DoD spent $12M on general dentist services in 2008, with CNI Medical Services awarded a sole-source contract

Contract Overview

Contract Amount: $11,994,195 ($12.0M)

Contractor: CNI Medical Services, LLC

Awarding Agency: Department of Defense

Start Date: 2007-10-01

End Date: 2008-09-30

Contract Duration: 365 days

Daily Burn Rate: $32.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GENERAL DENTIST SERVICES (CONUS)

Place of Performance

Location: ADA, PONTOTOC County, OKLAHOMA, 74820

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $12.0 million to CNI MEDICAL SERVICES, LLC for work described as: GENERAL DENTIST SERVICES (CONUS) Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential for overpayment. 2. The contract value of $11.99 million for one year of services suggests a high per-provider cost. 3. Limited competition may have restricted opportunities for other qualified dental providers to offer services. 4. The contract was awarded in 2007 for services to be rendered in 2008, indicating a relatively short performance period. 5. The 'OK' status for both the contractor and state suggests no immediate red flags in terms of performance or location. 6. The firm fixed-price contract type provides cost certainty but may not incentivize efficiency if the price is not benchmarked.

Value Assessment

Rating: questionable

The contract value of nearly $12 million for one year of general dentist services is substantial. Without comparable contract data or a detailed breakdown of services provided, it is difficult to definitively assess value for money. However, the sole-source nature of the award, coupled with the lack of competition, raises concerns that the price may not have been optimized. Benchmarking against similar DoD contracts for dental services, if available, would be crucial for a more accurate assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one contractor is deemed capable of meeting the requirement, or in cases of urgent need. The lack of competition means that potential savings from a competitive bidding process were likely forgone. It also limits the government's ability to explore a wider range of service providers and potentially innovative solutions.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down costs. The government did not benefit from the price discovery mechanism inherent in a competitive solicitation process.

Public Impact

Military personnel and their dependents stationed within the Continental United States (CONUS) are the primary beneficiaries of these dental services. The contract ensures the availability of essential general dentistry services, contributing to the overall health and readiness of service members. The geographic impact is focused on the CONUS region where the services were contracted. The contract supports the healthcare workforce by engaging dental professionals and potentially administrative staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs for taxpayers.
Lack of transparency in the justification for sole-source award.
High contract value for a single year of services warrants scrutiny.
Potential for contractor to leverage sole-source status for favorable pricing.
Limited insight into the specific scope of services provided for the $12 million expenditure.

Positive Signals

Contract ensures essential healthcare services for military personnel.
Firm fixed-price contract provides budget certainty for the government.
Contractor status and state are marked 'OK', suggesting no immediate performance issues.
Services are for general dentistry, a fundamental healthcare need.

Sector Analysis

The healthcare sector, specifically dental services, is a critical component of military readiness and personnel well-being. The U.S. government is a significant purchaser of healthcare services, including dental care, for active-duty personnel, veterans, and their families. Spending in this area is influenced by factors such as the size of the military force, geographic distribution, and the scope of covered services. Comparable spending benchmarks would typically involve analyzing per-patient costs or per-provider costs for similar dental services within the federal healthcare system or the broader civilian market.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no information provided regarding subcontracting plans or performance related to small businesses. The sole-source nature of the award further suggests that opportunities for small business participation, either as prime contractors or subcontractors, may have been limited or non-existent in this specific procurement.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and the Defense Contract Management Agency (DCMA). Accountability measures would be tied to the performance standards outlined in the contract. Transparency is limited due to the sole-source nature and the lack of publicly available detailed justifications. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

TRICARE Dental Program
Military Health System
Defense Health Agency Contracts
Medical and Dental Services

Risk Flags

Sole-source award raises concerns about competition and potential cost overruns.
Lack of detailed service scope makes value assessment difficult.
High contract value for a single year requires further justification.
Limited public information on contractor's past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to CNI MEDICAL SERVICES, LLC. GENERAL DENTIST SERVICES (CONUS)

Who is the contractor on this award?

The obligated recipient is CNI MEDICAL 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 $12.0 million.

What is the period of performance?

Start: 2007-10-01. End: 2008-09-30.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of meeting the requirement. This could be due to unique capabilities, urgent and compelling circumstances, or specific government property requirements. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to determine the precise reasons. This lack of transparency is a common concern with sole-source procurements, as it bypasses the competitive process that usually ensures better pricing and wider market access.

How does the contract value of approximately $12 million for one year of general dentist services compare to market rates for similar services?

Benchmarking this contract's value requires detailed service scope and volume data, which is not provided. However, $12 million for one year of general dentistry services for a military population is a significant sum. To assess market rates, one would typically compare the cost per active duty member or dependent served, or the average cost per procedure, against civilian benchmarks or other government contracts. Given the sole-source nature, it's plausible that the price may be higher than what could be achieved through a competitive process. Further analysis would involve obtaining detailed service delivery metrics and comparing them to industry standards or other federal dental contracts.

What is the track record of CNI Medical Services, LLC, particularly in relation to government contracts?

The provided data indicates that CNI Medical Services, LLC was awarded this contract and its status is 'OK'. However, this limited information does not offer insight into the company's overall track record, past performance on other government contracts, or its history of compliance and quality. A comprehensive assessment would require reviewing contract databases for other awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or disputes. The 'OK' status suggests no major red flags were immediately apparent at the time of data collection, but it doesn't guarantee a history of exceptional performance.

What specific dental services were included under this $12 million contract?

The data identifies the contract as being for 'GENERAL DENTIST SERVICES (CONUS)'. This typically encompasses routine check-ups, cleanings, fillings, extractions, and basic diagnostic procedures. However, the precise scope, including the volume of services expected, specific procedures covered, and any limitations, is not detailed in the provided summary. Understanding the exact service mix is crucial for evaluating the contract's value, assessing the per-unit costs, and comparing it to other dental service contracts. Without this granularity, the $12 million figure remains a high-level expenditure without clear context on what it purchased.

What were the historical spending patterns for general dentist services by the Department of the Army prior to or after this contract?

The provided data only pertains to this single contract awarded in 2007 for services in 2008. It does not offer any historical spending context for general dentist services by the Department of the Army. To analyze historical spending patterns, one would need access to procurement data covering multiple fiscal years, identifying similar contracts for dental services, their values, durations, and award types. This would allow for trend analysis, identification of significant increases or decreases in spending, and an understanding of whether this $12 million contract represented a typical or anomalous expenditure.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W81K0406R0033

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2020 ARLINGTON ST STE 3, ADA, OK, 04

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,994,195

Exercised Options: $11,994,195

Current Obligation: $11,994,195

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W81K0407D0009

IDV Type: IDC

Timeline