DoD's $20M physician services contract with GODWIN CORP shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $20,208,811 ($20.2M)

Contractor: Godwin Corp

Awarding Agency: Department of Defense

Start Date: 2004-05-25

End Date: 2008-09-30

Contract Duration: 1,589 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Place of Performance

Location: TRIPLER ARMY MEDICAL CENTER, HONOLULU County, HAWAII, 96859

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $20.2 million to GODWIN CORP for work described as: Key points: 1. Contract value of $20.2M over 4 years suggests a moderate annual spend for physician services. 2. The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating a potentially limited bidding process. 3. A fixed-price contract type generally transfers risk to the contractor, which can be beneficial for the government. 4. The duration of 1589 days (approx. 4.3 years) is typical for service contracts of this nature. 5. The contract's performance period ended in 2008, making current value-for-money assessments rely on historical benchmarks. 6. The North American Industry Classification System (NAICS) code 621111 points to physician office services, a critical healthcare sector.

Value Assessment

Rating: fair

The contract's total value of approximately $20.2 million over roughly four years averages to about $4.7 million annually. Without specific performance metrics or detailed service descriptions, a precise value-for-money assessment is challenging. However, given the nature of physician services, this annual spend appears within a reasonable range for supporting military personnel or beneficiaries. Benchmarking against similar contracts for physician services within the Department of Defense or other federal agencies would provide a clearer picture of whether the pricing was competitive for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This procurement method suggests that while the initial intent might have been open competition, certain sources were excluded, or a limited number of bidders were solicited. The fact that there were 17 bids received indicates some level of interest, but the 'exclusion of sources' aspect warrants further investigation to understand if it unduly restricted competition. A more robust competition typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The limited competition may have resulted in higher costs for taxpayers compared to a fully open and unrestricted bidding process. Understanding the rationale behind the exclusion of sources is crucial for ensuring fair pricing and maximizing the use of taxpayer funds.

Public Impact

Beneficiaries of this contract include military personnel and potentially their dependents, ensuring access to essential medical services. The services delivered are physician services, crucial for maintaining the health and readiness of the armed forces. The contract was awarded to GODWIN CORP, a private entity, indicating a reliance on external providers for healthcare support. The geographic impact is likely concentrated around the military installations or facilities where the physicians were deployed, primarily in Hawaii (SN: HAWAII).

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method could limit competitive pressure and potentially inflate costs.
Lack of detailed performance data makes it difficult to assess the quality and efficiency of services provided by GODWIN CORP.
The contract ended in 2008, so its relevance to current market conditions and pricing is limited.

Positive Signals

The contract was awarded using a Firm Fixed Price (FFP) type, which shifts cost overrun risks to the contractor.
Receiving 17 bids suggests a degree of market interest, even with the exclusion of some sources.
The contract duration of over 4 years indicates a stable, long-term need for these physician services.

Sector Analysis

The healthcare services sector, specifically physician offices, is a significant component of federal spending, particularly within the Department of Defense to support military readiness and personnel health. This contract falls under the broader category of healthcare services procurement. Comparable spending benchmarks would involve analyzing other contracts for physician staffing and medical services awarded by agencies like the Veterans Affairs or other branches of the military. The market for such services is generally competitive, but specific geographic locations or specialized needs can influence pricing and availability.

Small Business Impact

The data indicates that small business participation (SS: false, SB: false) was not a primary focus or requirement for this specific contract. There is no indication of small business set-asides or significant subcontracting opportunities for small businesses within the provided details. This suggests that the contract was likely awarded to a larger entity capable of meeting the service requirements, and its direct impact on the small business ecosystem in this sector may be minimal.

Oversight & Accountability

Oversight for this contract would have been managed by the contracting officer and the relevant program officials within the Department of the Army. Accountability measures would typically involve performance reviews, adherence to contract terms, and quality assurance surveillance plans. Transparency is generally facilitated through contract databases like FPDS-NG (where this data originates), allowing public access to contract details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

Department of Defense Medical Services Contracts
Physician Services Procurement
Healthcare Services for Federal Employees
Military Readiness Support Contracts
TRICARE Provider Contracts

Risk Flags

Limited Competition
Lack of Performance Data
Ended Contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.2 million to GODWIN CORP. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is GODWIN CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $20.2 million.

What is the period of performance?

Start: 2004-05-25. End: 2008-09-30.

What was the specific rationale for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method?

The rationale for excluding sources in a 'Full and Open Competition After Exclusion of Sources' procurement is not detailed in the provided data. This method typically implies that a solicitation was issued broadly, but certain potential offerors were deemed ineligible or were not solicited due to specific pre-determined criteria, such as past performance issues, lack of specific certifications, or geographic limitations. Alternatively, it could mean that a previous solicitation was cancelled, and a new one was issued with modified requirements or a restricted bidder pool. Understanding the exact reason requires accessing the solicitation documents, pre-award justifications, or agency procurement histories. Without this context, it's difficult to ascertain if the exclusion was justified and if it impacted the final price or quality of the awarded contract.

How does the average annual cost of $4.7 million compare to similar physician service contracts within the DoD or other federal agencies?

To benchmark the average annual cost of $4.7 million for physician services, a comparative analysis with similar contracts is necessary. This would involve identifying contracts with comparable scope, duration, geographic location, and service type (e.g., primary care physicians, specialists) awarded by agencies like the Department of Veterans Affairs (VA) or other military branches around the same period (2004-2008). Factors such as the number of physicians provided, hours of service, and specific medical specialties influence cost. For instance, contracts providing a high volume of specialized physicians in high-cost-of-living areas would naturally command higher prices. Without access to a database of comparable contracts and their specific details, it's challenging to definitively state whether $4.7 million represented excellent, fair, or concerning value. However, this figure provides a starting point for such an analysis.

What were the key performance indicators (KPIs) used to evaluate GODWIN CORP's performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate GODWIN CORP's performance. Typically, for physician service contracts, KPIs would focus on aspects such as physician availability, punctuality, patient wait times, patient satisfaction scores, adherence to medical protocols, and the quality of care provided. Performance would likely be monitored through regular reports from the contracting officer's representative (COR) or through quality assurance surveillance plans (QASP). The absence of specific KPIs in the summary data makes it impossible to assess the contractor's performance objectively. A thorough review of the contract's statement of work (SOW) and any associated performance management plans would be required to identify these metrics.

What is the historical spending trend for physician services by the Department of the Army, and how does this contract fit within that trend?

The provided data only details one contract ($20.2M from 2004-2008). To understand the historical spending trend for physician services by the Department of the Army (DoA), a broader analysis of DoA's procurement data over several fiscal years is required. This would involve aggregating spending across all contracts categorized under NAICS code 621111 (Offices of Physicians) and potentially related codes. This single contract represents a portion of the DoA's expenditure in this area during its performance period. Without a larger dataset, it's impossible to determine if this $20.2 million contract was typical, unusually large, or small relative to the DoA's overall investment in physician services during that timeframe. Analyzing trends would reveal whether spending has increased, decreased, or remained stable.

What are the potential risks associated with relying on external contractors like GODWIN CORP for essential physician services?

Relying on external contractors for essential physician services presents several potential risks. Firstly, there's a risk of service disruption if the contractor faces financial difficulties, labor disputes, or fails to meet contractual obligations, potentially impacting military readiness and healthcare access. Secondly, maintaining consistent quality of care can be challenging, as contractor personnel may have varying levels of experience or commitment compared to government employees. Thirdly, there's a risk of 'brain drain' from the government sector, where valuable institutional knowledge resides with contractors. Finally, cost overruns can occur if contract terms are not tightly managed or if unforeseen service demands arise. Ensuring robust oversight, clear performance standards, and contingency planning are crucial to mitigate these risks.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)

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

Offers Received: 17

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1835 UNIVERSITY BLVD, LANGLEY PARK, MD, 04

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DADA1003D0015

IDV Type: IDC

Timeline