DoD's $11.9M outpatient primary care contract with Nitelines USA Inc. shows fair value despite limited competition

Contract Overview

Contract Amount: $11,928,211 ($11.9M)

Contractor: Nitelines USA Inc

Awarding Agency: Department of Defense

Start Date: 2006-09-12

End Date: 2011-11-30

Contract Duration: 1,905 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OUTPATIENT PRIMARY CARE MEDICAL SERVICES

Place of Performance

Location: FORT BENNING, MUSCOGEE County, GEORGIA, 31905

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $11.9 million to NITELINES USA INC for work described as: OUTPATIENT PRIMARY CARE MEDICAL SERVICES Key points: 1. Contract awarded to Nitelines USA Inc. for outpatient primary care services. 2. The contract duration was 1905 days, indicating a long-term service requirement. 3. Awarded under a firm-fixed-price contract type, providing cost certainty. 4. The contract was competed after exclusion of sources, suggesting potential limitations. 5. The base contract value was approximately $11.9 million. 6. Services were delivered in Georgia, impacting local healthcare access.

Value Assessment

Rating: fair

The contract's value of approximately $11.9 million for outpatient primary care services appears reasonable given the 5-year duration. Benchmarking against similar contracts is challenging without more specific service details and geographic comparisons. However, the firm-fixed-price structure suggests predictable costs for the government. The number of bids received (6) indicates some level of market interest, but the competition type raises questions about whether the best possible price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This means that while the initial solicitation was open, certain sources were excluded from consideration. Six bidders participated in the competition, which is a moderate number. The exclusion of sources could potentially limit the breadth of competition and may have influenced the final pricing, possibly leading to a less competitive outcome than a truly full and open competition.

Taxpayer Impact: The limited competition structure means taxpayers may not have benefited from the lowest possible prices achievable in a broader, unrestricted competition. While some competition existed, the exclusion of certain sources could have reduced downward pressure on pricing.

Public Impact

Beneficiaries include military personnel and their families requiring primary healthcare services. Delivers essential outpatient medical services, ensuring readiness and well-being. Geographic impact is concentrated in Georgia, supporting local healthcare infrastructure. Workforce implications include employment for medical professionals and support staff within Nitelines USA Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in higher costs for taxpayers.
Exclusion of sources raises concerns about fairness and market access for potential bidders.
Lack of detailed performance metrics makes it difficult to assess service quality definitively.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Contract duration suggests a stable, long-term need for these services.
Award to an established entity likely ensures continuity of care.

Sector Analysis

The healthcare sector, specifically outpatient primary care, is a critical component of military readiness and personnel support. This contract falls within the broader federal healthcare spending, which consistently ranks among the largest categories. The market for these services is competitive, with numerous providers capable of delivering care. Benchmarking this contract's value against the overall federal spending on primary care would require a detailed analysis of service scope and volume across various agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information regarding subcontracting plans or performance. Therefore, the direct impact on the small business ecosystem is likely minimal, as the primary award went to a larger entity. Further investigation into subcontracting would be needed to fully assess any indirect effects on small businesses.

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 firm-fixed-price structure, requiring the contractor to deliver services within the agreed-upon cost. Transparency is facilitated by contract databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

TRICARE Prime
Military Health System
Outpatient Medical Services Contracts
Department of Defense Healthcare Services

Risk Flags

Limited competition may impact price discovery.
Exclusion of sources requires justification and could limit market access.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.9 million to NITELINES USA INC. OUTPATIENT PRIMARY CARE MEDICAL SERVICES

Who is the contractor on this award?

The obligated recipient is NITELINES USA INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.9 million.

What is the period of performance?

Start: 2006-09-12. End: 2011-11-30.

What was the specific rationale for excluding certain sources in this 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The specific rationale for excluding certain sources in this contract award is not detailed in the provided data. Typically, such exclusions might stem from requirements related to facility security clearances, specific certifications or licenses not held by all potential bidders, geographic proximity to the service delivery site, or unique capabilities deemed essential for the contract. Without further documentation from the contracting agency (Department of the Army), the precise reasons remain speculative. This type of competition, while allowing for open bidding among qualified entities, limits the pool of potential offerors, which can impact overall market competitiveness and potentially influence pricing outcomes.

How does the per-contractor cost compare to similar outpatient primary care contracts awarded by the DoD in the same period?

Direct comparison of per-contractor cost is difficult without granular data on the scope of services, patient volume, and specific clinical services provided under each contract. The total award of approximately $11.9 million over roughly five years averages to about $2.38 million per year. To benchmark effectively, one would need to analyze contracts with similar patient populations (e.g., active duty, dependents), service intensity (e.g., number of physician visits, ancillary services), and geographic locations. Contracts awarded under different competition types or with varying contract vehicles (e.g., IDIQ vs. fixed-price) would also present challenges for a like-for-like comparison. However, the firm-fixed-price nature suggests a defined cost structure for the government.

What were the key performance indicators (KPIs) used to evaluate Nitelines USA Inc.'s performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate Nitelines USA Inc.'s performance. Government contracts for medical services typically include performance standards related to patient access (e.g., appointment wait times), quality of care (e.g., adherence to clinical guidelines, patient satisfaction scores), and administrative efficiency. Performance would likely be monitored through regular reporting, site visits, and potentially patient surveys. The effectiveness of the oversight mechanisms and the contractor's track record in meeting these unstated KPIs would be crucial for assessing the overall success and value of this contract.

What is the historical spending trend for outpatient primary care services by the Department of the Army in Georgia?

The provided data focuses on a single contract awarded to Nitelines USA Inc. and does not offer historical spending trends for outpatient primary care services by the Department of the Army in Georgia. To establish such a trend, one would need to aggregate spending data for similar services across multiple contracts and fiscal years within that specific geographic region. Analyzing this would involve searching federal procurement databases for contracts with the relevant agency, service category, and location. Understanding historical spending patterns is crucial for identifying significant increases or decreases in investment and for contextualizing the value of individual awards like this one.

Were there any identified risks or challenges associated with Nitelines USA Inc. prior to or during the execution of this contract?

The provided data does not contain information regarding specific risks or challenges associated with Nitelines USA Inc. prior to or during the execution of this contract. A comprehensive risk assessment would typically involve reviewing the contractor's past performance records, financial stability, any history of litigation or disputes, and compliance with regulatory requirements. Without access to contractor performance evaluations (CPEs) or other oversight reports, it is difficult to ascertain any specific issues that may have arisen. The 'limited' competition level might indirectly suggest potential concerns that led to source exclusions, but this is speculative.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W81K0406R0005

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3883 ROGERS BRIDGE RD 202A, DULUTH, GA, 90

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Emerging Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $14,308,144

Exercised Options: $11,952,240

Current Obligation: $11,928,211

Contract Characteristics

Cost or Pricing Data: NO

Timeline