VA awards $11.7M for heart transplant and VAD services to University of Utah, a sole-source contract

Contract Overview

Contract Amount: $11,729,412 ($11.7M)

Contractor: University of Utah

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-05-01

End Date: 2026-04-30

Contract Duration: 364 days

Daily Burn Rate: $32.2K/day

Competition Type: NOT COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HEART TRANSPLANT AND VAD SERVICES

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84148

State: Utah Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11.7 million to UNIVERSITY OF UTAH for work described as: HEART TRANSPLANT AND VAD SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. The contract duration is one year, suggesting a need for ongoing specialized services. 3. Services are for heart transplant and Ventricular Assist Device (VAD) support, indicating critical medical needs. 4. The awardee, University of Utah, is a known provider in this specialized medical field. 5. Fixed-price contract type aims to control costs, but the lack of competition is a concern. 6. Geographic focus is Utah, serving veterans in that region.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and highly specialized service. Without competitive bids, it's difficult to ascertain if the $11.7 million represents optimal value for money. However, the fixed-price structure provides some cost certainty. The University of Utah is a reputable institution, suggesting a certain level of quality, but the absence of competition prevents a direct comparison to other potential providers or market rates for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not openly competed. The Department of Veterans Affairs identified the University of Utah as the only responsible source capable of providing these specialized heart transplant and VAD services. This approach bypasses the competitive bidding process, which typically leads to a wider range of proposals and potentially lower prices.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the price discovery mechanisms inherent in a competitive environment. This can result in paying a premium for the services.

Public Impact

Veterans in Utah requiring advanced cardiac care, including heart transplants and VAD support, will receive essential medical services. The University of Utah's medical facilities and specialized staff will be utilized to deliver these critical treatments. This contract ensures continuity of care for patients with severe heart conditions within the VA healthcare system. The award supports specialized medical professionals and infrastructure at the University of Utah, contributing to the local healthcare ecosystem.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs than a competed contract.
Sole-source awards reduce transparency and opportunities for new or smaller providers to enter the market.
Dependence on a single provider for critical services could pose a risk if performance issues arise.

Positive Signals

Award to a reputable institution (University of Utah) suggests a high likelihood of quality service delivery.
Fixed-price contract type provides cost predictability for the VA.
Ensures critical, specialized medical services are available to veterans in the region.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on advanced medical services. The market for specialized transplant and VAD services is typically concentrated among a few highly qualified medical institutions. The University of Utah is a significant player in this niche. Comparable spending benchmarks are difficult to establish due to the specialized nature and sole-source award, but the overall VA healthcare spending is substantial, with significant portions allocated to complex medical procedures and patient care.

Small Business Impact

This contract does not appear to include specific small business set-aside provisions. As a sole-source award to a large university medical center, there are limited direct subcontracting opportunities for small businesses within this specific contract. The focus is on specialized medical expertise rather than general services where small businesses often participate.

Oversight & Accountability

Oversight will be managed by the Department of Veterans Affairs, likely through contracting officers and program managers responsible for monitoring service delivery and adherence to contract terms. The fixed-price nature of the contract provides a degree of financial oversight. Transparency is limited due to the sole-source nature, but contract award details are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Medical Services Contracts
Organ Transplant Programs
Cardiovascular Device Services
Specialized Medical Procedures

Risk Flags

Sole-source award limits competition
High cost for specialized medical services
Potential for cost overruns if not managed tightly
Dependence on a single provider for critical care

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11.7 million to UNIVERSITY OF UTAH. HEART TRANSPLANT AND VAD SERVICES

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF UTAH.

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 $11.7 million.

What is the period of performance?

Start: 2025-05-01. End: 2026-04-30.

What is the historical spending by the VA on heart transplant and VAD services, and how does this award compare?

Historical spending data for specific services like heart transplants and VADs at a granular level can be challenging to isolate within broader VA medical expenditure reports. However, the VA consistently allocates significant funds towards specialized care for veterans. This $11.7 million award for a one-year period for these critical services suggests a substantial investment. Without access to detailed historical contract data for these exact services, a direct year-over-year comparison is difficult. However, the scale of this award indicates the high cost associated with advanced cardiac interventions and the VA's commitment to providing such specialized care to its veteran population. Future analysis could benefit from examining trends in VA spending on complex surgical procedures and medical devices.

What are the specific performance metrics and quality indicators used to evaluate the University of Utah's service delivery under this contract?

The contract document itself would typically outline the specific performance metrics and quality indicators. For specialized medical services like heart transplants and VAD support, these would likely include patient outcomes (e.g., survival rates, recovery times, complication rates), adherence to clinical best practices, timeliness of care, patient satisfaction scores, and potentially metrics related to the expertise and availability of medical staff. The Department of Veterans Affairs would be responsible for monitoring these metrics throughout the contract period. Failure to meet established standards could trigger corrective actions or impact future contract awards. Given the critical nature of these services, rigorous oversight and adherence to stringent quality standards are paramount.

What is the justification for awarding this contract on a sole-source basis, and were alternative solutions considered?

The justification for a sole-source award typically stems from the unique capabilities or qualifications of the selected contractor that cannot be replicated by others. In this case, the University of Utah likely possesses specialized facilities, highly trained surgical teams, and established protocols for performing complex heart transplants and managing VAD patients that the VA deemed essential and unavailable elsewhere within the required timeframe or geographic area. The VA contracting office would have documented this justification, potentially including market research to confirm the lack of other capable sources. Alternative solutions might have been considered, such as consolidating services or exploring different contracting vehicles, but the specific requirements of advanced cardiac care likely led to the determination that the University of Utah was the only viable option.

What is the University of Utah's track record with the VA and in providing similar specialized medical services?

The University of Utah is a well-established academic medical center with a strong reputation for providing advanced medical services, including organ transplantation and cardiac care. Its track record with the Department of Veterans Affairs would likely involve previous contracts for various medical services, though specific details on past heart transplant or VAD contracts would require deeper data analysis. Generally, academic medical centers are often chosen for complex procedures due to their expertise, research capabilities, and comprehensive care models. The VA often partners with such institutions to ensure veterans receive high-quality, specialized treatment. A review of past performance evaluations and contract history would provide a more definitive assessment of their reliability and quality of service.

How does the cost of this contract compare to national averages or benchmarks for similar specialized medical services?

Directly comparing the $11.7 million cost of this sole-source contract to national averages for heart transplant and VAD services is challenging without specific, granular data on comparable contracts. The cost of such procedures is highly variable, influenced by factors like patient complexity, specific VAD technology used, length of hospital stay, post-operative care, and geographic location. Furthermore, sole-source awards inherently lack the price discovery mechanism of competitive bidding, potentially inflating costs. While the University of Utah is a reputable provider, the absence of competitive bids makes it difficult to definitively state whether this price is optimal. Benchmarking would ideally involve comparing it to other VA contracts for similar services or to rates charged by other leading academic medical centers, which is often not publicly available in a directly comparable format.

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 UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 201 PRESIDENTS CIR, SALT LAKE CITY, UT, 84112

Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $11,729,412

Exercised Options: $11,729,412

Current Obligation: $11,729,412

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25925D0026

IDV Type: IDC

Timeline