HHS awards $20M for General Medical and Surgical Hospitals in Illinois to Rush University Medical Center
Contract Overview
Contract Amount: $1,999,611 ($2.0M)
Contractor: Rush University Medical Center
Awarding Agency: Department of Health and Human Services
Start Date: 2022-09-15
End Date: 2027-01-31
Contract Duration: 1,599 days
Daily Burn Rate: $1.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: WW CENTRAL REGION 2022 DOMAINS 1-A004
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60612
State: Illinois Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $2.0 million to RUSH UNIVERSITY MEDICAL CENTER for work described as: WW CENTRAL REGION 2022 DOMAINS 1-A004 Key points: 1. Contract awarded to a single, well-established medical center. 2. Long-term contract duration (nearly 4 years) suggests ongoing need. 3. Firms Fixed Price contract type offers cost certainty. 4. No explicit mention of small business participation.
Value Assessment
Rating: good
The contract value of $19.9M over approximately 4 years for hospital services appears reasonable given the nature of the services. Benchmarking against similar large-scale hospital service contracts 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 that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive award process is expected to yield fair pricing, benefiting taxpayers by avoiding inflated costs for essential medical services.
Public Impact
Ensures continued access to critical medical and surgical services for the region. Supports a major healthcare provider, potentially impacting local employment. CDC's investment in regional healthcare infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific small business subcontracting goals.
- Potential for price creep over the 4-year contract term.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract provides cost predictability.
- Long-term contract ensures service continuity.
Sector Analysis
The healthcare sector, particularly general medical and surgical hospitals, represents a significant portion of federal spending, especially for agencies like HHS and CDC. Spending benchmarks vary widely based on service scope and location.
Small Business Impact
The data does not indicate any specific provisions or goals for small business participation in this contract. Further review would be needed to determine if small businesses are involved as subcontractors or if there were opportunities missed.
Oversight & Accountability
The contract was awarded by the Centers for Disease Control and Prevention (CDC), a component of HHS. Standard oversight mechanisms for federal contracts would apply, including performance monitoring and financial accountability.
Related Government Programs
- General Medical and Surgical Hospitals
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Potential for cost overruns if not managed tightly.
- Limited visibility into small business utilization.
- Dependence on a single provider for critical services.
- Long contract duration may reduce flexibility for future needs.
Tags
general-medical-and-surgical-hospitals, department-of-health-and-human-services, il, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $2.0 million to RUSH UNIVERSITY MEDICAL CENTER. WW CENTRAL REGION 2022 DOMAINS 1-A004
Who is the contractor on this award?
The obligated recipient is RUSH UNIVERSITY MEDICAL CENTER.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $2.0 million.
What is the period of performance?
Start: 2022-09-15. End: 2027-01-31.
What specific medical and surgical services are covered under this contract, and how do they align with CDC's public health mission?
The contract specifies 'General Medical and Surgical Hospitals' (NAICS 622110). While the exact services aren't detailed, these typically encompass a broad range of inpatient and outpatient care, diagnostics, and surgical procedures. For the CDC, this likely supports research, outbreak response, or specialized medical needs related to public health initiatives, ensuring critical care capabilities are available.
What is the benchmark pricing for similar large-scale hospital service contracts awarded by federal agencies?
Benchmarking hospital service contracts is complex due to variations in service scope, location, and patient volume. However, contracts of this magnitude ($20M over ~4 years) for comprehensive hospital services typically fall within a broad range. A detailed analysis would compare specific service line costs, overhead rates, and administrative fees against comparable contracts from agencies like the VA or DoD to assess value.
How will the effectiveness of the services provided by Rush University Medical Center be measured and ensured throughout the contract period?
Effectiveness is typically measured through performance metrics outlined in the contract's Statement of Work (SOW). This could include patient outcomes, service availability, response times, adherence to quality standards, and compliance with reporting requirements. The CDC would likely conduct regular performance reviews and site visits to ensure the medical center meets all contractual obligations and quality standards.
Industry Classification
NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals
Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D 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: 1653 W CONGRESS PRKWY, CHICAGO, IL, 60612
Business Categories: Category Business, Corporate Entity Tax Exempt, Hospital, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,999,861
Exercised Options: $1,999,611
Current Obligation: $1,999,611
Actual Outlays: $1,299,511
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75D30121D12772
IDV Type: IDC
Timeline
Start Date: 2022-09-15
Current End Date: 2027-01-31
Potential End Date: 2027-01-31 00:00:00
Last Modified: 2026-01-21
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