DoD's Army Spends $16.5M on Fee-Based Healthcare Providers via Choctaw Professional Resources

Contract Overview

Contract Amount: $16,464,953 ($16.5M)

Contractor: Choctaw Professional Resources Enterprises, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-10-01

End Date: 2009-09-30

Contract Duration: 364 days

Daily Burn Rate: $45.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FEE BASED PROVIDERS (MD/DO, PA OR NP)

Place of Performance

Location: DURANT, BRYAN County, OKLAHOMA, 74701

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $16.5 million to CHOCTAW PROFESSIONAL RESOURCES ENTERPRISES, INC. for work described as: FEE BASED PROVIDERS (MD/DO, PA OR NP) Key points: 1. Significant spending on healthcare services highlights demand for specialized medical personnel. 2. Limited competition suggests potential for higher costs and reduced value. 3. The firm fixed-price contract type offers cost certainty but may not incentivize efficiency. 4. The 'Offices of All Other Miscellaneous Health Practitioners' NAICS code indicates a broad range of services.

Value Assessment

Rating: fair

The contract's value of $16.5 million for a one-year period is substantial. Without specific per-unit cost data or benchmarks for similar services, it's difficult to definitively assess value for money. The 'NOT AVAILABLE FOR COMPETITION' status raises concerns about whether pricing was optimized.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a sole-source or limited source award. This significantly restricts price discovery and negotiation leverage, potentially leading to less favorable pricing for the government compared to a competitive environment.

Taxpayer Impact: The lack of competition limits the potential for cost savings, meaning taxpayers may be paying more than necessary for these healthcare services.

Public Impact

Ensures access to essential healthcare services for military personnel and their families. Supports the operational readiness of the Department of Defense by maintaining a healthy workforce. The contract's duration and value suggest a critical need for these specialized medical professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing due to limited negotiation
Broad NAICS code may obscure specific service costs

Positive Signals

Firm fixed-price contract provides budget certainty
Ensures continuity of healthcare services

Sector Analysis

The healthcare sector, particularly for government contracts, often involves specialized services and can be subject to unique regulatory and pricing structures. Spending benchmarks vary widely based on the specific medical services provided and geographic location.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine the extent of small business participation.

Oversight & Accountability

The 'DELIVERY ORDER' designation suggests this may be part of a larger contract vehicle. Oversight would involve monitoring the performance of Choctaw Professional Resources, ensuring adherence to contract terms, and verifying the quality and necessity of services rendered.

Related Government Programs

Offices of All Other Miscellaneous Health Practitioners
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition raises concerns about price fairness.
Broad NAICS code hinders specific cost analysis.
Lack of performance metrics makes effectiveness assessment difficult.
Potential for higher costs due to sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 million to CHOCTAW PROFESSIONAL RESOURCES ENTERPRISES, INC.. FEE BASED PROVIDERS (MD/DO, PA OR NP)

Who is the contractor on this award?

The obligated recipient is CHOCTAW PROFESSIONAL RESOURCES ENTERPRISES, 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 $16.5 million.

What is the period of performance?

Start: 2008-10-01. End: 2009-09-30.

What specific healthcare services were provided under this contract, and how do their costs compare to market rates for similar services?

The NAICS code 621399, 'Offices of All Other Miscellaneous Health Practitioners,' is very broad. Without a detailed breakdown of the specific medical services (e.g., physician consultations, diagnostic tests, therapy), it's impossible to benchmark costs accurately. Market rates vary significantly by specialty and location, making a direct comparison challenging without more granular data on the services rendered.

What were the justifications for awarding this contract on a limited or sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for 'NOT AVAILABLE FOR COMPETITION' is crucial. Typically, this requires demonstrating a unique capability, urgent need, or lack of available sources. The government should have conducted a price analysis, potentially using historical data, commercial price lists, or other agency contracts, to ensure the negotiated price was fair and reasonable despite the lack of competition.

How effectively did the provided healthcare services contribute to the Department of the Army's mission readiness and overall healthcare objectives?

Assessing effectiveness requires evaluating patient outcomes, provider performance metrics, and patient satisfaction surveys. While the contract ensured the availability of providers, its direct impact on mission readiness depends on the specific medical needs met and the quality of care delivered. Without performance data, it's difficult to quantify the effectiveness beyond simply fulfilling the service requirement.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Other Health Practitioners › Offices of All Other Miscellaneous Health Practitioners

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: W81K0408R0034

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2101 W. ARKANSAS ST, DURANT, OK, 74701

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Small Business, Small Disadvantaged Business, Sole Proprietorship, Special Designations, Tribally Owned Firm

Financial Breakdown

Contract Ceiling: $16,464,953

Exercised Options: $16,464,953

Current Obligation: $16,464,953

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W81K0408D0008

IDV Type: IDC

Timeline