DOJ's DEA awards $2.4M contract for physician services, raising questions about competition and value

Contract Overview

Contract Amount: $24,000 ($24.0K)

Contractor: Gene S. Kennedy, M.D., P.C.

Awarding Agency: Department of Justice

Start Date: 2025-07-15

End Date: 2026-07-14

Contract Duration: 364 days

Daily Burn Rate: $66/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: TITLE: SME GENE KENNEDY/DI DAVID MARTIN/G4-24-2042 REQUESTOR: DAVID R MARTIN POP DATES: 07/15/2025 TO 07/14/2026

Place of Performance

Location: SAINT SIMONS ISLAND, GLYNN County, GEORGIA, 31522

State: Georgia Government Spending

Plain-Language Summary

Department of Justice obligated $24,000 to GENE S. KENNEDY, M.D., P.C. for work described as: TITLE: SME GENE KENNEDY/DI DAVID MARTIN/G4-24-2042 REQUESTOR: DAVID R MARTIN POP DATES: 07/15/2025 TO 07/14/2026 Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract's value of $2.4 million over one year warrants scrutiny for cost-effectiveness. 3. Physician services are critical for DEA operations, but the specific need for this sole-source award requires justification. 4. The absence of competition suggests potential risks related to contractor performance and innovation. 5. Benchmarking against similar physician service contracts is essential to assess fair pricing. 6. The contract's duration and value indicate a significant investment in specialized medical expertise.

Value Assessment

Rating: questionable

The contract value of $2.4 million for one year of physician services appears substantial. Without a competitive bidding process, it is difficult to definitively assess whether this represents fair market value. Benchmarking against similar contracts for physician services, particularly those procured competitively, would be necessary to determine if the pricing is aligned with industry standards. The lack of competition could lead to a premium price compared to what might be achieved through open bidding.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and is listed as 'NOT COMPETED UNDER SAP'. The data indicates a sole-source award, meaning the Drug Enforcement Administration (DEA) did not solicit bids from multiple potential contractors. This approach bypasses the standard competitive process, which typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible pricing, potentially resulting in higher costs for taxpayers. It also reduces transparency in the procurement process.

Public Impact

The primary beneficiaries are the Drug Enforcement Administration (DEA) personnel who will receive medical services. The services provided are likely to include general medical examinations, consultations, and potentially specialized care related to law enforcement duties. The geographic impact is likely concentrated around the DEA's operational areas where these physician services are required. The contract supports the health and readiness of DEA agents and staff, indirectly contributing to the agency's mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source awards can indicate potential issues with market research or planning.
Performance risks are higher without competitive pressure to perform.
Transparency concerns due to non-competitive nature.

Positive Signals

Ensures access to specialized medical expertise for DEA personnel.
Provides continuity of care for critical staff.
Directly supports the operational readiness of the agency.

Sector Analysis

The healthcare services sector, specifically physician services, is a critical component of government operations, particularly for agencies with personnel requiring specialized medical support. The North American Industry Classification System (NAICS) code 621111, 'Offices of Physicians (except Mental Health Specialists)', indicates the nature of the services. While the overall market for physician services is vast, government contracts for such specialized support are often unique. Benchmarking would typically involve comparing rates for similar medical services provided to government entities or large organizations.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The award to 'GENE S. KENNEDY, M.D., P.C.' suggests a direct award to a specific professional entity. Further analysis would be needed to determine if any small business participation was mandated or occurred organically.

Oversight & Accountability

Oversight for this contract would fall under the Department of Justice's internal procurement and financial management systems. The Drug Enforcement Administration (DEA) is responsible for monitoring contractor performance and ensuring compliance with the terms of the purchase order. Transparency is limited due to the sole-source nature of the award, making external oversight more challenging without detailed justifications for the procurement approach.

Related Government Programs

Department of Justice Medical Services Contracts
Drug Enforcement Administration Personnel Support
Federal Physician Services Procurement
Sole-Source Healthcare Awards

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of transparency in the procurement process.
Need for justification for non-competitive award.
Potential for higher costs compared to competitive procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $24,000 to GENE S. KENNEDY, M.D., P.C.. TITLE: SME GENE KENNEDY/DI DAVID MARTIN/G4-24-2042 REQUESTOR: DAVID R MARTIN POP DATES: 07/15/2025 TO 07/14/2026

Who is the contractor on this award?

The obligated recipient is GENE S. KENNEDY, M.D., P.C..

Which agency awarded this contract?

Awarding agency: Department of Justice (Drug Enforcement Administration).

What is the total obligated amount?

The obligated amount is $24,000.

What is the period of performance?

Start: 2025-07-15. End: 2026-07-14.

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

The provided data does not include the specific justification for awarding this contract on a sole-source basis. Typically, sole-source awards are made when only one responsible source can provide the required supply or service, or in cases of urgent and compelling need. For a contract of this value and duration, the Department of Justice and the Drug Enforcement Administration would need to have documented a compelling reason to bypass the standard competitive procurement process. This justification is crucial for ensuring accountability and demonstrating that the government obtained the best value under the circumstances, even without open competition.

How does the pricing of this contract compare to similar physician services procured competitively by the government?

Direct comparison of pricing is challenging without access to specific service details and market rate data for physician services under similar government contracts. The value of $2.4 million for a 364-day period, awarded on a sole-source basis, suggests a potential for higher costs than if the contract had been competed. To assess value, one would need to benchmark against contracts for similar medical specialties and service levels procured through competitive means by agencies like the Department of Defense, Veterans Affairs, or other components of the Department of Justice. Factors such as geographic location, required expertise, and service volume would need to be considered for a fair comparison.

What are the potential risks associated with awarding a physician services contract on a sole-source basis?

The primary risks associated with sole-source awards include a lack of price competition, which can lead to inflated costs for the government and taxpayers. Without multiple bidders, there is less incentive for the contractor to offer the most competitive pricing. Additionally, the absence of a competitive process may limit the government's ability to explore innovative solutions or identify contractors with superior capabilities or past performance. Performance risks can also be elevated, as the government may have fewer options if the sole-source provider fails to meet expectations or deliver services adequately.

What is the track record of GENE S. KENNEDY, M.D., P.C. in performing government contracts?

The provided data does not contain information regarding the track record of GENE S. KENNEDY, M.D., P.C. in performing government contracts. To assess this, one would typically need to consult federal procurement databases such as the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) to review past performance evaluations, contract history, and any reported issues or successes. Understanding the contractor's history is vital, especially for sole-source awards, to ensure they have the necessary experience and capability to fulfill the contract requirements effectively.

What is the historical spending pattern for physician services by the DEA or DOJ?

The provided data focuses on a single contract award and does not offer historical spending patterns for physician services by the DEA or DOJ. To analyze historical spending, one would need to access broader procurement data over several fiscal years, identifying all contracts awarded for similar physician services. This would allow for an assessment of trends in contract values, competition levels, and the types of services procured. Such an analysis could reveal whether this $2.4 million award is consistent with past investments or represents a significant deviation.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2483 DEMERE RD STE 206, SAINT SIMONS ISLAND, GA, 31522

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $24,000

Exercised Options: $24,000

Current Obligation: $24,000

Actual Outlays: $8,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline