VA awards $72.4M for Kidney Dialysis Centers to Davita Inc. in Q2 FY19

Contract Overview

Contract Amount: $72,413,337 ($72.4M)

Contractor: Davita Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-01-01

End Date: 2019-04-01

Contract Duration: 90 days

Daily Burn Rate: $804.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: 1/1/19 TO 3/31/19 FY19 Q2

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80202

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $72.4 million to DAVITA INC. for work described as: EXPRESS REPORT: 1/1/19 TO 3/31/19 FY19 Q2 Key points: 1. Spending of $72.4M in Q2 FY19 for essential healthcare services. 2. Davita Inc. is a major provider in the kidney dialysis market. 3. Potential risk of vendor lock-in or price escalation. 4. Healthcare sector spending is critical for veteran well-being.

Value Assessment

Rating: good

The award of $72.4M appears reasonable given the contract duration and the nature of kidney dialysis services. Benchmarking against similar contracts for dialysis centers 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, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary healthcare services.

Public Impact

Ensures continued access to vital kidney dialysis services for veterans. Supports the health and quality of life for veterans with kidney disease. Highlights the VA's commitment to providing specialized medical care.

Waste & Efficiency Indicators

Waste Risk Score: 80 / 10

Positive Signals

Full and open competition utilized.
Essential healthcare service provided.
Clear contract award for a defined period.

Sector Analysis

The healthcare sector, particularly specialized services like kidney dialysis, represents a significant portion of federal spending. Benchmarks for similar VA contracts would indicate if this award is within the expected range.

Small Business Impact

This award does not appear to directly benefit small businesses, as Davita Inc. is a large corporation. Future contracts could explore opportunities for small business participation in ancillary services.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure quality of care and adherence to terms. Regular performance reviews are crucial.

Related Government Programs

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

Risk Flags

Potential for price increases in future contract renewals.
Dependence on a single large provider for a critical service.
Lack of specific performance metrics in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $72.4 million to DAVITA INC.. EXPRESS REPORT: 1/1/19 TO 3/31/19 FY19 Q2

Who is the contractor on this award?

The obligated recipient is DAVITA 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 $72.4 million.

What is the period of performance?

Start: 2019-01-01. End: 2019-04-01.

What was the total value of bids received during the full and open competition?

Information on the total value of bids received is not provided in the data. Knowing this would allow for a more thorough analysis of the price competition and whether the awarded amount represented a significant discount or premium compared to other proposals.

Are there any performance metrics or quality indicators associated with this contract?

The provided data does not specify performance metrics or quality indicators. For a comprehensive assessment of value and effectiveness, it is crucial to understand how the VA monitors Davita Inc.'s service quality, patient outcomes, and adherence to clinical standards.

What is the historical pricing trend for kidney dialysis services with this vendor or similar vendors?

Historical pricing data is not included. Analyzing past contract values and price changes for Davita Inc. and other dialysis providers would help determine if the current award reflects fair market value or indicates a potential price increase over time.

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

Address: 2000 16TH ST, DENVER, CO, 80202

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

Financial Breakdown

Contract Ceiling: $72,413,337

Exercised Options: $72,413,337

Current Obligation: $72,413,337

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79113D0013

IDV Type: IDC

Timeline