VA awards $3.47M for outpatient clinic services in Yale, MI, with full and open competition

Contract Overview

Contract Amount: $3,469,421 ($3.5M)

Contractor: Mclaren Port Huron

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: COMMUNITY BASED-OUTPATIENT CLINIC (CBOC)IN THE AREA OF YALE, MI.

Place of Performance

Location: YALE, SAINT CLAIR County, MICHIGAN, 48097

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.5 million to MCLAREN PORT HURON for work described as: COMMUNITY BASED-OUTPATIENT CLINIC (CBOC)IN THE AREA OF YALE, MI. Key points: 1. Contract awarded to McLaren Port Huron for outpatient care services. 2. The contract duration is one year, aligning with annual healthcare needs. 3. Pricing appears competitive given the scope of outpatient services. 4. Full and open competition was utilized, suggesting a robust bidding process. 5. The contract is a delivery order under a larger indefinite-delivery contract. 6. Geographic focus on Yale, MI, addresses local veteran healthcare access.

Value Assessment

Rating: good

The contract value of $3.47 million for a one-year period for outpatient clinic services appears reasonable. Benchmarking against similar Community Based Outpatient Clinics (CBOCs) managed by the VA would provide a more precise value assessment. However, the fixed-price nature of the contract helps control costs for the government. The award to an established healthcare provider like McLaren Port Huron suggests a focus on reliable service delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service options for the government. The VA's use of this procurement method suggests confidence in achieving fair market value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a wider range of bids and encourages providers to offer their best pricing and service terms.

Public Impact

Veterans in the Yale, Michigan area will benefit from continued access to essential outpatient healthcare services. The contract ensures the provision of 'All Other Outpatient Care Centers' services, covering a range of medical needs. The geographic impact is localized to Yale, MI, and surrounding communities, improving healthcare accessibility for local veterans. The contract supports the operational workforce of McLaren Port Huron, contributing to local employment in the healthcare sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor performance falters, though unlikely with established providers.
Reliance on a single provider for a specific geographic area could limit immediate alternatives in case of unforeseen issues.

Positive Signals

Award to an established healthcare system (McLaren Port Huron) suggests a track record of providing healthcare services.
The use of full and open competition indicates a structured procurement process aimed at securing value.
The contract is a delivery order, implying it's part of a pre-vetted framework, potentially reducing execution risk.

Sector Analysis

This contract falls within the Healthcare sector, specifically outpatient care services. The market for healthcare services, particularly for government contracts like those with the VA, is substantial. This award represents a portion of the VA's broader strategy to provide accessible healthcare to veterans through various means, including community-based clinics. Comparable spending benchmarks would involve analyzing other CBOC contracts across different regions.

Small Business Impact

There is no indication that this contract involved small business set-asides. The award was made under full and open competition to McLaren Port Huron, a larger healthcare system. Subcontracting opportunities for small businesses are not explicitly detailed but could potentially arise if McLaren Port Huron engages them for specific support services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver services at an agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, though specific performance metrics are not detailed here.

Related Government Programs

Department of Veterans Affairs Medical Care Programs
Community Based Outpatient Clinics (CBOCs)
Outpatient Care Services Contracts

Risk Flags

Contract Duration
Performance Monitoring
Geographic Service Area

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.5 million to MCLAREN PORT HURON. COMMUNITY BASED-OUTPATIENT CLINIC (CBOC)IN THE AREA OF YALE, MI.

Who is the contractor on this award?

The obligated recipient is MCLAREN PORT HURON.

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 $3.5 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the historical spending pattern for outpatient clinic services in the Yale, MI area by the Department of Veterans Affairs?

Analyzing historical spending for outpatient clinic services in the Yale, MI area by the VA requires access to detailed procurement data beyond this single award. Typically, the VA utilizes a mix of direct provision through its own facilities and contracts with community providers, including CBOCs. Spending patterns can fluctuate based on veteran population growth, changes in healthcare needs, and the availability of local providers. Without specific historical data for this region, it's difficult to establish a precise pattern. However, the VA's overall budget for healthcare services is substantial and has generally trended upwards to meet the needs of a growing veteran population and expanding healthcare benefits. This $3.47 million award represents a specific allocation for one year of services in this particular locale, suggesting a consistent need for such services in the area.

How does the awarded price per veteran compare to other VA outpatient clinics?

Determining a precise price per veteran requires knowing the number of veterans served under this contract and the total contract value. The provided data indicates a contract value of $3.47 million for a 364-day period. To benchmark this effectively, we would need to know the estimated number of unique veterans expected to receive care. If, for example, the clinic serves 5,000 veterans over the year, the cost per veteran would be approximately $694. This figure can then be compared to national averages or regional benchmarks for VA CBOCs. Factors influencing this cost include the scope of services offered, geographic location (which affects operational costs), and the specific negotiated rates. Without the veteran count, a direct comparison is not feasible, but the contract's fixed-price nature aims to provide cost certainty.

What is the track record of McLaren Port Huron with VA contracts?

McLaren Port Huron is a known healthcare provider in Michigan. To assess their track record specifically with VA contracts, a review of historical contract awards and performance data would be necessary. This would involve searching federal procurement databases for previous awards to McLaren Port Huron from the VA or other federal agencies. Key aspects to examine would include contract values, types of services provided, duration, and any reported performance issues or commendations. A positive history with previous VA contracts, particularly for similar outpatient services, would indicate a lower performance risk for this new award. Conversely, any past performance concerns would warrant closer scrutiny of this current contract's oversight.

What are the key performance indicators (KPIs) for this contract?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for VA outpatient clinic contracts, typical KPIs often revolve around patient access (e.g., appointment wait times), quality of care (e.g., adherence to clinical guidelines, patient outcomes), patient satisfaction, and operational efficiency. The contract likely includes performance standards that McLaren Port Huron must meet to receive full payment. These standards are usually outlined in the contract's Performance Work Statement (PWS). The Department of Veterans Affairs would monitor these KPIs throughout the contract period to ensure the delivery of adequate and timely healthcare services to veterans.

What is the potential impact of this contract on healthcare access for veterans in rural Michigan?

This contract directly addresses healthcare access for veterans in the Yale, Michigan area, which may include rural or semi-rural populations. By establishing or continuing a Community Based Outpatient Clinic (CBOC) through a local provider like McLaren Port Huron, the VA aims to bring essential medical services closer to veterans who might otherwise face significant travel burdens to reach larger VA medical centers. This localized access is crucial for ensuring veterans receive timely care, manage chronic conditions effectively, and utilize preventative health services, thereby improving their overall well-being and reducing healthcare disparities often experienced in rural areas.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1221 PINE GROVE AVE, PORT HURON, MI, 48060

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: $3,469,421

Exercised Options: $3,469,421

Current Obligation: $3,469,421

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25023D0002

IDV Type: IDC

Timeline