VA awards $596K vascular surgery physician services contract to Oregon Health & Science University

Contract Overview

Contract Amount: $596,108 ($596.1K)

Contractor: Oregon Health & Science University

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-06-01

End Date: 2025-05-31

Contract Duration: 1,460 days

Daily Burn Rate: $408/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: LT AFFILIATE OHSU VASCULAR SURGERY PHYSICIAN SERVICE 1 BASE PLUS SIX ONE-YEAR OPTIONS

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97239

State: Oregon Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $596,108.3 to OREGON HEALTH & SCIENCE UNIVERSITY for work described as: LT AFFILIATE OHSU VASCULAR SURGERY PHYSICIAN SERVICE 1 BASE PLUS SIX ONE-YEAR OPTIONS Key points: 1. Contract awarded to a university for specialized physician services, indicating a focus on academic medical centers. 2. The contract's fixed-price structure with economic price adjustment aims to mitigate inflation risks. 3. Limited competition suggests potential challenges in price discovery and value optimization. 4. The duration of the contract (over 4 years) provides stability for service delivery. 5. The North American Industry Classification System (NAICS) code points to educational services, not direct healthcare provision. 6. The contract is not set aside for small businesses, suggesting larger entities are expected to compete or perform.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the lack of specific service details and comparable contract data. The fixed-price with economic price adjustment structure is common for long-term service contracts to account for inflation. However, without knowing the exact scope of services (e.g., number of physicians, hours, specific procedures), it's difficult to assess if the $596,108.3 base value represents a competitive price per unit of service. The limited competition further complicates a robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when a specific contractor possesses unique capabilities or when it's deemed impractical or uneconomical to compete. The lack of competition means the Department of Veterans Affairs did not benefit from a range of proposals and pricing strategies that might have emerged from a competitive bidding process.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive pressure. The government relies on the contractor's proposed pricing without the validation that multiple bids would provide.

Public Impact

Veterans in Oregon will benefit from continued access to specialized vascular surgery physician services. The contract supports the provision of essential medical expertise within the VA healthcare system. Services are geographically focused within Oregon, impacting veterans in that state. The contract likely supports highly skilled medical professionals, contributing to the healthcare workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Limited transparency into the justification for sole-source award.
Potential for vendor lock-in if services are highly specialized and difficult to transition.

Positive Signals

Ensures continuity of specialized medical services for veterans.
Long contract duration provides stability and predictability.
Fixed-price with economic adjustment helps manage cost fluctuations.

Sector Analysis

This contract falls within the broader healthcare services sector, specifically focusing on specialized physician services. The market for such services is often characterized by highly trained professionals and academic institutions that provide both clinical care and research. While the NAICS code points to educational services, the actual service delivery is medical. Comparable spending benchmarks are difficult to establish without more detail on the specific services rendered, but contracts for specialized medical personnel can range significantly based on expertise and demand.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. The award to Oregon Health & Science University, a large academic institution, suggests that the focus was on securing specialized expertise rather than promoting small business participation. This implies that the primary contractor will likely handle the majority of the service provision, with limited direct opportunities for small businesses within this specific contract's framework.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs (VA). The VA has established procurement regulations and contract management processes to ensure compliance and performance. Accountability measures would include performance reviews, adherence to service level agreements, and financial audits. Transparency is generally facilitated through contract databases, though the specifics of sole-source justifications may have limited public visibility.

Related Government Programs

VA Physician Services Contracts
Specialized Medical Services
Academic Medical Center Partnerships
Vascular Surgery Services

Risk Flags

Sole-source award
Lack of detailed service scope
Limited public justification for sole-source

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $596,108.3 to OREGON HEALTH & SCIENCE UNIVERSITY. LT AFFILIATE OHSU VASCULAR SURGERY PHYSICIAN SERVICE 1 BASE PLUS SIX ONE-YEAR OPTIONS

Who is the contractor on this award?

The obligated recipient is OREGON HEALTH & SCIENCE UNIVERSITY.

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 $596,108.3.

What is the period of performance?

Start: 2021-06-01. End: 2025-05-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source is available or capable of providing the required services, or when there is a compelling urgency, or when it is in the government's best interest to award to a specific contractor due to unique capabilities, prior investment, or standardization. Without further documentation from the Department of Veterans Affairs, the precise reason remains unspecified in this dataset.

How does the base contract value of $596,108.3 compare to similar vascular surgery physician service contracts awarded by the VA?

Direct comparison of the base contract value of $596,108.3 for vascular surgery physician services is difficult without more granular data on the scope of services, duration, and specific location of comparable contracts. The value represents the initial base period. This contract has a base period and six one-year options, suggesting a potential total value significantly higher than the base. However, the provided data does not include details on the number of physicians, hours of service, or specific procedures covered, which are critical for a meaningful benchmark. Generally, specialized physician services, especially in academic settings, can command significant contract values due to the expertise required.

What are the primary risks associated with a sole-source contract of this nature?

The primary risks associated with a sole-source contract for vascular surgery physician services include potential overpayment due to the lack of competitive pricing, reduced incentive for the contractor to innovate or improve efficiency, and a lack of market validation for the services and pricing. There's also a risk of vendor lock-in, where the government becomes dependent on the sole provider, making future transitions difficult and potentially costly. Furthermore, the absence of competition can limit the government's ability to explore alternative solutions or providers that might offer better value or capabilities.

What is the expected performance period and potential total value of this contract?

The contract has a base period and six one-year options. The base period start date is June 1, 2021, and the end date is May 31, 2025. This indicates a base period duration of approximately 4 years (from June 1, 2021, to May 31, 2025). Including the six one-year options, the maximum potential performance period extends to May 31, 2031, totaling 10 years. The base award amount is $596,108.3. The total potential value, considering all options and the economic price adjustment clause, is not explicitly stated but would be significantly higher than the base amount over the full potential term.

How does the NAICS code '611310' (Colleges, Universities, and Professional Schools) align with the provision of vascular surgery physician services?

The NAICS code 611310, 'Colleges, Universities, and Professional Schools,' is used because the contract is awarded to Oregon Health & Science University, an academic institution. While the university provides educational services, it also operates medical centers and clinics where faculty physicians deliver patient care, including specialized services like vascular surgery. This code reflects the primary organizational classification of the contractor rather than the direct nature of the service being procured. The VA is essentially contracting with the university's medical faculty to provide clinical services to veterans, leveraging the institution's expertise and infrastructure.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C26020R0064

Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 3181 SW SAM JACKSON PARK RD, PORTLAND, OR, 97239

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: $859,973

Exercised Options: $596,108

Current Obligation: $596,108

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline