VA awards $2.9M for Holly Springs CBOC services to Sterling Medical Associates, Inc
Contract Overview
Contract Amount: $2,928,988 ($2.9M)
Contractor: Sterling Medical Associates, Inc
Awarding Agency: Department of Veterans Affairs
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $8.0K/day
Competition Type: NOT COMPETED UNDER SAP
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: INTERIM HOLLY SPRINGS CBOC SERVICES EXERCISING OPTION PERIOD
Place of Performance
Location: MEMPHIS, SHELBY County, TENNESSEE, 38104
Plain-Language Summary
Department of Veterans Affairs obligated $2.9 million to STERLING MEDICAL ASSOCIATES, INC for work described as: INTERIM HOLLY SPRINGS CBOC SERVICES EXERCISING OPTION PERIOD Key points: 1. Contract awarded to Sterling Medical Associates, Inc. for $2,928,987.6. 2. Services are for the Holly Springs Community Based Outpatient Clinic (CBOC). 3. The contract is an exercise of an option period. 4. The awarding agency is the Department of Veterans Affairs. 5. The period of performance is from October 1, 2025, to September 30, 2026.
Value Assessment
Rating: fair
The contract value of $2.9M for a 12-month period appears reasonable for outpatient care services. However, without specific service details or benchmarks for similar CBOC contracts, a precise pricing assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed under Simplified Acquisition Procedures (SAP) and is a delivery order. The limited competition may impact price discovery, potentially leading to less favorable pricing than a fully competed contract.
Taxpayer Impact: Taxpayer funds are being used for essential healthcare services for veterans. The lack of full competition raises concerns about maximizing value for taxpayer dollars.
Public Impact
Veterans in the Holly Springs, TN area will continue to receive outpatient care services. The contract ensures continuity of care for beneficiaries of the CBOC. The Department of Veterans Affairs relies on such contracts to fulfill its healthcare mission.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for higher costs due to lack of competition
Positive Signals
- Ensures continuity of care for veterans
- Option period exercise indicates satisfaction with current provider
Sector Analysis
This contract falls under the Healthcare sector, specifically outpatient care centers. Spending benchmarks for similar services can vary widely based on location, scope of services, and patient volume.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract to ensure services are delivered as specified and at a fair price. The exercise of an option period suggests some level of performance review has occurred.
Related Government Programs
- All Other Outpatient Care Centers
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited competition
- Lack of detailed service scope
- Absence of per-unit cost benchmarks
- Potential for price creep over time
Tags
all-other-outpatient-care-centers, department-of-veterans-affairs, tn, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $2.9 million to STERLING MEDICAL ASSOCIATES, INC. INTERIM HOLLY SPRINGS CBOC SERVICES EXERCISING OPTION PERIOD
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 $2.9 million.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What specific services are included in this contract, and how do they compare to market rates for similar services?
The contract is for 'INTERIM HOLLY SPRINGS CBOC SERVICES.' Without a detailed service breakdown, it's challenging to compare market rates. However, the $2.9M value for a year of operation suggests a comprehensive range of outpatient services, which could include primary care, diagnostics, and specialist referrals, typical for a CBOC.
What is the justification for not competing this contract more broadly, given its value?
The contract is a delivery order exercising an option period. This implies the services were previously competed or awarded under a larger contract vehicle. The justification for not re-competing might stem from the existing contract's structure, the need for continuity, or specific program requirements that favor the incumbent.
How does the per-unit cost of services under this contract compare to other VA CBOCs or similar healthcare providers?
A per-unit cost benchmark is not available from the provided data. To assess this, one would need to analyze the specific services rendered (e.g., patient visits, procedures) and compare their associated costs against established benchmarks for VA facilities or private healthcare providers offering comparable outpatient services.
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: $2,928,988
Exercised Options: $2,928,988
Current Obligation: $2,928,988
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36C24925D0044
IDV Type: IDC
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-03-25
More Contracts from Sterling Medical Associates, Inc
- TBI Healthcare Providers — $24.5M (Department of Defense)
- SRP Services — $18.3M (Department of Defense)
- Diagnostic Radiologists (NPE2) — $11.7M (Department of Defense)
- Dental Hygienist (germany) — $11.4M (Department of Defense)
- Attachment 1 - Edis Performance Work Statement Attachment 2 - Asacs Performance Work Statement — $10.9M (Department of Defense)
View all Sterling Medical Associates, Inc federal contracts →
Other Department of Veterans Affairs Contracts
- CCN Region 3 Express Report — $5.2B (Optum Public Sector Solutions, Inc.)
- Express Report for FY22 Region 2 — $5.1B (Optum Public Sector Solutions, Inc.)
- Fiscal Year 2022 Express Report for Region 1 — $4.2B (Optum Public Sector Solutions, Inc.)
- Express Report for the Patient Centered Community Care (PC3) Contract — $3.3B (Triwest Healthcare Alliance Corp)
- CCN Region Three FY21 Express Report — $3.1B (Optum Public Sector Solutions, Inc.)