VA awards $591,920 contract for thoracic surgery services to University of Louisville

Contract Overview

Contract Amount: $591,920 ($591.9K)

Contractor: University of Louisville

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-01-01

End Date: 2025-12-31

Contract Duration: 364 days

Daily Burn Rate: $1.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THORACIC SURGERY SERVICES POP 1/1/2025 THROUGH 12/31/2025

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40206

State: Kentucky Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $591,919.63 to UNIVERSITY OF LOUISVILLE for work described as: THORACIC SURGERY SERVICES POP 1/1/2025 THROUGH 12/31/2025 Key points: 1. Contract awarded to a single academic institution, raising questions about competitive pricing. 2. Limited competition may lead to higher costs for specialized medical services. 3. Performance period aligns with a full fiscal year, indicating ongoing service needs. 4. The contract is for a specific medical specialty, suggesting a focused service requirement. 5. Geographic concentration of services in Kentucky may limit broader access. 6. The firm-fixed-price structure aims to control costs, but price discovery is limited.

Value Assessment

Rating: fair

The contract value of $591,920 for a one-year period for thoracic surgery services appears to be within a reasonable range for specialized medical care provided by a university medical center. However, without comparable contract data for similar services from other academic institutions or private providers, a definitive value-for-money assessment is challenging. The lack of competition further complicates benchmarking. The firm-fixed-price nature of the award suggests an attempt to cap costs, but the absence of competitive bids means the government cannot be certain it secured the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to the University of Louisville. This indicates that the Department of Veterans Affairs identified the University of Louisville as the only responsible source capable of providing the required specialized thoracic surgery services. The absence of a competitive bidding process means that multiple potential providers were not evaluated, and the government did not benefit from price reductions that can arise from a competitive environment. This approach is typically used when unique capabilities or circumstances exist.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to achieve lower prices, potentially resulting in higher costs for taxpayers. Without competitive bids, it is difficult to ascertain if the awarded price represents the best value achievable.

Public Impact

Veterans in Kentucky will benefit from access to specialized thoracic surgery services. The contract ensures the provision of critical medical care for complex thoracic conditions. Services will be delivered at the University of Louisville, a key healthcare provider in the region. The contract supports the medical workforce at the University of Louisville, including surgeons and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings for taxpayers.
Lack of transparency in the selection process due to non-competitive award.
Potential for higher costs compared to a competitively bid contract for similar services.

Positive Signals

Ensures continuity of specialized care for veterans through an established provider.
Firm-fixed-price contract helps in budget predictability.
University of Louisville likely possesses specialized expertise and facilities for thoracic surgery.

Sector Analysis

The healthcare sector, particularly specialized medical services, often involves complex procedures and highly trained professionals. Contracts for such services can be awarded through various mechanisms, including competitive bidding, sole-source awards for unique capabilities, or through academic affiliations. Benchmarking spending in this area requires comparing contract values against the complexity of services, provider type (e.g., academic medical center vs. private practice), and geographic location. The Department of Veterans Affairs frequently contracts with academic institutions to provide specialized care and support medical education.

Small Business Impact

This contract does not appear to involve any small business set-asides or subcontracting requirements. The award is made directly to a large academic institution, the University of Louisville. Therefore, there is no direct impact on the small business ecosystem through this specific award, nor are there subcontracting opportunities for small businesses stemming from this contract.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. As a sole-source award, the primary oversight focus will be on ensuring the contractor, the University of Louisville, delivers the contracted thoracic surgery services according to the terms and conditions, quality standards, and schedule. The VA's contracting officers and program managers will monitor performance. Transparency is limited due to the non-competitive nature of the award, and there is no specific mention of an Inspector General's jurisdiction beyond standard VA oversight protocols.

Related Government Programs

Department of Veterans Affairs Medical Services Contracts
Academic Medical Center Partnerships
Specialized Surgical Services Contracts
Federal Healthcare Procurement

Risk Flags

Sole-source award may limit price competition.
Lack of detailed performance metrics in provided data.
Limited public information on contractor's federal performance history for this specific service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $591,919.63 to UNIVERSITY OF LOUISVILLE. THORACIC SURGERY SERVICES POP 1/1/2025 THROUGH 12/31/2025

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF LOUISVILLE.

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 $591,919.63.

What is the period of performance?

Start: 2025-01-01. End: 2025-12-31.

What is the track record of the University of Louisville in providing thoracic surgery services to the VA or other federal agencies?

Information regarding the University of Louisville's specific track record in providing thoracic surgery services to the VA or other federal agencies is not detailed in the provided data. However, as a university medical center, it is presumed to have established capabilities in complex medical procedures. Further investigation would be required to ascertain the extent of their prior federal contracting history, including performance reviews, past issues, and overall satisfaction levels from previous government engagements. This would provide crucial context for assessing the reliability and suitability of the contractor for this specific award.

How does the cost of these thoracic surgery services compare to similar contracts awarded by the VA or other healthcare providers?

A direct cost comparison is challenging without access to a database of similar thoracic surgery service contracts, especially those awarded on a sole-source basis. The contract value of $591,920 for a one-year period represents a significant investment. However, the absence of competitive bidding means the government did not explore potential cost savings through market competition. To perform a robust comparison, one would need to identify contracts for comparable services (e.g., complexity of procedures, patient volume, provider type) awarded competitively or through similar sole-source justifications to academic medical centers. This would help determine if the current pricing is at fair market value.

What are the specific risks associated with awarding this contract on a sole-source basis?

The primary risk associated with a sole-source award is the lack of price competition, which can lead to higher costs for the government and taxpayers compared to what might be achieved through a competitive process. Another risk is the potential for reduced innovation or service improvement, as there is less pressure from competing providers to offer better or more cost-effective solutions. Furthermore, a sole-source award might indicate a lack of market research or an inability to identify alternative qualified providers, which could point to potential inefficiencies in the procurement process or a limited market for such specialized services. Ensuring the justification for the sole-source award is robust and well-documented is critical to mitigating these risks.

What is the expected effectiveness of the thoracic surgery services provided under this contract for veterans?

The effectiveness of the thoracic surgery services is expected to be high, given that the contract is awarded to the University of Louisville, an academic medical institution likely equipped with specialized expertise, advanced technology, and experienced surgical teams. The contract's firm-fixed-price nature suggests a defined scope of services, which, if properly managed and executed, should lead to predictable outcomes. The effectiveness will ultimately be measured by patient outcomes, adherence to quality standards, and the timely delivery of care to veterans requiring these specialized procedures. The VA's oversight will be crucial in ensuring these services meet the required standards of care.

What has been the historical spending pattern for thoracic surgery services by the Department of Veterans Affairs?

Historical spending patterns for thoracic surgery services by the Department of Veterans Affairs are not provided in the current data. To analyze this, one would need to examine past VA contracts for similar services, noting the award amounts, contract types (competitive vs. sole-source), and the providers involved over several fiscal years. This would reveal trends in spending, identify key providers, and highlight any shifts in procurement strategies. Understanding historical spending can help contextualize the current award and identify potential areas for cost savings or efficiency improvements in future procurements.

Are there any specific performance metrics or quality indicators tied to this contract?

The provided data does not specify the performance metrics or quality indicators associated with this contract. However, for healthcare services, especially specialized surgical procedures, it is standard practice for contracts to include performance standards related to patient outcomes, complication rates, patient satisfaction, and adherence to clinical protocols. The Department of Veterans Affairs typically has robust quality assurance processes. The effectiveness of the services will likely be monitored through these metrics, although their specific details are not available in this dataset.

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: 2301 S 3RD ST, LOUISVILLE, KY, 40208

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

Financial Breakdown

Contract Ceiling: $591,920

Exercised Options: $591,920

Current Obligation: $591,920

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24923D0012

IDV Type: IDC

Timeline