Arora Group secures $19.8M contract for nursing services at Walter Reed and Fort Belvoir, awarded via full and open competition

Contract Overview

Contract Amount: $19,814,913 ($19.8M)

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: $13.6K/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 NURSING SERVICES AT WALTER REED NATIONAL MILITARY MEDICAL CENTER AND FORT BELVOIR COMMUNITY HOSPITAL

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20889

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $19.8 million to THE ARORA GROUP, INC. for work described as: MEDICAL Q-CODED NURSING SERVICES AT WALTER REED NATIONAL MILITARY MEDICAL CENTER AND FORT BELVOIR COMMUNITY HOSPITAL Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $19.8 million over four years indicates significant investment in specialized medical staffing. 3. The award to The Arora Group, Inc. suggests a focus on established providers with demonstrated capabilities. 4. The services are critical for supporting military medical facilities, impacting healthcare delivery for service members and their families. 5. The fixed-price contract type aims to control costs and provide budget certainty for the Defense Health Agency. 6. The duration of 1460 days (4 years) allows for sustained service delivery and workforce stability.

Value Assessment

Rating: good

The total contract value of $19.8 million over four years averages to approximately $4.95 million annually. Benchmarking this against similar contracts for nursing services at large military treatment facilities is challenging without more specific data on the scope and skill mix required. However, the number of bidders (13) suggests a healthy level of interest and potential for competitive pricing. The firm fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial solicitation may have had some exclusions, the final award was made after a broad competitive process. Thirteen bids were received, demonstrating a robust level of competition for these specialized nursing services. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The extensive competition for this contract suggests that taxpayers are likely benefiting from competitive pricing, as multiple qualified vendors vied for the opportunity to provide these essential services.

Public Impact

Service members, veterans, and their families receiving care at Walter Reed National Military Medical Center and Fort Belvoir Community Hospital will benefit from consistent and qualified nursing support. The contract ensures the provision of essential medical and surgical nursing services, maintaining the operational readiness of key military healthcare facilities. The geographic impact is concentrated in Maryland, supporting critical healthcare infrastructure within the National Capital Region. The contract supports a nursing workforce, potentially creating or sustaining employment opportunities for registered nurses and other medical support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for critical nursing services over a four-year period.
Ensuring consistent quality of care across different shifts and personnel provided by the contractor.
Managing potential fluctuations in staffing needs and ensuring the contractor can adapt without significant cost increases.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace for these services.
Firm fixed-price contract type provides cost predictability for the government.
Long-term duration allows for stable service provision and potential for contractor investment in staff training and retention.

Sector Analysis

This contract falls within the Healthcare sector, specifically supporting General Medical and Surgical Hospitals. The market for providing medical staffing services to government facilities, particularly military hospitals, is a specialized niche. Spending in this area is driven by the need to maintain high standards of care and operational capacity within the Defense Health Agency. Comparable spending benchmarks would typically involve analyzing other contracts for nursing services at large federal medical centers.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no mention of small business set-asides. This suggests that the contract was not specifically targeted towards small businesses, and the primary awardee is likely a larger entity. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award information. The impact on the small business ecosystem would depend on whether the prime contractor utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Health Agency (DHA), which is responsible for managing healthcare services for the Department of Defense. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and quality assurance protocols. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Health Agency Contracts
Military Hospital Support Services
Nursing Services Contracts
Federal Healthcare Staffing

Risk Flags

Potential for staffing shortages impacting service continuity.
Ensuring consistent quality of care across all deployed personnel.
Contractor's ability to adapt to evolving medical needs and protocols.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.8 million to THE ARORA GROUP, INC.. MEDICAL Q-CODED NURSING SERVICES AT WALTER REED NATIONAL MILITARY MEDICAL CENTER AND FORT BELVOIR COMMUNITY HOSPITAL

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 $19.8 million.

What is the period of performance?

Start: 2022-10-01. End: 2026-09-30.

What is the track record of The Arora Group, Inc. in performing similar federal contracts, particularly within the Department of Defense?

A thorough review of The Arora Group, Inc.'s past performance in federal contracting, especially with the Department of Defense and the Defense Health Agency, would be necessary to assess their reliability. This would involve examining past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. Understanding their experience with large-scale medical staffing at military treatment facilities like Walter Reed and Fort Belvoir is crucial. Their ability to meet staffing requirements, maintain quality of care, and adhere to federal regulations and security protocols in previous roles would provide strong indicators of their capability to successfully execute this current $19.8 million contract.

How does the awarded price compare to market rates for similar nursing services in the Maryland region?

To assess the value for money, the awarded contract price needs to be benchmarked against prevailing market rates for comparable nursing services in the Maryland region. This involves analyzing salary data for registered nurses and other medical professionals with similar qualifications and experience, considering regional cost-of-living adjustments. Additionally, comparing the per-hour or per-shift rates within this contract to those of other healthcare staffing agencies serving civilian hospitals or other federal facilities in the vicinity would provide context. The fact that 13 bids were received suggests that the pricing offered by The Arora Group, Inc. was competitive within the bidding pool, but a direct comparison to non-governmental market rates is essential for a comprehensive value assessment.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks for this contract include potential shortages of qualified nursing staff, leading to service disruptions or reduced quality of care. Another risk is contractor performance variability, where the quality of services might differ across shifts or personnel. Cost overruns, although mitigated by the firm fixed-price structure, could still arise from unforeseen circumstances requiring contract modifications. Mitigation strategies likely include robust contractor performance monitoring by the DHA, clear performance standards and metrics within the contract, requirements for the contractor to maintain adequate staffing levels and qualified personnel, and potentially penalties for non-performance. The competitive nature of the award also incentivizes the contractor to perform well to secure future opportunities.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring optimal value for taxpayers in this specific case?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance the need for broad competition with specific requirements that might initially limit the pool of eligible bidders. In this case, it suggests that while certain sources might have been excluded initially (perhaps due to specific qualifications or past performance issues), the final award was made after a wide solicitation. The receipt of 13 bids indicates that this approach successfully attracted a significant number of interested and qualified vendors, fostering a competitive environment. This level of competition generally leads to better price discovery and allows the government to select the offer that provides the best overall value, thus benefiting taxpayers by potentially lowering costs and improving service quality compared to a sole-source or more restricted competition.

What is the historical spending trend for nursing services at Walter Reed and Fort Belvoir, and how does this award fit into that pattern?

Analyzing historical spending data for nursing services at Walter Reed National Military Medical Center and Fort Belvoir Community Hospital is crucial to understand if this $19.8 million award represents an increase, decrease, or stable level of investment. If previous contracts for similar services were significantly lower or higher, it could indicate changes in demand, scope of services, or market pricing. Understanding the duration and value of prior contracts awarded to The Arora Group, Inc. or its competitors for these facilities would provide further context. This award, spanning four years, suggests a commitment to sustained staffing levels, and its value should be compared against the inflation-adjusted costs of previous service periods to assess its fiscal prudence.

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: 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: $35,011,273

Exercised Options: $35,011,273

Current Obligation: $19,814,913

Actual Outlays: $902,071

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT005018D0035

IDV Type: IDC

Timeline