DOD's $12.9M ancillary support services contract awarded to DILLIGAS CORP for 3+ years
Contract Overview
Contract Amount: $12,902,242 ($12.9M)
Contractor: Dilligas Corp
Awarding Agency: Department of Defense
Start Date: 2023-04-01
End Date: 2026-09-30
Contract Duration: 1,278 days
Daily Burn Rate: $10.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 20
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: ANCILLARY SUPPORT SERVICES
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20889
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $12.9 million to DILLIGAS CORP for work described as: ANCILLARY SUPPORT SERVICES Key points: 1. Value for money appears fair given the contract duration and scope, though specific performance metrics are key. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with contract duration and fixed-price structure being key factors. 4. Performance context is within general medical and surgical hospitals, a critical sector for military readiness. 5. Sector positioning is within Defense Healthcare, supporting essential medical services for personnel.
Value Assessment
Rating: fair
The contract's total value of $12.9 million over approximately 3.5 years suggests an average annual spend of around $3.7 million. Benchmarking this against similar ancillary support services contracts within the Department of Defense is challenging without more granular data on the specific services provided. However, the firm-fixed-price structure generally aims to control costs, but the ultimate value depends heavily on the efficiency and effectiveness of DILLIGAS CORP's service delivery.
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,' indicating that while the competition was broad, specific sources may have been excluded for defined reasons. The presence of 20 bids suggests a robust level of competition, which typically drives down prices and encourages innovation. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: A competitive bidding process for this contract helps ensure taxpayer dollars are used efficiently by securing services at market-reflective prices.
Public Impact
Beneficiaries include military personnel and their families who rely on these medical support services. Services delivered are ancillary support, crucial for the smooth operation of medical facilities. Geographic impact is primarily focused on the Maryland region, where the services are likely rendered. Workforce implications include potential job creation within the healthcare support sector in Maryland.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if ancillary services are not clearly defined.
- Dependence on a single contractor for critical support functions could pose a risk if performance falters.
Positive Signals
- Utilizes full and open competition, indicating a healthy market response.
- Firm-fixed-price contract type helps manage cost uncertainty for the government.
- Long-term contract (over 3 years) can provide stability and predictability for service delivery.
Sector Analysis
The healthcare sector, particularly within the defense establishment, relies heavily on a range of support services to maintain operational readiness. This contract for ancillary support services fits within the broader market for healthcare support, which includes services like logistics, administrative support, and facility maintenance essential for medical facilities. Comparable spending benchmarks for such services can vary widely based on the specific scope and location, but the $12.9 million award over 3.5 years indicates a significant, ongoing need.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary focus of competition was likely on larger, established providers capable of meeting the extensive requirements of the Defense Health Agency.
Oversight & Accountability
Oversight for this contract would typically fall under the Defense Health Agency's contracting and program management offices. Accountability measures are embedded within the firm-fixed-price contract terms, requiring DILLIGAS CORP to deliver specified services. Transparency is generally maintained through contract award databases, though detailed performance reports may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Health Agency Medical Support Contracts
- Ancillary Healthcare Services Procurement
- Military Medical Readiness Support
Risk Flags
- Contract duration exceeds 3 years, increasing exposure to potential performance degradation.
- Specific scope of 'ancillary support services' requires detailed review to prevent scope creep.
- Reliance on a single awardee for critical support functions.
Tags
defense, healthcare, ancillary-support-services, medical-services, firm-fixed-price, full-and-open-competition, delivery-order, department-of-defense, defense-health-agency, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.9 million to DILLIGAS CORP. ANCILLARY SUPPORT SERVICES
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 $12.9 million.
What is the period of performance?
Start: 2023-04-01. End: 2026-09-30.
What is the specific nature of the 'ancillary support services' being provided under this contract?
The provided data does not specify the exact nature of the 'ancillary support services.' However, in the context of the Defense Health Agency and General Medical and Surgical Hospitals (NAICS code 622110), these services commonly include non-clinical support functions essential for the operation of healthcare facilities. Examples could encompass logistical support (medical supply chain management, equipment maintenance), administrative services (scheduling, patient records management), facility support (housekeeping, grounds maintenance), or even specialized technical support for medical equipment. A detailed review of the contract's Statement of Work (SOW) would be necessary to ascertain the precise services covered.
How does the awarded price of $12.9 million compare to similar ancillary support contracts within the DoD?
Directly comparing the $12.9 million total award value to similar contracts is challenging without more specific data on the scope, duration, and location of services. However, considering this contract spans approximately 3.5 years (from April 2023 to September 2026), the average annual value is roughly $3.7 million. This figure provides a baseline for comparison. To conduct a robust benchmark, one would need to identify contracts with comparable service descriptions (e.g., non-clinical support for military hospitals), similar contract types (firm-fixed-price), and potentially similar geographic regions or facility sizes. The 'full and open competition' aspect suggests the price was vetted against multiple bidders, which is a positive indicator for value.
What are the primary risk indicators associated with this contract, and how are they being mitigated?
Key risk indicators for this contract include potential performance issues by DILLIGAS CORP, the possibility of scope creep if the 'ancillary support services' are not precisely defined in the Statement of Work, and the inherent risks associated with relying on a single contractor for critical support functions. Mitigation strategies are likely embedded within the contract's terms. The firm-fixed-price structure helps mitigate cost overruns for the government, shifting some financial risk to the contractor. Performance standards and service level agreements (SLAs) within the contract would be crucial for monitoring and enforcing quality. The competitive award process also serves as a risk mitigation tool by selecting a contractor presumed to be capable and competitive.
What is the historical spending pattern for ancillary support services by the Defense Health Agency?
The provided data does not include historical spending patterns for ancillary support services by the Defense Health Agency. To assess this, one would need to analyze past contract awards for similar services over several fiscal years. This analysis would involve identifying previous contracts, their values, durations, and the contractors involved. Understanding historical spending trends would help determine if the current $12.9 million award represents an increase, decrease, or stable level of investment in these services. It would also reveal if there have been consistent providers or significant shifts in the contracting landscape for these essential support functions.
What is DILLIGAS CORP's track record with federal contracts, particularly within the healthcare sector?
The provided data does not include information on DILLIGAS CORP's track record with federal contracts. To assess their performance history, one would need to consult federal procurement databases like SAM.gov or FPDS to review past awards, contract performance evaluations (e.g., CPARS reports), and any history of contract disputes or terminations. A strong track record with similar healthcare support services would increase confidence in their ability to successfully execute this current $12.9 million contract. Conversely, a history of poor performance or financial instability could be a significant concern.
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: 20
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: $21,502,370
Exercised Options: $16,189,700
Current Obligation: $12,902,242
Actual Outlays: $1,149,336
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HT005018D0014
IDV Type: IDC
Timeline
Start Date: 2023-04-01
Current End Date: 2026-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2025-12-14
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