VA Spends $41.3M on Dialysis Services in FY16 Q4 with Davita Inc

Contract Overview

Contract Amount: $41,302,156 ($41.3M)

Contractor: Davita Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-07-01

End Date: 2016-09-30

Contract Duration: 91 days

Daily Burn Rate: $453.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 24

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IGF::OT::IGF EXPRESS REPORT: FY16 Q4 NATIONWIDE DIALYSIS SERVICES

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80202

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $41.3 million to DAVITA INC. for work described as: IGF::OT::IGF EXPRESS REPORT: FY16 Q4 NATIONWIDE DIALYSIS SERVICES Key points: 1. Significant spending on essential healthcare services. 2. Davita Inc. is the sole awardee for this delivery order. 3. Potential for price escalation due to limited competition. 4. Healthcare sector spending is a critical area for oversight.

Value Assessment

Rating: fair

The award amount of $41.3M for a 3-month period suggests a high per-unit cost. Benchmarking against similar contracts for dialysis services is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While the contract was awarded under full and open competition, the specific awardee for this delivery order is Davita Inc. The pricing mechanism (firm fixed price) provides some cost certainty.

Taxpayer Impact: Taxpayer funds are being used for essential healthcare services, with the cost effectiveness needing further scrutiny.

Public Impact

Ensures access to critical kidney dialysis services for veterans. Supports a major healthcare provider, Davita Inc. Highlights the government's reliance on private sector healthcare delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for price creep in subsequent delivery orders.
Dependence on a single provider for a critical service.

Positive Signals

Contract awarded under full and open competition.
Firm fixed price contract provides cost predictability.
Addresses a vital healthcare need for beneficiaries.

Sector Analysis

This spending falls within the healthcare sector, specifically medical services. Benchmarks for dialysis services can vary significantly based on patient volume, location, and service intensity.

Small Business Impact

The data does not indicate any specific set-asides for small businesses in this contract award. Large healthcare providers like Davita Inc. typically dominate this market.

Oversight & Accountability

Oversight is crucial to ensure the quality of care and cost-effectiveness of these dialysis services. The Department of Veterans Affairs is responsible for monitoring contract performance.

Related Government Programs

Kidney Dialysis Centers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

High spending concentration with a single provider.
Short performance period (91 days) may indicate a need for longer-term solutions.
Lack of detailed performance metrics.
Potential for uncompetitive pricing in future renewals if competition is not actively pursued.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $41.3 million to DAVITA INC.. IGF::OT::IGF EXPRESS REPORT: FY16 Q4 NATIONWIDE DIALYSIS SERVICES

Who is the contractor on this award?

The obligated recipient is DAVITA INC..

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 $41.3 million.

What is the period of performance?

Start: 2016-07-01. End: 2016-09-30.

What is the average cost per dialysis session for this contract, and how does it compare to national averages or other VA contracts?

The provided data does not allow for the calculation of the average cost per dialysis session. The total award is $41.3M over 91 days for 24 orders. To determine the per-session cost, we would need the number of sessions per order and the average number of patients per session. Benchmarking against national averages and other VA contracts is essential for a comprehensive value assessment.

What are the key performance indicators (KPIs) for this contract, and how is Davita Inc. meeting them?

The provided data does not include specific Key Performance Indicators (KPIs) for this contract. Effective oversight would require the VA to establish and monitor metrics related to patient outcomes, service timeliness, and quality of care. Without this information, assessing Davita Inc.'s performance and the overall effectiveness of the contract is challenging.

Are there plans to re-compete this contract or explore alternative providers to ensure continued competition and potentially better pricing in the future?

The data indicates this is a delivery order under a larger contract awarded through full and open competition. While this specific order is with Davita Inc., the original contract's structure and future re-competition plans are not detailed. Exploring options for future competition or alternative providers is a standard practice to ensure long-term value and mitigate risks associated with vendor lock-in.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › Kidney Dialysis Centers

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 24

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000 16TH ST, DENVER, CO, 80202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,302,156

Exercised Options: $41,302,156

Current Obligation: $41,302,156

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79113D0013

IDV Type: IDC

Timeline