VA awards $2.2M for lung transplant services to University of Washington, highlighting a sole-source contract

Contract Overview

Contract Amount: $2,218,344 ($2.2M)

Contractor: University of Washington

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-15

End Date: 2027-01-14

Contract Duration: 364 days

Daily Burn Rate: $6.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: LUNG TRANSPLANTATION SERVICES FOR PUGET SOUND HEALTH CARE SYSTEMS 5-YEAR BASE PLUSE ONE 1-YEAR OPTION

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98195

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.2 million to UNIVERSITY OF WASHINGTON for work described as: LUNG TRANSPLANTATION SERVICES FOR PUGET SOUND HEALTH CARE SYSTEMS 5-YEAR BASE PLUSE ONE 1-YEAR OPTION Key points: 1. The contract's value of $2.2 million over its potential 6-year term suggests a significant investment in specialized medical services. 2. The sole-source nature of this award warrants scrutiny regarding the justification for limited competition. 3. Performance will be monitored by the Department of Veterans Affairs, indicating a focus on service delivery quality. 4. The contract is positioned within the healthcare sector, specifically for advanced medical procedures. 5. The fixed-price structure with economic price adjustment aims to mitigate inflation risks for both parties.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable sole-source lung transplantation service contracts. The $2.2 million award over six years averages approximately $367,000 annually. This figure needs to be assessed against the typical costs of such highly specialized medical procedures, considering the complexity and resources involved. The University of Washington's established role in healthcare suggests potential for efficient service delivery, but the lack of competitive bidding prevents a direct value-for-money comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The justification for this approach is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source is available or capable of meeting the requirement. The absence of competition means that the Department of Veterans Affairs did not solicit bids from multiple providers, potentially limiting price discovery and negotiation leverage.

Taxpayer Impact: For taxpayers, a sole-source award means there is less assurance that the government secured the best possible price. Without competitive pressure, the awarded price may be higher than what could have been achieved in an open market.

Public Impact

Veterans in the Puget Sound region will benefit from access to critical lung transplantation services. The contract ensures the provision of advanced medical procedures, potentially saving lives and improving quality of life for beneficiaries. The geographic impact is focused on Washington state, specifically serving the healthcare systems within the Puget Sound area. This contract supports specialized healthcare professionals and facilities associated with the University of Washington's medical system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced incentive for cost efficiency.
Sole-source justification needs thorough review to ensure it aligns with federal procurement regulations.
Limited transparency in the procurement process due to the absence of a competitive bidding phase.

Positive Signals

Award to a reputable institution (University of Washington) suggests a focus on quality and expertise.
Contract ensures continuity of care for a critical medical service for veterans.
Fixed-price with economic price adjustment can provide cost stability against inflation.

Sector Analysis

The healthcare sector, particularly specialized medical services, is characterized by high costs, complex procedures, and often, limited provider networks. Lung transplantation is an extremely specialized field requiring significant infrastructure, highly trained personnel, and extensive post-operative care. Contracts in this area are often awarded to major medical institutions with established transplant programs. The market size for such services is difficult to quantify broadly but is driven by patient need and the availability of qualified providers. This contract fits within the VA's broader mission to provide comprehensive healthcare to veterans, including access to advanced medical interventions.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The focus is on a large, specialized service provider.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. Accountability measures are inherent in the fixed-price contract structure, which obligates the contractor to deliver specified services. Transparency is limited due to the sole-source nature of the award, as public bidding processes are absent. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Medical Care Programs
Organ Transplantation Services
Specialized Medical Services Contracts
Healthcare Services for Veterans

Risk Flags

Sole-source justification requires review.
Potential for higher costs due to lack of competition.
Performance monitoring is critical for service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.2 million to UNIVERSITY OF WASHINGTON. LUNG TRANSPLANTATION SERVICES FOR PUGET SOUND HEALTH CARE SYSTEMS 5-YEAR BASE PLUSE ONE 1-YEAR OPTION

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 $2.2 million.

What is the period of performance?

Start: 2026-01-15. End: 2027-01-14.

What is the University of Washington's track record with VA contracts, particularly for complex medical services?

The University of Washington has a history of collaborating with the Department of Veterans Affairs, often through various medical service agreements and research grants. While specific data on their track record for VA lung transplant contracts is not detailed here, their designation as a major academic medical center suggests experience in handling complex healthcare requirements. Further analysis would involve reviewing their past performance ratings on VA contracts, any history of contract disputes or awards, and their overall capacity to deliver specialized services. Their established presence in the Puget Sound region likely facilitates their ability to serve the local veteran population effectively, but a comprehensive review of their performance history with the VA is crucial for a complete assessment.

How does the $2.2 million contract value compare to other VA lung transplant service contracts or similar specialized medical procurements?

Direct comparison of this $2.2 million contract value for lung transplantation services is difficult without access to a database of similar VA contracts, especially sole-source awards. Lung transplants are among the most complex and expensive medical procedures, involving extensive pre-operative evaluation, the surgery itself, and intensive post-operative care. Annual costs for such services can range significantly, often in the hundreds of thousands of dollars per patient. The $2.2 million over a potential six years (averaging ~$367,000 annually) appears to be within a plausible range for specialized, high-acuity medical services, but a definitive assessment requires benchmarking against comparable contracts, considering factors like patient volume, scope of services, and geographic location.

What are the primary risks associated with a sole-source award for critical medical services like lung transplantation?

The primary risks associated with a sole-source award for critical medical services like lung transplantation include potential overpricing due to the absence of competitive bidding, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the procurement process. Taxpayers may not be receiving the best value for their money. Furthermore, reliance on a single provider could create vulnerabilities if that provider experiences operational issues, staffing shortages, or changes in their ability to deliver the service. While the VA likely has justifications for this sole-source award, the inherent risks necessitate robust oversight and performance monitoring to ensure quality and cost-effectiveness.

What is the expected effectiveness of this contract in ensuring timely access to lung transplants for eligible veterans?

The effectiveness of this contract in ensuring timely access to lung transplants for eligible veterans hinges on several factors. The University of Washington's established medical infrastructure and expertise are expected to facilitate the delivery of these critical services. However, the sole-source nature means that the VA is relying on this single entity. Effectiveness will be measured by the contractor's ability to meet demand, maintain high standards of care, and adhere to the contract's performance requirements. The VA's oversight mechanisms will be crucial in monitoring patient wait times, transplant success rates, and overall patient outcomes to gauge the contract's effectiveness in fulfilling its intended purpose for the veteran population.

How does historical spending on lung transplantation services by the VA compare to this current award?

Analyzing historical spending patterns for VA lung transplantation services is essential for context. Without specific historical data for this contract or similar VA lung transplant procurements, it's challenging to provide a precise comparison. However, the VA's overall healthcare spending is substantial, and specialized services like organ transplantation represent a significant portion of that expenditure. The $2.2 million award for a 5-year base plus a 1-year option suggests a consistent, albeit not massive, annual investment. Understanding trends in VA spending on transplantation, including patient volumes and average costs over previous years, would reveal whether this contract represents an increase, decrease, or stable level of investment in these critical services.

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

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: $2,218,344

Exercised Options: $2,218,344

Current Obligation: $2,218,344

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26026D0019

IDV Type: IDC

Timeline