DoD's $11.3M Contract for Medical Services Awarded to DILLIGAS CORP Amidst Full and Open Competition
Contract Overview
Contract Amount: $11,300,132 ($11.3M)
Contractor: Dilligas Corp
Awarding Agency: Department of Defense
Start Date: 2024-01-01
End Date: 2026-12-31
Contract Duration: 1,095 days
Daily Burn Rate: $10.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 12
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: MEDICAL ASSISTANTS, CERTIFIED OCCUPATIONAL THERAPY ASSISTANTS, PHYSICIAN EXTENDER, PHYSICIAN ASSISTANT, CHIROPRACTORS
Place of Performance
Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23708
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $11.3 million to DILLIGAS CORP for work described as: MEDICAL ASSISTANTS, CERTIFIED OCCUPATIONAL THERAPY ASSISTANTS, PHYSICIAN EXTENDER, PHYSICIAN ASSISTANT, CHIROPRACTORS Key points: 1. The Department of Defense awarded an $11.3 million contract for medical services to DILLIGAS CORP. 2. The contract falls under the General Medical and Surgical Hospitals NAICS code (622110). 3. Competition was full and open after exclusion of sources, suggesting a deliberate sourcing strategy. 4. The contract is for a duration of 1095 days, ending in December 2026. 5. The award value of $11.3 million is significant for specialized medical support services.
Value Assessment
Rating: fair
The contract's value of $11.3 million for a 3-year period appears reasonable for specialized medical support services. Benchmarking against similar contracts for physician extenders and certified assistants would provide a clearer picture of value.
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 a competitive process but with specific source exclusions. This method aims for competitive pricing while potentially narrowing the field based on specific requirements.
Taxpayer Impact: The competitive nature of the award suggests efforts to secure fair pricing for taxpayer funds, though the exclusion of sources warrants scrutiny.
Public Impact
Ensures continued access to essential medical personnel for military healthcare facilities. Supports the operational readiness of the Defense Health Agency by providing qualified medical staff. Potential impact on patient care quality and availability within DoD facilities. DILLIGAS CORP's performance will be critical to meeting the healthcare needs of service members and their families.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Exclusion of sources in competition
- Reliance on a single awardee for critical medical services
- Potential for price creep if performance requirements are not strictly managed
Positive Signals
- Full and open competition utilized
- Clear contract duration and delivery order structure
- Firm Fixed Price contract type provides cost certainty
Sector Analysis
The healthcare sector, particularly within the Department of Defense, requires specialized medical personnel. Spending benchmarks for similar contracts can vary widely based on the specific services, geographic location, and required qualifications.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses had an opportunity to participate.
Oversight & Accountability
The Defense Health Agency is responsible for overseeing this contract. Robust oversight will be crucial to ensure DILLIGAS CORP meets performance standards and that the pricing remains competitive throughout the contract term.
Related Government Programs
- General Medical and Surgical Hospitals
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Potential for vendor lock-in due to specialized services
- Dependence on a single contractor for critical healthcare functions
- Need for rigorous performance monitoring to ensure quality of care
- Justification for source exclusion requires careful review
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 $11.3 million to DILLIGAS CORP. MEDICAL ASSISTANTS, CERTIFIED OCCUPATIONAL THERAPY ASSISTANTS, PHYSICIAN EXTENDER, PHYSICIAN ASSISTANT, CHIROPRACTORS
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 $11.3 million.
What is the period of performance?
Start: 2024-01-01. End: 2026-12-31.
What specific criteria led to the exclusion of certain sources in the 'full and open competition after exclusion of sources' process?
The exclusion of sources typically occurs when specific technical capabilities, past performance, or unique qualifications are required that only a limited number of vendors can meet. The contracting agency must justify these exclusions based on documented requirements to ensure fairness and prevent undue restriction of competition.
How does the pricing structure of this $11.3 million contract compare to industry benchmarks for similar medical support services?
A comprehensive comparison requires detailed analysis of the specific services rendered (e.g., physician extenders, therapy assistants), required certifications, and geographic location. Without this granular data, it's difficult to definitively assess if the $11.3 million is competitive. However, the firm fixed-price nature provides cost certainty for the government.
What are the potential risks associated with awarding a significant contract for medical services to a single entity, DILLIGAS CORP?
The primary risks include service disruption if the contractor underperforms or faces financial instability, and a potential lack of leverage for the government if the contractor becomes indispensable. Mitigating these risks requires strong contract management, performance monitoring, and contingency planning by the Defense Health Agency.
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: 12
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: $15,645,610
Exercised Options: $11,300,132
Current Obligation: $11,300,132
Actual Outlays: $284,747
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HT005018D0014
IDV Type: IDC
Timeline
Start Date: 2024-01-01
Current End Date: 2026-12-31
Potential End Date: 2027-11-30 00:00:00
Last Modified: 2025-12-23
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