VA awards $31.1M for Telehealth Services to Medtronic Care Management, highlighting surgical instrument manufacturing sector

Contract Overview

Contract Amount: $31,160,143 ($31.2M)

Contractor: Medtronic Care Management Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-10-02

End Date: 2017-11-30

Contract Duration: 59 days

Daily Burn Rate: $528.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: FOR TELEHEALTH SERVICE FEES

Place of Performance

Location: GOLDEN, JEFFERSON County, COLORADO, 80401

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $31.2 million to MEDTRONIC CARE MANAGEMENT SERVICES, LLC for work described as: EXPRESS REPORT: FOR TELEHEALTH SERVICE FEES Key points: 1. The contract value of $31.1 million for telehealth services is significant. 2. Medtronic Care Management Services, LLC, a key player in surgical and medical instruments, secured this award. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The short duration (59 days) indicates a specific, time-bound need for these telehealth services.

Value Assessment

Rating: good

The award amount of $31.1 million for a 59-day period suggests a high per-diem cost. Benchmarking against similar telehealth service contracts would be necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds were likely used efficiently, with pricing driven by market forces rather than sole-source limitations.

Public Impact

Veterans will benefit from enhanced telehealth services, improving access to care. The award supports a major manufacturer in the medical device industry. This contract demonstrates the VA's commitment to leveraging technology for healthcare delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration may limit long-term planning for service providers.
High per-diem cost potential requires further value assessment.
Lack of specific performance metrics makes effectiveness evaluation difficult.

Positive Signals

Awarded through full and open competition.
Supports critical telehealth services for veterans.
Utilizes a firm fixed-price contract type.

Sector Analysis

The award falls within the Surgical and Medical Instrument Manufacturing sector, a critical area for healthcare technology. Spending in this sector is often driven by innovation and the need for advanced medical equipment and services.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The awardee, Medtronic Care Management Services, LLC, is a large corporation, suggesting limited direct benefit to small businesses in this particular contract.

Oversight & Accountability

The award was a delivery order under an existing contract, implying prior oversight. However, the short duration and lack of detailed performance metrics in the provided data make ongoing oversight assessment challenging.

Related Government Programs

Surgical and Medical Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

High potential per-diem cost.
Short contract duration may indicate a temporary or urgent need.
Lack of detailed service description.
Absence of specific performance metrics.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $31.2 million to MEDTRONIC CARE MANAGEMENT SERVICES, LLC. EXPRESS REPORT: FOR TELEHEALTH SERVICE FEES

Who is the contractor on this award?

The obligated recipient is MEDTRONIC CARE MANAGEMENT SERVICES, 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 $31.2 million.

What is the period of performance?

Start: 2017-10-02. End: 2017-11-30.

What specific telehealth services were procured, and how do they align with VA's strategic healthcare goals?

The provided data identifies the contract as being for 'TELEHEALTH SERVICE FEES' but lacks specifics on the exact services. Understanding the scope, such as remote monitoring, virtual consultations, or specialized care, is crucial to assess alignment with the VA's broader healthcare objectives and its commitment to improving veteran access and outcomes through technology.

What is the benchmarked cost per unit or per service for these telehealth fees compared to industry standards?

The data provides a total award amount ($31.1M) and duration (59 days) but does not offer a per-unit cost or service benchmark. To assess value for money, a detailed analysis comparing these fees against similar telehealth service contracts within the VA and the broader healthcare market is essential. This would reveal if the pricing is competitive or potentially inflated.

How will the effectiveness of these telehealth services be measured to ensure optimal veteran care and efficient use of funds?

The provided information does not detail the performance metrics or key performance indicators (KPIs) used to evaluate the effectiveness of the telehealth services. Robust measurement is critical to ensure the services are meeting veteran needs, improving health outcomes, and justifying the significant expenditure. Without defined metrics, assessing the true impact and accountability is difficult.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Medtronic Inc (UEI: 985596906)

Address: 7980 CENTURY BLVD, CHANHASSEN, MN, 55317

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

Financial Breakdown

Contract Ceiling: $31,160,143

Exercised Options: $31,160,143

Current Obligation: $31,160,143

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79117D0004

IDV Type: IDC

Timeline