DoD's $21.6M Physician Services Contract Awarded to Magnum Medical
Contract Overview
Contract Amount: $21,637,176 ($21.6M)
Contractor: Magnum Medical, Joint Venture
Awarding Agency: Department of Defense
Start Date: 2007-06-29
End Date: 2010-06-28
Contract Duration: 1,095 days
Daily Burn Rate: $19.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Healthcare
Official Description: LPN FUNDING (27 FTES)
Place of Performance
Location: ANDREWS AFB, PRINCE GEORGE'S County, MARYLAND, 20762
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $21.6 million to MAGNUM MEDICAL, JOINT VENTURE for work described as: LPN FUNDING (27 FTES) Key points: 1. Contract awarded to a joint venture, Magnum Medical, for physician services. 2. Significant contract value of over $21.6 million over three years. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The sector is healthcare services, specifically physician offices.
Value Assessment
Rating: fair
The contract's fixed-price with economic price adjustment structure can lead to cost overruns if not carefully managed. Benchmarking against similar physician service contracts is needed to assess value.
Cost Per Unit: $99,709 per FTE per year
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, which typically fosters competitive pricing. However, the economic price adjustment clause may mitigate some of the price discovery benefits.
Taxpayer Impact: Taxpayer funds are being used for physician services, with potential for cost increases due to the economic price adjustment clause.
Public Impact
Ensures continued access to physician services for military personnel. Potential for price fluctuations due to economic adjustments. Supports healthcare delivery within the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause could increase costs.
- Joint venture structure may have implications for accountability.
- Long-term contract duration.
Positive Signals
- Full and open competition utilized.
- Addresses a critical need for physician services.
Sector Analysis
This contract falls within the healthcare services sector, specifically physician staffing. Spending benchmarks for physician services can vary widely based on specialty and location, making direct comparison challenging without more detail.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or partners in the joint venture. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, part of the Department of Defense. Oversight would typically involve contract management offices ensuring service delivery and adherence to terms.
Related Government Programs
- Offices of Physicians (except Mental Health Specialists)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to EPA.
- Lack of detailed cost breakdown by specialty.
- Joint venture structure complexity.
- Long contract duration.
Tags
offices-of-physicians-except-mental-heal, department-of-defense, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.6 million to MAGNUM MEDICAL, JOINT VENTURE. LPN FUNDING (27 FTES)
Who is the contractor on this award?
The obligated recipient is MAGNUM MEDICAL, JOINT VENTURE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $21.6 million.
What is the period of performance?
Start: 2007-06-29. End: 2010-06-28.
What is the specific breakdown of physician specialties and their associated costs within this contract?
The provided data lacks specific details on the physician specialties covered under this contract. Understanding the mix of general practitioners versus specialists, and their respective pay rates, is crucial for a thorough value assessment. Without this breakdown, it's difficult to benchmark costs accurately against industry standards or other government contracts.
How effectively has the economic price adjustment clause been managed in past contracts of this nature to control costs?
The effectiveness of the economic price adjustment (EPA) clause hinges on the specific indices used and the frequency of adjustments. If the EPA is tied to broad economic indicators without direct correlation to physician compensation, it could lead to unwarranted cost increases. Past performance data on how similar EPAs have impacted costs for the DoD would be essential for risk assessment.
What is the perceived impact of using a joint venture on the quality and continuity of physician services provided?
A joint venture structure can offer benefits like combined expertise and resources, potentially enhancing service quality. However, it can also introduce complexities in management, accountability, and decision-making. The specific structure and experience of the joint venture partners are key factors in determining the impact on service delivery and continuity.
Industry Classification
NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA701205R0010
Offers Received: 6
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 411 OAK ST, CINCINNATI, OH, 90
Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business
Financial Breakdown
Contract Ceiling: $79,556,334
Exercised Options: $21,637,176
Current Obligation: $21,637,176
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA701406D0016
IDV Type: IDC
Timeline
Start Date: 2007-06-29
Current End Date: 2010-06-28
Potential End Date: 2016-06-28 00:00:00
Last Modified: 2014-07-21
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