Coast Guard healthcare services contract awarded to Loyal Source Government Services for over $63 million

Contract Overview

Contract Amount: $63,349,575 ($63.3M)

Contractor: Loyal Source Government Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2012-07-01

End Date: 2017-12-30

Contract Duration: 2,008 days

Daily Burn Rate: $31.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 21

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MULTIDISCIPLINE PERSONAL AND NON-PERSONAL HEALTHCARE SERVICES AS REQUIRED BY THE USCG HEALTH, SAFETY AND WORK-LIFE SERVICES CENTER (HSWL SC) TO SUPPORT USCG CLINICS

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23510

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $63.3 million to LOYAL SOURCE GOVERNMENT SERVICES LLC for work described as: MULTIDISCIPLINE PERSONAL AND NON-PERSONAL HEALTHCARE SERVICES AS REQUIRED BY THE USCG HEALTH, SAFETY AND WORK-LIFE SERVICES CENTER (HSWL SC) TO SUPPORT USCG CLINICS Key points: 1. The contract provided essential healthcare services to U.S. Coast Guard personnel, ensuring readiness and well-being. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration of over five years indicates a significant, long-term need for these services. 4. The firm-fixed-price structure likely provided cost certainty for the government. 5. Services supported health, safety, and work-life programs for Coast Guard members. 6. The contract's value places it as a substantial procurement within its service category.

Value Assessment

Rating: good

The contract value of approximately $63.3 million over five years for multidiscipline healthcare services appears reasonable when benchmarked against similar large-scale government healthcare procurements. The firm-fixed-price (FFP) contract type suggests that the contractor assumed the primary risk for cost overruns, which is generally favorable for the government. Without specific details on the scope of services and the number of personnel supported, a precise value-for-money assessment is challenging, but the duration and breadth of services indicate a significant need met by this award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, certain sources may have been excluded based on specific criteria. The presence of 21 bids suggests a healthy level of competition, which typically drives down prices and encourages innovation. This competitive environment is beneficial for price discovery and ensures the government receives competitive offers.

Taxpayer Impact: A competitive award process like this generally leads to better pricing for taxpayers by leveraging market forces to secure services at a more economical rate.

Public Impact

U.S. Coast Guard personnel and their families benefited from access to essential healthcare services. The contract supported the operational readiness and well-being of the Coast Guard workforce. Services were delivered across various U.S. Coast Guard clinics, impacting geographically dispersed members. The contract likely supported a significant number of healthcare professionals, contributing to the healthcare workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly due to the 'as required' nature of services.
Ensuring consistent quality of care across multiple clinics and locations can be a challenge.
Dependence on a single contractor for critical healthcare services poses a risk if performance falters.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a robust selection process.
Long contract duration indicates a stable and reliable service provider was sought.

Sector Analysis

This contract falls within the Healthcare Services sector, specifically supporting government entities. The NAICS code 621111 (Offices of Physicians) indicates a focus on medical services. The overall federal spending on healthcare services is substantial, with significant portions allocated to supporting military and uniformed services. This contract represents a portion of that broader spending, aimed at maintaining the health and readiness of a critical federal workforce.

Small Business Impact

The contract was not set aside for small businesses, and the prime contractor, Loyal Source Government Services LLC, is not explicitly identified as a small business in the provided data. There is no information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific prime contract appears limited, though the contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard, a component of the Department of Homeland Security. Contract performance would be monitored through regular reporting, site visits, and quality assurance checks. The firm-fixed-price nature of the contract shifts some risk to the contractor, but the government retains responsibility for ensuring the services meet the specified requirements and quality standards. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

TRICARE Program
Department of Veterans Affairs Healthcare Services
Military Health System
Federal Occupational Health Services

Risk Flags

Contract performance risk
Service quality consistency
Dependence on contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $63.3 million to LOYAL SOURCE GOVERNMENT SERVICES LLC. MULTIDISCIPLINE PERSONAL AND NON-PERSONAL HEALTHCARE SERVICES AS REQUIRED BY THE USCG HEALTH, SAFETY AND WORK-LIFE SERVICES CENTER (HSWL SC) TO SUPPORT USCG CLINICS

Who is the contractor on this award?

The obligated recipient is LOYAL SOURCE GOVERNMENT SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $63.3 million.

What is the period of performance?

Start: 2012-07-01. End: 2017-12-30.

What was the specific scope of 'multidiscipline personal and non-personal healthcare services' provided under this contract?

The 'multidiscipline personal and non-personal healthcare services' provided under this contract were designed to support the U.S. Coast Guard Health, Safety and Work-Life Services Center (HSWL SC). This likely encompassed a broad range of medical care, including primary care, specialty physician services, diagnostic services, and potentially preventative health screenings and occupational health evaluations. 'Personal services' typically refer to direct patient care provided by healthcare professionals, while 'non-personal services' might include administrative support, medical equipment maintenance, or facility management related to healthcare operations. The goal was to ensure the health and readiness of Coast Guard personnel across various locations.

How does the per-unit cost of these healthcare services compare to similar contracts or market rates?

A precise per-unit cost comparison is difficult without knowing the exact volume of services delivered (e.g., number of patient visits, specific procedures performed) and the number of personnel supported. However, the total contract value of approximately $63.3 million over five years averages to about $12.66 million per year. For a large federal agency like the Coast Guard, this annual expenditure for comprehensive healthcare services across potentially multiple clinics is likely within a reasonable range, especially considering the firm-fixed-price nature which may include a premium for cost certainty. Benchmarking against other federal healthcare contracts (like TRICARE or VA services) would require detailed service-level data to be meaningful.

What were the primary risks associated with this contract, and how were they mitigated?

Key risks included ensuring the quality and consistency of healthcare services across different locations, managing potential cost overruns (though mitigated by the FFP structure), and ensuring the contractor's ability to meet fluctuating demand for services. Mitigation strategies likely involved robust performance work statements, regular quality assurance checks by the Coast Guard, defined service level agreements, and the competitive nature of the award process itself, which selected a contractor deemed capable. The FFP contract also placed the financial risk of cost overruns primarily on the contractor, incentivizing efficient service delivery.

What was the track record of Loyal Source Government Services LLC in providing similar healthcare services prior to this award?

Information on Loyal Source Government Services LLC's specific track record for providing multidiscipline healthcare services prior to this award is not detailed in the provided data. However, winning a large, full-and-open competitive contract of this magnitude suggests they possessed the necessary qualifications, past performance, and financial stability to be considered a strong contender. Government contract awards, especially those involving healthcare, typically require bidders to demonstrate relevant experience and successful past performance on similar contracts. Further investigation into their contract history would reveal the extent of their experience in this domain.

How did the 'Full and Open Competition After Exclusion of Sources' mechanism impact the final contract price and service quality?

The 'Full and Open Competition After Exclusion of Sources' mechanism implies that while the competition was broadly advertised, certain potential offerors were excluded based on specific, justifiable criteria. This approach aims to ensure that only qualified and capable sources participate, potentially streamlining the evaluation process. The presence of 21 bids indicates significant competition among the eligible sources. This level of competition generally drives down prices by forcing bidders to offer their best value propositions. It also encourages higher service quality as contractors vie for the award, knowing that performance and capability are key evaluation factors.

What is the historical spending pattern for similar healthcare services by the U.S. Coast Guard or Department of Homeland Security?

Historical spending patterns for similar healthcare services by the U.S. Coast Guard (USCG) and the Department of Homeland Security (DHS) would likely show a consistent need for medical support to maintain the readiness of their personnel. The USCG, operating globally, requires robust health and safety programs. Spending in this area is influenced by factors such as the number of active-duty personnel, operational tempo, and the scope of health benefits provided. Contracts for healthcare services are common across federal agencies, and the value of this $63.3 million contract over five years aligns with the significant investment required to support a uniformed service's healthcare needs.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSCG8411RAA5371

Offers Received: 21

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3680 AVALON PARK EAST BLVD., SUITE 310, ORLANDO, FL, 32828

Business Categories: Category Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $71,882,630

Exercised Options: $69,886,393

Current Obligation: $63,349,575

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline