VA awards $5.18M ambulance services contract to First Care Ohio LLC, competing under SAP

Contract Overview

Contract Amount: $5,182,851 ($5.2M)

Contractor: First Care Ohio LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-11-01

End Date: 2026-02-28

Contract Duration: 1,215 days

Daily Burn Rate: $4.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: AMBULANCE SERVICE (DAYTON)

Place of Performance

Location: DAYTON, MONTGOMERY County, OHIO, 45428

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.2 million to FIRST CARE OHIO LLC for work described as: AMBULANCE SERVICE (DAYTON) Key points: 1. Contract awarded to a single provider for ambulance services in Dayton, OH. 2. Competition was conducted under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 3. The contract has a fixed-price structure with economic price adjustments, which can mitigate inflation risks for the contractor. 4. The duration of the contract is over three years, indicating a need for sustained service delivery. 5. The award value is substantial for a single-location ambulance service contract.

Value Assessment

Rating: good

The contract value of $5.18 million over approximately three years for ambulance services appears reasonable given the scope. Benchmarking against similar contracts is challenging without more specific service level agreements and geographic coverage details. However, the award to First Care Ohio LLC suggests they met the VA's requirements and pricing expectations. The fixed-price with economic price adjustment (FPEPA) clause allows for adjustments based on economic factors, which is common in longer-term service contracts to ensure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders compared to full and open competition. While the specific number of bids received is not detailed, SAP is designed for procurements under a certain dollar threshold, aiming for efficiency. The fact that it was competed suggests that multiple vendors were likely solicited, but the level of competition may not be as robust as for larger, more complex contracts.

Taxpayer Impact: For taxpayers, competition under SAP generally leads to fair pricing, though potentially not the absolute lowest price achievable through broader competition. It balances cost-effectiveness with timely procurement of necessary services.

Public Impact

Veterans in the Dayton, Ohio area will benefit from reliable ambulance transportation services. The contract ensures the availability of critical emergency medical services for the VA's patient population. The service delivery is geographically focused on Dayton, Ohio, impacting local healthcare access. The contract supports local employment within the emergency medical services sector in Ohio.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to economic price adjustment clause over the contract term.
Limited competition under SAP might result in a higher-than-optimal price compared to a fully open competition.
Dependence on a single provider could create service disruption risks if the contractor faces operational issues.

Positive Signals

Award to an established provider suggests a track record of service delivery.
Fixed-price element provides cost certainty for a portion of the contract value.
Contract duration indicates a stable and predictable service for beneficiaries.

Sector Analysis

The healthcare services sector, specifically emergency medical transportation, is a critical component of the broader healthcare industry. Ambulance services are essential for patient transport to and from medical facilities, particularly for emergency situations. Spending in this area is driven by demand for emergency response and non-emergency medical transport. Comparable spending benchmarks would typically be analyzed based on the number of calls, response times, and patient acuity, rather than just contract value.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The primary contractor, First Care Ohio LLC, is likely a small business itself given the contract value and SAP competition, but this is not explicitly stated. The impact on the broader small business ecosystem would depend on whether First Care Ohio LLC utilizes small business subcontractors for any part of its operations.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs (VA). The VA has established procurement regulations and contract management processes to ensure compliance. Accountability measures would include performance metrics, service level agreements, and potential penalties for non-performance. Transparency is facilitated through contract databases like SAM.gov. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Emergency Medical Services Contracts
Healthcare Services for Veterans
Department of Veterans Affairs Medical Support Contracts
Ambulance Transportation Services

Risk Flags

Potential for price escalation due to economic price adjustment.
Limited competition may impact optimal price discovery.
Dependence on a single provider for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.2 million to FIRST CARE OHIO LLC. AMBULANCE SERVICE (DAYTON)

Who is the contractor on this award?

The obligated recipient is FIRST CARE OHIO LLC.

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 $5.2 million.

What is the period of performance?

Start: 2022-11-01. End: 2026-02-28.

What is the track record of First Care Ohio LLC in providing ambulance services, particularly to government entities?

Information regarding the specific track record of First Care Ohio LLC is not detailed in the provided data. However, the award of a definitive contract by the Department of Veterans Affairs suggests that the contractor likely met the agency's pre-qualification criteria, which often include past performance evaluations. To fully assess their track record, one would need to review their performance on previous contracts, including any government contracts, client references, and any history of performance issues or disputes. A deeper dive into contract databases and potentially client feedback would be necessary for a comprehensive understanding of their reliability and quality of service.

How does the awarded price compare to market rates for similar ambulance services in the Dayton, Ohio region?

Direct comparison of the awarded price ($5.18 million over ~3 years) to market rates for similar ambulance services in Dayton, Ohio, is difficult without granular data on service specifics. Key factors influencing market rates include the number of ambulances, response times, types of services offered (e.g., basic life support vs. advanced life support), patient volume, and contract terms (e.g., 24/7 availability). The contract's Fixed Price with Economic Price Adjustment (FPEPA) structure also adds complexity to direct comparisons. However, the fact that it was competed under Simplified Acquisition Procedures (SAP) suggests the VA aimed for a competitive price within that procurement framework. Further analysis would require obtaining quotes from other local providers for comparable service levels.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential service disruptions if First Care Ohio LLC faces operational challenges, and the possibility of price escalation due to the economic price adjustment clause. Mitigation strategies likely involve the VA's contract management oversight, including performance monitoring and defined service level agreements. The fixed-price component of the contract provides some cost certainty. Additionally, the contract duration (over three years) implies a level of stability, but the VA would have contingency plans for service continuity in case of contractor failure. The limited competition under SAP could also be seen as a risk if it leads to less favorable pricing.

How effective is the competition level (limited under SAP) in ensuring value for taxpayer money?

Competition under Simplified Acquisition Procedures (SAP) is designed to balance efficiency and cost-effectiveness for smaller procurements. While it typically involves fewer bidders than full and open competition, it still aims to solicit offers from multiple sources. The effectiveness in ensuring value for taxpayer money depends on the specific market dynamics for ambulance services in Dayton and the diligence of the VA in soliciting and evaluating bids. If the market has a reasonable number of qualified providers, SAP competition can yield fair prices. However, a more robust competition might have driven prices lower. The VA's benchmark pricing and negotiation efforts are crucial in maximizing value under this procurement method.

What is the historical spending pattern for ambulance services by the Department of Veterans Affairs, and how does this contract fit?

Historical spending data for ambulance services by the VA would reveal trends in contract values, durations, and awarded vendors over time. This specific $5.18 million contract for Dayton, OH, appears to be a significant, multi-year award for a localized service. Without historical data, it's difficult to definitively state how it fits. However, it suggests a sustained need for these services in the region. Analyzing past VA contracts for similar services would help determine if this award is consistent with previous spending levels, if it represents an increase or decrease, and whether it aligns with VA's strategy for outsourcing or providing such essential medical support.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Ambulance Services

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25023Q0042

Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 955 REDNA TER STE 1, CINCINNATI, OH, 45215

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,182,911

Exercised Options: $5,182,911

Current Obligation: $5,182,851

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline