The Arora Group secures $20.6M contract for medical Q-coded services, awarded by the Defense Health Agency

Contract Overview

Contract Amount: $20,573,943 ($20.6M)

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: $14.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL Q-CODED SERVICE PERSONNEL

Place of Performance

Location: JB ANDREWS, PRINCE GEORGES County, MARYLAND, 20762

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $20.6 million to THE ARORA GROUP, INC. for work described as: MEDICAL Q-CODED SERVICE PERSONNEL Key points: 1. Contract value represents a significant investment in specialized medical personnel for defense health services. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1460 days indicates a long-term need for these services. 4. The firm fixed-price structure aims to control costs and provide predictability. 5. The contract is managed by the Defense Health Agency, a key entity within the DoD's healthcare system. 6. The North American Industry Classification System (NAICS) code 622110 points to general medical and surgical hospitals as the primary service category.

Value Assessment

Rating: good

The contract's value of $20.6 million over approximately four years for specialized medical personnel appears reasonable given the scope of services. Benchmarking against similar contracts for Q-coded personnel within the Department of Defense is crucial for a definitive value assessment. However, the firm fixed-price nature suggests an effort to manage costs effectively. The award amount of $14.092 million for the delivery order indicates a substantial initial commitment.

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 multiple bidders were likely considered. The presence of 10 bidders suggests a robust competitive environment, which typically drives down prices and encourages innovation. This level of competition is generally favorable for the government and taxpayers.

Taxpayer Impact: The extensive competition for this contract suggests that taxpayers are likely benefiting from competitive pricing and a wider range of service options. It reduces the risk of overpayment and ensures that the government is receiving good value for its investment.

Public Impact

Military personnel and their families will benefit from the provision of specialized medical Q-coded services. The contract supports the operational readiness and healthcare infrastructure of the Department of Defense. Services are likely to be delivered at facilities within Maryland, where the contractor is based. The contract may have implications for the employment of skilled medical professionals in the healthcare sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if service requirements are not clearly defined and managed.
Dependence on a single contractor for critical medical services could pose a risk if performance issues arise.
Ensuring consistent quality of care across all delivered services will require diligent oversight.

Positive Signals

The firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a strong market response and potential for competitive pricing.
The long contract duration allows for stable service provision and potential for building contractor expertise.

Sector Analysis

The healthcare services sector, particularly within the federal government, is a significant market. This contract falls under the broader category of healthcare services, specifically focusing on specialized medical personnel. Comparable spending benchmarks would involve analyzing other contracts for medical staffing and support services awarded by agencies like the Department of Veterans Affairs and other branches of the DoD. The market size for federal healthcare contracting is substantial, driven by the need to support military readiness and veteran care.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Further analysis would be needed to determine the extent of small business participation. If not specifically targeted, large contracts like this can sometimes limit opportunities for smaller businesses unless they are part of a subcontracting plan.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Health Agency, with potential involvement from contracting officers and program managers within the Department of Defense. Accountability measures are typically embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

TRICARE
Defense Health Agency Contracts
Medical Personnel Services
Department of Defense Healthcare

Risk Flags

Contract Performance Risk
Long-Term Dependency Risk
Quality Assurance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.6 million to THE ARORA GROUP, INC.. MEDICAL Q-CODED SERVICE PERSONNEL

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 $20.6 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 government contracts?

A thorough review of The Arora Group, Inc.'s past performance is essential. This would involve examining their contract history with the federal government, specifically looking for awards related to medical services, personnel staffing, and support for defense or health agencies. Key metrics to assess would include past performance ratings, any instances of contract disputes or terminations, and their ability to meet delivery schedules and quality standards on previous engagements. Understanding their experience with firm fixed-price contracts and the specific Q-coded services required here would provide valuable insight into their capability to successfully execute this current award.

How does the awarded price compare to market rates for similar medical Q-coded personnel services?

To benchmark the value, we would compare the contract's estimated value and the delivery order amount against prevailing market rates for similar medical Q-coded personnel services. This involves researching salary data for comparable roles, analyzing pricing from other healthcare staffing firms, and examining publicly available data on similar government contracts. Factors such as geographic location, required qualifications, and the specific nature of the Q-coded services will influence these comparisons. A significant deviation from market rates, either higher or lower, would warrant further investigation into the underlying cost drivers and the competitive landscape.

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

Potential risks include contractor performance issues, such as failure to provide qualified personnel or meet service level agreements, and potential cost overruns if the firm fixed-price structure is not adequately managed. There's also a risk related to the long-term dependency on a single provider for critical medical services. Mitigation strategies likely involve robust performance monitoring by the Defense Health Agency, clear contract terms with defined deliverables and penalties, and contingency planning for service disruptions. The competitive nature of the award may also incentivize the contractor to perform well to secure future business.

How effective has the Defense Health Agency been in managing similar medical service contracts?

Assessing the Defense Health Agency's (DHA) effectiveness in managing similar contracts requires analyzing their historical performance in areas like contract oversight, vendor management, and issue resolution. Data on contract modifications, disputes, and the overall success rate of their medical service procurements would be informative. The DHA's role in the Military Health System suggests a significant level of experience, but specific contract management practices and their outcomes for comparable services would provide a clearer picture of their capabilities in ensuring value and quality delivery.

What has been the historical spending trend for medical Q-coded services by the Department of Defense?

Analyzing historical spending trends for medical Q-coded services by the Department of Defense (DoD) would reveal patterns of demand, investment, and potential fluctuations based on military readiness needs, global deployments, and healthcare policy changes. This involves examining aggregate spending data over several fiscal years, identifying major contract awards, and understanding the primary drivers behind spending increases or decreases. Such analysis can help contextualize the current $20.6 million award within the broader DoD healthcare budget and strategic priorities.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

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: 10

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: $34,051,558

Exercised Options: $22,485,173

Current Obligation: $20,573,943

Actual Outlays: $3,761,308

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT005018D0035

IDV Type: IDC

Timeline