DoD's $28.1M Physician Services Contract Awarded to Chenega Tri-Services, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $28,108,982 ($28.1M)

Contractor: Chenega Tri-Services, LLC

Awarding Agency: Department of Defense

Start Date: 2018-12-01

End Date: 2020-10-31

Contract Duration: 700 days

Daily Burn Rate: $40.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FBP PROFILER (PHYSICIAN)

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78249

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $28.1 million to CHENEGA TRI-SERVICES, LLC for work described as: FBP PROFILER (PHYSICIAN) Key points: 1. Contract value of $28.1 million for physician services indicates significant investment in healthcare support. 2. Awarded under full and open competition, suggesting a robust bidding process and potential for competitive pricing. 3. The contract duration of 700 days (approx. 23 months) provides a substantial period for service delivery and performance evaluation. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The North American Industry Classification System (NAICS) code 621111 points to a focus on general physician services. 6. The contract's geographic focus in Texas (ST: TX) highlights a specific regional need for these medical professionals.

Value Assessment

Rating: good

The contract value of $28.1 million for physician services appears reasonable given the duration and the nature of the services. Benchmarking against similar contracts for medical staffing within the Department of Defense would provide a clearer picture of value for money. The firm fixed-price structure is a positive indicator for cost control. However, without specific details on the scope of services and the number of physicians provided, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple bidders were likely considered after an initial exclusion period. This suggests a competitive environment where various companies had the opportunity to submit proposals. The level of competition is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service delivery.

Public Impact

Beneficiaries include Department of Defense personnel and potentially their dependents requiring physician services. Services delivered likely encompass general medical examinations, consultations, and potentially specialized physician support. The geographic impact is concentrated in Texas, where the services are being rendered. Workforce implications include the employment of physicians and potentially supporting medical staff by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor to leverage economies of scale not fully passed on to government.
Dependence on a single contractor for critical physician services could pose a risk if performance issues arise.
Scope creep could lead to increased costs if not managed tightly under the fixed-price agreement.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
Firm fixed-price contract type provides cost certainty for the government.
Contract duration allows for stable service provision and performance evaluation.

Sector Analysis

The healthcare services sector, particularly within government contracting, is substantial. This contract falls under the broader category of healthcare support services, which includes the provision of medical professionals. The market for such services is competitive, with numerous firms capable of supplying qualified physicians. Comparable spending benchmarks would involve looking at other DoD contracts for physician staffing or medical support in similar geographic regions.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this contract. This suggests that the primary focus was on securing the best value through open competition, rather than specifically targeting small businesses. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity for engaging the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Performance monitoring, quality assurance surveillance plans, and regular reporting would be key accountability measures. Transparency is generally maintained through contract award databases, though detailed performance metrics are often internal.

Related Government Programs

DoD Medical Services Contracts
Physician Staffing Contracts
Healthcare Support Services
Federal Medical Personnel Contracts

Risk Flags

Potential for scope creep if services are not clearly defined.
Risk of quality degradation if contractor prioritizes profit over service standards.
Dependence on contractor performance for critical healthcare services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.1 million to CHENEGA TRI-SERVICES, LLC. FBP PROFILER (PHYSICIAN)

Who is the contractor on this award?

The obligated recipient is CHENEGA TRI-SERVICES, 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 $28.1 million.

What is the period of performance?

Start: 2018-12-01. End: 2020-10-31.

What specific types of physician services were included in this contract, and how does the scope compare to industry standards for similar roles?

The contract falls under NAICS code 621111, 'Offices of Physicians (except Mental Health Specialists),' suggesting general medical services. However, the specific breakdown of services (e.g., primary care, specialized consultations, surgical support) is not detailed in the provided data. To assess industry standards, one would need to compare the contracted services against typical physician roles within military treatment facilities or comparable civilian healthcare systems. For instance, if the contract primarily covers primary care physicians, the expected daily patient load and scope of services would differ significantly from contracts for specialized surgeons or anesthesiologists. Without this granular detail, a precise comparison is difficult, but the broad classification implies a need for general medical expertise.

How does the awarded amount of $28.1 million for 700 days compare to the average cost of physician services in the federal sector?

The total contract value is approximately $28.1 million over 700 days. This averages to roughly $40,156 per day ($28,108,982.14 / 700 days). If we consider a standard 30-day month, this equates to approximately $1.2 million per month. To benchmark this, we would need to compare it to similar contracts for physician staffing within the Department of Defense or other federal agencies. For example, if similar contracts for general physicians in Texas typically range from $30,000 to $50,000 per day, this contract appears to be within a reasonable range. However, a more precise comparison would require analyzing the number of physicians provided, their specialties, and the specific services rendered, as well as the prevailing market rates for those specific roles and locations.

What is the track record of Chenega Tri-Services, LLC in fulfilling federal healthcare contracts, particularly those of similar size and scope?

Chenega Tri-Services, LLC is part of the larger Chenega Corporation, a significant federal contractor. While the provided data does not detail their specific performance history on this particular contract (as it's an award notice), Chenega Corporation has a broad portfolio of government contracts across various sectors, including healthcare and professional services. To assess their track record for this specific contract, one would need to examine past performance evaluations, any reported contract disputes, or awards/debarments related to Chenega Tri-Services or its parent company. Federal procurement databases and contract performance reports (if publicly available) would be the primary sources for this information. A history of successful, on-time, and within-budget contract completions would indicate reliability.

What are the potential risks associated with a firm fixed-price contract for physician services, and how might they be mitigated?

Firm fixed-price (FFP) contracts offer cost certainty to the government, which is a significant advantage. However, for services like physician staffing, there can be inherent risks. One risk is that the contractor might be incentivized to cut corners on quality or staffing levels to maximize profit if the initial price was set too low or if unforeseen circumstances arise. Another risk is that the scope of services might not be perfectly defined, leading to potential disputes or change orders if the government requires more than initially anticipated. Mitigation strategies include robust performance monitoring by the government, clear definition of services and deliverables in the contract, and strong contract management to ensure quality standards are met and to address any deviations promptly. Regular communication and performance reviews are crucial.

How does the competition level ('Full and Open Competition After Exclusion of Sources') typically influence pricing and service quality for federal healthcare contracts?

The designation 'Full and Open Competition After Exclusion of Sources' implies that while some initial sources might have been excluded (perhaps due to specific requirements or pre-qualification), the remaining pool of potential bidders was substantial and competed openly. This level of competition generally benefits the government by fostering a more competitive bidding environment. It encourages multiple companies to offer their best pricing and service proposals to win the contract. Consequently, this often leads to better value for money, as contractors strive to be the most attractive option. Furthermore, robust competition can drive innovation and improve service quality as companies aim to differentiate themselves based on performance and expertise.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W81K0418R0003

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Chenega Corporation (UEI: 622692994)

Address: 5726 W HAUSMAN RD STE 100, SAN ANTONIO, TX, 78249

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: $28,108,982

Exercised Options: $28,108,982

Current Obligation: $28,108,982

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W81K0419D0001

IDV Type: IDC

Timeline