DoD Awards $17.9M for Nursing Services at Walter Reed, Raising Value Concerns
Contract Overview
Contract Amount: $17,938,012 ($17.9M)
Contractor: THE Arora Group, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-05-02
End Date: 2026-10-31
Contract Duration: 1,643 days
Daily Burn Rate: $10.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 13
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: MEDICAL Q-CODED SERVICES - NURSING SERVICES AT WALTER REED NATIONAL MILITARY MEDICAL CENTER
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20889
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $17.9 million to THE ARORA GROUP, INC. for work described as: MEDICAL Q-CODED SERVICES - NURSING SERVICES AT WALTER REED NATIONAL MILITARY MEDICAL CENTER Key points: 1. The contract for nursing services at Walter Reed National Military Medical Center is valued at $17.9 million. 2. Competition was full and open after exclusion of sources, suggesting some initial limitations. 3. The contract's duration of 1643 days (over 4 years) warrants scrutiny for potential cost overruns. 4. The sector is Healthcare, specifically General Medical and Surgical Hospitals.
Value Assessment
Rating: questionable
The $17.9 million award over approximately 4.5 years for nursing services appears high compared to similar contracts for hospital staffing. Benchmarking against other federal and private sector contracts for comparable nursing roles is recommended to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were initially excluded. This method can impact price discovery and potentially lead to higher costs than unrestricted full and open competition.
Taxpayer Impact: The significant value of this contract means taxpayers are funding potentially inflated costs due to limited initial competition, impacting the overall efficiency of healthcare spending.
Public Impact
Ensures critical nursing services are available at a major military medical facility. Potential for higher costs due to the specific competition method used. Long contract duration may not reflect evolving healthcare needs or staffing costs. Impacts the budget for military healthcare services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method
- Long contract duration
- High overall value for services
Positive Signals
- Secures essential healthcare services
- Awarded to a single entity for consistent service delivery
Sector Analysis
This contract falls within the Healthcare sector, specifically supporting General Medical and Surgical Hospitals. Spending in this area is consistently high due to the critical nature of services, but efficiency benchmarks are crucial.
Small Business Impact
The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis is needed to determine the extent of small business participation.
Oversight & Accountability
The contract's duration and value necessitate robust oversight from the Defense Health Agency to ensure performance standards are met and costs remain justified throughout the period of performance.
Related Government Programs
- General Medical and Surgical Hospitals
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Potential for overpayment due to limited initial competition.
- Long contract duration may lead to price escalation or outdated service models.
- Lack of transparency regarding source exclusion.
- High overall contract value requires diligent oversight.
Tags
general-medical-and-surgical-hospitals, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.9 million to THE ARORA GROUP, INC.. MEDICAL Q-CODED SERVICES - NURSING SERVICES AT WALTER REED NATIONAL MILITARY MEDICAL CENTER
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 $17.9 million.
What is the period of performance?
Start: 2022-05-02. End: 2026-10-31.
What is the specific justification for excluding certain sources prior to the full and open competition?
The justification for excluding sources prior to the 'full and open competition after exclusion of sources' award method is not provided in the data. Understanding this rationale is crucial for assessing whether the exclusion was necessary for mission accomplishment or if it unduly restricted competition, potentially impacting cost-effectiveness and taxpayer value.
How does the per-unit cost of nursing services under this contract compare to industry benchmarks?
Without specific details on the number of nursing hours or specific roles covered, a direct per-unit cost comparison is difficult. However, the overall contract value of $17.9 million over approximately 4.5 years suggests a significant expenditure. Benchmarking against average registered nurse salaries, agency rates, and similar government contracts is essential to determine if the pricing is competitive and represents good value for the services rendered.
What mechanisms are in place to ensure cost control and service quality over the 4+ year contract duration?
The contract is firm-fixed-price, which shifts some cost risk to the contractor. However, robust oversight by the Department of Defense is still critical. Mechanisms should include regular performance reviews, quality assurance checks, and potentially contract modifications if service needs or market conditions change significantly, ensuring continued value and effectiveness.
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
Offers Received: 13
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: $23,229,503
Exercised Options: $23,229,503
Current Obligation: $17,938,012
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HT005018D0035
IDV Type: IDC
Timeline
Start Date: 2022-05-02
Current End Date: 2026-10-31
Potential End Date: 2026-10-31 00:00:00
Last Modified: 2025-04-17
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