DOE's Hanford Site Occupational Medical Services Contract Awarded to AdvanceMed for $130.6M
Contract Overview
Contract Amount: $130,567,100 ($130.6M)
Contractor: Advancemed Corporation
Awarding Agency: Department of Energy
Start Date: 2004-01-06
End Date: 2012-09-30
Contract Duration: 3,190 days
Daily Burn Rate: $40.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: Healthcare
Official Description: OCCUPATIONAL MEDICAL SERVICES FOR DOE'S HANFORD SITE
Place of Performance
Location: RICHLAND, BENTON County, WASHINGTON, 99354
Plain-Language Summary
Department of Energy obligated $130.6 million to ADVANCEMED CORPORATION for work described as: OCCUPATIONAL MEDICAL SERVICES FOR DOE'S HANFORD SITE Key points: 1. Contract awarded to AdvanceMed Corporation for $130.6 million. 2. Services provided by Offices of Physicians (except Mental Health Specialists). 3. Contract duration spans from January 2004 to September 2012. 4. Full and open competition was utilized for this award. 5. The contract type is Cost Plus Award Fee.
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee structure incentivizes performance but can lead to higher costs if not managed carefully. Benchmarking against similar occupational health contracts is difficult without detailed service scope and performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, suggesting a robust price discovery process. However, the Cost Plus Award Fee structure means the final cost could exceed initial estimates based on performance.
Taxpayer Impact: Taxpayer funds were used for occupational medical services. The final cost depends on performance incentives, making the exact taxpayer impact variable.
Public Impact
Ensures essential medical services for workers at the Hanford Site. Supports the operational continuity of a critical Department of Energy facility. Provides employment opportunities within the healthcare sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to Cost Plus Award Fee structure.
- Lack of specific performance metrics makes objective evaluation challenging.
- Long contract duration may not reflect current market rates or needs.
Positive Signals
- Full and open competition likely secured competitive pricing.
- Award fee mechanism can drive high-quality service delivery.
- Essential service for a high-risk environment.
Sector Analysis
This contract falls within the healthcare services sector, specifically occupational medicine. Spending benchmarks for similar large-scale, long-term occupational health contracts can vary significantly based on site complexity and workforce size.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. This suggests large corporations dominated the bidding process for this significant healthcare service contract.
Oversight & Accountability
The Department of Energy oversaw this contract. Oversight would focus on ensuring service delivery meets requirements and managing the award fee component effectively to control costs.
Related Government Programs
- Offices of Physicians (except Mental Health Specialists)
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost Plus Award Fee structure
- Long contract duration
- Lack of detailed performance data
- No small business participation noted
Tags
offices-of-physicians-except-mental-heal, department-of-energy, wa, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $130.6 million to ADVANCEMED CORPORATION. OCCUPATIONAL MEDICAL SERVICES FOR DOE'S HANFORD SITE
Who is the contractor on this award?
The obligated recipient is ADVANCEMED CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $130.6 million.
What is the period of performance?
Start: 2004-01-06. End: 2012-09-30.
What was the average per-unit cost for specific medical services provided under this contract?
The provided data does not detail specific service line items or their associated costs. Therefore, calculating an average per-unit cost for services like physicals, lab tests, or consultations is not possible. Further analysis of contract deliverables and invoices would be required to determine this.
How did the final contract cost compare to the initial estimated cost, considering the award fee structure?
The data does not provide the initial estimated cost or the final awarded cost, only the total amount paid. Without this comparison, it's impossible to assess if the award fee mechanism resulted in cost efficiencies or overruns relative to expectations.
What was the level of competition among the 'Offices of Physicians' category during the bidding process?
While the contract was awarded under 'full and open competition,' the specific number of bids received or the range of proposed costs is not detailed. This limits the ability to assess the intensity of competition beyond the procedural compliance.
Industry Classification
NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)
Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: HIG Capital Management, Inc.
Address: 15245 SHADY GROVE RD, ROCKVILLE, MD, 20850
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $142,919,103
Exercised Options: $142,919,103
Current Obligation: $130,567,100
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2004-01-06
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2025-11-18
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