VA awards $4.56M for kidney transplant surgeon services to The University of Iowa

Contract Overview

Contract Amount: $4,560,000 ($4.6M)

Contractor: THE University of Iowa

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-04-01

End Date: 2027-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $2.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: KIDNEY TRANSPLANT SURGEON SERVICES

Place of Performance

Location: IOWA CITY, JOHNSON County, IOWA, 52246

State: Iowa Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.6 million to THE UNIVERSITY OF IOWA for work described as: KIDNEY TRANSPLANT SURGEON SERVICES Key points: 1. Contract awarded to a single, well-established academic medical center. 2. Fixed-price contract with economic price adjustment may mitigate inflation risk. 3. Long-term contract duration (5 years) suggests a need for sustained services. 4. The award is for a critical healthcare service within the VA system. 5. Potential for high-value, specialized medical expertise to be delivered.

Value Assessment

Rating: good

The contract value of $4.56 million over five years for kidney transplant surgeon services appears reasonable for specialized medical expertise. Benchmarking against similar contracts for transplant services at academic medical centers would provide a more precise value-for-money assessment. The University of Iowa is a known provider of such complex medical procedures, suggesting a baseline level of quality. However, without specific details on the scope of services and patient volume, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The number of bidders is not specified, but the full and open nature suggests a competitive process was initiated. This approach is generally expected to yield fair market prices and encourage innovative solutions from the vendor pool.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a competitive environment, which typically leads to better pricing and service quality, maximizing the value of federal dollars spent.

Public Impact

Veterans requiring kidney transplant surgery will benefit from access to specialized surgical services. The contract supports the delivery of critical, life-saving medical procedures. Services are likely to be provided at The University of Iowa's medical facilities, impacting patients in Iowa and potentially surrounding regions. This contract supports highly skilled medical professionals, including surgeons and supporting staff, within the healthcare sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to economic price adjustment clause if inflation significantly outpaces projections.
Dependence on a single academic institution for a critical service could pose a risk if unforeseen issues arise with the contractor's capacity or performance.
The long duration of the contract might limit opportunities to re-evaluate pricing or service delivery models if market conditions change significantly.

Positive Signals

Award to a reputable academic medical center with established expertise in transplant surgery.
Full and open competition process suggests a robust selection of the most qualified offeror.
Fixed-price contract structure provides some cost certainty, with adjustments for economic factors.
Long-term nature of the contract ensures continuity of care for veterans needing transplants.

Sector Analysis

The healthcare sector, particularly specialized medical services like organ transplantation, is characterized by high costs, advanced technology, and a limited number of highly trained professionals. Academic medical centers often play a crucial role in providing these complex procedures and conducting related research. Federal agencies like the VA rely on such institutions to deliver specialized care to beneficiaries. Comparable spending benchmarks for transplant services can vary widely based on procedure type, geographic location, and the specific academic institution's capabilities.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of kidney transplant surgeon services, it is unlikely that small businesses would be primary providers. Subcontracting opportunities for small businesses are not explicitly mentioned but could potentially arise for ancillary support services if the prime contractor engages them.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing payments. The VA has an Office of Inspector General that conducts audits and investigations into VA programs and contracts to ensure accountability and prevent fraud, waste, and abuse.

Related Government Programs

VA Medical Services Contracts
Organ Transplant Programs
Specialized Medical Procedures
Academic Medical Center Partnerships

Risk Flags

Long-term contract duration
Economic Price Adjustment clause
Single source for specialized service

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.6 million to THE UNIVERSITY OF IOWA. KIDNEY TRANSPLANT SURGEON SERVICES

Who is the contractor on this award?

The obligated recipient is THE UNIVERSITY OF IOWA.

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 $4.6 million.

What is the period of performance?

Start: 2022-04-01. End: 2027-03-31.

What is the historical spending pattern for kidney transplant surgeon services by the VA?

Historical spending data for kidney transplant surgeon services by the VA is not readily available in a consolidated public format. However, the VA operates numerous medical centers, and the need for transplant services, including kidney transplants, is a recurring requirement. Spending on such specialized services is typically driven by patient demand, the availability of qualified surgical teams and facilities, and the complexity of the procedures. The current award of $4.56 million over five years suggests an average annual expenditure of approximately $912,000 for these services from The University of Iowa. This figure should be compared against previous contract awards for similar services, if any, and the overall VA budget allocation for transplant programs to understand trends and the significance of this particular contract.

How does the cost of these services compare to private sector benchmarks?

Comparing the cost of these VA kidney transplant surgeon services to private sector benchmarks is complex due to variations in service scope, patient populations, and administrative overhead. The University of Iowa, as an academic medical center, may have different cost structures than private hospitals. The contract's fixed-price with economic price adjustment (EPA) structure aims to manage costs, but the EPA component can lead to variability. Private sector costs for kidney transplants can range significantly, often exceeding $100,000 per procedure, encompassing surgeon fees, hospital stay, medications, and follow-up care. The VA's $4.56 million contract over five years suggests an average annual cost that needs to be broken down by the number of procedures and associated services to enable a meaningful comparison. Without specific details on the volume of services and the exact terms of the EPA, a precise benchmark is difficult.

What are the key performance indicators (KPIs) for this contract?

Key performance indicators (KPIs) for this kidney transplant surgeon services contract would likely focus on clinical outcomes, operational efficiency, and patient satisfaction. Specific KPIs could include: transplant success rates (e.g., graft survival rates at 1-year and 5-year post-transplant), patient survival rates, complication rates (e.g., infection, rejection), waiting list management efficiency, timeliness of transplant procedures once a donor is available, and patient satisfaction scores. The Department of Veterans Affairs would establish these KPIs in the contract's Performance Work Statement (PWS) to ensure the contractor, The University of Iowa, meets the required standards for delivering high-quality, effective transplant care to veterans.

What is The University of Iowa's track record in providing transplant services?

The University of Iowa (UI) has a well-established and reputable organ transplant program, including kidney transplantation. As an academic medical center, it is involved in complex surgeries, patient care, research, and education. UI Hospitals & Clinics has performed thousands of transplants over several decades, demonstrating significant experience and expertise in the field. Their program is known for handling challenging cases and achieving good patient outcomes. Their long history and commitment to transplant surgery suggest a strong track record and capability to fulfill the requirements of this federal contract effectively.

Are there any specific risks associated with this contract beyond standard healthcare delivery?

Beyond the standard risks inherent in complex medical procedures like kidney transplants (e.g., surgical complications, patient rejection, infection), specific risks for this contract could include: 1) Dependence on a single academic institution: If The University of Iowa faces unforeseen challenges (e.g., staffing shortages, facility issues, changes in accreditation), it could disrupt service delivery. 2) Economic Price Adjustment (EPA): While intended to manage inflation, a poorly structured EPA could lead to costs exceeding initial projections if economic conditions are volatile. 3) Long-term commitment: A five-year contract might not allow for rapid adaptation to new surgical techniques or technologies that emerge during the contract period, potentially leading to suboptimal care compared to facilities adopting newer methods sooner. 4) Geographic concentration: Services are likely concentrated in Iowa, which might pose logistical challenges for veterans located far from the facility.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C26321R0113

Offers Received: 1

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

Evaluated Preference: NONE

Contractor Details

Address: 105 JESSUP HALL, IOWA CITY, IA, 52242

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: $4,560,000

Exercised Options: $4,560,000

Current Obligation: $4,560,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline