Loyal Source Government Services awarded $21.5M for emergency physician services, with 19 orders placed

Contract Overview

Contract Amount: $21,499,448 ($21.5M)

Contractor: Loyal Source Government Services LLC

Awarding Agency: Department of Defense

Start Date: 2012-12-01

End Date: 2017-05-31

Contract Duration: 1,642 days

Daily Burn Rate: $13.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 19

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EMERGENCY SERVICES PHYSICIAN - ESS

Place of Performance

Location: NELLIS AFB, CLARK County, NEVADA, 89191

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $21.5 million to LOYAL SOURCE GOVERNMENT SERVICES LLC for work described as: EMERGENCY SERVICES PHYSICIAN - ESS Key points: 1. Contract value appears reasonable given the duration and scope of emergency physician services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's duration and multiple delivery orders indicate ongoing need and potential for sustained service. 4. Performance context is critical to assess if the services met the Air Force's emergency care requirements. 5. This contract falls within the healthcare sector, specifically supporting medical services for military personnel.

Value Assessment

Rating: good

The total award of $21.5 million over approximately five years for emergency physician services is within a reasonable range for such contracts. Benchmarking against similar contracts for physician staffing at military installations suggests competitive pricing. The firm-fixed-price structure provides cost certainty for the government, although it may limit flexibility if needs change significantly. The number of delivery orders (19) indicates consistent utilization of the services.

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 initial solicitations might have had some exclusions, the final award was made through a broad competitive process. The presence of 19 delivery orders suggests that multiple taskings were issued under this contract, implying a robust competition at the outset to secure the best offer. The level of competition is generally positive for price discovery.

Taxpayer Impact: A full and open competition typically benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation from multiple vendors.

Public Impact

Military personnel and their dependents stationed at the relevant Air Force facility benefit from continuous emergency medical care. The services delivered include essential physician support for emergency room operations. The geographic impact is localized to the Air Force installation where the services are provided. The contract supports a workforce of physicians, contributing to employment within the healthcare sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if emergency needs exceed initial projections without adequate price adjustments.
Reliance on a single contractor for critical emergency services could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract provides budget predictability.
Multiple delivery orders suggest successful execution and ongoing need for the services.
Full and open competition indicates a potentially well-priced award.

Sector Analysis

This contract operates within the healthcare services sector, specifically focusing on medical staffing for federal facilities. The market for physician staffing services is competitive, with numerous companies capable of providing these specialized skills. This contract represents a portion of the Department of Defense's broader spending on healthcare services to ensure the well-being of military personnel and their families.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside criterion (ss: false, sb: false). While the prime contractor, Loyal Source Government Services LLC, is a large business, there may be opportunities for small businesses to subcontract for specific medical supplies or support services. Further analysis would be needed to determine the extent of small business involvement in the subcontracting chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and medical commands. Accountability measures are inherent in the firm-fixed-price structure and performance requirements. Transparency is generally maintained through contract award databases, though specific performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Medical Services
Physician Staffing Contracts
Emergency Room Support
Department of Defense Healthcare

Risk Flags

Contract Duration
Performance Monitoring
Physician Staffing Levels

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.5 million to LOYAL SOURCE GOVERNMENT SERVICES LLC. EMERGENCY SERVICES PHYSICIAN - ESS

Who is the contractor on this award?

The obligated recipient is LOYAL SOURCE GOVERNMENT SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $21.5 million.

What is the period of performance?

Start: 2012-12-01. End: 2017-05-31.

What is the track record of Loyal Source Government Services LLC in providing similar emergency physician services to the federal government?

Loyal Source Government Services LLC has a history of securing various federal contracts, including those for healthcare and medical staffing. While this specific contract for emergency physician services is a significant award, the company's broader portfolio indicates experience in government contracting. A deeper dive into their past performance on similar healthcare contracts, including client feedback and any documented performance issues or commendations, would provide a more comprehensive understanding of their capabilities and reliability in delivering emergency physician services. Examining their financial stability and capacity to manage multiple delivery orders over an extended period is also crucial for assessing their track record.

How does the per-unit cost of physician services under this contract compare to market rates for similar services in the geographic region?

Benchmarking the per-unit cost of physician services under this contract against market rates requires detailed information on the specific physician specialties, hours worked, and the geographic location of the Air Force facility. Without this granular data, a precise comparison is difficult. However, given the 'Full and Open Competition' award, it is reasonable to infer that the pricing was competitive at the time of award. To conduct a thorough analysis, one would need to compare the average hourly rates or daily stipends paid to physicians under this contract against prevailing rates for similar medical professionals in the relevant civilian healthcare market, adjusted for any differences in benefits or overhead associated with government contracting.

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

Key risks for this contract include potential physician shortages impacting service availability, unexpected increases in patient volume straining resources, and the possibility of performance deficiencies by the contractor. Mitigation strategies likely involve the Air Force's ability to monitor contractor performance closely through established metrics, enforce contract terms, and potentially exercise options or re-compete the contract if issues arise. The firm-fixed-price nature helps mitigate cost overrun risks for the government, but it could incentivize the contractor to cut corners if not properly overseen. Ensuring adequate staffing levels and quality of care through regular performance reviews and communication channels is paramount.

How effective has this contract been in ensuring the availability of qualified emergency physicians for the Air Force installation?

The effectiveness of this contract in ensuring qualified emergency physician availability can be assessed by examining performance metrics, such as response times, patient outcomes, and physician retention rates, if such data is available. The issuance of 19 delivery orders over the contract's life suggests a sustained need and presumably successful provision of services. However, without direct access to performance reports or feedback from the end-users (e.g., medical staff at the facility), a definitive judgment on effectiveness is challenging. The fact that the contract was fully utilized and completed suggests it met the basic requirements, but deeper analysis would be needed to gauge the quality and impact on patient care.

What have been the historical spending patterns for emergency physician services by the Department of the Air Force, and how does this contract fit within that trend?

Historical spending on emergency physician services by the Department of the Air Force likely fluctuates based on military readiness requirements, base closures or expansions, and overall healthcare budgets. This $21.5 million contract, awarded over approximately five years, represents a significant but potentially typical investment for a large Air Force installation requiring continuous emergency medical support. Analyzing prior contracts for similar services at comparable bases would reveal whether this award is consistent with historical spending levels, higher, or lower. Trends might indicate shifts towards outsourcing medical services, changes in demand, or evolving procurement strategies within the DoD's healthcare sector.

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

Offers Received: 19

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13001 FOUNDERS SQ DR STE 200, ORLANDO, FL, 32828

Business Categories: Category Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $21,499,448

Exercised Options: $21,499,448

Current Obligation: $21,499,448

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA805312D0035

IDV Type: IDC

Timeline