VA awards $723K contract for Neurology/Endocrinology Physician Services to UNMC Physicians

Contract Overview

Contract Amount: $723,234 ($723.2K)

Contractor: Unmc Physicians

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-05-01

End Date: 2026-10-31

Contract Duration: 1,644 days

Daily Burn Rate: $440/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: NEUROLOGY ENDOCRINOLOGY PHYSICIAN SERVICES

Place of Performance

Location: OMAHA, DOUGLAS County, NEBRASKA, 68105

State: Nebraska Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $723,234.12 to UNMC PHYSICIANS for work described as: NEUROLOGY ENDOCRINOLOGY PHYSICIAN SERVICES Key points: 1. Contract awarded to a single provider, raising questions about competition. 2. Fixed-price contract with economic price adjustment may expose taxpayers to inflation risk. 3. Services are critical for veteran healthcare, indicating high demand. 4. The contract duration of over 3 years suggests a significant commitment.

Value Assessment

Rating: fair

The contract value of $723,234.12 over approximately 4 years is difficult to benchmark without specific service details. However, physician services can be costly, and the lack of competitive bidding makes a direct price comparison challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a sole-source or limited-source award. This limits price discovery and potentially leads to higher costs than if multiple providers had competed.

Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a fully competitive procurement.

Public Impact

Ensures access to specialized medical care for veterans in Nebraska. Supports the operational needs of the VA healthcare system. Potential for increased healthcare costs due to limited competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Economic price adjustment
Lack of detailed service scope

Positive Signals

Essential healthcare services
Established provider relationship

Sector Analysis

This contract falls under professional medical services, specifically within the healthcare sector. Spending benchmarks for physician services vary widely based on specialty, location, and contract type. The VA's reliance on specific providers for specialized care is common.

Small Business Impact

The data does not indicate any specific provisions or considerations for small businesses in this contract award. The awardee is identified as UNMC PHYSICIANS, likely a larger entity.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Accountability would involve monitoring service delivery, adherence to contract terms, and managing any economic price adjustments.

Related Government Programs

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

Risk Flags

Limited competition
Economic price adjustment
Potential for cost overruns
Lack of transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $723,234.12 to UNMC PHYSICIANS. NEUROLOGY ENDOCRINOLOGY PHYSICIAN SERVICES

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 $723,234.12.

What is the period of performance?

Start: 2022-05-01. End: 2026-10-31.

What is the specific breakdown of services provided under this contract and how does it align with market rates for similar physician services?

The provided data lacks a detailed breakdown of the specific neurology and endocrinology services. To assess value, a comparison with market rates for comparable physician services, considering factors like physician hours, patient volume, and complexity of care, would be necessary. Without this, it's difficult to definitively determine if the $723,234.12 represents fair market value.

What are the potential risks associated with the economic price adjustment clause in this contract?

The economic price adjustment (EPA) clause allows for increases in contract price based on fluctuations in economic factors, such as inflation. The primary risk is that unforeseen or significant inflation could substantially increase the contract cost beyond initial projections, leading to higher taxpayer expenditure without a commensurate increase in service value or volume.

How effective is the limited competition approach in ensuring the delivery of specialized physician services to veterans?

While limited competition can ensure the availability of specialized services, especially when only a few qualified providers exist, it may not be the most effective approach for achieving optimal value. It can reduce the incentive for providers to offer competitive pricing and may lead to higher costs. Effectiveness here hinges on whether UNMC Physicians is uniquely qualified and the sole viable option for these specific 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

Solicitation ID: 36C26321R0136

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: $723,783

Exercised Options: $723,782

Current Obligation: $723,234

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline