VA awards $17M contract for pharmacy support staff, highlighting a need for specialized personnel

Contract Overview

Contract Amount: $17,036,477 ($17.0M)

Contractor: Citadel Federal Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-01

End Date: 2026-03-31

Contract Duration: 181 days

Daily Burn Rate: $94.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: STAFFING FOR PHARMACISTS, PHARMACY TECHNICIANS, SHIPPER/PACKERS, AND FACILITY ADMINISTRATORS.

Place of Performance

Location: HINES, COOK County, ILLINOIS, 60141

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $17.0 million to CITADEL FEDERAL SOLUTIONS LLC for work described as: STAFFING FOR PHARMACISTS, PHARMACY TECHNICIANS, SHIPPER/PACKERS, AND FACILITY ADMINISTRATORS. Key points: 1. Contract addresses critical staffing shortages in pharmacy operations. 2. Focus on specialized roles like pharmacists and technicians suggests a need for expertise. 3. The firm-fixed-price structure aims to control costs for these essential services. 4. Competition was full and open, indicating a robust market for these services. 5. The contract duration of 18 months suggests a medium-term need for these roles. 6. Geographic focus on Illinois points to specific facility support requirements.

Value Assessment

Rating: good

The contract value of $17.04 million over 18 months for pharmacy support staff appears reasonable given the specialized nature of the roles. Benchmarking against similar contracts for pharmacy technicians and pharmacists, especially those requiring facility support, would provide a clearer picture of value. However, the firm-fixed-price (FFP) award suggests the government has a defined scope and is seeking cost certainty, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial exclusions might have occurred, the opportunity was ultimately made available to all eligible responsible sources. This suggests a competitive environment where multiple vendors could bid, likely leading to a fair market price. The specific number of bidders is not provided, but the designation implies a broad solicitation.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve service quality through vendor innovation.

Public Impact

Veterans will benefit from improved pharmacy services due to adequate staffing. The contract ensures the availability of pharmacists, pharmacy technicians, shipper/packers, and facility administrators. Services are geographically focused on Illinois, supporting VA facilities in that state. The contract supports a specialized healthcare workforce, potentially impacting local employment in Illinois.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor if performance issues arise with Citadel Federal Solutions.
Risk of staffing shortages if the contractor faces recruitment or retention challenges.
Dependence on contractor's ability to maintain quality standards for pharmacy operations.

Positive Signals

Firm-fixed-price award provides cost certainty for the VA.
Full and open competition suggests a healthy market and potential for competitive pricing.
Contract duration of 18 months allows for stable support while allowing for future re-evaluation.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically addressing the operational needs of healthcare facilities. The market for such services is competitive, with numerous companies offering specialized staffing and administrative support. The $17 million award is moderate for a federal contract of this nature, reflecting the specific staffing requirements for pharmacy operations within a defined geographic area.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this contract (ss: false, sb: false). While the prime contractor, Citadel Federal Solutions LLC, may be a small business itself, the contract was not specifically designated for small business set-aside. Subcontracting opportunities for small businesses may exist depending on the prime contractor's strategy, but they are not mandated by the contract terms.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Pharmacy Services Contracts
Healthcare Staffing Contracts
Veterans Affairs Medical Support
Facilities Management Services

Risk Flags

Potential for staffing shortages if contractor faces recruitment challenges.
Risk of service quality degradation if performance standards are not rigorously monitored.
Dependence on contractor's ability to maintain compliance with healthcare regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $17.0 million to CITADEL FEDERAL SOLUTIONS LLC. STAFFING FOR PHARMACISTS, PHARMACY TECHNICIANS, SHIPPER/PACKERS, AND FACILITY ADMINISTRATORS.

Who is the contractor on this award?

The obligated recipient is CITADEL FEDERAL SOLUTIONS 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 $17.0 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-03-31.

What is the track record of Citadel Federal Solutions LLC in providing similar pharmacy support services to the federal government?

A review of federal procurement data indicates that Citadel Federal Solutions LLC has been awarded contracts for various support services, including staffing and administrative functions. While specific details on their performance history for pharmacy support are not immediately available in this summary, their past awards suggest experience in fulfilling government requirements. Further investigation into past performance evaluations and contract close-outs would be necessary to fully assess their track record in this specialized area. It is important to note that contract performance can vary significantly based on the specific requirements, duration, and agency.

How does the awarded amount compare to similar pharmacy staffing contracts awarded by the VA or other agencies?

The awarded amount of $17.04 million for 18 months of pharmacy support staff (pharmacists, technicians, shippers/packers, administrators) in Illinois provides a benchmark. To assess value, this figure should be compared against contracts with similar scope, duration, and geographic focus. For instance, contracts for pharmacy technicians alone might range from $50-$100 per hour depending on location and experience, while pharmacists command higher rates. The total contract value suggests a significant number of staff hours are required. A detailed comparison would involve analyzing the number of full-time equivalents (FTEs) or total labor hours anticipated under this contract versus comparable awards.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential contractor performance issues (failure to provide qualified staff, service disruptions), cost overruns if the firm-fixed-price is not well-defined, and reliance on a single provider. Mitigation strategies likely include robust performance standards in the contract, regular monitoring by the VA, clear communication channels, and contingency planning. The firm-fixed-price structure itself mitigates cost overrun risk for the government, provided the scope is accurately defined. The exclusion of sources in the competition type might indicate specific requirements that limited the pool, which could be a risk if it restricted competition too much.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for these pharmacy support services?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and understood. For pharmacy support staffing, FFP provides cost certainty to the government, as the contractor assumes the risk of cost overruns. This incentivizes the contractor to manage resources efficiently. However, if the scope is not precisely defined, it could lead to the contractor cutting corners on service quality to maintain profitability, or conversely, the government may have paid a premium to account for contractor risk. The VA's success with FFP here depends on the accuracy of their initial requirements definition and their ability to monitor performance against that defined scope.

What are the historical spending patterns for pharmacy support staff at the Department of Veterans Affairs?

Historical spending patterns for pharmacy support staff at the VA would reveal trends in demand, pricing, and contractor utilization. Analyzing past contracts for similar services would indicate whether this $17 million award represents an increase, decrease, or stable level of spending. It would also highlight which contractors have historically been successful in winning these types of awards and whether the VA has consistently used full and open competition. Understanding these patterns is crucial for budget forecasting and identifying potential efficiencies or areas of concern in VA's procurement of essential healthcare support.

What is the significance of the 'Full and Open Competition After Exclusion of Sources' award type?

This award type, 'Full and Open Competition After Exclusion of Sources,' suggests an initial phase where certain sources might have been excluded based on specific criteria (e.g., capability, past performance, or specific pre-qualification). However, the contract was ultimately awarded through a process open to all eligible responsible sources that met the requirements. This implies that while there might have been an initial filtering, the final award decision was based on a competitive process among all qualified bidders. It aims to balance the need for specific capabilities with ensuring broad competition to achieve fair pricing and best value for the government.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1318 BRIDGE MILL AVE, CANTON, GA, 30114

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $17,036,477

Exercised Options: $17,036,477

Current Obligation: $17,036,477

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C77025D0002

IDV Type: IDC

Timeline