VA awards $4.48M for Helena CBOC services to Sterling Medical Associates, Inc

Contract Overview

Contract Amount: $4,480,504 ($4.5M)

Contractor: Sterling Medical Associates, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2026-09-30

Contract Duration: 729 days

Daily Burn Rate: $6.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: INTERIM HELENA CBOC SERVICES

Place of Performance

Location: WEST HELENA, PHILLIPS County, ARKANSAS, 72390

State: Arkansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.5 million to STERLING MEDICAL ASSOCIATES, INC for work described as: INTERIM HELENA CBOC SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Duration of 729 days suggests a need for consistent service delivery. 3. Firm Fixed Price contract type provides cost certainty for the government. 4. Service area in Arkansas indicates a focus on regional veteran healthcare access. 5. The award is a Purchase Order, a common instrument for services. 6. No small business set-aside was applied to this procurement.

Value Assessment

Rating: fair

The contract value of $4.48 million over two years for outpatient care services appears within a reasonable range for a community-based clinic. However, without specific benchmarks for similar CBOCs in Arkansas or comparable regions, a precise value-for-money assessment is challenging. The sole-source nature of the award means direct price comparisons to other potential providers are not available, which could impact the government's ability to secure the most competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under simplified acquisition procedures, indicating it was awarded directly to Sterling Medical Associates, Inc. without soliciting offers from other potential vendors. The sole-source determination suggests that the agency may have identified a unique capability or a specific reason for not pursuing a competitive process. This lack of competition limits the government's ability to explore alternative pricing and service models.

Taxpayer Impact: The absence of competition means taxpayers may not benefit from the cost savings that could arise from a bidding process. The government is reliant on the negotiated price with the single awarded vendor.

Public Impact

Veterans in the Helena, Arkansas area will receive outpatient care services. The contract supports the Department of Veterans Affairs' mission to provide healthcare to eligible beneficiaries. Services are delivered within Arkansas, impacting the local healthcare landscape for veterans. The contract likely supports local employment through Sterling Medical Associates, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing opportunities.
Lack of transparency in the sole-source justification could be a concern.
Performance history of Sterling Medical Associates, Inc. for this specific service needs further review.

Positive Signals

Firm Fixed Price contract provides budget predictability.
Award ensures continuity of care for veterans in the service area.
The Department of Veterans Affairs is fulfilling its commitment to veteran healthcare.

Sector Analysis

The healthcare sector, particularly outpatient care services, is a significant area of federal spending. Community-Based Outpatient Clinics (CBOCs) are crucial for extending healthcare access to veterans in areas where VA medical centers may be distant. This contract fits within the broader VA strategy of utilizing non-VA facilities and providers to supplement direct care, aiming for greater geographic reach and patient convenience. Benchmarking this contract would involve comparing its cost and scope to other CBOC contracts managed by the VA or similar federal health programs.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned in the provided data. The award to Sterling Medical Associates, Inc., a single entity, suggests that opportunities for small businesses would likely be through subcontracting if Sterling Medical Associates, Inc. chooses to engage them. Further analysis would be needed to determine if Sterling Medical Associates, Inc. has a history of subcontracting with small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs, likely through contract officers and program managers responsible for monitoring service delivery and performance. The specific mechanisms for accountability, such as performance metrics and reporting requirements, are not detailed in the provided data. Transparency regarding the sole-source justification and ongoing performance evaluations would be key areas for assessment.

Related Government Programs

VA Community Care Network
VA Medical Services Contracts
Outpatient Healthcare Services

Risk Flags

Sole-source award may limit cost savings.
Lack of detailed performance metrics in summary data.
Need for transparency on sole-source justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.5 million to STERLING MEDICAL ASSOCIATES, INC. INTERIM HELENA 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 $4.5 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-09-30.

What is the track record of Sterling Medical Associates, Inc. in providing similar healthcare services to the VA or other government entities?

A review of Sterling Medical Associates, Inc.'s contract history would be necessary to assess their track record. This would involve examining past performance evaluations, any documented issues or successes, and the types of services they have previously provided. Understanding their experience with similar patient populations and service scopes, particularly within the VA system, is crucial for evaluating their capability to fulfill this contract effectively. Without specific past performance data, it is difficult to definitively assess their reliability and quality of service.

How does the per-patient cost of these Helena CBOC services compare to other VA-contracted outpatient clinics?

To benchmark the per-patient cost, we would need to know the projected number of unique patients served by this clinic over the contract period, or the average number of patient visits. With the total contract value of $4.48 million over approximately two years (729 days), we can calculate an average daily cost. However, a meaningful per-patient cost comparison requires data on patient volume and utilization patterns from comparable VA CBOCs. If the patient volume is significantly lower or higher than similar clinics, the per-patient cost could appear higher or lower, respectively, without necessarily indicating better or worse value.

What specific justification was provided for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and is a sole-source award. Typically, sole-source awards require a formal justification from the agency detailing why competition is not feasible or advantageous. Reasons can include unique capabilities of the contractor, urgent and compelling needs, or specific statutory authority. Without access to the official justification document (e.g., a Justification and Approval or J&A), it is impossible to determine the specific rationale. This lack of transparency can raise concerns about whether the government truly explored all viable options for obtaining the required services.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These are critical components that define the expected quality, timeliness, and scope of services to be delivered by Sterling Medical Associates, Inc. Typically, VA contracts for healthcare services would include metrics related to patient wait times, appointment availability, quality of care standards, patient satisfaction, and reporting requirements. The absence of this information in the summary data makes it difficult to assess how the VA will measure and ensure the contractor's performance and the overall effectiveness of the services provided.

What is the historical spending trend for Helena CBOC services or similar outpatient care contracts in Arkansas?

To analyze historical spending trends, we would need access to prior contract awards for Helena CBOC services or comparable outpatient care contracts managed by the VA in Arkansas. This would involve looking at contract values, durations, and awarded contractors over previous fiscal years. Understanding these patterns can reveal whether spending has increased, decreased, or remained stable, and whether the same contractors have consistently been awarded these types of services. Without this historical data, it's difficult to contextualize the current $4.48 million award within a broader spending trajectory.

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

Offers Received: 1

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: $4,521,503

Exercised Options: $4,480,504

Current Obligation: $4,480,504

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline