VA awards $2.88M contract for workforce development training to National Association for Healthcare Quality

Contract Overview

Contract Amount: $2,878,710 ($2.9M)

Contractor: National Association for Healthcare Quality

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-21

End Date: 2026-09-20

Contract Duration: 1,095 days

Daily Burn Rate: $2.6K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NAHQ WORKFORCE ACCELERATOR WAVE 3

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.9 million to NATIONAL ASSOCIATION FOR HEALTHCARE QUALITY for work described as: NAHQ WORKFORCE ACCELERATOR WAVE 3 Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Training focuses on professional and management development, crucial for healthcare sector efficiency. 3. The fixed-price contract structure provides cost certainty for the agency. 4. Duration of 1095 days suggests a sustained need for these services. 5. Awarded to a single entity, raising questions about potential for better value through competition. 6. Geographic focus on Washington D.C. may limit broader applicability or impact.

Value Assessment

Rating: fair

The contract value of $2.88 million for professional development training over three years appears reasonable for a specialized service. However, without a competitive bidding process, it is difficult to benchmark against market rates or determine if the most cost-effective solution was secured. The fixed-price nature offers predictability, but the absence of competition means the VA may not have achieved the best possible value for the investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis to the National Association for Healthcare Quality. This approach bypasses the standard competitive process, which typically involves soliciting bids from multiple vendors. While sole-source awards can be justified in specific circumstances, they generally lead to less price discovery and potentially higher costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that can arise from a competitive bidding environment, potentially leading to a higher overall expenditure for this training initiative.

Public Impact

Healthcare professionals within the Department of Veterans Affairs will benefit from enhanced training. Services delivered include professional and management development, aiming to improve workforce skills. The primary geographic impact is within Washington D.C., where the training is likely to be conducted. Workforce implications include upskilling VA employees, potentially leading to improved service delivery and operational efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential value for taxpayers.
Lack of transparency in the procurement process due to sole-source nature.
Geographic limitation to D.C. might not serve the entire VA workforce effectively.

Positive Signals

Award to a specialized organization (NAHQ) suggests alignment with specific training needs.
Fixed-price contract provides budget certainty for the VA.
Long contract duration indicates a sustained commitment to workforce development.

Sector Analysis

The healthcare sector relies heavily on skilled professionals, and workforce development is a critical component of maintaining high standards of care and operational efficiency. Contracts for training and professional development are common within federal agencies, particularly in specialized fields like healthcare. Benchmarking this contract's value is challenging without competitive data, but the focus on healthcare quality aligns with broader government initiatives to improve veteran care.

Small Business Impact

This contract was awarded directly to the National Association for Healthcare Quality and does not appear to include specific small business set-aside provisions. There is no indication of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal for this particular award.

Oversight & Accountability

Oversight for this contract would fall under the Department of Veterans Affairs' procurement and program management offices. As a sole-source award, scrutiny may be higher to ensure the justification for non-competition is sound and that the contractor is meeting performance expectations. Transparency is limited due to the procurement method, but contract performance should be monitored through standard VA reporting mechanisms.

Related Government Programs

VA Workforce Development Programs
Federal Healthcare Training Contracts
Professional Development Services
Management Training Initiatives

Risk Flags

Sole-source award raises concerns about competition and potential value.
Lack of transparency in the procurement process.
Geographic limitation may not serve the entire intended workforce.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.9 million to NATIONAL ASSOCIATION FOR HEALTHCARE QUALITY. NAHQ WORKFORCE ACCELERATOR WAVE 3

Who is the contractor on this award?

The obligated recipient is NATIONAL ASSOCIATION FOR HEALTHCARE QUALITY.

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 $2.9 million.

What is the period of performance?

Start: 2023-09-21. End: 2026-09-20.

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

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and was awarded as a sole-source purchase order. Typically, sole-source awards are justified when only one responsible source is available or capable of meeting the agency's needs, or in cases of urgent and compelling need. Without further documentation from the VA, the specific justification for awarding this training contract solely to the National Association for Healthcare Quality remains unclear. This lack of competition raises concerns about whether alternative, potentially more cost-effective, training providers were considered or if NAHQ possesses unique qualifications essential for this specific program.

How does the pricing of this contract compare to similar professional development training for healthcare professionals?

Direct comparison of pricing is difficult without access to competitive bids or publicly available benchmarks for identical training services. The contract is a firm fixed price totaling $2,878,710 over 1095 days (3 years). This averages to approximately $959,570 per year. Given that it's a sole-source award to a specific association, the price may reflect specialized content and the association's established position. However, the absence of competition means the VA cannot be certain if this represents the best market value. Similar training from other providers, especially if competed, might offer different pricing structures or value propositions.

What are the potential risks associated with a sole-source award for workforce training?

The primary risk of a sole-source award for workforce training is the potential for inflated costs due to the lack of competitive pressure. Taxpayers may end up paying more than necessary if alternative vendors could have offered similar services at a lower price. Another risk is a potential reduction in innovation or quality, as the contractor may have less incentive to improve services when competition is absent. Furthermore, the justification for sole-source procurement itself can be subject to scrutiny, raising concerns about fairness and transparency in the contracting process. The VA might also miss out on specialized expertise or novel training methodologies offered by other organizations.

What is the expected impact of this training on the VA's healthcare workforce and service delivery?

This contract aims to enhance the skills and capabilities of the VA's healthcare workforce through professional and management development training. The expected impact includes improved leadership, better operational efficiency, and potentially higher quality of care delivered to veterans. By investing in its personnel, the VA seeks to ensure its staff are equipped with the latest knowledge and best practices in healthcare management and professional conduct. This can lead to more effective problem-solving, enhanced team collaboration, and a more responsive healthcare system overall, ultimately benefiting veteran patients.

What has been the historical spending by the VA on workforce development training, and how does this contract fit?

The provided data does not include historical spending patterns for the VA's workforce development training. However, federal agencies, including the VA, consistently allocate significant resources to employee training and development to maintain a skilled and effective workforce. This $2.88 million contract represents a specific investment in professional and management development within the healthcare sector, likely part of a broader strategy to address identified needs or skill gaps. Without historical context, it's difficult to assess if this award is an increase, decrease, or consistent level of spending compared to previous years or similar initiatives.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C10X23Q0223

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8600 W BRYN MAWR AVE, CHICAGO, IL, 60631

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: $4,915,858

Exercised Options: $2,878,710

Current Obligation: $2,878,710

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline