VA awards $8.8M nursing contract to GHOST RX INC. for temporary help services

Contract Overview

Contract Amount: $8,847,148 ($8.8M)

Contractor: Ghost RX Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-30

End Date: 2025-09-29

Contract Duration: 730 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NURSING

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46229

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.8 million to GHOST RX INC. for work described as: NURSING Key points: 1. Contract provides essential temporary nursing staff to the Department of Veterans Affairs. 2. The contract duration of 730 days suggests a need for sustained staffing support. 3. Awarded under full and open competition, indicating a broad market search. 4. The firm fixed-price structure aims to control costs and provide predictability. 5. Indiana is the primary service location, highlighting regional needs. 6. The contract value is moderate, suggesting it addresses specific, localized requirements.

Value Assessment

Rating: good

The contract value of approximately $8.8 million over two years for temporary nursing services appears reasonable given the critical nature of healthcare staffing. Benchmarking against similar contracts for nursing services would provide a more precise value-for-money assessment. The firm fixed-price type suggests that the government has negotiated a set rate, which can be advantageous in controlling costs, assuming the rates are competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 7 bids indicates a healthy level of interest and competition for this requirement. This broad competition is generally expected to drive more competitive pricing and ensure the government receives a fair market value for the services procured.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which helps ensure that the awarded price is not excessively high and that the government is obtaining services at a reasonable cost.

Public Impact

Veterans will benefit from consistent access to nursing care through the provision of temporary staff. Essential healthcare services will be maintained at VA facilities. The primary geographic impact is within Indiana, supporting local veteran populations. The contract supports the nursing workforce by providing temporary employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for high turnover in temporary staff impacting continuity of care.
Reliance on temporary staff may not address long-term staffing shortages.
Ensuring consistent quality of care across different temporary providers.

Positive Signals

Addresses immediate staffing needs, ensuring critical services are not interrupted.
Competition ensures a pool of qualified providers is available.
Firm fixed-price contract provides cost certainty.

Sector Analysis

The healthcare staffing sector is a critical component of the broader healthcare industry, experiencing significant demand for qualified professionals. Temporary staffing services play a vital role in filling immediate needs and managing fluctuations in demand. This contract fits within the temporary help services sub-sector, specifically addressing the shortage of nursing personnel within the federal healthcare system. Comparable spending benchmarks for nursing services can vary widely based on location, specialty, and contract duration.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While GHOST RX INC. is the prime contractor, there is no explicit information provided regarding subcontracting plans with small businesses. Further analysis would be needed to determine if small businesses are participating in the subcontracting chain.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Veterans Affairs Medical Care Programs
Federal Healthcare Staffing Services
Temporary Staffing Contracts

Risk Flags

Potential for inconsistent quality of care due to temporary staffing.
Risk of high turnover impacting continuity of patient care.
Need for robust vetting and onboarding of temporary staff.
Contract duration may not address long-term staffing solutions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.8 million to GHOST RX INC.. NURSING

Who is the contractor on this award?

The obligated recipient is GHOST RX 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 $8.8 million.

What is the period of performance?

Start: 2023-09-30. End: 2025-09-29.

What is the track record of GHOST RX INC. in performing federal contracts, particularly for nursing services?

Information regarding GHOST RX INC.'s specific track record with federal contracts, especially for nursing services, is not detailed in the provided data. A comprehensive review would involve examining past performance evaluations, contract history, and any reported issues or successes on similar government procurements. Understanding their experience with the Department of Veterans Affairs or other healthcare agencies would be crucial in assessing their capability to fulfill this current contract effectively. Without this historical data, it is difficult to definitively gauge their reliability and past performance quality.

How does the awarded price compare to market rates for temporary nursing services in Indiana?

The provided data does not include specific per-unit costs or detailed pricing breakdowns, making a direct comparison to market rates challenging. To assess value for money, one would need to benchmark the contract's hourly or daily rates against prevailing market rates for similar nursing specialties and experience levels in the Indiana region. Factors such as the specific nursing roles (e.g., RN, LPN, CNA), required qualifications, and the urgency of the need can significantly influence market rates. A thorough analysis would involve consulting industry salary surveys and other government contract databases for comparable services.

What are the primary risks associated with relying on temporary nursing staff for VA facilities?

The primary risks associated with relying on temporary nursing staff include potential inconsistencies in the quality of care, challenges in maintaining continuity of care due to staff turnover, and difficulties in integrating temporary staff into existing clinical teams and protocols. There can also be risks related to credentialing and onboarding processes, ensuring temporary staff meet all necessary qualifications and regulatory requirements. Furthermore, over-reliance on temporary staff might not address underlying systemic issues contributing to permanent staffing shortages and could lead to higher overall costs in the long run compared to permanent hires.

What is the expected impact of this contract on the overall effectiveness of VA healthcare delivery in Indiana?

This contract is expected to positively impact the effectiveness of VA healthcare delivery in Indiana by ensuring adequate nursing coverage, particularly during periods of high demand or staff shortages. By providing temporary nursing personnel, the contract aims to maintain patient care standards, reduce wait times, and prevent disruptions in services. The success of this impact hinges on the reliability and quality of the temporary staff provided by GHOST RX INC. and the VA's ability to effectively manage and integrate these resources into their existing healthcare operations.

How has federal spending on temporary nursing services evolved over the past five years, and does this contract align with trends?

Analyzing federal spending trends on temporary nursing services over the past five years would require access to historical federal procurement data. Generally, the demand for healthcare services, including temporary staffing, has seen an upward trend, exacerbated by factors like an aging population and workforce challenges. This $8.8 million contract for two years appears to be a moderate-sized award within this context. To determine alignment with trends, one would need to compare its value and scope against the aggregate federal spending in this category, looking for patterns in contract volume, average award values, and the agencies most frequently utilizing such services.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11480 RIVOLLI CT, RENO, NV, 89521

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $41,367,632

Exercised Options: $8,847,148

Current Obligation: $8,847,148

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: V797D40232

IDV Type: FSS

Timeline