VA awards $2.5M for liver/kidney transplant services to Vanderbilt University Medical Center

Contract Overview

Contract Amount: $2,517,161 ($2.5M)

Contractor: Vanderbilt University Medical Center

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-15

End Date: 2026-09-14

Contract Duration: 364 days

Daily Burn Rate: $6.9K/day

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, 37232

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 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 competitive pricing benefits. 2. Fixed-price contract type suggests predictable costs, but requires careful scope management. 3. The duration of one year with a potential for renewal indicates ongoing need for these specialized services. 4. Awarded by the Department of Veterans Affairs, focusing on critical healthcare for veterans. 5. The North American Industry Classification System (NAICS) code 611310 points to higher education institutions providing these services. 6. Geographic location in Tennessee may impact accessibility for veterans in other regions.

Value Assessment

Rating: fair

Benchmarking transplant service costs is complex due to patient-specific factors and varying medical procedures. However, the $2.5 million award for a one-year period for liver/kidney transplant services suggests a significant investment in specialized medical care. Without comparable contract data for similar services from other institutions or detailed breakdowns of the services included, a precise value-for-money assessment is challenging. The firm fixed-price nature provides cost certainty for the VA, assuming the scope of work is well-defined and does not require extensive modifications.

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 among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities or is the only responsible source. The lack of competition means the VA did not benefit from a bidding process that could drive down prices through market forces. While Vanderbilt University Medical Center may be a highly specialized provider, the absence of competition raises questions about whether a more cost-effective solution might have been available through an open bidding process.

Taxpayer Impact: For taxpayers, sole-source awards can mean potentially higher costs compared to competitively bid contracts, as the government does not have the benefit of multiple offers to choose from.

Public Impact

Veterans requiring liver and kidney transplant services are the primary beneficiaries. The contract ensures access to critical, life-saving medical procedures for eligible veterans. Services are delivered within Tennessee, potentially impacting veterans residing in or near the state. The contract supports specialized medical professionals and healthcare infrastructure at Vanderbilt University Medical Center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
Lack of detailed service breakdown makes it difficult to assess the true value for money.
Geographic concentration of services may limit access for veterans in distant locations.

Positive Signals

Award to a known medical institution suggests a focus on quality and established expertise.
Firm fixed-price contract provides cost predictability for the VA.
Contract addresses critical healthcare needs for veterans, aligning with VA's mission.

Sector Analysis

The healthcare sector, particularly specialized medical services like organ transplantation, represents a significant area of federal spending. Contracts for such services are often awarded to institutions with advanced medical capabilities and research facilities. The market for transplant services is characterized by high barriers to entry due to the complexity of procedures, specialized equipment, and highly trained personnel. This contract fits within the broader category of healthcare services procured by the VA to serve its veteran population, reflecting a commitment to providing advanced medical treatments.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of liver and kidney transplant services, it is unlikely that small businesses would be primary providers. Subcontracting opportunities for small businesses may be limited to ancillary services rather than the core transplant procedures themselves. The impact on the small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' procurement and healthcare administration divisions. Accountability measures would be tied to the performance standards outlined in the contract and the quality of care provided. Transparency is facilitated through contract databases, though detailed operational data may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Medical Services Contracts
Organ Transplant Programs
Specialized Medical Procedures
Healthcare for Veterans

Risk Flags

Sole-source award
Potential for higher costs without competition
Limited transparency on specific service components

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 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 $2.5 million.

What is the period of performance?

Start: 2025-09-15. End: 2026-09-14.

What is the historical spending pattern for liver and kidney transplant services by the VA?

Analyzing historical spending for liver and kidney transplant services by the VA requires access to detailed procurement data over multiple fiscal years. Without specific historical data for this exact service category, it's difficult to provide precise figures. However, the VA generally allocates substantial resources to healthcare services for veterans, including specialized procedures. Trends in healthcare costs, advancements in transplant technology, and the growing veteran population requiring such services would influence year-over-year spending. It's common for the VA to utilize a mix of sole-source and competitively awarded contracts for specialized medical services, depending on provider availability and unique institutional capabilities. Further analysis would involve querying federal procurement databases for similar contracts awarded to other institutions or for different time periods to establish a baseline and identify any significant deviations in cost or volume.

How does the cost of these services compare to similar contracts awarded to other institutions?

A direct cost comparison for liver and kidney transplant services is challenging due to the highly individualized nature of these procedures, patient-specific medical needs, and varying definitions of service inclusions. Contracts are often structured based on the complexity of the transplant, pre-operative care, post-operative monitoring, and potential complications. To benchmark this $2.5 million award, one would need to identify comparable contracts awarded by the VA or other federal agencies to institutions with similar transplant programs. Key comparison points would include the number of procedures anticipated, the scope of associated medical care, and the contract duration. Without access to such specific, comparable contract data, it is difficult to definitively state whether this award represents excellent, fair, or questionable value for money. The sole-source nature of this award further complicates direct price benchmarking against potentially more competitive bids.

What are the specific performance metrics and quality indicators used to evaluate Vanderbilt University Medical Center's service delivery?

The specific performance metrics and quality indicators for this contract are not detailed in the provided data. However, for healthcare services, particularly complex procedures like organ transplants, performance evaluation typically involves adherence to clinical best practices, patient outcomes (e.g., graft survival rates, patient recovery times, complication rates), adherence to appointment schedules, and patient satisfaction surveys. The Department of Veterans Affairs likely has established protocols and reporting requirements for its medical service providers. These would include clinical quality measures aligned with national standards and potentially specific metrics related to the VA's patient population. Vanderbilt University Medical Center, as a reputable medical institution, would be expected to meet rigorous internal and external quality standards, which the VA would monitor through contract compliance reviews and potentially site visits.

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

Vanderbilt University Medical Center (VUMC) has a well-established reputation for providing advanced medical services, including organ transplantation. While the provided data does not detail their specific track record with federal agencies, VUMC is a major academic medical center known for its comprehensive transplant programs for liver and kidney. Their experience likely extends to serving diverse patient populations, which would include veterans. Federal agencies, particularly the Department of Veterans Affairs, often partner with leading medical institutions that possess specialized expertise and infrastructure. VUMC's designation as a provider for these critical services suggests a history of meeting high standards of care and operational capability, which would be a prerequisite for such a sole-source award.

Are there any identified risks associated with this sole-source award for transplant services?

The primary risk associated with this sole-source award is the potential for inflated costs due to the lack of competitive bidding. Without multiple offers, the VA may not be achieving the most favorable pricing. Another risk is the potential for complacency from the contractor, as there is no immediate competitive pressure to innovate or improve efficiency. Furthermore, if Vanderbilt University Medical Center faces unforeseen operational challenges or capacity constraints, the VA's options for alternative providers in the short term may be limited due to the sole-source nature of the contract. Ensuring robust contract management and performance monitoring becomes crucial to mitigate these risks and ensure the VA receives adequate value and quality of care.

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: $2,517,161

Exercised Options: $2,517,161

Current Obligation: $2,517,161

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24925D0008

IDV Type: IDC

Timeline