lack of Competition
Limited Transparency
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.3 million to STERLING MEDICAL ASSOCIATES, INC. INTERIM SAVANNAH CBOC SERVICES

Who is the contractor on this award?

The obligated recipient is STERLING MEDICAL ASSOCIATES, 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 $3.3 million.

What is the period of performance?

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

What is the specific scope of services covered under this $3.27 million contract for Savannah CBOC?

The provided data indicates the contract is for 'INTERIM SAVANNAH CBOC SERVICES' under NAICS code 621498 (All Other Outpatient Care Centers). While the exact scope is not detailed, this typically includes primary care, basic diagnostic services, and potentially referrals for specialty care. The 'interim' nature might suggest it's a temporary solution or bridging a gap until a more permanent arrangement is established. A comprehensive statement of work (SOW) would detail specific medical services, operating hours, staffing requirements, and performance standards.

How does the $3.27 million annual cost compare to similar VA CBOC contracts?

Benchmarking this $3.27 million annual contract requires comparison with similar VA Community-Based Outpatient Clinics (CBOCs) in terms of size, patient population served, and geographic region. VA CBOCs can vary significantly in cost based on these factors. For instance, a small clinic serving a few hundred veterans might cost less than $1 million annually, while a larger facility with more comprehensive services could exceed $5 million. Without specific details on the Savannah CBOC's operational scale and service intensity, a direct comparison is difficult. However, the stated amount suggests a moderately sized operation.

What are the potential risks associated with a 'NOT COMPETED UNDER SAP' contract award?

A 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures) designation implies the contract was not awarded through the standard, open competitive process typically used for smaller procurements. This can introduce several risks: 1) Potential for higher costs, as the government may not have received the benefit of competitive pricing. 2) Limited innovation, as a wider range of potential providers were not solicited. 3) Reduced transparency and accountability, making it harder to justify the award decision. 4) Possible perception of favoritism or lack of fairness if the justification for not competing is weak.

What is Sterling Medical Associates, Inc.'s track record with the VA or other federal agencies?

Sterling Medical Associates, Inc. is a known provider of healthcare services to federal agencies, including the Department of Veterans Affairs. They have historically been awarded contracts for operating CBOCs and providing medical staffing. A thorough review would involve examining their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and the overall history of their service delivery to federal entities. Their continued awards suggest a generally acceptable performance record, but specific details would be needed for a definitive assessment.

What are the implications of this contract being a 'DELIVERY ORDER'?

A 'DELIVERY ORDER' typically signifies that this contract is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar type of multiple-award contract. This means the underlying IDIQ contract likely underwent a competitive process at an earlier stage, establishing terms and conditions for various services. The issuance of a delivery order then specifies the exact quantity, delivery schedule, and price for a particular requirement, like the Savannah CBOC services. This structure can streamline the procurement process for recurring needs but also means the competition for this specific order might be limited to awardees of the parent IDIQ.

What is the historical spending pattern for Savannah CBOC services by the VA?

The provided data is for a single contract award with a start date of October 1, 2024, and an end date of September 30, 2025. It represents 'INTERIM' services. To understand historical spending patterns, one would need to examine previous contracts for Savannah CBOC services, potentially under different contract vehicles or awarded to different entities. Analyzing spending over multiple fiscal years would reveal trends in contract values, service scope changes, and the consistency of provider awards. Without prior contract data, it's impossible to establish a historical spending pattern for this specific location.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › All Other Outpatient Care Centers

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 411 OAK ST, CINCINNATI, OH, 45219

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

Financial Breakdown

Contract Ceiling: $3,274,595

Exercised Options: $3,274,595

Current Obligation: $3,274,595

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24925D0024

IDV Type: IDC

Timeline