VA awards $976K for Pulmonology Services to GHOST RX INC., utilizing firm fixed-price contract

Contract Overview

Contract Amount: $976,546 ($976.5K)

Contractor: Ghost RX Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-01-01

End Date: 2025-12-31

Contract Duration: 364 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PULMONOLOGY SERVICES

Place of Performance

Location: SHREVEPORT, CADDO County, LOUISIANA, 71101

State: Louisiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $976,546 to GHOST RX INC. for work described as: PULMONOLOGY SERVICES Key points: 1. Contract value appears reasonable for specialized medical services, pending further benchmarking. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. Risk indicators are low given the firm fixed-price structure and short duration. 4. Performance context is critical to assess the value delivered by GHOST RX INC. 5. This contract fits within the broader healthcare services sector for the VA. 6. The contract's duration of 364 days indicates a short-term need for these services.

Value Assessment

Rating: good

The contract value of $976,546 for a one-year period of Pulmonology Services is within a typical range for specialized medical staffing. Benchmarking against similar contracts for temporary medical professionals, particularly in high-demand specialties like pulmonology, would provide a clearer picture of value for money. The firm fixed-price (FFP) contract type helps control costs, as the contractor is responsible for any cost overruns. Without specific details on the scope of services and the qualifications of the personnel provided, a definitive value assessment is challenging, but the initial figures do not raise immediate red flags.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded prior to the solicitation. The specific reasons for exclusion are not detailed here but could relate to pre-qualification requirements, past performance issues, or specific technical capabilities. The number of bidders is not provided, making it difficult to assess the intensity of the competition. This procurement method suggests a need for specialized services where a limited pool of qualified contractors might exist.

Taxpayer Impact: The exclusion of sources, even if justified, can potentially limit price discovery and may result in higher costs for taxpayers compared to a truly open and unrestricted competition. However, if the exclusions were necessary to ensure the highest quality or most specialized services, the long-term value could still be positive.

Public Impact

Veterans receiving care will benefit from access to specialized pulmonology services. The services delivered will support the Department of Veterans Affairs' mission to provide healthcare. The contract's geographic impact is focused on Louisiana, where the services will be rendered. Workforce implications include the provision of temporary medical staff, potentially alleviating staffing shortages.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusion impacting price discovery.
Reliance on a single contractor for specialized services could create dependency.
Scope creep is a risk if not clearly defined in the contract terms.
Ensuring consistent quality of care from temporary staff requires robust oversight.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Short contract duration limits long-term financial commitment and allows for re-evaluation.
Focus on specialized pulmonology services addresses a specific healthcare need.
Award to GHOST RX INC. suggests they met the necessary qualifications.

Sector Analysis

The healthcare services sector is a significant area of federal spending, particularly for agencies like the Department of Veterans Affairs. This contract for pulmonology services falls under the broader category of medical staffing and temporary healthcare support. The market for such services is competitive, with numerous providers specializing in placing qualified medical professionals. Federal agencies often utilize such contracts to fill immediate staffing gaps, access specialized expertise, or manage fluctuating patient loads. Comparable spending benchmarks would typically look at hourly or daily rates for pulmonologists and related support staff across different geographic regions and contract types.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss=false, sb=false). The award was made under full and open competition after exclusion of sources, suggesting that the primary focus was on securing the required specialized services rather than prioritizing small business participation. There is no information provided regarding subcontracting plans. This means that opportunities for small businesses to participate in this specific contract are likely limited unless GHOST RX INC. voluntarily engages them.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring GHOST RX INC. to deliver the specified services within the agreed-upon budget. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics are not publicly disclosed. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Veterans Health Administration Medical Services
Temporary Physician Staffing Contracts
Specialty Medical Services Procurement
Healthcare Staffing Solutions

Risk Flags

Limited competition due to source exclusion.
Potential for price not being fully optimized due to limited competition.
Dependence on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $976,546 to GHOST RX INC.. PULMONOLOGY SERVICES

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 $976,546.

What is the period of performance?

Start: 2025-01-01. End: 2025-12-31.

What specific pulmonology services are included in this contract, and what are the qualifications required for the personnel?

The provided data does not detail the specific scope of pulmonology services or the precise qualifications required for the personnel. However, given the specialty, it likely includes diagnostic services (e.g., pulmonary function tests, bronchoscopies), treatment of respiratory conditions (e.g., asthma, COPD, pneumonia, sleep apnea), and potentially critical care support in intensive care units. Personnel would typically be licensed physicians specializing in pulmonology, potentially with additional certifications in critical care medicine. The Department of Veterans Affairs would have outlined these requirements in the solicitation documents, which are not available here. Understanding these specifics is crucial for assessing the value and necessity of the contract.

How does the contract value of $976,546 compare to similar pulmonology service contracts awarded by the VA or other federal agencies?

Benchmarking this contract's value requires comparing it to similar firm fixed-price contracts for pulmonology services, ideally within the same geographic region (Louisiana) and for a similar duration (364 days). Without access to a comprehensive database of comparable contracts, a precise comparison is difficult. However, the total value suggests an average daily rate of approximately $2,683 ($976,546 / 364 days). This rate needs to be evaluated against market rates for pulmonologists, considering factors like physician experience, required certifications, and the specific services rendered. If this rate is significantly higher or lower than market averages for similar contracted services, it would indicate potential issues with value for money.

What were the specific reasons for excluding certain sources in this 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement?

The reason for excluding specific sources in this procurement is not detailed in the provided data. Typically, such exclusions are based on documented justifications, such as the need for highly specialized expertise not widely available, prior unsatisfactory performance by certain contractors, or specific security requirements. The agency must provide a rationale for exclusion, often documented in the contract file. This could involve a pre-qualification process where only a subset of potential offerors met stringent criteria, or a decision to exclude specific contractors based on past performance reviews. Understanding this rationale is key to assessing whether the exclusion was justified and if it potentially limited competition unfairly.

What is the track record of GHOST RX INC. in providing similar medical staffing or pulmonology services to the federal government?

Information regarding GHOST RX INC.'s specific track record in providing pulmonology services or similar medical staffing to the federal government is not included in the provided data. To assess their reliability and performance history, one would need to review their past federal contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. A positive track record with the VA or other agencies would increase confidence in their ability to deliver the required services effectively and efficiently under this new contract.

What are the potential risks associated with relying on a single contractor, GHOST RX INC., for these specialized pulmonology services?

Relying on a single contractor like GHOST RX INC. for specialized pulmonology services carries several potential risks. Firstly, there's a risk of vendor lock-in, making it difficult and costly to switch providers if performance issues arise or if market conditions change. Secondly, the lack of direct competition during the contract period could reduce the incentive for the contractor to maintain optimal service quality or offer competitive pricing adjustments. Thirdly, the contractor's ability to scale services up or down based on fluctuating VA needs might be limited. Finally, any disruption to GHOST RX INC.'s operations (e.g., staffing shortages, financial difficulties) could directly impact the VA's ability to provide essential pulmonology care to veterans.

How does the contract's firm fixed-price (FFP) structure benefit the Department of Veterans Affairs in managing costs for these services?

The firm fixed-price (FFP) structure is highly beneficial for the Department of Veterans Affairs (VA) in managing costs for these pulmonology services. Under an FFP contract, the contractor, GHOST RX INC., assumes the primary risk for cost overruns. This means the total price paid by the VA will not exceed the agreed-upon amount, regardless of the contractor's actual costs incurred in performing the work. This provides the VA with significant cost certainty and predictability, making budgeting easier. It incentivizes the contractor to manage their own costs efficiently to maximize profit. The FFP structure is generally preferred for services where the scope of work is well-defined and the risk of unforeseen costs is manageable.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1561 S ALAFAYA TRL, ORLANDO, FL, 32828

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: $976,546

Exercised Options: $976,546

Current Obligation: $976,546

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25623D0027

IDV Type: IDC

Timeline