VA Spends $57.2M on Kidney Dialysis Centers in Q1 FY17, Primarily with Davita Inc

Contract Overview

Contract Amount: $57,228,666 ($57.2M)

Contractor: Davita Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-10-01

End Date: 2016-12-31

Contract Duration: 91 days

Daily Burn Rate: $628.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 20

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IGF::CT::IGF EXPRESS REPORT: 1ST QTR TOTALS DIALYSIS SY17

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80202

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $57.2 million to DAVITA INC. for work described as: IGF::CT::IGF EXPRESS REPORT: 1ST QTR TOTALS DIALYSIS SY17 Key points: 1. Significant spending on essential healthcare services. 2. Davita Inc. is a major provider in this contract. 3. Full and open competition was utilized. 4. Potential for cost savings through ongoing price discovery.

Value Assessment

Rating: good

The award amount of $57.2M for one quarter suggests a substantial ongoing need. Benchmarking against similar dialysis contracts would be necessary to fully assess value, but the firm fixed-price structure provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a broad solicitation of potential providers. This method generally promotes competitive pricing and allows the government to seek the best value.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for essential healthcare services.

Public Impact

Ensures access to critical kidney dialysis services for veterans. Supports a significant healthcare provider in the market. Demonstrates government commitment to veteran healthcare needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Concentration of spending with a single vendor (Davita Inc.) warrants monitoring.
Need to ensure continued competitive pressure in future solicitations.

Positive Signals

Full and open competition utilized.
Firm fixed-price contract provides cost certainty.

Sector Analysis

Spending on kidney dialysis centers falls under the broader healthcare sector. Benchmarks for similar services would indicate if this spending level is typical for the volume and duration.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses had an opportunity to participate or if this is a large-scale service contract.

Oversight & Accountability

The contract was awarded by the Department of Veterans Affairs, suggesting oversight from within the agency. Independent oversight bodies would review overall spending patterns and contract compliance.

Related Government Programs

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

Risk Flags

High dollar value concentrated in one quarter.
Potential for vendor concentration with Davita Inc.
Need for ongoing price benchmarking.
Dependence on specific healthcare services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $57.2 million to DAVITA INC.. IGF::CT::IGF EXPRESS REPORT: 1ST QTR TOTALS DIALYSIS SY17

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 $57.2 million.

What is the period of performance?

Start: 2016-10-01. End: 2016-12-31.

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

The provided data does not break down the total award into per-session costs. To determine this, one would need to know the number of sessions provided within the $57.2M. Comparing this to national averages or other VA contracts would require access to that specific benchmarking data.

What is the risk of vendor lock-in or price escalation given Davita Inc.'s significant role?

While Davita Inc. is a major provider, the contract was awarded under full and open competition. This mitigates immediate risk. However, ongoing monitoring and ensuring robust competition in future contract renewals are crucial to prevent potential price escalation or dependency.

How effectively does this contract meet the specific dialysis needs of the veteran population it serves?

The effectiveness is primarily measured by the consistent delivery of services. The significant spending suggests a high demand and likely fulfillment of needs. Patient satisfaction surveys and clinical outcome data would provide a more direct measure of effectiveness.

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: 20

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: $57,228,666

Exercised Options: $57,228,666

Current Obligation: $57,228,666

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79113D0013

IDV Type: IDC

Timeline