VA awards $27.7M for kidney dialysis services in Tennessee, utilizing full and open competition

Contract Overview

Contract Amount: $27,725,094 ($27.7M)

Contractor: Dialysis Clinic, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-10-01

End Date: 2022-09-30

Contract Duration: 364 days

Daily Burn Rate: $76.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NDSC EXPRESS REPORT ORDER FY22

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37203

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $27.7 million to DIALYSIS CLINIC, INC. for work described as: NDSC EXPRESS REPORT ORDER FY22 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value represents a significant investment in essential healthcare services for veterans. 3. Performance period aligns with the fiscal year, indicating timely service delivery. 4. The fixed-price contract type helps manage cost certainty for the government. 5. The award is a delivery order against a larger contract vehicle, common for ongoing service needs. 6. Focus on kidney dialysis centers highlights a specific, critical healthcare need.

Value Assessment

Rating: good

The contract value of $27.7 million for kidney dialysis services appears reasonable given the specialized nature of the care and the duration of the contract. Benchmarking against similar contracts for dialysis services would provide a more precise value-for-money assessment. However, the use of full and open competition suggests that pricing was likely subjected to market forces, which generally leads to competitive rates. The fixed-price nature of the contract further aids in cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the designation implies a robust competitive environment. This approach is designed to foster price discovery and ensure the government receives the best value by considering a wide range of potential providers.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market competition, leading to more efficient use of public funds for essential services like veteran healthcare.

Public Impact

Veterans in Tennessee requiring kidney dialysis services are the primary beneficiaries. The contract ensures the continued provision of critical medical services for chronic kidney disease management. Geographic impact is focused on Tennessee, where the services will be delivered. The contract supports healthcare professionals and support staff employed by the dialysis clinic.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits full assessment of competitive intensity.
No data on performance metrics or quality outcomes for the services provided.
Limited insight into the specific types and volume of dialysis treatments covered.

Positive Signals

Awarded via full and open competition, indicating a competitive bidding process.
Fixed-price contract type provides cost certainty.
Contract duration aligns with fiscal year, suggesting timely execution.

Sector Analysis

The healthcare sector, specifically outpatient care centers, is characterized by significant government spending, particularly for veteran and military populations. Kidney dialysis is a critical, high-cost medical service with a consistent demand. This contract fits within the broader VA healthcare procurement strategy to ensure access to specialized treatments for beneficiaries. Comparable spending benchmarks would involve analyzing other VA or Medicare/Medicaid contracts for similar dialysis services across different regions.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. Therefore, it is unlikely that small businesses were specifically targeted for this award. Subcontracting opportunities for small businesses would depend on the internal policies of the prime contractor, Dialysis Clinic, Inc., and are not explicitly detailed in this award notice. The impact on the small business ecosystem is likely minimal unless the prime contractor actively engages small businesses for support services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs, likely through its contracting officers and program managers responsible for healthcare services. Accountability measures are inherent in the fixed-price contract terms and performance expectations. Transparency is facilitated by the public nature of federal contract awards, though detailed operational performance data may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Medical Care Programs
Medicare End-Stage Renal Disease (ESRD) Program
TRICARE Health Benefits
Community Care Network (CCN)

Risk Flags

Potential for cost overruns if not managed tightly due to fixed-price nature.
Dependence on a single provider for a critical service in a specific region.
Need for robust performance monitoring to ensure quality of care.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $27.7 million to DIALYSIS CLINIC, INC.. NDSC EXPRESS REPORT ORDER FY22

Who is the contractor on this award?

The obligated recipient is DIALYSIS CLINIC, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $27.7 million.

What is the period of performance?

Start: 2021-10-01. End: 2022-09-30.

What is the historical spending pattern for kidney dialysis services by the Department of Veterans Affairs in Tennessee?

Analyzing historical spending for kidney dialysis services by the VA in Tennessee requires access to detailed procurement data over multiple fiscal years. While this specific award is for FY22, understanding the trend would involve looking at prior awards to Dialysis Clinic, Inc. or other providers in the region. Factors influencing spending include veteran population growth, changes in healthcare needs, and shifts in contracting strategies (e.g., moving from sole-source to competitive awards). Without multi-year data, it's difficult to establish a definitive pattern, but the $27.7 million for FY22 suggests a substantial and ongoing commitment to this service line in the state.

How does the per-patient cost of dialysis under this contract compare to national averages or Medicare rates?

Determining the per-patient cost requires knowing the number of veterans served and the total number of dialysis sessions provided under this $27.7 million contract. National averages for dialysis can vary significantly based on treatment modality (hemodialysis vs. peritoneal dialysis), frequency, and geographic location. Medicare's End-Stage Renal Disease Prospective Payment System (ESRD PPS) sets reimbursement rates, which serve as a benchmark. If this contract's effective per-session or per-patient cost is substantially higher than Medicare rates or comparable VA contracts in other regions, it could indicate potential issues with pricing or value for money. A detailed analysis would necessitate comparing the contract's unit prices against established benchmarks.

What is the track record of Dialysis Clinic, Inc. as a federal contractor, particularly with the VA?

Dialysis Clinic, Inc. (DCI) is a significant provider of dialysis services. As a federal contractor, its track record with the VA would be assessed based on past performance evaluations, contract compliance, and any history of disputes or corrective actions. Information on DCI's performance on previous VA contracts, including timeliness of service, quality of care, and adherence to contract terms, would be crucial. A review of contract databases and performance assessment reports (if publicly available) would shed light on their reliability and effectiveness in fulfilling government healthcare requirements. Their extensive experience in the private sector suggests a capacity to handle large contracts.

What are the specific performance metrics and quality standards required under this contract?

The contract details should outline specific performance metrics and quality standards that Dialysis Clinic, Inc. must meet. These typically include measures related to patient care, such as adherence to treatment schedules, patient outcomes (e.g., infection rates, patient satisfaction), operational efficiency (e.g., appointment availability, wait times), and compliance with healthcare regulations (e.g., HIPAA, CLIA). The VA would likely have mechanisms for monitoring these metrics, potentially through regular reporting requirements and site visits. Failure to meet these standards could result in contractual remedies, including financial penalties or termination.

How does the $27.7 million award compare to the total VA spending on dialysis services nationwide?

To compare this $27.7 million award to total VA spending on dialysis nationwide, one would need aggregate data on all VA dialysis contracts across all regions and fiscal years. The VA's overall budget for healthcare services is substantial, encompassing a wide array of medical needs. This single contract represents a significant portion of spending for a specific service in a particular state. Understanding its proportion relative to the national total would provide context on the scale of this award within the VA's broader healthcare procurement landscape. If this contract represents a large percentage of the total, it might indicate a concentrated reliance on specific providers or regions.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › Kidney Dialysis Centers

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1633 CHURCH ST STE 500, NASHVILLE, TN, 37203

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

Financial Breakdown

Contract Ceiling: $27,725,094

Exercised Options: $27,725,094

Current Obligation: $27,725,094

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C79119D0019

IDV Type: IDC

Timeline