VA Awards $11.1M for Kidney Dialysis Centers in Tennessee to DIALYSIS CLINIC, INC

Contract Overview

Contract Amount: $11,131,059 ($11.1M)

Contractor: Dialysis Clinic, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-11-01

End Date: 2025-11-30

Contract Duration: 29 days

Daily Burn Rate: $383.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: FY 26 NOVEMBER NDSC EXPRESS REPORT

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37203

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11.1 million to DIALYSIS CLINIC, INC. for work described as: EXPRESS REPORT: FY 26 NOVEMBER NDSC EXPRESS REPORT Key points: 1. The VA awarded a $11.1 million contract for kidney dialysis services. 2. The contract was awarded to DIALYSIS CLINIC, INC., a single provider. 3. The contract is a delivery order under an unspecified basic ordering agreement. 4. The contract duration is 29 days, suggesting a short-term need or bridge. 5. The award value is $11,131,059.34.

Value Assessment

Rating: questionable

The contract value of $11.1M for a 29-day period is exceptionally high, suggesting potential overpricing or a unique service requirement. Benchmarking is difficult without knowing the specific services and volume.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited competition approach. This raises concerns about price discovery and whether the government received the best possible price.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential dialysis services.

Public Impact

Veterans in Tennessee will receive critical kidney dialysis services. The short duration of the order may indicate a need for ongoing services or a gap-filling measure. The sole provider raises questions about accessibility and potential service disruptions if issues arise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High per-day cost
Short contract duration
Single source award

Positive Signals

Ensures continuity of care for veterans
Specific provider may have unique capabilities

Sector Analysis

This contract falls under healthcare services, specifically kidney dialysis centers. Healthcare spending, particularly for specialized services like dialysis, is a significant portion of federal budgets. Benchmarks for such short-term, high-value contracts are difficult to establish without more detail.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award. The focus appears to be on a specialized service provider.

Oversight & Accountability

The limited competition and high value warrant close oversight to ensure the services are necessary and priced appropriately. A review of the justification for not competing is recommended.

Related Government Programs

Kidney Dialysis Centers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

High value for short duration
Limited competition (not competed)
Potential for overpricing
Lack of transparency on service details
Single source provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11.1 million to DIALYSIS CLINIC, INC.. EXPRESS REPORT: FY 26 NOVEMBER NDSC EXPRESS REPORT

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 $11.1 million.

What is the period of performance?

Start: 2025-11-01. End: 2025-11-30.

What is the specific justification for awarding this contract on a limited, non-competed basis, and what steps were taken to ensure fair and reasonable pricing?

The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require accessing the contract file to understand the specific justification (e.g., urgent need, sole-source provider with unique capabilities). Without this, it's impossible to assess if fair and reasonable pricing was achieved, though the high value for a short duration raises concerns.

How does the per-diem cost of these dialysis services compare to similar contracts or Medicare reimbursement rates in the region?

The data does not provide a per-diem cost, only a total award of $11.1M for 29 days. This equates to approximately $383,830 per day. This figure is exceptionally high and likely includes more than just basic dialysis, such as facility costs, staffing, and supplies. A direct comparison to Medicare rates or other VA contracts would require detailed service breakdowns.

What is the long-term strategy for providing kidney dialysis services to veterans in this region, and does this short-term award align with that strategy?

This 29-day delivery order suggests a short-term solution, possibly to bridge a gap until a longer-term contract is in place or to address an immediate, unforeseen need. The VA's long-term strategy for dialysis services in Tennessee is not evident from this data. Further investigation into upcoming procurements or existing indefinite-delivery, indefinite-quantity (IDIQ) contracts is needed.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bio-Medical Applications of Missouri, Inc.

Address: 1633 CHURCH ST, 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: $11,131,059

Exercised Options: $11,131,059

Current Obligation: $11,131,059

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G24D0094

IDV Type: IDC

Timeline