State Department awards $2.9M contract for occupational medical support, highlighting a need for specialized health services at training facilities

Contract Overview

Contract Amount: $2,945,324 ($2.9M)

Contractor: Sterling Medical Associates, Inc

Awarding Agency: Department of State

Start Date: 2022-01-06

End Date: 2027-01-05

Contract Duration: 1,825 days

Daily Burn Rate: $1.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OCCUPATIONAL MEDICAL SUPPORT TO DS TRAINING FACILITY

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45219

State: Ohio Government Spending

Plain-Language Summary

Department of State obligated $2.9 million to STERLING MEDICAL ASSOCIATES, INC for work described as: OCCUPATIONAL MEDICAL SUPPORT TO DS TRAINING FACILITY Key points: 1. The contract value of $2.9 million over five years suggests a consistent need for ongoing medical services. 2. Full and open competition was utilized, indicating a broad market search for qualified providers. 3. The fixed-price contract type aims to control costs and provide predictability for the government. 4. The North American Industry Classification System (NAICS) code 621493 points to specialized outpatient care services. 5. The contract duration of 1825 days (5 years) allows for stable service provision and relationship building. 6. The award to Sterling Medical Associates, Inc. suggests a competitive selection process based on qualifications and price.

Value Assessment

Rating: good

The contract value of approximately $2.9 million over five years, averaging around $589,000 annually, appears reasonable for specialized occupational medical support at a training facility. Benchmarking against similar contracts for medical services at government training sites would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks for the government, assuming the scope of work is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of two bidders, as indicated by the 'no' field, suggests a moderate level of competition for this specialized service. While more than one bidder is positive, a higher number could potentially drive prices lower.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of providers to compete, which can lead to better pricing and service quality. The fact that there were at least two bidders indicates that the government likely received competitive offers.

Public Impact

Personnel at the Department of State's training facilities in Ohio will benefit from accessible occupational medical support. Services include ambulatory surgical and emergency care, ensuring prompt medical attention for trainees and staff. The geographic impact is focused on Ohio, where the training facility is located. This contract supports the health and readiness of the workforce involved in State Department training operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training facility needs evolve beyond initial contract parameters.
Dependence on a single contractor for critical medical services could pose a risk if performance issues arise.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process.
Long-term contract (5 years) allows for stable service delivery and potential for building strong working relationships.

Sector Analysis

The healthcare services sector, specifically outpatient care centers (NAICS 621493), encompasses a wide range of medical facilities providing diagnostic, therapeutic, and surgical services. This contract falls within the government's broader spending on health and wellness programs for its personnel. Comparable spending benchmarks would involve analyzing contracts for similar medical support services provided to federal agencies or large training institutions.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify subcontracting goals. Therefore, the direct impact on the small business ecosystem is not evident from this award alone. Further analysis would be needed to determine if the prime contractor has plans for small business subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of State. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Department of State Medical Services
Federal Occupational Health Services
Government Training Facility Support Contracts
Ambulatory Surgical Center Contracts

Risk Flags

Potential for performance issues impacting critical health services.
Risk of cost increases if contract scope is not tightly managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.9 million to STERLING MEDICAL ASSOCIATES, INC. OCCUPATIONAL MEDICAL SUPPORT TO DS TRAINING FACILITY

Who is the contractor on this award?

The obligated recipient is STERLING MEDICAL ASSOCIATES, INC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2022-01-06. End: 2027-01-05.

What is the track record of Sterling Medical Associates, Inc. in performing similar government contracts?

Sterling Medical Associates, Inc. has a history of performing healthcare services for government entities. A review of federal procurement data would reveal their past performance on contracts, including any awards for occupational health, medical support, or similar services. Analyzing past performance ratings, any contract disputes, or terminations would provide insight into their reliability and capability. It is important to assess if their experience aligns with the specific requirements of providing occupational medical support to a Department of State training facility, which may involve unique security or operational considerations.

How does the annual cost of this contract compare to industry benchmarks for similar services?

The annual cost of approximately $589,000 for occupational medical support at a training facility needs to be benchmarked against industry standards. This would involve researching average costs for similar services provided to comparable institutions, considering factors like the number of personnel served, the scope of services (e.g., routine care, emergency response, specialized screenings), and geographic location. Without specific benchmark data, it's difficult to definitively assess value for money. However, the firm fixed-price nature suggests an attempt to control costs within a defined scope.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential scope creep if the training facility's needs expand beyond the contract's defined services, and performance issues from the contractor impacting the health and readiness of personnel. Mitigation strategies likely involve clear contract language defining services, robust performance monitoring by the Department of State, and the firm fixed-price structure which incentivizes the contractor to manage costs. The competitive award process also aims to select a capable provider, reducing performance risk.

How effective is the current occupational medical support in ensuring the health and readiness of State Department personnel at the training facility?

Assessing the effectiveness requires data on health outcomes, response times to medical incidents, and overall satisfaction from facility personnel. This information is typically gathered through performance metrics outlined in the contract and potentially through user feedback surveys. Without access to these specific performance reports, it is challenging to definitively gauge the effectiveness. However, the renewal or continuation of such services often implies a level of satisfaction with the support provided.

What has been the historical spending pattern for occupational medical support at this specific training facility or similar State Department facilities?

Analyzing historical spending patterns for occupational medical support at this facility or comparable State Department training sites is crucial for context. This involves examining past contract awards, their values, durations, and any modifications over time. Significant increases or decreases in spending could indicate changes in operational tempo, health needs, or procurement strategies. Understanding this history helps in evaluating whether the current $2.9 million award represents a consistent investment, an escalation, or a reduction in resource allocation for these vital services.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › Freestanding Ambulatory Surgical and Emergency Centers

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: 19AQMM21R0217

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 411 OAK ST, CINCINNATI, OH, 45219

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

Financial Breakdown

Contract Ceiling: $3,585,756

Exercised Options: $3,032,155

Current Obligation: $2,945,324

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline