VA awards $4.2M for interventional radiology support to University of Mississippi Medical Center

Contract Overview

Contract Amount: $4,205,106 ($4.2M)

Contractor: University of Mississippi Medical Center

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-04-01

End Date: 2026-09-30

Contract Duration: 2,008 days

Daily Burn Rate: $2.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: INTERVENTIONAL RADIOLOGY SUPPORT FOR THE G.V. (SONNY) MONTGOMERY VETERANS AFFAIRS MEDICAL CENTER

Place of Performance

Location: UNIVERSITY, LAFAYETTE County, MISSISSIPPI, 38677

State: Mississippi Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.2 million to UNIVERSITY OF MISSISSIPPI MEDICAL CENTER for work described as: INTERVENTIONAL RADIOLOGY SUPPORT FOR THE G.V. (SONNY) MONTGOMERY VETERANS AFFAIRS MEDICAL CENTER Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract duration of over five years suggests a long-term need for these specialized services. 3. Firm Fixed Price contract type indicates predictable costs for the government, but may limit flexibility. 4. The awardee is a well-established academic medical center, likely possessing the required expertise. 5. No small business set-aside was utilized, potentially limiting opportunities for smaller specialized providers. 6. The contract's value is moderate within the context of healthcare services for a major medical center.

Value Assessment

Rating: fair

The contract value of $4.2 million over approximately five years for interventional radiology support appears reasonable for a large medical center. However, without competitive bidding, it is difficult to benchmark against market rates or assess if the government received the best possible value. The firm fixed-price structure provides cost certainty, but the absence of competition means there's no direct comparison to other potential providers' pricing strategies. Further analysis would require understanding the specific services included and the typical costs for such support in academic medical centers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, often due to unique capabilities, existing infrastructure, or urgent needs. The lack of competition means there were no other bidders to compare against, which can sometimes lead to higher prices than if a competitive process had been employed. The rationale for sole-source procurement should be clearly documented to ensure it was justified.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that can arise from a competitive bidding process, potentially leading to a higher overall expenditure for these services.

Public Impact

Veterans receiving care at the G.V. (Sonny) Montgomery VA Medical Center will benefit from continued access to interventional radiology services. These services are critical for diagnosing and treating a wide range of conditions, including vascular diseases, cancers, and internal bleeding. The contract supports the operational continuity of a key healthcare service within a major VA facility. The workforce at the University of Mississippi Medical Center, including specialized radiologists and support staff, will be engaged through this contract. The geographic impact is primarily focused on veterans served by the Montgomery VA Medical Center in Mississippi.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing for taxpayers.
Sole-source awards can limit opportunities for other qualified providers to enter the market.
The long contract duration without re-competition could reduce incentives for continuous service improvement.

Positive Signals

Award to a known academic medical center suggests a high likelihood of qualified personnel and established processes.
Firm Fixed Price contract provides budget certainty for the VA.
The contract ensures continuity of essential medical services for veterans.

Sector Analysis

The healthcare services sector, particularly within the federal government, is characterized by significant spending on medical equipment, supplies, and specialized professional services. Interventional radiology is a subspecialty within medical imaging and surgery, requiring highly trained professionals and advanced technology. Contracts for such services are common within the VA and other federal health agencies. Benchmarking this contract's value would typically involve comparing it to similar sole-source or competitively awarded contracts for interventional radiology support at other VA facilities or large civilian hospitals, considering the scope of services and patient volume.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the information provided. The awardee, the University of Mississippi Medical Center, is a large academic institution. This means that the direct economic benefit to the small business sector from this specific contract is likely minimal. Future solicitations could explore set-aside options if specialized interventional radiology services could be effectively provided by qualified small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs, specifically the G.V. (Sonny) Montgomery VA Medical Center's contracting and medical leadership. The VA has internal audit and inspection mechanisms, and the Government Accountability Office (GAO) can review contract awards and performance. Transparency is generally maintained through contract databases like FPDS, although the justification for sole-source awards requires specific documentation. The VA Office of Inspector General (OIG) may also investigate any reported issues of fraud, waste, or abuse related to contract performance.

Related Government Programs

VA Medical Services Contracts
Interventional Radiology Services
Academic Medical Center Partnerships
Federal Healthcare Procurement

Risk Flags

Sole-source award lacks competitive pricing validation.
Long contract duration may reduce incentive for service optimization.
Potential for higher costs compared to a competitive environment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.2 million to UNIVERSITY OF MISSISSIPPI MEDICAL CENTER. INTERVENTIONAL RADIOLOGY SUPPORT FOR THE G.V. (SONNY) MONTGOMERY VETERANS AFFAIRS MEDICAL CENTER

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF MISSISSIPPI MEDICAL CENTER.

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 $4.2 million.

What is the period of performance?

Start: 2021-04-01. End: 2026-09-30.

What specific interventional radiology procedures and support services are covered under this contract?

The provided data does not detail the specific interventional radiology procedures and support services included in the contract. Typically, such contracts encompass a range of diagnostic and therapeutic interventions performed using image guidance (e.g., X-ray, CT, ultrasound). This can include procedures like angiography, angioplasty, stenting, embolization, biopsies, drainages, and thrombolysis. Support services often involve the provision of necessary equipment, supplies, technical staff, and potentially physician coverage for these procedures. A comprehensive review of the contract's Statement of Work (SOW) would be necessary to ascertain the full scope of services.

How does the annual cost of this contract compare to similar interventional radiology support contracts at other VA medical centers?

Direct comparison of the annual cost ($4.2M over ~5 years, roughly $840K/year) to similar VA contracts is challenging without access to detailed contract data for other facilities and specific service scopes. However, for a large medical center, this figure appears moderate. Sole-source awards, by their nature, lack a competitive benchmark. To perform a robust comparison, one would need to identify VA medical centers of similar size and patient volume, examine their interventional radiology support contracts (especially those competed), and analyze the scope of services, pricing structures (FFP, T&M), and contract durations. The University of Mississippi Medical Center's status as an academic institution might also influence cost structures compared to non-academic facilities.

What is the track record of the University of Mississippi Medical Center in performing interventional radiology services for the VA or other large healthcare systems?

The University of Mississippi Medical Center (UMMC) is a major academic health sciences center and the state's only academic medical center. As such, it has a long-standing history of providing comprehensive medical services, including complex specialties like interventional radiology, to a large patient population. While specific contract performance data with the VA for this exact service is not detailed here, UMMC's designation and operational scale suggest a strong capability and established track record in delivering high-quality healthcare. Their role as a primary teaching hospital implies significant experience with a wide array of medical procedures and patient care scenarios.

What are the potential risks associated with a sole-source award for essential medical services like interventional radiology?

The primary risk of a sole-source award for essential medical services is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the government may not achieve the best possible pricing. Another risk is reduced incentive for the contractor to innovate or improve service quality beyond the contract's minimum requirements, as there is no direct threat of losing the contract to a competitor. Furthermore, sole-source awards can limit opportunities for other qualified providers, potentially hindering market development and resilience. Ensuring robust contract management and performance monitoring becomes even more critical in sole-source situations to mitigate these risks.

What is the historical spending trend for interventional radiology support at the G.V. (Sonny) Montgomery VA Medical Center?

The provided data only includes details for the current contract awarded in April 2021. Historical spending trends for interventional radiology support at the G.V. (Sonny) Montgomery VA Medical Center are not available in this dataset. To analyze historical spending, one would need to access previous contract awards for similar services at this specific medical center, looking at contract values, durations, and award types (competed vs. sole-source) over several fiscal years. This would help identify patterns, changes in spending levels, and the prevalence of competitive versus non-competitive procurements for these essential services.

Industry Classification

NAICS: Educational Services › Colleges, Universities, and Professional Schools › Colleges, Universities, and Professional Schools

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C25621R0017

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2500 N STATE ST, JACKSON, MS, 39216

Business Categories: Category Business, Government, Hospital, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government, Special Designations

Financial Breakdown

Contract Ceiling: $5,746,862

Exercised Options: $4,205,106

Current Obligation: $4,205,106

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline