VA awards $20.3M contract for on-site anesthesiology services to Private Diagnostic Clinic, PLLC

Contract Overview

Contract Amount: $20,285,205 ($20.3M)

Contractor: Private Diagnostic Clinic, PLLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-06-01

End Date: 2019-11-30

Contract Duration: 2,008 days

Daily Burn Rate: $10.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: IGF::OT::IGF - ON SITE ANESTHESIOLOGY SERVICES

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27705

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.3 million to PRIVATE DIAGNOSTIC CLINIC, PLLC for work described as: IGF::OT::IGF - ON SITE ANESTHESIOLOGY SERVICES Key points: 1. Contract awarded to a single private clinic for specialized medical services. 2. Significant contract value suggests a critical need for anesthesiology support. 3. Lack of competition raises questions about price discovery and potential overspending. 4. Services are essential for patient care within the Department of Veterans Affairs.

Value Assessment

Rating: fair

The contract's fixed price with economic price adjustment structure can lead to cost increases over time. Without a competitive benchmark, assessing the fairness of the pricing is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection. This approach may restrict price negotiation and potentially lead to higher costs for taxpayers.

Taxpayer Impact: The absence of competition for essential medical services could result in higher expenditures than a competitive process might yield.

Public Impact

Veterans receive critical anesthesiology services, ensuring access to necessary medical procedures. The contract supports a private healthcare provider, contributing to the local economy. Potential for increased costs due to limited competition impacts overall VA healthcare budget.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for cost escalation due to economic price adjustment

Positive Signals

Ensures critical medical service availability for veterans

Sector Analysis

This contract falls within the Healthcare sector, specifically for medical services. Spending benchmarks for anesthesiology services can vary widely based on location, complexity, and provider type.

Small Business Impact

The contract was awarded to a private clinic and there is no indication of small business participation. Further analysis would be needed to determine if subcontracting opportunities were explored.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Accountability for service delivery and cost management rests with the agency.

Related Government Programs

Colleges, Universities, and Professional Schools
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition
Economic price adjustment
Lack of transparency on justification for limited competition
Potential for price creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.3 million to PRIVATE DIAGNOSTIC CLINIC, PLLC. IGF::OT::IGF - ON SITE ANESTHESIOLOGY SERVICES

Who is the contractor on this award?

The obligated recipient is PRIVATE DIAGNOSTIC CLINIC, PLLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $20.3 million.

What is the period of performance?

Start: 2014-06-01. End: 2019-11-30.

What is the justification for limiting competition on this anesthesiology services contract?

The justification for limiting competition is not provided in the data. Typically, such limitations are based on factors like unique capabilities, urgent needs, or specific circumstances. Without this information, it's difficult to assess if the limited competition was appropriate or if alternative sourcing methods could have been explored to ensure better value.

How does the economic price adjustment clause impact the overall risk of cost overruns?

The economic price adjustment (EPA) clause introduces a risk of cost overruns by allowing the contractor to pass on certain increased costs, such as labor or supplies, to the government. The extent of this risk depends on the specific indices used in the EPA and the volatility of those underlying costs. Without transparency into the EPA's mechanics, it's hard to quantify the precise risk.

What is the long-term effectiveness of relying on a single provider for essential anesthesiology services?

The long-term effectiveness of relying on a single provider can be a concern. While it ensures continuity of service, it can also lead to complacency, reduced innovation, and potentially higher prices over time due to the lack of competitive pressure. Periodic re-evaluation of the market and competition strategy is advisable.

Industry Classification

NAICS: Educational Services › Colleges, Universities, and Professional Schools › Colleges, Universities, and Professional Schools

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: VA-246-11-RP-0332

Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Parent Company: Duke University (UEI: 044387793)

Address: DUKE UNIVERSITY MEDICAL CENTER, DURHAM, NC, 27710

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,553,427

Exercised Options: $20,285,205

Current Obligation: $20,285,205

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline