VA Spends $52.8M on Dialysis Centers in Q1 FY17, Primarily with Fresenius Medical Care

Contract Overview

Contract Amount: $52,815,924 ($52.8M)

Contractor: Fresenius Medical Care Holdings Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-10-01

End Date: 2016-12-31

Contract Duration: 91 days

Daily Burn Rate: $580.4K/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: FY17 1ST QTR DIALYSIS REPORT

Place of Performance

Location: WALTHAM, MIDDLESEX County, MASSACHUSETTS, 02451

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $52.8 million to FRESENIUS MEDICAL CARE HOLDINGS INC for work described as: IGF::CT::IGF EXPRESS REPORT: FY17 1ST QTR DIALYSIS REPORT Key points: 1. Significant spending on essential healthcare services. 2. Fresenius Medical Care is a major provider in this contract. 3. Risk of vendor lock-in if competition is not sustained. 4. Healthcare sector spending is often high due to demand.

Value Assessment

Rating: good

The total award amount of $52.8M for 91 days suggests a high per diem cost. Benchmarking against similar dialysis center contracts would be necessary to confirm pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: The competitive award aims to ensure taxpayer funds are used efficiently for critical healthcare services.

Public Impact

Ensures access to vital kidney dialysis services for veterans. Supports a critical segment of the healthcare industry. Potential for long-term contracts impacting patient care continuity.

Waste & Efficiency Indicators

Waste Risk Score: 58 / 10

Warning Flags

Concentration of spending with a single vendor.
Potential for price increases in future contract periods.

Positive Signals

Awarded under full and open competition.
Provides essential healthcare services.

Sector Analysis

Spending in the healthcare sector, particularly for specialized services like dialysis, is driven by patient need and medical advancements. Benchmarks vary widely based on service intensity and location.

Small Business Impact

Analysis does not indicate specific small business participation. Further review would be needed to determine if small businesses were excluded or had opportunities to compete.

Oversight & Accountability

The contract was awarded as a delivery order under a larger contract vehicle. Oversight would focus on performance, quality of care, and adherence to contract terms.

Related Government Programs

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

Risk Flags

High spending concentration with one vendor.
Potential for price escalation in subsequent periods.
Dependence on a single provider for critical services.
Need for ongoing market research to ensure continued competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $52.8 million to FRESENIUS MEDICAL CARE HOLDINGS INC. IGF::CT::IGF EXPRESS REPORT: FY17 1ST QTR DIALYSIS REPORT

Who is the contractor on this award?

The obligated recipient is FRESENIUS MEDICAL CARE HOLDINGS 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 $52.8 million.

What is the period of performance?

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

What is the average cost per dialysis treatment under this contract?

The provided data does not specify the cost per treatment. The total award of $52.8M over 91 days for 20 delivery orders suggests a significant operational cost, but a precise per-treatment cost requires more granular data on patient volume and service specifics.

What is the risk of service disruption if Fresenius Medical Care's performance declines?

Given Fresenius Medical Care Holdings Inc. is the sole awardee for this period, a decline in their performance poses a significant risk of service disruption for veterans requiring dialysis. The VA would need contingency plans and robust performance monitoring to mitigate this.

How does the VA ensure the quality of care provided by contracted dialysis centers?

The VA typically ensures quality through contract performance monitoring, site visits, patient satisfaction surveys, and adherence to clinical best practices. Specific quality metrics and reporting requirements would be detailed within the contract documents.

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

Parent Company: Fresenius Medical Care Capital City, LLC (UEI: 324661834)

Address: 920 WINTER ST, WALTHAM, MA, 02451

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

Financial Breakdown

Contract Ceiling: $52,815,924

Exercised Options: $52,815,924

Current Obligation: $52,815,924

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79113D0019

IDV Type: IDC

Timeline