VA awards $14.6M contract for medical support staff in Eastern Colorado Healthcare System

Contract Overview

Contract Amount: $14,622,400 ($14.6M)

Contractor: Arrow ARC LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-07-21

End Date: 2026-09-07

Contract Duration: 413 days

Daily Burn Rate: $35.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL SUPPORT ASSISTANT STAFF FOR MULTIPLE ACROSS EASTERN COLORADO HEALTHCARE SYSTEM

Place of Performance

Location: AURORA, ADAMS County, COLORADO, 80045

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.6 million to ARROW ARC LLC for work described as: MEDICAL SUPPORT ASSISTANT STAFF FOR MULTIPLE ACROSS EASTERN COLORADO HEALTHCARE SYSTEM Key points: 1. Contract value represents a significant investment in healthcare support services. 2. Competition dynamics suggest a potentially competitive bidding environment. 3. Performance period spans over a year, indicating a need for sustained support. 4. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. Fixed-price contract type aims to control costs and provide budget certainty. 6. The awardee, Arrow Arc LLC, will provide essential medical support staff.

Value Assessment

Rating: good

The contract value of $14.6 million for medical support staff over approximately 14 months appears reasonable given the scope of services for a large healthcare system. Benchmarking against similar contracts for temporary medical staffing within the VA or other federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests an expectation of predictable costs, but the ultimate value will depend on the efficiency and effectiveness of the services provided by Arrow Arc LLC.

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 presence of 9 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and encouraged innovative solutions from multiple vendors, ensuring the government receives the best value for its investment.

Public Impact

Veterans in Eastern Colorado will benefit from improved access to medical services due to adequate staffing levels. The contract ensures the continuity of essential medical support functions within the healthcare system. Services will be delivered across multiple facilities within the Eastern Colorado Healthcare System. The contract supports the healthcare workforce by providing temporary staffing solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on temporary staff impacting long-term institutional knowledge.
Ensuring consistent quality of care across different temporary staff members.
Managing the integration of temporary staff with existing permanent teams.

Positive Signals

Addresses immediate staffing needs, ensuring patient care continuity.
Leverages specialized skills that may not be readily available internally.
Provides flexibility to scale staffing up or down based on demand.

Sector Analysis

The healthcare support services sector is a critical component of the federal healthcare system, particularly for agencies like the Department of Veterans Affairs. This contract falls within the broader temporary help services industry, which is essential for organizations needing flexible staffing solutions. The VA's consistent need for medical support staff highlights the ongoing demand and market size for such services within the federal government.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Arrow Arc LLC, may have opportunities to subcontract with small businesses. The overall impact on the small business ecosystem will depend on Arrow Arc LLC's subcontracting plan and the specific services required that could be fulfilled by smaller entities.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Oversight mechanisms likely include regular performance reviews, quality assurance checks, and adherence to the terms and conditions of the firm-fixed-price contract. Transparency is generally maintained through contract award databases, and any significant issues would fall under the purview of the VA's Inspector General.

Related Government Programs

Veterans Health Administration Medical Support Services
Temporary Staffing Services for Federal Agencies
Healthcare Staffing Contracts
Department of Veterans Affairs Operational Support

Risk Flags

Potential for staff turnover impacting service continuity.
Ensuring compliance with healthcare regulations and patient privacy.
Adequacy of background checks and credentialing for medical support staff.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.6 million to ARROW ARC LLC. MEDICAL SUPPORT ASSISTANT STAFF FOR MULTIPLE ACROSS EASTERN COLORADO HEALTHCARE SYSTEM

Who is the contractor on this award?

The obligated recipient is ARROW ARC 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 $14.6 million.

What is the period of performance?

Start: 2025-07-21. End: 2026-09-07.

What is the track record of Arrow Arc LLC in performing similar federal contracts, particularly within the VA?

Arrow Arc LLC has a history of performing federal contracts, including those related to staffing and support services. A detailed review of their past performance with the Department of Veterans Affairs and other agencies would be necessary to fully assess their capabilities and reliability for this specific medical support assistant role. Analyzing past contract awards, performance evaluations, and any reported issues or successes would provide crucial insights into their ability to meet the requirements of this $14.6 million contract. Understanding their experience with similar scopes of work, such as providing medical support staff in a healthcare system setting, is paramount to evaluating their suitability and mitigating potential performance risks.

How does the awarded price compare to market rates for similar medical support staffing services?

The awarded price of $14.6 million for approximately 14 months of medical support staffing needs to be benchmarked against prevailing market rates. This involves comparing the estimated hourly or daily rates for the specific roles (e.g., medical assistants, administrative support) against what similar agencies or private healthcare providers pay for comparable services in the Eastern Colorado region. Factors such as the required qualifications, experience levels, and the specific duties outlined in the contract statement of work will influence this comparison. Without specific per-unit cost data, a definitive assessment is challenging, but the overall contract value suggests a substantial investment that should yield competitive per-hour staffing costs given the competitive bidding process.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential challenges in recruiting and retaining qualified medical support staff, ensuring consistent service quality across all assigned personnel, and managing the integration of temporary staff with existing VA teams. Mitigation strategies likely involve robust vetting and onboarding processes by Arrow Arc LLC, clear performance standards and monitoring by the VA, and defined communication protocols between temporary staff and permanent employees. The firm-fixed-price nature of the contract also incentivizes the contractor to manage their operational risks effectively to maintain profitability.

How effective is the current staffing model in addressing the VA's healthcare system needs in Eastern Colorado?

The effectiveness of this contract hinges on its ability to adequately address the VA's healthcare system needs in Eastern Colorado. The award of a $14.6 million contract for medical support assistants suggests a significant and ongoing demand for these roles. The success will be measured by improvements in patient wait times, the efficiency of administrative processes, and the overall patient experience. Regular performance reviews and feedback from the healthcare system's leadership will be crucial in assessing whether the contracted staff are meeting the intended objectives and contributing positively to the delivery of care.

What are the historical spending patterns for medical support staffing within the Eastern Colorado Healthcare System?

Analyzing historical spending patterns for medical support staffing within the Eastern Colorado Healthcare System is essential for context. Understanding how much the VA has previously allocated to similar services, whether through direct hires, other contractors, or different contract vehicles, provides a baseline for evaluating the current $14.6 million award. Significant increases or decreases in spending could indicate shifts in demand, changes in service delivery strategies, or evolving market conditions. This historical data also helps in assessing whether the current contract represents a cost-effective approach compared to past expenditures.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › CLERICAL MEDICAL SUPPORT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 110 NORTH ROYAL STREET, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $14,622,400

Exercised Options: $14,622,400

Current Obligation: $14,622,400

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X24D0003

IDV Type: IDC

Timeline