VA Awards $2.6M Contract for Radiation Oncology Physician Services to University of Washington

Contract Overview

Contract Amount: $2,605,597 ($2.6M)

Contractor: University of Washington

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-03-01

End Date: 2027-02-28

Contract Duration: 1,094 days

Daily Burn Rate: $2.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: SS AFFILIATE UNIVERSITY OF WASHINGTON RADIATION ONCOLOGY PHYSICIAN SERVICES

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98195

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.6 million to UNIVERSITY OF WASHINGTON for work described as: SS AFFILIATE UNIVERSITY OF WASHINGTON RADIATION ONCOLOGY PHYSICIAN SERVICES Key points: 1. Contract awarded to a single, established provider for specialized medical services. 2. The fixed-price contract with economic price adjustment aims to mitigate inflation risks. 3. Limited competition raises questions about potential cost efficiencies and market alternatives. 4. Spending falls within the broad category of healthcare services for veterans.

Value Assessment

Rating: fair

The contract value of $2.6M over approximately three years for specialized physician services appears reasonable given the niche nature of radiation oncology. However, without comparable contract data or detailed service breakdowns, a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, indicating a lack of competition. This method may be justified if the University of Washington possesses unique capabilities or facilities essential for this specific service. However, it limits price discovery and potentially higher costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not benefit from competitive pricing, potentially leading to higher overall expenditures for these essential services.

Public Impact

Ensures continued access to specialized radiation oncology services for veterans. Potential for higher costs due to lack of competitive bidding. Supports a key academic medical center's role in veteran healthcare. Highlights the VA's reliance on specific institutions for complex medical treatments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Economic price adjustment could increase costs beyond initial estimates.
Lack of detailed service breakdown hinders precise cost analysis.

Positive Signals

Ensures continuity of care for veterans requiring radiation oncology.
Leverages expertise of a known academic medical institution.
Contract duration provides stability for service provision.

Sector Analysis

This contract falls within the healthcare sector, specifically medical services. Spending benchmarks for physician services can vary widely based on specialty, location, and contract structure. The $2.6M value over three years for specialized oncology services suggests a focused, high-skill requirement.

Small Business Impact

This contract does not appear to involve small businesses, as it is a sole-source award to a large university. There is no indication of subcontracting opportunities for small businesses within this specific award.

Oversight & Accountability

The sole-source nature of this contract warrants careful oversight to ensure the pricing remains fair and the services provided meet the highest standards. The VA should document the justification for the sole-source award thoroughly and monitor the economic price adjustment clause closely.

Related Government Programs

Colleges, Universities, and Professional Schools
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competition may lead to inflated costs.
Economic price adjustment introduces cost uncertainty.
Sole-source justification requires rigorous scrutiny.
Potential for vendor lock-in with specialized services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.6 million to UNIVERSITY OF WASHINGTON. SS AFFILIATE UNIVERSITY OF WASHINGTON RADIATION ONCOLOGY PHYSICIAN SERVICES

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF WASHINGTON.

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 $2.6 million.

What is the period of performance?

Start: 2024-03-01. End: 2027-02-28.

What is the justification for the sole-source award, and were alternative providers considered?

The justification for a sole-source award typically centers on unique capabilities, specialized equipment, or critical geographic proximity that only one provider can meet. For radiation oncology services, this could involve specific technology or established patient care protocols. The VA should have documented why other qualified providers could not fulfill the requirement, ensuring the sole-source decision was necessary and in the government's best interest.

How will the economic price adjustment be monitored to prevent excessive cost increases?

The economic price adjustment (EPA) clause allows for contract price changes based on specific economic factors, often tied to inflation indices. To prevent excessive cost increases, the VA must closely monitor the chosen index, ensure it accurately reflects relevant cost drivers for radiation oncology services, and apply the adjustment strictly according to the contract terms. Regular reviews and clear reporting mechanisms are essential.

What metrics are in place to measure the effectiveness and quality of the radiation oncology services provided?

Effectiveness and quality of radiation oncology services are typically measured through patient outcomes, adherence to treatment protocols, patient satisfaction surveys, and potentially measures of access to care (e.g., wait times for appointments). The VA should have established Key Performance Indicators (KPIs) within the contract that are regularly assessed to ensure the University of Washington is delivering high-quality, effective care that meets veteran needs.

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: 36C26023R0023

Offers Received: 1

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

Evaluated Preference: NONE

Contractor Details

Address: 4333 BROOKLYN AVE NE, SEATTLE, WA, 98195

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

Financial Breakdown

Contract Ceiling: $8,149,503

Exercised Options: $2,605,597

Current Obligation: $2,605,597

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline