VA awards $31.7M for kidney dialysis centers, with Dialysis Clinic, Inc. securing the contract

Contract Overview

Contract Amount: $31,745,302 ($31.7M)

Contractor: Dialysis Clinic, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-01

End Date: 2023-09-30

Contract Duration: 364 days

Daily Burn Rate: $87.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY23 EXPRESS REPORT: FY 23 NDSC

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37203

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $31.7 million to DIALYSIS CLINIC, INC. for work described as: FY23 EXPRESS REPORT: FY 23 NDSC Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 3. Services are for kidney dialysis centers, a critical healthcare need for veterans. 4. The contract duration is one year, aligning with annual budget cycles. 5. The awardee, Dialysis Clinic, Inc., is a specialized provider in this sector. 6. The contract value represents a significant investment in veteran healthcare services.

Value Assessment

Rating: good

The contract value of $31.7 million for a one-year period for kidney dialysis centers appears reasonable given the specialized nature of the services. Benchmarking against similar contracts for dialysis services would provide a more precise value-for-money assessment. However, the firm-fixed-price structure helps control costs. The award to a specialized provider suggests a focus on quality and expertise in a critical healthcare area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters price discovery and encourages competitive pricing. The VA's use of this procurement approach suggests they sought the best value through a broad market solicitation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, potentially reducing overall healthcare expenditure for the government.

Public Impact

Veterans requiring kidney dialysis services in Tennessee will benefit from this contract. The contract ensures the continued provision of essential medical services for chronic kidney disease. Geographic impact is focused on Tennessee, where the services will be delivered. The contract supports the healthcare workforce involved in providing dialysis treatment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased demand on specialized medical facilities.
Ensuring consistent quality of care across all dialysis sessions.
Managing patient transportation logistics to and from clinics.

Positive Signals

Dedicated funding for a critical veteran healthcare need.
Award to a specialized provider likely ensures expertise.
Firm-fixed-price contract offers budget predictability.

Sector Analysis

The healthcare sector, specifically the provision of specialized medical services like kidney dialysis, is a significant area of federal spending. This contract falls within the broader category of healthcare services procured by the Department of Veterans Affairs. The market for dialysis services is well-established, with several large providers competing for government contracts. The $31.7 million award is a substantial but not extraordinary amount for a year's worth of comprehensive dialysis care for a veteran population.

Small Business Impact

There is no indication that this contract included small business set-asides. The award was made under full and open competition. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data, but given the specialized nature of dialysis services, it is less likely to involve extensive subcontracting to small businesses unless for ancillary support services.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. As a firm-fixed-price delivery order, the primary accountability measure is the delivery of services as specified in the contract. Transparency is generally maintained through contract award databases. The VA's Office of Inspector General would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA Medical Care Programs
Veterans Health Administration Services
Medicare/Medicaid Services (comparable private sector spending)
Other Federal Healthcare Contracts

Risk Flags

Potential for service disruption if contractor faces operational issues.
Ensuring consistent quality of care across all dialysis sessions.
Managing patient transportation logistics to and from clinics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $31.7 million to DIALYSIS CLINIC, INC.. FY23 EXPRESS REPORT: FY 23 NDSC

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 $31.7 million.

What is the period of performance?

Start: 2022-10-01. End: 2023-09-30.

What is the historical spending pattern for kidney dialysis services by the VA in Tennessee?

Historical spending data for kidney dialysis services by the VA in Tennessee would provide crucial context for the current $31.7 million award. Analyzing previous years' expenditures for similar services, including the number of contracts, awardees, and average contract values, can reveal trends in demand, pricing, and provider stability. For instance, if spending has been steadily increasing, it might indicate a growing need among the veteran population or rising service costs. Conversely, a decrease could suggest improved veteran health outcomes or shifts in service delivery models. Without specific historical data, it is difficult to definitively assess if this $31.7 million represents an increase, decrease, or stable level of investment compared to past years, making it challenging to evaluate long-term value and resource allocation efficiency.

How does the per-patient cost of this contract compare to national averages for dialysis treatment?

To assess the value for money, comparing the per-patient cost derived from this $31.7 million contract against national averages for dialysis treatment is essential. This comparison should account for the type of dialysis (hemodialysis vs. peritoneal dialysis), the frequency of treatments, and the specific services included (e.g., physician oversight, lab tests, medications). If the per-patient cost under this VA contract is significantly higher than the national average, it could indicate potential inefficiencies, higher overhead for the contractor, or a lack of sufficient competition. Conversely, a lower cost might suggest effective negotiation or efficient service delivery. However, it's also important to consider that veteran populations may have unique health profiles or geographic challenges that could influence costs. A detailed breakdown of services and patient volume is necessary for an accurate comparison.

What is Dialysis Clinic, Inc.'s track record with VA contracts, specifically for healthcare services?

Evaluating Dialysis Clinic, Inc.'s track record with the Department of Veterans Affairs is crucial for assessing the reliability and performance risk associated with this $31.7 million contract. Information on past VA contracts awarded to this company, including their duration, value, and performance ratings (if available), would be informative. Specifically, examining their history with healthcare service delivery, particularly dialysis, would highlight their experience and ability to meet government requirements. A history of successful contract completions, positive performance reviews, and minimal disputes would indicate a lower risk. Conversely, a record of contract terminations, significant performance issues, or unresolved claims could signal potential problems and warrant closer scrutiny of their capacity to fulfill the current award effectively.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

The effectiveness of this $31.7 million kidney dialysis contract hinges on clearly defined Key Performance Indicators (KPIs) and robust measurement mechanisms. Essential KPIs would likely include patient outcomes (e.g., mortality rates, complication rates, quality of life metrics), adherence to treatment schedules, patient satisfaction scores, and compliance with clinical best practices and VA regulations. The contract should specify how these KPIs will be tracked, reported, and evaluated. For example, patient outcomes might be monitored through electronic health records and periodic audits, while satisfaction could be gauged through surveys. The VA's quality assurance personnel would be responsible for overseeing this measurement process. Without clearly defined and measurable KPIs, it is difficult to objectively assess the contractor's performance and ensure the program's effectiveness in serving veterans.

Are there any known risks associated with the provision of dialysis services in the specific geographic area of Tennessee covered by this contract?

Assessing potential risks associated with providing dialysis services in the specific geographic area of Tennessee is important for contract success. These risks could include factors such as the availability of qualified medical personnel, the logistical challenges of patient transportation, the prevalence of specific comorbidities among the veteran population in that region, and the existing healthcare infrastructure. For example, if Tennessee faces a shortage of nephrologists or dialysis technicians, it could impact service delivery. Similarly, if the geographic distribution of veterans requiring dialysis is widespread, transportation logistics could become a significant challenge and cost driver. Understanding these regional factors allows for proactive risk mitigation strategies to be implemented, ensuring that veterans receive timely and consistent care.

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: $31,745,302

Exercised Options: $31,745,302

Current Obligation: $31,745,302

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