VA awards $683K sole-source contract for cardiac MD/PA services to University of Washington

Contract Overview

Contract Amount: $682,758 ($682.8K)

Contractor: University of Washington

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $1.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: AFFILIATE SOLE SOURCE- CARDIAC MD/PA SERVICES - 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98108

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $682,757.56 to UNIVERSITY OF WASHINGTON for work described as: AFFILIATE SOLE SOURCE- CARDIAC MD/PA SERVICES - 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT Key points: 1. Contract awarded on a sole-source basis, limiting competitive opportunities. 2. The contract is a delivery order under an existing agreement. 3. Pricing is fixed with economic adjustments, potentially impacting long-term cost. 4. The contract duration is one year, with potential for extensions. 5. Services are for cardiac medical and physician assistant support. 6. The awardee, University of Washington, is a known entity in academic medicine.

Value Assessment

Rating: fair

The contract value of $682,757.56 for a one-year term appears reasonable for specialized medical services. However, without comparable sole-source contracts for similar cardiac MD/PA services at other academic institutions or VA facilities, a definitive value-for-money assessment is challenging. The fixed-price with economic price adjustment structure introduces some uncertainty regarding final costs. Benchmarking against market rates for physician assistants and medical doctors in the Seattle area would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source action, indicated by the 'NOT AVAILABLE FOR COMPETITION' status. This suggests that the VA determined that only the University of Washington could provide the required specialized cardiac medical and physician assistant services. The lack of competition means that price discovery through a bidding process was bypassed, potentially leading to higher costs than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of a competitive bidding process. The VA relied on a justification for a sole-source award, which should be thoroughly documented to ensure necessity and fairness.

Public Impact

Veterans receiving specialized cardiac care at the VA facility will benefit from continued access to medical and physician assistant services. The contract ensures the provision of essential medical support for cardiac patients. Services are geographically focused within Washington state, likely serving veterans in that region. The contract supports specialized healthcare professionals, contributing to the medical workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
Economic price adjustment clause introduces cost uncertainty.
Lack of detailed performance metrics in the provided data makes outcome assessment difficult.

Positive Signals

Award to a reputable academic institution (University of Washington) suggests a certain level of quality.
Contract ensures continuity of care for veterans requiring cardiac services.
Fixed-price component provides some cost predictability.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on specialized medical services. The market for academic medical centers providing physician and physician assistant services to federal agencies is often characterized by long-standing relationships and unique capabilities. Benchmarking this spending against similar contracts for specialized medical personnel at other VA facilities or academic medical centers would be relevant.

Small Business Impact

There is no indication that this contract includes small business set-asides or subcontracting requirements. The award to a large academic institution suggests that small business participation is unlikely in this specific procurement.

Oversight & Accountability

Oversight of this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures would be tied to the performance work statement and service level agreements. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed justifications.

Related Government Programs

VA Medical Services Contracts
Cardiac Care Services
Physician Assistant Services
Academic Medical Center Partnerships

Risk Flags

Sole-source award lacks competition
Economic price adjustment introduces cost uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $682,757.56 to UNIVERSITY OF WASHINGTON. AFFILIATE SOLE SOURCE- CARDIAC MD/PA SERVICES - 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT

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 $682,757.56.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the historical spending pattern for cardiac MD/PA services at this VA facility or similar facilities?

Analyzing historical spending for cardiac MD/PA services at this specific VA facility or comparable ones is crucial for understanding cost trends and identifying potential anomalies. Without access to historical data, it's difficult to determine if the current $682,757.56 award represents an increase, decrease, or stable expenditure. Trends in utilization, service scope, and pricing from previous years would provide context for the current contract's value and necessity. For instance, if previous contracts were significantly lower, it might warrant further investigation into the reasons for the increase, such as expanded scope or market inflation. Conversely, if spending has been consistent, it suggests a stable demand for these services.

What specific justification was provided for the sole-source award to the University of Washington?

The justification for a sole-source award is critical for understanding why competition was bypassed. Typically, such justifications cite unique capabilities, specialized expertise, or urgent needs that only a specific contractor can meet. For this cardiac MD/PA services contract, the VA likely argued that the University of Washington possesses unique facilities, research affiliations, or a specific pool of highly specialized medical professionals and physician assistants essential for the required cardiac care. The justification should detail why no other source could fulfill these requirements, ensuring that the award is indeed necessary and not merely a matter of convenience. A thorough review of this justification would reveal the specific rationale and support the fairness of the procurement.

How does the pricing structure (fixed price with economic price adjustment) compare to typical healthcare service contracts?

The 'fixed price with economic price adjustment' (FPEPA) pricing structure is common in contracts where the cost of labor or materials is subject to market fluctuations. In healthcare, this can apply to specialized medical personnel whose salaries or benefits might be influenced by inflation or regional market demands. While FPEPA provides a baseline cost, the economic adjustment clause allows for price changes based on predefined economic indicators. This contrasts with firm-fixed-price contracts, which offer greater cost certainty but may not adequately account for unforeseen market shifts. Compared to typical healthcare service contracts, FPEPA is a recognized mechanism, but its application here warrants scrutiny to ensure the economic adjustment factors are reasonable and do not lead to excessive cost increases over the contract term.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

Key Performance Indicators (KPIs) are essential for evaluating the effectiveness and value of any service contract. For a cardiac MD/PA services contract, KPIs might include metrics such as patient wait times, patient satisfaction scores, successful treatment outcomes, adherence to clinical protocols, and availability of staff. The performance work statement (PWS) or contract statement of work (SOW) would typically outline these KPIs and the methods for measuring them. Without access to the PWS/SOW, it is impossible to assess how the VA is ensuring that the University of Washington is delivering high-quality cardiac care and meeting its contractual obligations. Effective performance measurement is crucial for accountability and ensuring taxpayer funds are used efficiently.

What is the University of Washington's track record with VA contracts, particularly in healthcare services?

The University of Washington's track record with VA contracts, especially in healthcare services, provides valuable insight into their reliability and performance. As a large academic institution, they likely have experience in delivering medical services. Examining past VA contracts awarded to the University of Washington would reveal their history of meeting deadlines, adhering to quality standards, and managing budgets. Positive past performance suggests a lower risk for this current contract, while any history of issues, such as contract disputes, performance deficiencies, or cost overruns, would raise concerns and necessitate closer monitoring of the current award. Information on their past performance ratings and any corrective actions taken would be highly informative.

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

Parent Company: University of Washington Inc

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: $682,758

Exercised Options: $682,758

Current Obligation: $682,758

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26023D0019

IDV Type: IDC

Timeline