VA awards $2.5M for Holly Springs CBOC services to Sterling Medical Associates, Inc

Contract Overview

Contract Amount: $2,547,851 ($2.5M)

Contractor: Sterling Medical Associates, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-12-01

End Date: 2025-09-30

Contract Duration: 303 days

Daily Burn Rate: $8.4K/day

Competition Type: NOT COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: INTERIM HOLLY SPRINGS CBOC SERVICES

Place of Performance

Location: HOLLY SPRINGS, MARSHALL County, MISSISSIPPI, 38635

State: Mississippi Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to STERLING MEDICAL ASSOCIATES, INC for work described as: INTERIM HOLLY SPRINGS CBOC SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration of 303 days suggests a short-term need for these outpatient services. 3. Awarded by the Department of Veterans Affairs, aligning with its mission to serve veterans. 4. The North American Industry Classification System (NAICS) code 621498 points to a specialized healthcare service. 5. This contract represents a portion of the VA's broader spending on healthcare infrastructure and services.

Value Assessment

Rating: fair

The contract value of $2.5 million for approximately 10 months of operation for a community-based outpatient clinic (CBOC) appears to be within a reasonable range for such services. 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 CBOC contracts awarded by the VA in comparable geographic regions would provide a clearer picture of whether this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded through a sole-source justification or a limited competition process. The absence of a broad competition means that the VA did not solicit offers from multiple potential providers. This approach may be used when a specific contractor is deemed uniquely qualified or when urgency dictates a faster award process, but it limits the opportunity for price discovery through market competition.

Taxpayer Impact: A sole-source award means taxpayers may not benefit from the potentially lower prices that could arise from a competitive bidding process. The government may not achieve the best possible value when competition is restricted.

Public Impact

Veterans in the Holly Springs, Mississippi 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 consultations. The geographic impact is localized to the Holly Springs region, serving the veteran population in that specific community. The contract supports healthcare professionals employed by Sterling Medical Associates, Inc., contributing to local employment in the healthcare sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits potential cost savings for taxpayers.
Scope of services and performance metrics are not detailed, making it difficult to assess effectiveness.
Contract duration is relatively short, raising questions about long-term service stability.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded by the Department of Veterans Affairs, indicating alignment with veteran healthcare needs.
Contract is for outpatient care, a critical component of healthcare delivery.

Sector Analysis

The healthcare services sector is a significant area of federal spending, particularly for the Department of Veterans Affairs. This contract falls under outpatient care centers, a sub-sector focused on providing medical services outside of traditional hospital settings. The market for such services is robust, with numerous providers capable of delivering quality care. Benchmarking against other VA CBOC contracts or similar outpatient facilities managed by other federal agencies would be necessary for a comprehensive comparison.

Small Business Impact

This contract was not competed under SAP and there is no indication of a small business set-aside. Therefore, it does not appear to directly benefit small businesses through a set-aside. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data, and their impact on the small business ecosystem is likely minimal unless Sterling Medical Associates, Inc. voluntarily engages them.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures would be defined within the contract's statement of work and performance standards. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed performance data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Community Care Network
VA Primary Care Services
Outpatient Medical Services Contracts

Risk Flags

Sole-source award may limit cost savings.
Limited data on contractor performance.
Short contract duration raises questions about service continuity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to STERLING MEDICAL ASSOCIATES, INC. INTERIM HOLLY SPRINGS 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 $2.5 million.

What is the period of performance?

Start: 2024-12-01. End: 2025-09-30.

What is the specific scope of services to be provided under this contract?

The provided data indicates the contract is for 'INTERIM HOLLY SPRINGS CBOC SERVICES' and falls under NAICS code 621498 (All Other Outpatient Care Centers). While this suggests general outpatient medical services, the precise details of the services—such as specific medical specialties, diagnostic capabilities, mental health support, or telehealth offerings—are not specified in the abbreviated data. A comprehensive understanding of the scope would require reviewing the full contract statement of work (SOW). This information is crucial for evaluating the appropriateness of the contract value and the contractor's performance.

How does the $2.5 million contract value compare to similar VA CBOC contracts?

Benchmarking this $2.5 million contract against similar Department of Veterans Affairs Community-Based Outpatient Clinic (CBOC) contracts is challenging without more specific data. Factors such as geographic location, patient population demographics, the specific range of services offered, and the contract duration significantly influence pricing. A contract for a similar duration and scope in a comparable region might offer a benchmark. However, given this is a sole-source award, direct price comparison to competitively bid contracts is less meaningful. Further analysis would involve identifying comparable CBOC contracts awarded by the VA, ideally those that were competitively procured, and adjusting for regional cost differences and service scope.

What are the potential risks associated with a sole-source award for essential healthcare services?

A primary risk of a sole-source award for essential healthcare services like those provided by a CBOC is the potential for inflated costs due to the lack of competition. Without multiple bidders vying for the contract, the contractor may not be incentivized to offer the lowest possible price. Additionally, there's a risk that the government might not be aware of or able to access potentially more innovative or cost-effective solutions that other providers could offer. The absence of a competitive process can also raise concerns about transparency and fairness in the procurement process, potentially leading to perceptions of favoritism or inefficiency.

What is Sterling Medical Associates, Inc.'s track record with the VA or similar contracts?

Information regarding Sterling Medical Associates, Inc.'s specific track record with the Department of Veterans Affairs or similar healthcare contracts is not provided in the abbreviated data. To assess their performance, one would need to examine past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or issues. Their experience with managing CBOCs or providing comparable outpatient services would be a key indicator of their capability to fulfill the requirements of this contract effectively and efficiently.

What is the historical spending pattern for Holly Springs CBOC services?

The provided data pertains to a single, interim contract award for Holly Springs CBOC services. It does not offer historical spending patterns for this specific location or service. To understand historical spending, one would need to access procurement data for previous contracts related to the Holly Springs CBOC, including any prior contracts held by Sterling Medical Associates, Inc. or other providers at this location. Analyzing this historical data would reveal trends in contract values, durations, and competition levels over time, providing context for the current award.

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: $2,547,851

Exercised Options: $2,547,851

Current Obligation: $2,547,851

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24925D0044

IDV Type: IDC

Timeline