VA awards $918K contract for hemodialysis services in Central Iowa, highlighting a competitive procurement

Contract Overview

Contract Amount: $918,117 ($918.1K)

Contractor: RCG Mercy DES Moines, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-07-14

End Date: 2027-07-13

Contract Duration: 1,460 days

Daily Burn Rate: $629/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ONSITE HEMODIALYSIS SERVICES FOR CENTRAL IOWA VA HEALTH CARE SYSTEM

Place of Performance

Location: DES MOINES, POLK County, IOWA, 50310

State: Iowa Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $918,116.68 to RCG MERCY DES MOINES, LLC for work described as: ONSITE HEMODIALYSIS SERVICES FOR CENTRAL IOWA VA HEALTH CARE SYSTEM Key points: 1. The contract value represents a significant investment in specialized healthcare services for veterans. 2. Competition dynamics suggest potential for favorable pricing and service quality. 3. The firm-fixed-price structure aims to control costs and ensure predictable expenditures. 4. Performance will be monitored to ensure quality of care and adherence to service standards. 5. This contract positions the VA to meet critical healthcare needs within the region. 6. The duration of the contract allows for sustained service delivery and relationship building.

Value Assessment

Rating: good

The contract value of $918,116.68 for a 4-year period for onsite hemodialysis services appears reasonable given the specialized nature of the care. Benchmarking against similar contracts for VA facilities or other healthcare providers offering comparable services would provide a more precise value assessment. The firm-fixed-price contract type suggests that the pricing was determined upfront and is intended to remain stable, which is beneficial for budget predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process likely involving multiple bids. The presence of two bidders suggests a degree of market interest and competition for this service. A competitive procurement generally leads to better price discovery and encourages contractors to offer competitive terms and quality to win the award.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more cost-effective solution compared to a sole-source or limited competition scenario.

Public Impact

Veterans in Central Iowa requiring hemodialysis services will benefit from accessible, onsite care. The contract ensures the provision of essential medical services, improving health outcomes for beneficiaries. Services will be delivered within the Central Iowa VA Health Care System's operational area. This contract supports healthcare jobs and specialized medical professionals within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ensuring consistent quality of care across the contract duration.
Monitoring contractor performance to meet all service level agreements.
Managing potential disruptions in service delivery.

Positive Signals

Competitive award process likely secured favorable pricing.
Firm-fixed-price contract provides cost certainty.
Longer contract duration allows for stable service provision.

Sector Analysis

The healthcare sector, particularly specialized medical services like kidney dialysis centers, is a critical area of federal spending. This contract falls under the broader category of healthcare services, which includes a vast array of medical treatments and support. The market for such services is often characterized by specialized providers and regulatory oversight. Comparable spending benchmarks would typically look at per-patient costs or per-treatment costs for dialysis services across different healthcare systems.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. However, the competition under Simplified Acquisition Procedures (SAP) could potentially include small businesses. Further analysis would be needed to determine if small businesses were involved in bidding or if subcontracting opportunities exist, which could impact the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs, specifically the Central Iowa VA Health Care System. Accountability measures will be tied to the firm-fixed-price contract terms and performance standards. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Medical Services
Community Care Programs
Healthcare Services Contracts

Risk Flags

Potential for service disruption
Ensuring consistent quality of care
Contractor performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $918,116.68 to RCG MERCY DES MOINES, LLC. ONSITE HEMODIALYSIS SERVICES FOR CENTRAL IOWA VA HEALTH CARE SYSTEM

Who is the contractor on this award?

The obligated recipient is RCG MERCY DES MOINES, LLC.

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 $918,116.68.

What is the period of performance?

Start: 2023-07-14. End: 2027-07-13.

What is the historical spending trend for hemodialysis services at the Central Iowa VA Health Care System?

Historical spending data for hemodialysis services specifically at the Central Iowa VA Health Care System is not provided in the current data. To assess historical trends, one would need to examine previous contract awards for similar services at this facility over several fiscal years. This would involve looking at contract databases for prior awards, their values, durations, and the contractors involved. Analyzing this historical data would help identify patterns in spending, potential increases or decreases in service costs, and the consistency of service providers. Without this historical context, it is difficult to determine if the current $918,116.68 award represents an increase, decrease, or stable level of investment in these critical services.

How does the per-patient cost of this contract compare to national averages for hemodialysis?

The provided data does not include the number of patients to be served or the specific service units (e.g., per treatment cost), making a direct per-patient cost comparison impossible. The total contract value is $918,116.68 over approximately four years. To perform a meaningful comparison, we would need to know the estimated number of dialysis sessions or patients served annually. National averages for hemodialysis can vary significantly based on facility type, insurance provider, and geographic location. Generally, Medicare reimbursement rates for end-stage renal disease (ESRD) services can serve as a benchmark, but private contracts may differ. A detailed analysis would require breaking down the contract value into per-session or per-patient-per-year costs and comparing that to published benchmarks from organizations like CMS or industry reports.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for a healthcare service contract like hemodialysis, typical KPIs would likely include measures related to patient outcomes (e.g., adherence to treatment schedules, clinical indicators like blood pressure control, anemia management), quality of care (e.g., infection rates, patient satisfaction scores), timeliness of service delivery, and compliance with all relevant medical standards and regulations. Performance measurement would likely involve regular reporting by the contractor, site visits and audits by VA personnel, and potentially patient feedback mechanisms. The firm-fixed-price nature of the contract implies that meeting these KPIs is crucial for the contractor to receive full payment and avoid penalties.

What is the track record of RCG MERCY DES MOINES, LLC with VA contracts, particularly for healthcare services?

The provided data indicates that RCG MERCY DES MOINES, LLC is the awardee for this contract. To assess their track record with the VA, a review of federal procurement databases (like SAM.gov or FPDS) would be necessary. This would involve searching for previous contracts awarded to this specific entity by the Department of Veterans Affairs. Key aspects to examine would include the types of services previously provided, contract values, performance history (e.g., any past performance issues, awards, or disputes), and the duration of their involvement with the VA. A strong track record with the VA, especially in similar healthcare service areas, would suggest a lower performance risk for this new contract.

Are there any identified risks associated with the contractor or the service delivery for this contract?

The provided data does not explicitly list any identified risks associated with RCG MERCY DES MOINES, LLC or the delivery of hemodialysis services. However, general risks in healthcare service contracts can include potential disruptions in service continuity, challenges in maintaining adequate staffing levels of qualified medical professionals, ensuring consistent quality of care, and compliance with evolving healthcare regulations. For this specific contract, risks might also relate to the contractor's financial stability or their past performance on similar contracts, which would require further investigation beyond the scope of the given data. The competitive nature of the award and the firm-fixed-price structure aim to mitigate some financial and performance risks.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › Kidney Dialysis Centers

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26323Q0304

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bio-Medical Applications of Missouri, Inc.

Address: 1111 6TH AVE, DES MOINES, IA, 50314

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

Financial Breakdown

Contract Ceiling: $1,253,638

Exercised Options: $918,117

Current Obligation: $918,117

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline