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

Contract Overview

Contract Amount: $5,756,966 ($5.8M)

Contractor: Oregon Health & Science University

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-03-01

End Date: 2027-02-28

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 (KIDNEYS AND LIVERS) - FUND NEXT PERIOD OF PERFORMANCE

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 (KIDNEYS AND LIVERS) - FUND NEXT PERIOD OF PERFORMANCE Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. The contract duration is 364 days, with a potential for follow-on funding. 3. Services are critical for organ transplantation programs within the VA. 4. The fixed-price contract with economic price adjustment may shield against inflation. 5. Oversight will be managed by the Department of Veterans Affairs. 6. The contract is for blood and organ bank services, a specialized sector.

Value Assessment

Rating: fair

Benchmarking the value of this specific organ procurement contract is challenging due to its specialized nature and sole-source award. However, the fixed-price with economic price adjustment structure aims to manage cost fluctuations. The total award amount of $5.76 million for a one-year period suggests a significant operational cost for these critical services. Further analysis would require comparing unit costs for organ procurement with similar VA or non-VA contracts, if available, to assess if the pricing is reasonable.

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. This typically occurs when a specific contractor possesses unique capabilities or when circumstances prevent full and open competition. The lack of competition means that the VA did not receive multiple bids, which could potentially lead to higher prices than if the contract had been competed. The justification for the sole-source award would need to be reviewed to understand the specific reasons.

Taxpayer Impact: Sole-source awards can result in less favorable pricing for taxpayers as the government does not benefit from the downward pressure that competition typically creates.

Public Impact

Veterans requiring organ transplants will benefit from the continuity of essential procurement services. The contract ensures the availability of kidneys and livers for transplantation. Services are geographically focused within Oregon, supporting local VA medical centers. The contract supports specialized medical professionals and technicians involved in organ procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Economic price adjustment clause could lead to increased costs if market prices rise significantly.
Contract duration is short (364 days), raising questions about long-term planning and potential for frequent re-competition.

Positive Signals

Award to a known entity (Oregon Health & Science University) may indicate established capabilities.
Contract ensures critical life-saving services for veterans.
Fixed-price component provides some cost certainty for the base service.

Sector Analysis

The healthcare sector, specifically blood and organ banks, is a critical but often specialized area of federal procurement. Contracts in this space are vital for supporting public health initiatives and medical services. The VA's reliance on organizations like Oregon Health & Science University for organ procurement highlights the need for specialized expertise and infrastructure. Benchmarking spending in this niche requires comparing it to similar services provided to other federal agencies or large healthcare systems, considering the unique logistical and medical requirements.

Small Business Impact

This contract does not appear to have a small business set-aside component. Given the specialized nature of organ procurement, it is likely that the primary awardee is a large, established institution. There is no explicit information provided regarding subcontracting opportunities for small businesses within this specific contract, though it is possible that ancillary services could be sourced from smaller entities.

Oversight & Accountability

Oversight for this contract will be provided by the Department of Veterans Affairs. As a sole-source award, the VA's justification for this procurement method will be a key area of scrutiny. Transparency regarding the performance metrics and the utilization of the economic price adjustment clause will be important for accountability. The contract's effectiveness in ensuring timely and efficient organ procurement for veterans will be a primary measure of success.

Related Government Programs

Organ Transplantation Services
Medical Supplies and Equipment
Healthcare Services
Blood and Organ Banks

Risk Flags

Sole-source award may limit cost savings.
Economic price adjustment introduces cost uncertainty.
Contract duration is short, potentially impacting long-term service stability.
Specialized nature of service limits contractor pool.

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 (KIDNEYS AND LIVERS) - FUND NEXT PERIOD OF PERFORMANCE

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: 2026-03-01. End: 2027-02-28.

What is the historical spending pattern of the VA on organ procurement services, and how does this award compare?

Historical spending data for VA organ procurement services is not readily available in a consolidated format. However, the current award of $5.76 million for a 364-day period represents a significant investment in this critical service. To compare, one would need to analyze previous contracts awarded by the VA for similar services, noting any changes in scope, duration, or pricing structures. The fact that this is a sole-source award suggests a potential lack of consistent competitive bidding in the past for these specific services, or a unique capability held by Oregon Health & Science University that has led to repeated sole-source awards. Further investigation into prior contract awards to OHSU or other entities for organ procurement would be necessary for a comprehensive historical comparison.

What specific justification was provided for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this sole-source determination is not included in the provided data. Typically, sole-source justifications are required by federal acquisition regulations and must demonstrate that only one responsible source is capable of providing the required supplies or services. Reasons can include unique capabilities, specialized equipment, proprietary technology, or urgent and compelling needs where competition is not feasible. Without the official justification document, it is impossible to ascertain the precise rationale behind this award to Oregon Health & Science University.

How does the 'fixed price with economic price adjustment' (FPEPA) clause impact the potential cost to taxpayers?

The 'fixed price with economic price adjustment' (FPEPA) clause in this contract offers a degree of flexibility in pricing. The 'fixed price' component establishes a base cost for the services. However, the 'economic price adjustment' allows for modifications to this price based on fluctuations in specific economic factors, such as inflation or changes in the cost of labor or materials. For taxpayers, this means the final cost could be higher than the initial fixed price if these economic factors increase significantly over the contract period. While it can protect the contractor from unforeseen cost increases and ensure service continuity, it also introduces cost uncertainty for the government compared to a firm fixed-price contract.

What are the key performance indicators (KPIs) that the VA will use to evaluate the contractor's performance?

The provided data does not specify the Key Performance Indicators (KPIs) that the Department of Veterans Affairs (VA) will use to evaluate Oregon Health & Science University's performance under this contract. However, for organ procurement services, typical KPIs would likely include metrics related to the timeliness of organ recovery, the viability and quality of procured organs, the efficiency of the logistical process (transportation, preservation), adherence to all relevant medical and regulatory standards, and the overall success rate of transplantations utilizing procured organs. The VA would also likely monitor the contractor's responsiveness, communication, and ability to meet demand for critical services.

Are there any known risks associated with Oregon Health & Science University as a contractor for these services?

Based solely on the provided data, there is no information indicating specific risks associated with Oregon Health & Science University as a contractor for these organ procurement services. Oregon Health & Science University is a well-established academic health center. However, a comprehensive risk assessment would typically involve reviewing the contractor's past performance history, financial stability, any history of compliance issues, and their demonstrated capacity to meet the demanding requirements of organ procurement. Given the critical nature of the service, any lapse in performance could have severe consequences for patient care.

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: $5,756,966

Exercised Options: $5,756,966

Current Obligation: $5,756,966

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