VA awards $5.76M contract for deceased donor organ procurement to Oregon Health & Science University

Contract Overview

Contract Amount: $5,758,574 ($5.8M)

Contractor: Oregon Health & Science University

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-01

End Date: 2026-02-28

Contract Duration: 364 days

Daily Burn Rate: $15.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: DECEASED DONOR ORGAN PROCUREMENT - BASE YEAR 1 FUNDING

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97239

State: Oregon Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.8 million to OREGON HEALTH & SCIENCE UNIVERSITY for work described as: DECEASED DONOR ORGAN PROCUREMENT - BASE YEAR 1 FUNDING Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. The contract duration is one year, with potential for extensions. 3. Procurement services are essential for organ transplantation programs. 4. The awardee has a significant role in regional organ donation. 5. Geographic focus is on Oregon, impacting local patient access to organs. 6. Fixed-price contract with economic price adjustment may shield against inflation.

Value Assessment

Rating: fair

The contract value of $5.76 million for a single year of deceased donor organ procurement appears to be within a reasonable range for specialized medical services. However, without detailed breakdowns of services provided and comparison to similar sole-source procurements, a precise value-for-money assessment is challenging. The fixed-price with economic price adjustment structure offers some cost certainty but could lead to increased costs if economic conditions fluctuate significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach is typically used when a unique capability or circumstance exists, or when it's deemed not to be in the government's best interest to compete. The lack of competition means the VA did not benefit from potentially lower prices or innovative solutions that multiple bidders might have offered.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to secure the best possible value.

Public Impact

Beneficiaries include patients on organ transplant waiting lists within the VA system and potentially the broader community served by the awardee. Services delivered are critical for the identification, preservation, and transportation of deceased donor organs for transplantation. Geographic impact is primarily focused on Oregon, where the procurement activities will take place. Workforce implications include support for specialized medical professionals involved in organ procurement and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potential cost savings.
Economic price adjustment clause introduces potential for cost increases due to inflation.
Lack of publicly available performance metrics makes it difficult to assess service quality.

Positive Signals

Awardee is a specialized institution with established expertise in organ procurement.
Contract ensures continuity of critical life-saving services for veterans.
Fixed-price component provides a baseline cost control.

Sector Analysis

The healthcare sector, particularly specialized services like organ procurement, often involves unique capabilities and established relationships. Contracts in this area can be complex due to the critical nature of the services and the specialized expertise required. Benchmarking is difficult without specific service details, but organ procurement organizations are vital components of the national transplant system.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of organ procurement, it is unlikely that small businesses would be primary bidders for such a contract. Subcontracting opportunities for small businesses are not explicitly detailed but could potentially exist in areas like logistics or support services.

Oversight & Accountability

Oversight of this contract would fall under the Department of Veterans Affairs. Accountability measures would likely involve performance metrics outlined in the contract, regular reporting from the contractor, and potential site visits or audits. Transparency is limited due to the sole-source nature and the specialized, sensitive aspects of organ procurement.

Related Government Programs

VA Medical Services Contracts
Organ Transplantation Services
Medical Supply and Equipment Procurement
Healthcare Services for Veterans

Risk Flags

Sole-source award
Economic price adjustment clause
Potential for cost overruns due to EPA
Limited transparency in service delivery metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.8 million to OREGON HEALTH & SCIENCE UNIVERSITY. DECEASED DONOR ORGAN PROCUREMENT - BASE YEAR 1 FUNDING

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 $5.8 million.

What is the period of performance?

Start: 2025-03-01. End: 2026-02-28.

What is the historical spending pattern for deceased donor organ procurement by the VA, and how does this award compare?

Historical spending data for deceased donor organ procurement by the VA is not readily available in public databases. However, the current award of $5.76 million for a one-year base period suggests a significant investment in this critical service. To provide a comprehensive comparison, one would need to analyze prior VA contracts for similar services, considering factors like the number of organs procured, geographic scope, and specific services included. Without this historical context, it's challenging to definitively state whether this award represents an increase or decrease in spending compared to previous periods or similar contracts.

What specific services are included in this $5.76 million contract for deceased donor organ procurement?

The contract specifies 'DECEASED DONOR ORGAN PROCUREMENT - BASE YEAR 1 FUNDING'. While the exact scope of services is not detailed in the provided data, typical organ procurement services include the identification of potential deceased donors, medical evaluation, consent/authorization processes, organ recovery (surgical procurement), preservation, and coordination of transportation to transplant centers. This contract likely covers all these essential steps to ensure viable organs are made available for transplantation. The specific number of organs to be procured or the geographic region covered beyond Oregon would further define the service scope.

What are the risks associated with a sole-source award for critical healthcare services like organ procurement?

The primary risk of a sole-source award for critical healthcare services like organ procurement is the lack of competitive pricing. Without multiple bidders, the government may pay a higher price than if the contract were competed. This can also limit innovation, as there's less incentive for the sole provider to offer novel solutions or efficiencies. Furthermore, reliance on a single provider can create vulnerability if that provider experiences operational issues, quality control problems, or decides to discontinue services. For organ procurement, continuity of service is paramount, making vendor stability a key consideration.

How does the economic price adjustment (EPA) clause in this contract potentially impact the final cost to the VA?

The economic price adjustment (EPA) clause allows for an increase (or decrease) in the contract price based on fluctuations in specified economic factors, such as inflation or changes in labor or material costs. In this contract, the EPA aims to protect the contractor, Oregon Health & Science University, from unforeseen cost increases during the contract period. While this can ensure the contractor's financial stability and willingness to perform, it also means the final cost to the VA could be higher than the initial fixed price if economic conditions worsen. The specific indices and caps associated with the EPA would determine the extent of this potential cost increase.

What is the track record of Oregon Health & Science University in providing organ procurement services to the VA or other government entities?

Oregon Health & Science University (OHSU) is a major academic health center and a designated Organ Procurement Organization (OPO) for the region. While specific details of their past contracts with the VA are not provided in this data, OHSU's role as an OPO indicates established experience and infrastructure for deceased donor organ procurement. Their track record would typically be assessed by the VA through performance reviews, quality metrics, and potentially past performance questionnaires from other contracting officers. As a recognized OPO, they are expected to adhere to national standards and regulations governing organ donation and procurement.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Blood and Organ Banks

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

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: $5,758,574

Exercised Options: $5,758,574

Current Obligation: $5,758,574

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26025D0006

IDV Type: IDC

Timeline