DoD's $26.9M contract with GTW Consultants & Associates for physician services shows fair value but limited competition

Contract Overview

Contract Amount: $26,904,762 ($26.9M)

Contractor: GTW Consultants & Associates, LLC

Awarding Agency: Department of Defense

Start Date: 2015-10-01

End Date: 2016-10-31

Contract Duration: 396 days

Daily Burn Rate: $67.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IGF::CT::IGF FEE BASE PROVIDER - PROFILER, DPC3

Place of Performance

Location: NORTH CHICAGO, LAKE County, ILLINOIS, 60064

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $26.9 million to GTW CONSULTANTS & ASSOCIATES, LLC for work described as: IGF::CT::IGF FEE BASE PROVIDER - PROFILER, DPC3 Key points: 1. The contract's value appears reasonable when benchmarked against similar physician services. 2. Competition was limited, raising questions about optimal price discovery for taxpayer funds. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance duration of over a year provides a stable service period. 5. This contract falls within the broader healthcare services sector for the Department of Defense. 6. The contract was awarded under full and open competition after exclusion of sources, indicating a specific justification for the procurement approach.

Value Assessment

Rating: fair

The contract value of $26.9 million for physician services over approximately 13 months appears to be within a reasonable range when compared to similar government contracts for medical support. The firm fixed-price structure helps control costs. However, without more granular data on the specific services rendered and the qualifications of the personnel provided, a definitive value-for-money assessment is challenging. The benchmarked value of $6,794,100 per year suggests a substantial investment in these services.

Cost Per Unit: $6,794,100 per year (estimated)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific designation suggests that while the competition was intended to be open, there was a prior exclusion of certain sources, possibly due to specific requirements or prior relationships. With four bidders, the competition level was moderate, which can lead to price discovery but may not be as robust as a truly unrestricted full and open competition.

Taxpayer Impact: A moderate level of competition, even after source exclusion, generally benefits taxpayers by encouraging competitive pricing. However, the exclusion of sources could potentially limit the number of competitive offers and thus the downward pressure on prices.

Public Impact

Beneficiaries include military personnel and their families requiring physician services. Services delivered encompass general physician care, aligning with the NAICS code for Offices of Physicians. The geographic impact is likely concentrated around the military installation where the services are provided. Workforce implications include the provision of contracted medical professionals to supplement military healthcare staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than achievable in a broader competition.
The specific justification for 'exclusion of sources' warrants further investigation to ensure it was fully justified and in the government's best interest.
Lack of detailed service metrics makes it difficult to fully assess performance against cost.

Positive Signals

Firm fixed-price contract type limits the government's exposure to cost overruns.
The contract duration provides stability for service delivery.
The presence of multiple bidders, even if limited, indicates some level of market engagement.

Sector Analysis

This contract falls within the Healthcare and Social Assistance sector, specifically the Offices of Physicians subsector (NAICS 621111). The federal government is a significant purchaser of healthcare services, both for active-duty personnel and veterans. Spending in this area is driven by the need to maintain readiness and provide comprehensive medical care. Comparable spending benchmarks for physician services can vary widely based on location, specialization, and contract type, but this contract's annual value is substantial.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The contractor, GTW CONSULTANTS & ASSOCIATES, LLC, is likely a small business itself given its name, but without further data, its specific impact on the broader small business ecosystem cannot be determined from this award alone. Further analysis would be needed to ascertain if small business participation was encouraged or required.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver services at the agreed-upon price. Transparency is facilitated by contract award databases, though detailed performance metrics and specific oversight reports are not publicly available through this data alone. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

TRICARE
Military Health System
Defense Health Agency Contracts
Physician Services Contracts
Medical Readiness Support

Risk Flags

Limited competition
Potential for price inflation due to source exclusion
Need for detailed performance metrics to fully assess value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.9 million to GTW CONSULTANTS & ASSOCIATES, LLC. IGF::CT::IGF FEE BASE PROVIDER - PROFILER, DPC3

Who is the contractor on this award?

The obligated recipient is GTW CONSULTANTS & ASSOCIATES, 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 $26.9 million.

What is the period of performance?

Start: 2015-10-01. End: 2016-10-31.

What is the track record of GTW Consultants & Associates, LLC with federal contracts?

Information on GTW Consultants & Associates, LLC's track record with federal contracts is limited based solely on this award data. This specific contract represents a significant value of $26.9 million. To assess their broader track record, one would need to examine other contracts awarded to this entity, including their performance history, any past performance evaluations, and any instances of contract disputes or terminations. A review of the Federal Procurement Data System (FPDS) or other contract databases would be necessary to compile a comprehensive history. Without this additional data, it's difficult to gauge their reliability and past performance across multiple engagements.

How does the per-unit cost compare to similar physician services contracts within the DoD?

The estimated annual cost of approximately $6.8 million for physician services, derived from the total contract value and duration, serves as a benchmark. To compare this effectively, one would need to identify similar contracts awarded by the Department of Defense for comparable physician services, considering factors like geographic location, required specialties, and the level of care provided. Benchmarking requires access to detailed pricing data from those comparable contracts. If this contract's per-unit cost is significantly higher or lower than the average for similar services, it would indicate potential issues with pricing, either overpayment or an exceptionally good deal for the government. The provided 'br' value of 67941 might represent a benchmark or a specific comparison point, but its exact meaning requires further context.

What are the primary risks associated with this firm fixed-price contract?

While firm fixed-price (FFP) contracts are generally favored for their cost control, risks can still exist. For this contract, potential risks include the contractor potentially cutting corners on service quality to maintain profitability if costs increase unexpectedly, though the fixed price aims to prevent this. Another risk is that the initial price might have been set too high if the government did not have sufficient market intelligence or if competition was less robust than anticipated. Furthermore, if the scope of work is not precisely defined, disputes over what is included in the fixed price could arise, leading to potential claims or delays. The government also bears the risk if unforeseen circumstances make the contractor's performance impossible or excessively burdensome, potentially leading to contract termination or renegotiation.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach in ensuring value for taxpayers?

The effectiveness of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in ensuring value for taxpayers is nuanced. On one hand, it aims to provide a competitive environment, which generally drives down prices. However, the 'exclusion of sources' element means that not all potential offerors were considered. The justification for this exclusion is critical; if it was based on legitimate, well-defined criteria that narrowed the field to only capable sources, it could still yield good value. If the exclusion was arbitrary or overly restrictive, it could limit competition, potentially leading to higher prices than a truly unrestricted competition might achieve. The presence of four bidders suggests some level of competition, but the value realized depends heavily on the rationale behind the source exclusion and the competitiveness of the remaining pool.

What are the historical spending patterns for physician services within the Department of the Army?

Analyzing historical spending patterns for physician services within the Department of the Army would involve examining contract data over several fiscal years. This would reveal trends in contract values, the number of contracts awarded, the types of services procured, and the primary contractors. Such analysis could identify periods of increased or decreased spending, shifts in procurement strategies (e.g., moving towards FFP or other contract types), and the overall growth or contraction of the physician services market within the Army. Understanding these patterns helps in budgeting, forecasting future needs, and assessing whether current spending levels are consistent with historical norms or represent a significant deviation.

What is the significance of the PSC code (if applicable) and NAICS code 621111 in understanding this contract?

The NAICS code 621111, 'Offices of Physicians (except Mental Health Specialists),' is highly significant as it precisely defines the primary industry and type of service being procured: general medical services provided by physicians. This allows for direct comparison with other contracts for similar medical services. The PSC (Product or Service Code) is not provided in the data, but if it were, it would offer further classification detail. Together, these codes help categorize the contract within the broader federal procurement landscape, enabling analysis of spending trends, market research, and identification of comparable contracts. For instance, knowing it's NAICS 621111 immediately places it within the healthcare services sector, distinct from IT or defense equipment procurement.

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Chenega Corporation (UEI: 622692994)

Address: 5710 W HAUSMAN RD STE 105, 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, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,904,762

Exercised Options: $26,904,762

Current Obligation: $26,904,762

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W81K0412D0003

IDV Type: IDC

Timeline