VA Spends $59.9M on Kidney Dialysis Centers via Full and Open Competition

Contract Overview

Contract Amount: $59,867,780 ($59.9M)

Contractor: Fresenius Medical Care Holdings Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-03-31

End Date: 2017-03-31

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IGF::CT::IGF FY17 2ND QTR EXPRESS REPORT:

Place of Performance

Location: WALTHAM, MIDDLESEX County, MASSACHUSETTS, 02451

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $59.9 million to FRESENIUS MEDICAL CARE HOLDINGS INC for work described as: IGF::CT::IGF FY17 2ND QTR EXPRESS REPORT: Key points: 1. Significant spending on essential healthcare services. 2. Full and open competition suggests potential for competitive pricing. 3. Fixed-price contract type mitigates cost overrun risk. 4. Focus on kidney dialysis centers highlights a critical patient need.

Value Assessment

Rating: good

The $59.9 million awarded for kidney dialysis centers appears reasonable given the critical nature of the service. Benchmarking against similar contracts for specialized medical facilities would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing compared to limited or sole-source procurements.

Taxpayer Impact: The use of full and open competition is taxpayer-favorable, as it encourages multiple bidders to offer their best prices, potentially reducing overall government expenditure.

Public Impact

Ensures access to vital kidney dialysis services for veterans. Supports healthcare infrastructure for chronic disease management. Promotes competition among healthcare providers, potentially improving service quality.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for price creep if contract terms are not strictly managed.
Dependence on a single delivery order for the entire FY17 Q2 spend.

Positive Signals

Awarded via full and open competition.
Utilizes a firm fixed-price contract.
Addresses a critical healthcare need for veterans.

Sector Analysis

Spending on healthcare services, particularly specialized centers like kidney dialysis, is a significant component of federal health expenditures. Benchmarks for similar medical service contracts would indicate if this amount is typical for the scope and duration.

Small Business Impact

The provided data does not indicate whether small businesses participated in or benefited from this contract award. Further analysis would be needed to assess small business inclusion.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms should be in place to ensure service delivery and adherence to contract terms.

Related Government Programs

Kidney Dialysis Centers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of detailed performance metrics.
Potential for service disruption if provider faces issues.
Limited visibility into specific cost breakdowns.
Geographic concentration of service delivery not specified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $59.9 million to FRESENIUS MEDICAL CARE HOLDINGS INC. IGF::CT::IGF FY17 2ND QTR EXPRESS REPORT:

Who is the contractor on this award?

The obligated recipient is FRESENIUS MEDICAL CARE HOLDINGS INC.

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 $59.9 million.

What is the period of performance?

Start: 2017-03-31. End: 2017-03-31.

What is the average cost per patient for these kidney dialysis services?

The provided data does not include patient volume or cost per patient. To determine this, one would need to analyze the contract's detailed service delivery reports and patient utilization data. This information is crucial for assessing the true value and efficiency of the spending beyond the total contract amount.

Are there any identified risks associated with the long-term provision of these dialysis services?

Potential risks include changes in patient needs, technological advancements in dialysis, and the availability of qualified medical personnel. Long-term contracts should include provisions for adapting to these changes and ensuring continuity of care while managing costs effectively.

How does the quality of care provided under this contract compare to national benchmarks?

Quality of care metrics are not detailed in the provided data. A thorough assessment would require reviewing patient outcomes, satisfaction surveys, and adherence to clinical best practices. Comparing these against established healthcare quality standards is essential for evaluating effectiveness.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fresenius Medical Care Capital City, LLC (UEI: 324661834)

Address: 920 WINTER ST, WALTHAM, MA, 02451

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

Financial Breakdown

Contract Ceiling: $59,867,780

Exercised Options: $59,867,780

Current Obligation: $59,867,780

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79113D0019

IDV Type: IDC

Timeline