VA Awards $3.3M for On-Site Dialysis Services to Renal Treatment Centers - West, Inc
Contract Overview
Contract Amount: $3,307,248 ($3.3M)
Contractor: Renal Treatment Centers - West, Inc
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-04-01
End Date: 2027-03-31
Contract Duration: 1,094 days
Daily Burn Rate: $3.0K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: ON-SITE DIALYSIS SERVICES
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73104
State: Oklahoma Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $3.3 million to RENAL TREATMENT CENTERS - WEST, INC for work described as: ON-SITE DIALYSIS SERVICES Key points: 1. Contract awarded to a single provider for specialized dialysis services. 2. The contract value is $3.3 million over approximately three years. 3. Competition method was 'Competed under SAP', suggesting a streamlined process. 4. The sector is healthcare, specifically kidney dialysis centers.
Value Assessment
Rating: fair
The contract's value of $3.3 million for on-site dialysis services over three years appears reasonable given the specialized nature of the service. Benchmarking against similar contracts for kidney dialysis centers would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under Simplified Acquisition Procedures (SAP), indicating a limited competition approach. While this can expedite the process, it may not always yield the most competitive pricing compared to full and open competition.
Taxpayer Impact: The use of SAP suggests an effort to efficiently procure necessary services, but the limited competition could potentially lead to higher costs for taxpayers than a more broadly competed contract.
Public Impact
Ensures access to essential dialysis services for veterans. Supports specialized medical care within the VA system. Potential for improved patient convenience with on-site services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may impact price efficiency.
- Reliance on a single provider for a critical service.
Positive Signals
- Addresses a specific healthcare need for veterans.
- Contract duration provides service stability.
Sector Analysis
This contract falls within the healthcare sector, specifically for kidney dialysis centers. Spending in this area is critical for patient care, and benchmarks vary widely based on service type and location.
Small Business Impact
The data does not indicate if small businesses were involved in this procurement. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for healthcare service contracts would apply to ensure quality and compliance.
Related Government Programs
- Kidney Dialysis Centers
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for higher costs due to limited competition.
- Service continuity risk with a single provider.
- Need for robust performance monitoring.
- Lack of transparency on small business participation.
Tags
kidney-dialysis-centers, department-of-veterans-affairs, ok, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $3.3 million to RENAL TREATMENT CENTERS - WEST, INC. ON-SITE DIALYSIS SERVICES
Who is the contractor on this award?
The obligated recipient is RENAL TREATMENT CENTERS - WEST, 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 $3.3 million.
What is the period of performance?
Start: 2024-04-01. End: 2027-03-31.
What is the typical cost per dialysis session for similar services in the region?
Determining the typical cost per dialysis session requires access to regional healthcare cost data and specific contract details. Without this comparative data, it's difficult to definitively assess if the $3.3 million contract represents optimal value. Factors like staffing, equipment, and facility overhead significantly influence per-session costs.
What are the risks associated with relying on a single provider for on-site dialysis services?
Relying on a single provider for on-site dialysis services presents risks such as service disruption due to provider issues (e.g., staffing shortages, equipment failure, financial instability), lack of competitive pressure to maintain high quality or control costs, and potential difficulties in scaling services if demand increases. Contingency planning is crucial.
How effectively does this contract meet the specific dialysis needs of the veteran population it serves?
The effectiveness of this contract hinges on the quality of care delivered, patient satisfaction, and the accessibility of services. While the contract ensures service provision, ongoing monitoring of patient outcomes, wait times, and feedback from veterans is essential to gauge true effectiveness and identify areas for improvement.
Industry Classification
NAICS: Health Care and Social Assistance › Outpatient Care Centers › Kidney Dialysis Centers
Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 36C25924R0069
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Davita Inc.
Address: 1301 CORNELL PKWY, OKLAHOMA CITY, OK, 73108
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,578,714
Exercised Options: $3,307,248
Current Obligation: $3,307,248
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-04-01
Current End Date: 2027-03-31
Potential End Date: 2029-03-31 00:00:00
Last Modified: 2026-02-11
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