VA awards $2.1M for Interventional Cardiology Services, citing limited competition
Contract Overview
Contract Amount: $2,122,232 ($2.1M)
Contractor: THE University of Iowa
Awarding Agency: Department of Veterans Affairs
Start Date: 2023-04-01
End Date: 2027-03-31
Contract Duration: 1,460 days
Daily Burn Rate: $1.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: INTERVENTIONAL CARDIOLOGY SERVICES FOR ICVAHCS
Place of Performance
Location: IOWA CITY, JOHNSON County, IOWA, 52246
State: Iowa Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $2.1 million to THE UNIVERSITY OF IOWA for work described as: INTERVENTIONAL CARDIOLOGY SERVICES FOR ICVAHCS Key points: 1. Contract awarded to a single source, raising questions about price competitiveness. 2. The fixed-price contract structure aims to control costs for defined services. 3. Duration of nearly four years suggests a need for sustained specialized care. 4. Geographic focus on Iowa indicates a specific regional healthcare requirement. 5. Lack of small business participation noted in the contract award.
Value Assessment
Rating: fair
The contract value of $2.12 million over approximately four years for interventional cardiology services appears reasonable for specialized medical care. However, without comparable contract data or detailed service breakdowns, a precise value-for-money assessment is challenging. The fixed-price nature provides cost certainty for the VA, but the absence of competitive bidding limits the opportunity to benchmark pricing against market alternatives. Further analysis would require understanding the scope of services and the typical costs for such specialized medical interventions within the VA system or similar healthcare providers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. The data indicates the contractor, The University of Iowa, was selected without soliciting bids from other potential providers. This approach is typically used when only one source is capable of meeting the requirement, often due to specialized expertise, existing infrastructure, or unique circumstances. The lack of competition means the VA did not benefit from a bidding process that could drive down prices or encourage innovation from multiple vendors.
Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price through competition, potentially leading to higher costs for taxpayers. It also bypasses opportunities to foster a broader market of service providers.
Public Impact
Veterans in Iowa will receive specialized interventional cardiology services. The contract ensures continuity of care for patients requiring these procedures. Services are likely delivered at or near the Iowa City VA Health Care System (ICVAHCS). The University of Iowa, as the contractor, will provide the necessary medical expertise and potentially utilize its facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential cost savings.
- Lack of transparency in the selection process due to non-competitive nature.
- No explicit small business subcontracting goals were identified.
Positive Signals
- Contract ensures access to critical specialized medical services for veterans.
- Fixed-price contract provides budget certainty for the VA.
- Longer contract duration (nearly 4 years) suggests a stable, ongoing need.
Sector Analysis
The healthcare sector, particularly specialized medical services, is a significant area of federal spending. Interventional cardiology involves procedures like angioplasty and stenting, requiring highly skilled professionals and advanced equipment. Contracts in this area often involve academic medical centers or large healthcare systems due to the complexity and cost. Benchmarking this contract would involve comparing its total value and duration against similar service contracts awarded by the VA or other federal health agencies for specialized cardiac care.
Small Business Impact
This contract does not appear to have a small business set-aside. The award to The University of Iowa, a large academic institution, suggests that small businesses were not primary targets for this specific procurement. There is no information provided regarding subcontracting opportunities for small businesses, which could be a missed avenue for engaging smaller entities within the healthcare service ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. The fixed-price nature of the contract provides a degree of financial oversight by setting a ceiling on costs. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or execution of the contract.
Related Government Programs
- VA Medical Services Contracts
- Specialized Healthcare Services
- Interventional Cardiology Services
- Academic Medical Center Partnerships
Risk Flags
- Sole-source award may limit price competition.
- Lack of small business participation.
- Limited public information on specific services and performance metrics.
Tags
healthcare, veterans-affairs, interventional-cardiology, definitive-contract, firm-fixed-price, sole-source, medical-services, iowa, university-of-iowa, academic-medical-center
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $2.1 million to THE UNIVERSITY OF IOWA. INTERVENTIONAL CARDIOLOGY SERVICES FOR ICVAHCS
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 $2.1 million.
What is the period of performance?
Start: 2023-04-01. End: 2027-03-31.
What specific interventional cardiology procedures are covered under this contract?
The provided data does not specify the exact interventional cardiology procedures covered. However, this field typically includes diagnostic and therapeutic interventions such as cardiac catheterization, angioplasty, stent placement, and potentially procedures related to heart valve repair or replacement. A detailed statement of work (SOW) within the contract documentation would outline the precise services required by the VA, including the volume and types of procedures expected. Understanding the scope is crucial for assessing the contract's value and the contractor's capabilities.
Why was this contract awarded on a sole-source basis instead of being competed?
Sole-source awards are generally justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is available or capable of meeting the requirement. For specialized medical services like interventional cardiology, this could be due to The University of Iowa possessing unique expertise, established patient care pathways within the VA system, proprietary technology, or being the only institution with the necessary infrastructure and qualified personnel in the immediate geographic region. The VA would have had to document the justification for this sole-source determination.
How does the $2.12 million contract value compare to similar interventional cardiology contracts?
Direct comparison of the $2.12 million contract value is difficult without access to a database of similar interventional cardiology contracts, including their scope, duration, and geographic location. However, for a nearly four-year contract providing specialized cardiac services, this figure suggests a moderate investment. Factors influencing cost include the volume of procedures, complexity of cases, staffing levels, and the specific services included (e.g., diagnostics, interventions, follow-up care). The absence of competition makes it harder to ascertain if this represents a competitive market rate.
What is the track record of The University of Iowa in providing healthcare services to the VA?
The University of Iowa has a history of collaborating with the Department of Veterans Affairs, often through academic affiliations and direct service contracts. As a major academic medical center, it is well-positioned to provide specialized care. While this specific contract data doesn't detail past performance, institutions like The University of Iowa typically have established relationships with the VA, providing a range of medical services. Their track record would generally be assessed based on previous contract performance, patient outcomes, and adherence to VA standards.
What are the potential risks associated with a sole-source award for these services?
The primary risk of a sole-source award is the lack of price competition, which can lead to the government paying a premium compared to a competitively bid contract. Other risks include potential complacency from the contractor, as there is no immediate threat of losing the business to a competitor. Furthermore, if the contractor's performance declines or their costs increase unexpectedly, the VA has limited leverage to renegotiate terms or switch providers without significant disruption. Ensuring robust contract management and performance monitoring becomes critical in sole-source situations.
What is the expected impact on veteran access to care in Iowa?
This contract is expected to positively impact veteran access to care by ensuring the continued availability of specialized interventional cardiology services. By awarding a contract, the VA guarantees that veterans in the relevant geographic area (Iowa) will have access to necessary procedures and treatments for cardiovascular conditions. This continuity of care is vital for managing chronic heart diseases and addressing acute cardiac events, potentially reducing wait times and improving health outcomes for veterans served by the Iowa City VA Health Care System or associated facilities.
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: 36C26322R0148
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $2,916,110
Exercised Options: $2,122,241
Current Obligation: $2,122,232
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-04-01
Current End Date: 2027-03-31
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2026-03-25
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