VA awards $2.35M for Nocturnist Services in Fayetteville, AR to Dax Safety & Staffing Solutions

Contract Overview

Contract Amount: $2,353,926 ($2.4M)

Contractor: DAX Safety & Staffing Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-04-01

End Date: 2027-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NOCTURNIST SERVICES - FAYETTEVILLE AR

Place of Performance

Location: FAYETTEVILLE, WASHINGTON County, ARKANSAS, 72703

State: Arkansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.4 million to DAX SAFETY & STAFFING SOLUTIONS, LLC for work described as: NOCTURNIST SERVICES - FAYETTEVILLE AR Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 5 years (1825 days) indicates a long-term need for these services. 3. The firm-fixed-price contract type helps manage cost certainty for the government. 4. The services are categorized under Temporary Help Services, highlighting a specific workforce need. 5. The awardee, Dax Safety & Staffing Solutions, LLC, is a new entity in federal contracting based on this award. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more information on the specific services and the number of hours or individuals provided. The total award amount of $2.35 million over five years averages to $470,000 annually. This figure needs to be compared against market rates for nocturnist services in the Fayetteville, Arkansas area, considering the qualifications and experience required. Without comparable contract data or detailed service descriptions, a definitive value-for-money assessment is difficult.

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 offers. The data shows there were 2 bids received. A low number of bids can sometimes suggest limited market interest or specialized requirements, but it also means the government had at least one alternative to consider, which is generally positive for price discovery.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally provides taxpayers with a better opportunity for competitive pricing compared to sole-source or limited competition awards.

Public Impact

Patients at the Fayetteville VA Medical Center will benefit from continuous nocturnist services, ensuring care during overnight hours. The contract supports the delivery of essential healthcare services, specifically for veterans requiring medical attention outside of standard business hours. The geographic impact is focused on Fayetteville, Arkansas, directly serving the local veteran population. The contract implies a need for qualified medical professionals to fill these temporary staffing roles, potentially impacting the local healthcare workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bids) may indicate potential market concentration or barriers to entry for other firms.
The awardee is a new entity in federal contracting, raising questions about their past performance and capacity to deliver on this contract.
Lack of detailed service scope makes it difficult to assess if the price is competitive for the actual work performed.

Positive Signals

Awarded through full and open competition, adhering to principles of fair opportunity.
Firm-fixed-price contract type provides cost certainty for the government.
Long-term duration (5 years) suggests a stable and ongoing need for these critical services.

Sector Analysis

The healthcare sector, particularly within the federal government, relies heavily on staffing services to ensure continuous patient care. Temporary help services, like those provided under this contract, are crucial for filling gaps, managing fluctuating demand, and ensuring specialized coverage, such as overnight medical care. The market for healthcare staffing is competitive, but specialized roles like nocturnists can command higher rates due to the required expertise and the demanding nature of the work. Federal agencies often use IDIQ contracts or similar vehicles to procure these services efficiently.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no small business subcontracting is explicitly mentioned. The award went to Dax Safety & Staffing Solutions, LLC. Further investigation would be needed to determine if this entity qualifies as a small business itself and what its subcontracting plans might be, if any. The absence of a small business set-aside suggests the primary competition was not focused on this category.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs (VA) contracting officers and program managers. The VA has an Office of Inspector General (OIG) that investigates fraud, waste, and abuse within VA programs and contracts. Transparency is facilitated through contract award databases like FPDS. Accountability measures would include performance reviews, adherence to the firm-fixed-price terms, and compliance with service level agreements outlined in the contract.

Related Government Programs

VA Medical Services Contracts
Temporary Healthcare Staffing
Physician and Specialist Services
Federal Healthcare Procurement

Risk Flags

Limited Competition
New Contractor Entity
Potential Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.4 million to DAX SAFETY & STAFFING SOLUTIONS, LLC. NOCTURNIST SERVICES - FAYETTEVILLE AR

Who is the contractor on this award?

The obligated recipient is DAX SAFETY & STAFFING SOLUTIONS, 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 $2.4 million.

What is the period of performance?

Start: 2022-04-01. End: 2027-03-31.

What is the specific scope of 'Nocturnist Services' required under this contract, and what are the expected qualifications of the personnel?

The provided data does not detail the specific scope of 'Nocturnist Services.' Typically, nocturnists are physicians or advanced practice providers who provide medical care during nighttime hours in a hospital setting. This often includes admitting new patients, responding to medical emergencies, managing patient care, and communicating with other medical staff. Qualifications would likely include a medical degree (MD or DO), relevant board certification or eligibility, state medical licensure, and potentially specific experience in hospital medicine or emergency care. The exact requirements would be detailed in the contract's Statement of Work (SOW), which is not available in the provided data.

How does the awarded price of $2.35 million over five years compare to market rates for similar nocturnist services in the Fayetteville, AR region?

A direct comparison of the $2.35 million award to market rates is difficult without knowing the exact number of hours, the level of service (e.g., physician vs. NP/PA), and the specific qualifications required. However, averaging $470,000 annually for nocturnist coverage suggests a significant need. Market rates for nocturnists can vary widely based on location, experience, and the intensity of the patient load. In many regions, physician nocturnists can command salaries or hourly rates that, when annualized and factored for benefits and overhead, could place a contract of this size within a plausible range, especially for comprehensive coverage. Further analysis would require benchmarking against local hospital staffing contracts or physician compensation surveys.

What is the track record of Dax Safety & Staffing Solutions, LLC in performing federal contracts, particularly within the healthcare staffing domain?

Based on the provided data, Dax Safety & Staffing Solutions, LLC appears to be a relatively new entity in the federal contracting space, with this award being a primary indicator of its engagement. Federal procurement databases often track a contractor's award history, past performance evaluations, and any instances of contract disputes or terminations. Without access to more comprehensive federal contracting records or performance reviews specific to this company, it is difficult to assess their established track record. Agencies typically conduct pre-award reviews to ensure new contractors have the capacity and capability to meet contract requirements, but long-term performance data would be limited for a newer firm.

Given that only two bids were received, what are the potential implications for price competition and the risk of contractor overpricing?

Receiving only two bids in a full and open competition can raise concerns about the level of market interest or potential barriers to entry for other qualified firms. While two bidders still represent some level of competition, it is less than ideal compared to a scenario with numerous offers. This limited competition could potentially reduce the downward pressure on pricing, increasing the risk that the awarded price might be higher than it would be in a more robustly contested environment. The government's contracting officers would have assessed the reasonableness of the price based on the bids received and available market data, but a wider field of bidders generally offers greater assurance of competitive pricing for taxpayers.

What are the potential risks associated with awarding a 5-year contract to a company with a potentially limited federal contracting history?

Awarding a long-term contract, such as this 5-year delivery order, to a company with a potentially limited federal contracting history introduces several risks. These include the possibility of the contractor lacking the established processes, financial stability, or experienced personnel necessary to consistently meet the demanding requirements of federal service delivery over an extended period. There's also a risk related to performance management; if the contractor underperforms, the government may face challenges in finding replacements or enforcing corrective actions, especially if the contractor is not well-versed in federal compliance and performance standards. The VA would likely mitigate these risks through rigorous pre-award evaluations, phased performance monitoring, and clear contractual remedies.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3219 NE 153RD TER, SMITHVILLE, MO, 64089

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,993,381

Exercised Options: $2,353,926

Current Obligation: $2,353,926

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79720D0146

IDV Type: FSS

Timeline