VA Awards $5.1M Orthopedic Physician Services Contract to UNMC Physicians

Contract Overview

Contract Amount: $5,096,410 ($5.1M)

Contractor: Unmc Physicians

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-04-01

End Date: 2026-06-30

Contract Duration: 1,551 days

Daily Burn Rate: $3.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: ORTHOPEDIC PHYSICIAN SERVICES WITH ACADEMIC AFFILIATE

Place of Performance

Location: OMAHA, DOUGLAS County, NEBRASKA, 68105

State: Nebraska Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.1 million to UNMC PHYSICIANS for work described as: ORTHOPEDIC PHYSICIAN SERVICES WITH ACADEMIC AFFILIATE Key points: 1. Contract awarded to UNMC Physicians for orthopedic services. 2. Significant value of $5.1 million over its term. 3. Limited competition due to academic affiliate relationship. 4. Fixed-price contract with economic price adjustment. 5. Sector: Healthcare services for academic medical centers.

Value Assessment

Rating: fair

Pricing is fixed with economic adjustments, making direct comparison difficult without specific adjustment clauses. The value is substantial for specialized services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is not available for competition, suggesting a limited or sole-source approach, likely due to the academic affiliate relationship with UNMC. This limits price discovery and potentially increases costs.

Taxpayer Impact: Taxpayer funds are committed to a specific provider without competitive bidding, potentially leading to higher costs than a competitive process.

Public Impact

Ensures continued access to specialized orthopedic care for veterans. Supports academic medical training and research through the affiliate. Potential for higher costs due to lack of competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Economic price adjustment

Positive Signals

Ensures specialized care
Academic affiliation benefits

Sector Analysis

This contract falls within the healthcare sector, specifically academic medical services. Benchmarks for similar specialized physician services can vary widely based on location and scope.

Small Business Impact

The contract does not indicate any specific provisions or set-asides for small businesses. The nature of academic medical services often involves large institutions.

Oversight & Accountability

The Department of Veterans Affairs is the contracting agency. Oversight would focus on service delivery quality and adherence to contract terms, especially given the fixed-price with adjustment structure.

Related Government Programs

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

Risk Flags

Lack of competitive bidding may lead to higher costs.
Economic price adjustment introduces cost uncertainty.
Potential for contractor lock-in due to academic affiliation.
Limited transparency on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.1 million to UNMC PHYSICIANS. ORTHOPEDIC PHYSICIAN SERVICES WITH ACADEMIC AFFILIATE

Who is the contractor on this award?

The obligated recipient is UNMC PHYSICIANS.

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 $5.1 million.

What is the period of performance?

Start: 2022-04-01. End: 2026-06-30.

What is the justification for limiting competition for these essential orthopedic services?

The justification for limiting competition likely stems from the established academic affiliation between the VA and UNMC Physicians. This relationship may facilitate integrated care, training, and research, making a sole-source or limited competition award seem efficient. However, the specific rationale and any waivers obtained would need to be reviewed for full transparency.

How will the economic price adjustment clause impact the final cost to taxpayers?

The economic price adjustment (EPA) clause allows for changes in contract price based on fluctuations in specific economic factors, such as labor costs or inflation indices. Without knowing the exact index and caps applied, it's difficult to quantify the precise impact. However, EPAs generally protect the contractor from unforeseen cost increases, meaning the final cost could exceed the initial $5.1 million estimate.

What metrics are in place to ensure the effectiveness and quality of orthopedic services provided?

Effectiveness and quality are typically measured through performance metrics outlined in the contract's Statement of Work (SOW). These might include patient outcomes, wait times for appointments, patient satisfaction surveys, and adherence to clinical best practices. Regular performance reviews by the VA contracting officer would assess UNMC Physicians' compliance with these quality standards.

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: 36C26321R0103

Offers Received: 1

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

Evaluated Preference: NONE

Contractor Details

Address: 988101 NEBRASKA MEDICAL CTR, OMAHA, NE, 68198

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,800,022

Exercised Options: $5,096,410

Current Obligation: $5,096,410

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline