DoD's $18.7M dental services contract awarded to CNI Ancillary Services, LLC, with 14 orders issued

Contract Overview

Contract Amount: $18,684,020 ($18.7M)

Contractor: CNI Ancillary Services, LLC

Awarding Agency: Department of Defense

Start Date: 2009-10-01

End Date: 2010-09-30

Contract Duration: 364 days

Daily Burn Rate: $51.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NORTH ATLANTIC DENTAL SERVICES VARIOUS LOCATIONS

Place of Performance

Location: NORMAN, CLEVELAND County, OKLAHOMA, 73071

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to CNI ANCILLARY SERVICES, LLC for work described as: NORTH ATLANTIC DENTAL SERVICES VARIOUS LOCATIONS Key points: 1. The contract value represents a significant investment in dental care for military personnel. 2. Competition dynamics suggest a potentially competitive bidding process, though the specific level needs further examination. 3. Risk indicators appear manageable given the 'OK' status for both stability and national presence. 4. Performance context is provided by the contract's duration and the number of delivery orders. 5. The sector positioning is within healthcare services, specifically dental care for government entities.

Value Assessment

Rating: good

The total contract value of approximately $18.7 million over one year appears reasonable for comprehensive dental services across various locations. Benchmarking against similar large-scale dental service contracts for the Department of Defense would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the absence of detailed per-unit pricing makes granular cost analysis challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which indicates a competitive process but with specific exclusions. The presence of 14 delivery orders suggests multiple taskings under this contract. Understanding the rationale behind the exclusion of certain sources is crucial to fully assess the breadth of competition and its impact on pricing.

Taxpayer Impact: While competition was present, the exclusion of sources may have limited the number of potential bidders, potentially impacting the most competitive pricing achievable for taxpayers.

Public Impact

Beneficiaries include military personnel and their dependents requiring dental services. Services delivered encompass a range of general and specialized dental care. Geographic impact is noted as 'VARIOUS LOCATIONS,' indicating a broad service area within the DoD's operational footprint. Workforce implications include the employment of dentists, dental hygienists, and support staff by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusions.
Lack of detailed per-unit cost data hinders granular value analysis.
Geographic scope 'VARIOUS LOCATIONS' could lead to logistical complexities and cost variations.

Positive Signals

Firm-fixed-price contract type provides cost certainty.
Contract awarded by the Department of the Army, a major DoD component.
Contractor has a 'STABLE' status and 'OK' national presence.

Sector Analysis

This contract falls within the Healthcare sector, specifically the provision of dental services. The market for government healthcare contracts is substantial, with significant spending allocated to maintaining the health and readiness of military personnel. Comparable spending benchmarks would involve analyzing other large-scale dental service contracts awarded by the DoD or other federal agencies to similar providers.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor may engage small businesses for subcontracting opportunities, depending on the scope and nature of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant administrative contracting officer within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver services as specified. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

TRICARE Dental Program
Military Health System
DoD Medical Readiness Contracts
Federal Healthcare Services Contracts

Risk Flags

Potential for reduced competition due to source exclusions.
Lack of detailed cost breakdowns hinders granular value analysis.
Logistical complexities associated with 'VARIOUS LOCATIONS'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to CNI ANCILLARY SERVICES, LLC. NORTH ATLANTIC DENTAL SERVICES VARIOUS LOCATIONS

Who is the contractor on this award?

The obligated recipient is CNI ANCILLARY 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 $18.7 million.

What is the period of performance?

Start: 2009-10-01. End: 2010-09-30.

What is the historical spending pattern for dental services by the Department of the Army?

Analyzing historical spending patterns for dental services by the Department of the Army is crucial for understanding the scale and consistency of this type of procurement. While specific historical data for this exact contract is limited to its award and duration, broader trends in military healthcare spending can provide context. The Army, like other branches of the DoD, consistently allocates significant funds to healthcare, including dental care, to ensure the readiness and well-being of its service members. This spending is influenced by factors such as troop levels, deployment cycles, and evolving healthcare needs. Examining multi-year spending reports from the DoD and its sub-agencies can reveal whether dental service procurements have remained stable, increased, or decreased, and identify any major shifts in contracting strategies or service delivery models.

How does the per-unit cost of services under this contract compare to market rates for civilian dental providers?

A direct comparison of per-unit costs for services under this contract to civilian market rates is challenging without detailed service breakdowns and pricing information. The contract is a firm-fixed-price award, and the data provided does not include specific line-item costs for procedures like cleanings, fillings, or root canals. Civilian dental market rates vary significantly by geographic location, provider specialization, and insurance network participation. Federal contracts often include volume discounts or specific service inclusions that may differ from standard civilian offerings. To perform a robust comparison, one would need to identify comparable dental procedures, obtain average civilian costs for those procedures in relevant geographic areas, and then attempt to derive unit costs from the federal contract, which is often not publicly feasible.

What is the track record of CNI Ancillary Services, LLC with federal contracts, particularly within the DoD?

CNI Ancillary Services, LLC has a history of performing federal contracts, including those with the Department of Defense. Information available through federal procurement databases indicates past awards and performance. Assessing their track record involves reviewing past contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past performance issues or disputes, and the types and scale of services previously provided. A positive performance history, characterized by timely delivery, quality service, and adherence to contract terms, suggests a lower risk for current and future contracts. Conversely, any documented performance deficiencies or unresolved issues would raise concerns about their reliability and capability.

What are the potential risks associated with the 'VARIOUS LOCATIONS' aspect of this contract?

The 'VARIOUS LOCATIONS' designation for this dental services contract introduces several potential risks. Firstly, it implies a complex logistical undertaking for the contractor to ensure consistent service delivery across potentially dispersed sites. This can lead to increased overhead costs for travel, equipment deployment, and personnel management, which may or may not be fully captured in the contract's pricing. Secondly, maintaining uniform quality of care and adherence to standards across different locations can be challenging. Thirdly, unforeseen local issues, such as facility availability, regulatory compliance in different jurisdictions, or local staffing challenges, could impact service continuity. Effective oversight and clear communication protocols are essential to mitigate these risks and ensure that service standards are met regardless of location.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause impact price discovery and taxpayer value?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause signifies that while the competition was intended to be broad, certain potential bidders or types of bids were intentionally excluded. This exclusion can limit the number of viable competitors, potentially reducing the downward pressure on pricing that a truly unrestricted full and open competition might achieve. The rationale for excluding sources is critical; if based on specific technical requirements or security needs, the exclusion might be justified. However, if the exclusions are arbitrary or overly restrictive, they could stifle robust price discovery and potentially lead to higher costs for taxpayers than might otherwise be the case. The number of bids received after exclusions provides a key indicator of the actual level of competition.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Dentists › Offices of Dentists

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W81K0408R0013

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2600 JOHN SAXON BLVD, NORMAN, OK, 73071

Business Categories: Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Small Business, Tribally Owned Firm

Financial Breakdown

Contract Ceiling: $18,684,020

Exercised Options: $18,684,020

Current Obligation: $18,684,020

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W81K0409D0003

IDV Type: IDC

Timeline