VA Awards $7.8M for STAT Reference Laboratory Testing Services to Billings Clinic

Contract Overview

Contract Amount: $7,867 ($7.9K)

Contractor: Billings Clinic

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-11-15

End Date: 2025-11-14

Contract Duration: 364 days

Daily Burn Rate: $22/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BILLINGS - STAT REFERENCE LABORATORY TESTING SERVICES FINAL ORDER

Place of Performance

Location: BILLINGS, YELLOWSTONE County, MONTANA, 59102

State: Montana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $7,867.42 to BILLINGS CLINIC for work described as: BILLINGS - STAT REFERENCE LABORATORY TESTING SERVICES FINAL ORDER Key points: 1. Contract awarded to Billings Clinic for essential laboratory testing services. 2. Competition method was 'COMPETED UNDER SAP', indicating a potentially limited but documented process. 3. The contract duration is one year, with a firm-fixed-price structure. 4. This award falls under the Medical Laboratories NAICS code (621511).

Value Assessment

Rating: fair

The contract value of $7.8M for a one-year period for reference laboratory testing services appears reasonable given the specialized nature of the service. Benchmarking against similar contracts for reference lab services would provide a more definitive assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a limited competition approach. While this can expedite the process, it may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being utilized for essential healthcare services. The use of SAP suggests an effort to balance efficiency with cost, but the ultimate impact on taxpayer value depends on the price discovery achieved.

Public Impact

Ensures access to critical STAT laboratory testing for VA patients. Supports the operational needs of the Department of Veterans Affairs healthcare system. Provides specialized medical laboratory services that may not be available in-house.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may not have achieved optimal pricing.
Contract duration is short (1 year), requiring potential re-competition soon.
No explicit mention of small business participation.

Positive Signals

Addresses a critical healthcare need for veterans.
Firm-fixed-price contract provides cost certainty.
Awarded to a known entity (Billings Clinic).

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on medical laboratories. Spending in this area is crucial for patient care and diagnostics within the VA system. Benchmarks for similar reference laboratory contracts would be necessary for a precise comparison.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this procurement. Further analysis would be needed to determine if opportunities were provided to small businesses or if they participated in the competition.

Oversight & Accountability

The award was made by the Department of Veterans Affairs, which has established oversight mechanisms for contract management. The use of a BPA Call suggests adherence to pre-negotiated terms, but the specific oversight of this call needs further review.

Related Government Programs

Medical Laboratories
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition may have resulted in higher costs.
Lack of transparency on per-unit pricing makes value assessment difficult.
Short contract duration necessitates frequent re-competition.
No clear indication of small business participation.
Potential for service disruption if performance is poor or contract is not renewed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $7,867.42 to BILLINGS CLINIC. BILLINGS - STAT REFERENCE LABORATORY TESTING SERVICES FINAL ORDER

Who is the contractor on this award?

The obligated recipient is BILLINGS CLINIC.

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 $7,867.42.

What is the period of performance?

Start: 2024-11-15. End: 2025-11-14.

What was the specific justification for using Simplified Acquisition Procedures (SAP) for a contract of this value and nature?

The justification for using SAP, typically for procurements under the simplified acquisition threshold (SAT), for a contract valued at $7.8M is unusual. It might suggest a specific set of circumstances, such as a pre-existing Blanket Purchase Agreement (BPA) with established pricing, or a unique regulatory allowance. Further investigation into the specific SAP category and the agency's rationale is warranted to understand if this approach maximized value or if a more competitive full and open process could have been beneficial.

How does the per-unit cost of these reference laboratory tests compare to industry benchmarks or other VA contracts?

Without specific per-unit cost data for the services rendered under this contract, a direct comparison to industry benchmarks or other VA contracts is not possible. The total contract value of $7.8M for one year provides a macro-level view, but the true cost-effectiveness hinges on the pricing of individual tests. Obtaining detailed pricing information would be essential to assess if the VA is receiving competitive rates for these critical laboratory services.

What is the potential impact on veteran healthcare access if Billings Clinic's performance is suboptimal or if the contract is not renewed?

A suboptimal performance by Billings Clinic could lead to delays or inaccuracies in STAT laboratory testing, directly impacting veteran healthcare decisions and treatment efficacy. If the contract is not renewed, the VA would need to quickly establish a new contract, potentially through a less competitive process if time is critical, which could lead to higher costs or a temporary disruption in service availability, affecting patient care continuity.

Industry Classification

NAICS: Health Care and Social Assistance › Medical and Diagnostic Laboratories › Medical Laboratories

Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2800 10TH AVE N, BILLINGS, MT, 59101

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,867

Exercised Options: $7,867

Current Obligation: $7,867

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C25920A0009

IDV Type: BPA

Timeline