DoD's Defense Health Agency awards $30.7M contract for Certified Registered Nurse Anesthesia services to The Arora Group, Inc
Contract Overview
Contract Amount: $30,774,497 ($30.8M)
Contractor: THE Arora Group, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-10-01
End Date: 2026-09-30
Contract Duration: 1,460 days
Daily Burn Rate: $21.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 18
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: CERTIFIED REGISTERED NURSE ANESTHESIA
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $30.8 million to THE ARORA GROUP, INC. for work described as: CERTIFIED REGISTERED NURSE ANESTHESIA Key points: 1. Contract value of $30.7M over 4 years. 2. The Arora Group, Inc. is the sole awardee. 3. Risk of limited competition and potential price inflation. 4. Spending falls within the General Medical and Surgical Hospitals sector.
Value Assessment
Rating: fair
The contract value of $30.7M for nurse anesthesia services appears reasonable given the 4-year duration. However, without specific benchmarks for nurse anesthetist services, a precise pricing assessment is difficult. Further analysis of the per-unit cost would be beneficial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition approach. This method may restrict the pool of potential bidders, potentially impacting price discovery and leading to higher costs than a truly open competition.
Taxpayer Impact: The limited competition structure raises concerns about maximizing taxpayer value. Ensuring competitive pricing through robust evaluation or future open solicitations is crucial.
Public Impact
Ensures critical anesthesia services for military personnel and beneficiaries. Supports the operational readiness of military medical facilities. Potential for increased costs due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Sole awardee
- Potential for price inflation
Positive Signals
- Ensures critical healthcare services
- Supports military readiness
Sector Analysis
This contract falls under the General Medical and Surgical Hospitals sector (NAICS 622110). Spending in this sector is substantial, driven by the need for comprehensive healthcare services within the DoD. Benchmarks for similar anesthesia service contracts are essential for a thorough value assessment.
Small Business Impact
The contract was not awarded to a small business. There is an opportunity to increase small business participation in future solicitations for similar services.
Oversight & Accountability
The contract was awarded via a delivery order, suggesting it may be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight should focus on the justification for limited competition and the effectiveness of price negotiation.
Related Government Programs
- General Medical and Surgical Hospitals
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Limited competition may lead to higher costs.
- Lack of small business participation.
- Potential for price creep over the contract duration.
- Need for clear justification for source exclusion.
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 $30.8 million to THE ARORA GROUP, INC.. CERTIFIED REGISTERED NURSE ANESTHESIA
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 $30.8 million.
What is the period of performance?
Start: 2022-10-01. End: 2026-09-30.
What is the specific justification for excluding other sources in this 'full and open competition after exclusion of sources' award?
The justification for excluding other sources needs to be thoroughly reviewed. Typically, this designation implies that while the initial solicitation was open, only specific entities met the stringent requirements, or a previous exclusion was later deemed necessary. Understanding the technical or specialized nature of the services required by the Defense Health Agency is key to assessing if this limitation was truly warranted or if it inadvertently restricted competition.
How does the per-unit cost of these nurse anesthesia services compare to industry benchmarks for similar civilian healthcare contracts?
A detailed comparison of the per-unit cost against civilian benchmarks is crucial for assessing value. Factors like geographic location, complexity of procedures, and required qualifications can influence costs. If the DoD's costs are significantly higher, it may indicate suboptimal pricing or a lack of competitive pressure, necessitating a review of the contract's pricing structure and future procurement strategies.
What is the long-term strategy to ensure robust competition for essential anesthesia services to avoid sustained higher costs?
The long-term strategy should involve actively seeking to broaden the competitive landscape for anesthesia services. This could include breaking down large contracts into smaller, more accessible ones for small businesses, conducting market research to identify new potential providers, and ensuring solicitation requirements are not unnecessarily restrictive. Proactive measures can foster a more competitive environment, leading to better pricing and service delivery.
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: 18
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: $51,179,205
Exercised Options: $32,541,509
Current Obligation: $30,774,497
Actual Outlays: $2,927,138
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HT005018D0035
IDV Type: IDC
Timeline
Start Date: 2022-10-01
Current End Date: 2026-09-30
Potential End Date: 2028-09-29 00:00:00
Last Modified: 2026-01-07
More Contracts from THE Arora Group, Inc.
- Medical Staffing Services — $54.3M (Department of Homeland Security)
- Medical Q-Coded Service Personnel — $20.6M (Department of Defense)
- Medical Q-Coded Nursing Services AT Walter Reed National Military Medical Center and Fort Belvoir Community Hospital — $19.8M (Department of Defense)
- Medical Q-Coded Services - Nursing Services AT Walter Reed National Military Medical Center — $17.9M (Department of Defense)
- Ancillary Services for Behavioral Health Care Workers — $9.0M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)