DoD's $7.5M contract for psychiatric nursing services awarded to The Arora Group, Inc

Contract Overview

Contract Amount: $7,469,477 ($7.5M)

Contractor: THE Arora Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-10-01

End Date: 2026-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 19

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PSYCHIATRIC REGISTERED NURSE (7 SOUTH)

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $7.5 million to THE ARORA GROUP, INC. for work described as: PSYCHIATRIC REGISTERED NURSE (7 SOUTH) Key points: 1. Value for money appears fair given the fixed-price nature and duration, though specific performance metrics are key. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk indicators are moderate, with contract duration and fixed-price terms being primary considerations. 4. Performance context is within a hospital setting, requiring specialized nursing skills. 5. Sector positioning is within healthcare services, specifically supporting military medical facilities.

Value Assessment

Rating: fair

The total contract value of approximately $7.5 million over five years suggests a moderate annual spend. Benchmarking against similar contracts for specialized nursing services is difficult without more granular data on nurse qualifications and service intensity. The firm fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive for the government if managed effectively. However, it also necessitates careful scope definition to avoid change orders.

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 all responsible sources were permitted to submit offers. The presence of 19 bids suggests a robust level of competition for this requirement. This broad competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: A high number of bidders typically translates to better pricing for taxpayers as contractors vie to win the award.

Public Impact

Beneficiaries include military personnel and their families requiring psychiatric care at Department of Defense facilities. Services delivered are specialized psychiatric registered nursing care. Geographic impact is likely concentrated around the specific military treatment facility where the services are rendered. Workforce implications include the provision of skilled nursing professionals to support military healthcare operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in fixed-price contracts if not tightly managed.
Reliance on a single contractor for critical nursing services introduces some operational risk.
Ensuring consistent quality of care across the contract duration requires ongoing oversight.

Positive Signals

Full and open competition suggests a healthy market and potential for competitive pricing.
Firm fixed-price contract shifts cost risk to the contractor.
Longer contract duration provides stability for service delivery and planning.

Sector Analysis

This contract falls within the healthcare services sector, specifically supporting the Defense Health Agency's mission. The market for specialized nursing services, particularly within government healthcare systems, is substantial. Comparable spending benchmarks would involve analyzing other contracts for registered nurses in similar clinical settings, considering factors like location, required specialties, and contract duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small business subcontractors.

Oversight & Accountability

Oversight would typically be managed by the Defense Health Agency contracting officer and technical representatives. Accountability measures are embedded in the firm fixed-price contract terms, with performance expectations likely outlined in the statement of work. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports may be internal.

Related Government Programs

Defense Health Agency Contracts
Military Medical Services
Psychiatric Nursing Services
Federal Healthcare Staffing

Risk Flags

Contract duration of five years requires sustained performance monitoring.
Fixed-price contract necessitates careful scope management to prevent cost overruns via change orders.
Reliance on specialized nursing staff can be subject to market availability and retention challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.5 million to THE ARORA GROUP, INC.. PSYCHIATRIC REGISTERED NURSE (7 SOUTH)

Who is the contractor on this award?

The obligated recipient is THE ARORA GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $7.5 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-09-30.

What is the contractor's track record with similar government contracts, particularly within the Department of Defense or Defense Health Agency?

Assessing The Arora Group, Inc.'s track record requires a deeper dive into their contract history. While this specific award indicates they secured a competitive bid, understanding their past performance on similar healthcare staffing or nursing contracts is crucial. This would involve reviewing past performance evaluations (if publicly available), any history of contract disputes or terminations, and their experience in providing specialized services like psychiatric nursing within a military healthcare environment. A strong track record suggests reliability and capability, while a history of issues might indicate potential risks for this current contract.

How does the per-unit cost or hourly rate for these psychiatric registered nurses compare to market rates for similar positions in comparable geographic locations?

Determining the precise per-unit cost or hourly rate requires breaking down the total contract value ($7,469,477.47) by the estimated hours or number of nurses over the contract period (October 1, 2021, to September 30, 2026, approximately 1825 days). Without knowing the exact number of nursing hours or FTEs funded, a direct comparison is challenging. However, if we assume a certain number of nursing hours per day, we could derive an approximate hourly rate. This derived rate would then need to be benchmarked against civilian market rates for psychiatric registered nurses in the relevant geographic area, considering factors like the cost of living, demand for specialized nurses, and any premium associated with serving a military population. A significantly higher rate than market benchmarks could indicate potential overpricing, while a lower rate might suggest aggressive bidding or potential challenges in meeting service demands.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how is performance being monitored?

The contract details provided do not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs). However, for a contract of this nature, typical KPIs would likely include patient care quality metrics, patient satisfaction scores, adherence to treatment protocols, response times for critical situations, and staff availability/retention rates. The Defense Health Agency would be responsible for monitoring these KPIs through regular performance reviews, site visits, and potentially patient feedback mechanisms. The firm fixed-price nature of the contract implies that meeting these performance standards is essential for the contractor to achieve profitability, and failure to do so could lead to contractual remedies or non-renewal.

What is the historical spending trend for psychiatric nursing services at this specific Department of Defense facility or within the Defense Health Agency?

Analyzing historical spending trends for psychiatric nursing services at this facility or within the DHA requires access to prior contract awards and budget allocations. This specific contract, valued at approximately $7.5 million over five years, represents an average annual spend of roughly $1.5 million. To understand the trend, one would need to examine spending in the years preceding this award. Was this a new requirement, or does it represent an increase or decrease in funding compared to previous contracts for similar services? Understanding this context helps determine if the current spending level is consistent with historical needs and resource allocation, or if it signifies a shift in priorities or service provision.

Are there any identified risks related to the contractor's financial stability or capacity to fulfill the long-term requirements of this contract?

The provided data does not include specific information on the contractor's financial stability or capacity. A comprehensive risk assessment would typically involve reviewing financial reports, credit ratings, and past performance data related to their ability to manage resources and personnel for long-duration contracts. Given the five-year term and significant value, the Defense Health Agency likely conducted due diligence during the procurement process to ensure The Arora Group, Inc. possessed the necessary financial and operational capacity. However, ongoing monitoring by the agency would be prudent to identify any emerging risks throughout the contract's life.

Industry Classification

NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HT005016R0001

Offers Received: 19

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 903 RUSSELL AVE 4TH FL, GAITHERSBURG, MD, 20879

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,300,702

Exercised Options: $7,495,289

Current Obligation: $7,469,477

Actual Outlays: $329,145

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT005018D0035

IDV Type: IDC

Timeline