DoD awards $18M+ for Walter Reed/Fort Belvoir medical services to DILLIGAS CORP
Contract Overview
Contract Amount: $18,023,695 ($18.0M)
Contractor: Dilligas Corp
Awarding Agency: Department of Defense
Start Date: 2023-03-28
End Date: 2026-09-30
Contract Duration: 1,282 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: ANCILLARY AND PHYSICIAN SERVICE FOR WALTER REED AND FORT BELVOIR.
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $18.0 million to DILLIGAS CORP for work described as: ANCILLARY AND PHYSICIAN SERVICE FOR WALTER REED AND FORT BELVOIR. Key points: 1. Contract value of $18,023,694.78 for ancillary and physician services. 2. DILLIGAS CORP is the sole awardee. 3. Competition was full and open after exclusion of sources. 4. Services are for Walter Reed and Fort Belvoir military treatment facilities.
Value Assessment
Rating: fair
The contract value appears reasonable for the scope of ancillary and physician services provided to two major military treatment facilities. Benchmarking against similar contracts for hospital support services would be necessary for a definitive assessment.
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, suggesting an attempt to broaden the competitive pool. However, the 'exclusion of sources' clause warrants further investigation to understand its impact on price discovery.
Taxpayer Impact: Taxpayers are impacted by the $18M+ expenditure, with the expectation that competitive bidding ensures fair market value.
Public Impact
Ensures continued medical services for military personnel and families at key facilities. Supports the operational readiness of Walter Reed and Fort Belvoir. Potential for cost savings through competitive procurement, though the 'exclusion' clause needs scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Exclusion of sources in competition
- Lack of specific performance metrics in provided data
Positive Signals
- Full and open competition utilized
- Long-term contract duration provides stability
Sector Analysis
This contract falls within the Healthcare sector, specifically supporting hospital operations. Spending benchmarks for ancillary and physician services can vary significantly based on facility size, patient volume, and geographic location.
Small Business Impact
The provided data does not indicate whether small businesses were involved in this procurement, either as prime contractors or subcontractors.
Oversight & Accountability
Oversight would typically involve the Defense Health Agency monitoring contractor performance and adherence to contract terms. The 'exclusion of sources' clause may require specific justification and oversight.
Related Government Programs
- General Medical and Surgical Hospitals
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Potential for limited competition due to 'exclusion of sources'.
- Lack of detailed cost breakdown for specific services.
- Need for clear performance metrics to ensure quality.
- Absence of small business participation noted.
Tags
general-medical-and-surgical-hospitals, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.0 million to DILLIGAS CORP. ANCILLARY AND PHYSICIAN SERVICE FOR WALTER REED AND FORT BELVOIR.
Who is the contractor on this award?
The obligated recipient is DILLIGAS CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $18.0 million.
What is the period of performance?
Start: 2023-03-28. End: 2026-09-30.
What was the rationale for excluding specific sources during the full and open competition?
The rationale for excluding specific sources during a 'full and open competition after exclusion of sources' award is critical. Agencies typically exclude sources when they are deemed non-responsible, have failed to meet previous contract requirements, or if specific technical capabilities are required that only a limited number of vendors possess. Understanding this reason is key to assessing if the competition was truly maximized or if it unnecessarily limited potential bidders and potentially inflated costs.
How does the per-unit cost of services compare to industry benchmarks for similar military or civilian hospitals?
A detailed comparison of per-unit costs against industry benchmarks is essential for evaluating value. Without specific service line data (e.g., cost per procedure, per physician hour), a precise benchmark is difficult. However, the overall contract value of $18M+ for two facilities suggests a significant operational cost. Further analysis would require breaking down the contract into specific service categories and comparing those rates to established healthcare cost indices or similar government contracts.
What mechanisms are in place to ensure the quality and effectiveness of ancillary and physician services provided?
Mechanisms for ensuring quality and effectiveness typically include performance work statements (PWS), key performance indicators (KPIs), regular performance reviews, and quality assurance surveillance plans (QASP). The Department of Defense and the Defense Health Agency would be responsible for implementing and monitoring these. The contract's success hinges on robust oversight to ensure DILLIGAS CORP meets or exceeds the required standards for patient care and operational efficiency.
Industry Classification
NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals
Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS
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: 134 EAST MISTLETOE, SAN ANTONIO, TX, 78212
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $32,170,645
Exercised Options: $23,245,271
Current Obligation: $18,023,695
Actual Outlays: $1,913,064
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HT005018D0014
IDV Type: IDC
Timeline
Start Date: 2023-03-28
Current End Date: 2026-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2025-12-09
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