Department of the Army awards $8.9M contract for physical therapy services to C2 Alaska, LLC

Contract Overview

Contract Amount: $8,923,611 ($8.9M)

Contractor: C2 Alaska, LLC

Awarding Agency: Department of Defense

Start Date: 2022-10-01

End Date: 2026-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $6.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PHYSICAL THERAPISTS

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $8.9 million to C2 ALASKA, LLC for work described as: PHYSICAL THERAPISTS Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. Contract duration of 1460 days indicates a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 621340 covers offices of physical, occupational and speech therapists, and audiologists. 5. The contract is not set aside for small businesses. 6. The awardee, C2 Alaska, LLC, is located in Texas.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service descriptions and comparable contract data. The firm fixed-price structure provides cost certainty. However, the lack of competition raises concerns about whether the government secured the best possible price. The contract value of approximately $8.9 million over four years averages to about $2.2 million annually, which needs to be assessed against the scope and volume of services required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source is available or when a compelling justification exists for excluding competition. The lack of multiple bidders means there was no direct price comparison or negotiation driven by market forces, potentially leading to a higher price than if it had been competed.

Taxpayer Impact: Sole-source awards can result in taxpayers paying a premium, as the government does not benefit from the competitive pressure that typically drives down prices.

Public Impact

Beneficiaries include military personnel and potentially their dependents requiring physical therapy services. Services delivered are physical therapy, crucial for rehabilitation and recovery. Geographic impact is likely concentrated around the military installation where services are provided. Workforce implications include the employment of physical therapists and support staff by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Sole-source award requires strong justification to ensure taxpayer value.
Contract performance monitoring is critical to ensure service quality and necessity.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Long contract duration suggests a stable, ongoing requirement.
Award to a specific entity indicates a potentially established relationship or capability.

Sector Analysis

The healthcare services sector, specifically within the government contracting space, is vast. This contract falls under the sub-sector of allied health services, focusing on physical therapy. Government spending in this area supports military readiness and personnel well-being. Comparable spending benchmarks would typically involve analyzing other contracts for similar physical therapy services awarded to various providers across different military branches or federal agencies.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to participate in this contract are limited unless they are direct subcontractors to C2 Alaska, LLC. The absence of a small business set-aside indicates that the primary awardee was selected without a specific focus on promoting small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is generally facilitated through contract databases like FPDS, where award details are published. Inspector General jurisdiction may apply if issues of fraud, waste, or abuse arise.

Related Government Programs

Military Medical Services
Outpatient Rehabilitation Services
TRICARE Provider Network
Federal Healthcare Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Potential for contractor complacency due to lack of competition.
Need for strong performance monitoring to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.9 million to C2 ALASKA, LLC. PHYSICAL THERAPISTS

Who is the contractor on this award?

The obligated recipient is C2 ALASKA, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $8.9 million.

What is the period of performance?

Start: 2022-10-01. End: 2026-09-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the data. Typically, sole-source awards are made when only one responsible source can satisfy the agency's needs, such as in cases of unique capabilities, urgent requirements where competition is impractical, or when a follow-on contract is necessary and only the original contractor can provide the required services. Without further documentation from the Department of the Army, the precise rationale remains unknown, but it implies that C2 Alaska, LLC was deemed the only viable option for these physical therapy services at the time of award.

How does the annual cost of this contract compare to market rates for similar physical therapy services?

The contract is valued at $8,923,611.46 over 1460 days (approximately 4 years), equating to an annual cost of roughly $2,230,902.86. Benchmarking this against market rates for physical therapy services is complex due to variations in service scope, location, and provider type. However, for context, average annual revenues for physical therapy clinics can range significantly, but this contract value suggests a substantial volume of services or a high level of specialized care is being procured. Without specific details on the number of patients, therapy sessions, or required specialties, a direct comparison to typical clinic revenues or per-session costs is difficult. Further analysis would require understanding the specific service level agreements and the geographic area of service delivery.

What are the potential risks associated with a sole-source award for physical therapy services?

The primary risk associated with a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Without competing bids, the government may not achieve the most cost-effective outcome. Another risk is complacency from the contractor, as there is no immediate threat of losing the contract to a competitor. This could potentially impact service quality or innovation over the contract's duration. Furthermore, a sole-source award limits the government's ability to explore alternative providers or solutions that might emerge in a competitive market. Robust performance monitoring and clear service level agreements are crucial to mitigate these risks.

What is the track record of C2 Alaska, LLC in performing federal contracts, particularly for healthcare services?

Information regarding the specific track record of C2 Alaska, LLC in performing federal contracts, especially for healthcare services, is not detailed in the provided data. To assess their performance history, one would typically consult federal procurement databases (like FPDS or SAM.gov) to review past awards, contract performance evaluations (e.g., CPARS reports), and any history of contract disputes or terminations. A thorough review would examine their experience with similar service types, contract values, and adherence to delivery schedules and quality standards. Without this external data, it's impossible to definitively evaluate their past performance.

How does this contract's value compare to historical spending on physical therapy services by the Department of Defense?

To compare this contract's value to historical spending, one would need access to historical procurement data for physical therapy services across the Department of Defense (DoD). This would involve querying databases for similar contracts awarded over previous fiscal years, filtering by service type (physical therapy), agency (DoD), and potentially by geographic region or specific military branches. Analyzing this historical data would reveal trends in contract values, average award amounts, and the number of contracts awarded. This comparison would help determine if the $8.9 million award is consistent with, higher than, or lower than previous spending patterns for comparable services, considering inflation and changes in service requirements.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Other Health Practitioners › Offices of Physical, Occupational and Speech Therapists, and Audiologists

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W81K0022R0017

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5253 PRUE RD STE 230, SAN ANTONIO, TX, 78240

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,223,253

Exercised Options: $8,923,611

Current Obligation: $8,923,611

Actual Outlays: $100,211

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline