USDA awards $6.4M contract for medical services, with a 1,522-day duration, to Metropolitan Medical LLC

Contract Overview

Contract Amount: $6,391,146 ($6.4M)

Contractor: Metropolitan Medical LLC

Awarding Agency: Department of Agriculture

Start Date: 2021-07-28

End Date: 2025-09-27

Contract Duration: 1,522 days

Daily Burn Rate: $4.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: USDA, OFFICE OF OPERATIONS (OO), USDA MEDICAL HEALTH UNITS - WHITTEN/SOUTH BUILDING AND GWCC

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $6.4 million to METROPOLITAN MEDICAL LLC for work described as: USDA, OFFICE OF OPERATIONS (OO), USDA MEDICAL HEALTH UNITS - WHITTEN/SOUTH BUILDING AND GWCC Key points: 1. The contract's duration of over four years suggests a need for sustained medical support services. 2. The firm fixed-price structure aims to provide cost certainty for the government. 3. The award was made under full and open competition, indicating a broad search for qualified vendors. 4. The North American Industry Classification System (NAICS) code 621111 points to a focus on physician services. 5. The contract's value of approximately $6.4 million over its term warrants scrutiny for value for money. 6. The single award suggests that Metropolitan Medical LLC was deemed the most advantageous offer. 7. The contract is geographically situated in Washington D.C., serving USDA facilities.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the specific medical services provided and the number of personnel or patient encounters. However, a total contract value of $6.4 million spread over approximately 1,522 days averages to roughly $4,200 per day. This daily rate needs to be compared against the cost of similar medical support services provided to federal agencies or in the D.C. metropolitan area to determine if it represents good value. The firm fixed-price nature of the contract, while offering cost certainty, could lead to overpayment if the scope of work is less demanding than anticipated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which is a specific type of full and open competition. This indicates that the agency sought proposals from all responsible sources after initially excluding certain sources, likely due to specific requirements or prior engagements. The fact that it was competed broadly suggests that multiple vendors had the opportunity to bid, which generally promotes price discovery and competition. The number of bids received is not specified, but the process itself implies a competitive environment.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best possible pricing and quality by allowing a wide range of qualified contractors to participate.

Public Impact

Federal employees at USDA facilities in Washington D.C. are the primary beneficiaries, receiving essential medical and health services. The contract ensures the provision of physician services, likely including general medical care, occupational health, and potentially emergency response. The geographic impact is concentrated within the District of Columbia, specifically at the Whitten/South Building and GWCC locations. The contract supports the health and well-being of the federal workforce, contributing to operational continuity and employee productivity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'medical health units' services is not tightly managed.
Reliance on a single contractor for critical health services could pose a risk if performance issues arise.
The long duration of the contract may lead to less frequent opportunities for re-competition and potential price adjustments.

Positive Signals

The use of full and open competition suggests a robust vetting process to select the most capable vendor.
The firm fixed-price contract type provides budget predictability for the agency.
The contract's focus on physician services addresses a core healthcare need within the agency.

Sector Analysis

The healthcare services sector, particularly within government contracting, is substantial. This contract falls under the 'Offices of Physicians (except Mental Health Specialists)' category (NAICS 621111). Federal agencies frequently contract for medical and health services to support their employees, especially in large facilities or those with specific health risks. The market for these services is competitive, with numerous providers capable of meeting federal requirements. Benchmarking would involve comparing the per-diem or per-service costs against similar contracts awarded by other federal agencies or large private sector organizations in the Washington D.C. area.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside. However, the prime contractor, Metropolitan Medical LLC, may still choose to subcontract portions of the work to small businesses as part of its own business strategy or to meet broader federal subcontracting goals, though this is not a requirement of this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the USDA's Office of Operations (OO) and the Office of the Chief Financial Officer (OCFO), as indicated by the data. The contract's performance would likely be monitored by a Contracting Officer's Representative (COR) to ensure compliance with the terms and conditions. Transparency is facilitated through contract databases like FPDS, which provide details on awards. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

USDA Health and Medical Services
Federal Occupational Health Services
Government Employee Health Benefits
Department of Health and Human Services Contracts
General Services Administration (GSA) Schedule Contracts for Medical Services

Risk Flags

Long contract duration may require careful monitoring for sustained performance and value.
Firm Fixed Price structure necessitates vigilance against potential overpayment if scope diminishes.
Lack of specific performance metrics in provided data hinders detailed value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.4 million to METROPOLITAN MEDICAL LLC. USDA, OFFICE OF OPERATIONS (OO), USDA MEDICAL HEALTH UNITS - WHITTEN/SOUTH BUILDING AND GWCC

Who is the contractor on this award?

The obligated recipient is METROPOLITAN MEDICAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $6.4 million.

What is the period of performance?

Start: 2021-07-28. End: 2025-09-27.

What is the specific scope of medical services to be provided under this contract?

The provided data indicates the contract is for 'Offices of Physicians (except Mental Health Specialists)' (NAICS 621111) and serves the 'USDA MEDICAL HEALTH UNITS - WHITTEN/SOUTH BUILDING AND GWCC'. While the specific services are not detailed in the provided snippet, this NAICS code typically encompasses general medical examinations, diagnosis and treatment of acute and chronic illnesses, preventive care, and potentially on-site medical support for federal employees. The contract likely includes physician staffing, medical supplies, and potentially basic diagnostic equipment. A more detailed statement of work (SOW) within the contract documents would clarify the exact services, hours of operation, and any specific medical procedures or consultations covered.

How does the contract value of approximately $6.4 million compare to similar medical service contracts for federal agencies?

Comparing the $6.4 million contract value requires context regarding the duration and scope. Over its 1,522-day term (approximately 4.17 years), the average annual value is about $1.53 million. This figure needs to be benchmarked against similar contracts for physician services at federal facilities of comparable size and location. For instance, contracts for medical support at large federal office complexes or agency headquarters in the Washington D.C. area could serve as a comparison. Without specific details on the number of personnel supported, the hours of service, or the specific medical capabilities required, a precise value comparison is difficult. However, the average daily rate of roughly $4,200 suggests a significant level of service provision.

What are the potential risks associated with a firm fixed-price contract of this duration?

A firm fixed-price (FFP) contract aims to provide cost certainty by fixing the price regardless of the contractor's actual costs. For a long-duration contract like this (1,522 days), a key risk is that the contractor might overprice their services to account for unforeseen cost increases over the contract period (inflation, labor cost changes, supply chain issues). Conversely, if the government's needs decrease or the scope of work is less demanding than anticipated, the FFP structure could lead to the government paying more than the actual value received. Effective performance monitoring by the government is crucial to ensure the contractor is meeting all requirements and that the fixed price remains justified throughout the contract's life.

What is the track record of Metropolitan Medical LLC in performing federal contracts?

Information regarding the specific track record of Metropolitan Medical LLC in performing federal contracts is not provided in the initial data snippet. To assess their track record, one would need to examine their past performance on similar government contracts, looking at factors such as on-time delivery, quality of service, past performance ratings, and any history of contract disputes or terminations. Databases like the Federal Awardee Performance and Integrity Information System (FAPIIS) could provide insights into their performance history. Without this external data, it's difficult to evaluate their reliability and past success in fulfilling government obligations.

How does the competition level (full and open) impact the potential for cost savings for the USDA?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation suggests that the USDA actively sought proposals from a wide range of qualified vendors. This broad competition generally drives down prices as multiple companies vie for the contract, offering their best terms. By allowing all responsible sources to compete, the agency increases the likelihood of receiving competitive bids that reflect fair market value. While the exact number of bids received isn't specified, the process itself is designed to foster price discovery and ensure that the selected contractor offers the most advantageous price and performance combination, thereby maximizing cost savings for the USDA compared to a sole-source or limited competition scenario.

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

Solicitation ID: 12314421R0009

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 109 CARPENTER DR STE 115, STERLING, VA, 20164

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,184,446

Exercised Options: $6,391,146

Current Obligation: $6,391,146

Actual Outlays: $6,391,146

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline