DoD's $33.4M Emergency Department Services Contract with DILLIGAS CORP Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $33,409,993 ($33.4M)
Contractor: Dilligas Corp
Awarding Agency: Department of Defense
Start Date: 2020-10-01
End Date: 2025-12-31
Contract Duration: 1,917 days
Daily Burn Rate: $17.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 19
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: NON PERSONAL PHYSICIAN SERVICES-EMERGENCY DEPARTMENT
Place of Performance
Location: EL PASO, EL PASO County, TEXAS, 79920
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $33.4 million to DILLIGAS CORP for work described as: NON PERSONAL PHYSICIAN SERVICES-EMERGENCY DEPARTMENT Key points: 1. The contract value of $33.4 million for emergency department services is substantial, warranting close examination. 2. DILLIGAS CORP is the sole awardee, raising questions about the extent of competition. 3. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause suggests potential limitations on market participation. 4. The sector is healthcare services, a critical area for government spending.
Value Assessment
Rating: questionable
The contract's pricing is difficult to assess without specific per-unit cost data. The total award of $33.4 million over 19 months for emergency department services appears high, especially given the lack of detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. This method may limit price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The limited competition raises concerns about whether the government secured the best possible price for these essential medical services.
Public Impact
Ensures critical emergency medical care is available for military personnel and their families. Potential for inflated costs due to limited competition could divert funds from other essential services. The duration of the contract (over 5 years) suggests a long-term reliance on this provider.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of detailed cost transparency
- Long contract duration without clear performance metrics
Positive Signals
- Provides essential healthcare services
- Awarded by a major agency (DoD)
Sector Analysis
This contract falls within the healthcare sector, specifically general medical and surgical hospitals. Benchmarks for emergency department services can vary widely based on location, patient volume, and acuity, making direct comparisons challenging without more granular data.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The focus appears to be on larger, established entities.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause warrants further oversight to ensure the exclusion of sources was justified and did not unduly restrict competition. Transparency in pricing and performance metrics is crucial.
Related Government Programs
- General Medical and Surgical Hospitals
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Lack of detailed cost breakdown
- Potential for overpayment
- Long contract duration
- Unclear justification for source exclusion
Tags
general-medical-and-surgical-hospitals, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.4 million to DILLIGAS CORP. NON PERSONAL PHYSICIAN SERVICES-EMERGENCY DEPARTMENT
Who is the contractor on this award?
The obligated recipient is DILLIGAS CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $33.4 million.
What is the period of performance?
Start: 2020-10-01. End: 2025-12-31.
What was the justification for excluding specific sources in the competition for these emergency department services?
The justification for excluding specific sources is not provided in the data. Typically, such exclusions might be based on specialized capabilities, existing infrastructure, or specific security requirements. However, without explicit documentation, it's difficult to ascertain the validity of these exclusions and their impact on overall market competition and pricing.
How does the per-unit cost of services under this contract compare to similar contracts awarded through full and open competition?
A direct per-unit cost comparison is not possible with the provided data. The contract is for 'NON PERSONAL PHYSICIAN SERVICES-EMERGENCY DEPARTMENT' with a total award of $33.4 million over 1917 days. Without specific line items for services rendered (e.g., cost per patient visit, cost per procedure), benchmarking against other contracts is speculative.
What mechanisms are in place to ensure the quality and effectiveness of the emergency department services provided by DILLIGAS CORP?
The provided data does not detail the specific quality assurance or performance monitoring mechanisms for this contract. Given the critical nature of emergency services, the Department of Defense likely has internal protocols for oversight. However, the absence of explicit performance metrics or quality indicators in the award data limits a thorough assessment of effectiveness.
Industry Classification
NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals
Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 19
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 134 EAST MISTLETOE, SAN ANTONIO, TX, 78212
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $33,407,783
Exercised Options: $33,407,783
Current Obligation: $33,409,993
Actual Outlays: $1,662,915
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HT005018D0014
IDV Type: IDC
Timeline
Start Date: 2020-10-01
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2026-01-14
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