VA awards $82.3M for Kidney Dialysis Centers to Davita Inc. in Q2 FY17

Contract Overview

Contract Amount: $82,275,361 ($82.3M)

Contractor: Davita Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-01-01

End Date: 2017-03-31

Contract Duration: 89 days

Daily Burn Rate: $924.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IGF::CT::IGF EXPRESS REPORT 2ND QTR FY17

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80202

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $82.3 million to DAVITA INC. for work described as: IGF::CT::IGF EXPRESS REPORT 2ND QTR FY17 Key points: 1. Contract awarded to Davita Inc. for kidney dialysis services. 2. Full and open competition was utilized for this award. 3. The contract value is $82.3 million over 89 days. 4. This falls under the Kidney Dialysis Centers sector.

Value Assessment

Rating: good

The award of $82.3 million for a 3-month period suggests a significant but potentially variable need. Benchmarking against similar long-term dialysis contracts would be necessary for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition indicates a robust price discovery process. This method allows multiple qualified vendors to bid, driving competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for essential healthcare services, with competition aiming to ensure fair pricing.

Public Impact

Ensures access to critical kidney dialysis services for veterans. Supports ongoing healthcare needs within the Department of Veterans Affairs. Davita Inc. is a major provider in the healthcare sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration (89 days) may indicate a need for re-competition or a bridge contract.
Lack of specific performance metrics in provided data.
Potential for price escalation in subsequent contract periods.

Positive Signals

Full and open competition utilized.
Awarded by the Department of Veterans Affairs, a key agency.
Addresses a critical healthcare need.

Sector Analysis

The healthcare sector, particularly specialized services like kidney dialysis, represents a significant portion of federal spending. Benchmarks for similar contracts would focus on per-patient costs and service scope.

Small Business Impact

The data does not indicate any specific subcontracting goals or awards to small businesses for this contract. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for healthcare service contracts would apply.

Related Government Programs

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

Risk Flags

Short contract duration
Potential for price escalation
Lack of detailed performance metrics
Limited visibility into long-term strategy

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $82.3 million to DAVITA INC.. IGF::CT::IGF EXPRESS REPORT 2ND QTR FY17

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 $82.3 million.

What is the period of performance?

Start: 2017-01-01. End: 2017-03-31.

What is the historical cost per patient for similar dialysis services awarded by the VA?

Historical cost per patient data for similar VA dialysis contracts is not provided. However, given the $82.3 million award over 89 days for an unspecified number of patients, a rough estimate can be made. Assuming a consistent patient load, the daily cost would be approximately $924,442. Further analysis would require patient volume and specific service details to compare against benchmarks.

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

The provided data does not specify the key performance indicators (KPIs) for this kidney dialysis contract. Effective oversight would require clearly defined KPIs related to patient care quality, service availability, and operational efficiency. Performance against these metrics would be crucial for assessing the contractor's effectiveness and value.

What is the long-term strategy for kidney dialysis services procurement by the VA, and does this contract align with it?

This contract appears to be a short-term award covering the second quarter of FY17. The VA's long-term strategy for kidney dialysis services is not detailed here. Understanding if this is a bridge contract, a pilot program, or part of a larger, multi-year strategy is essential for assessing its alignment and overall effectiveness in meeting veteran healthcare needs.

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: 1

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: $82,275,361

Exercised Options: $82,275,361

Current Obligation: $82,275,361

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79113D0013

IDV Type: IDC

Timeline