VA awards $2.17M for clinical peer review services to Provider Resources, LLC, a sole-source contract

Contract Overview

Contract Amount: $2,172,103 ($2.2M)

Contractor: Provider Resources, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-04

End Date: 2025-09-30

Contract Duration: 391 days

Daily Burn Rate: $5.6K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CLINICAL PEER REVIEW SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.2 million to PROVIDER RESOURCES, LLC for work described as: CLINICAL PEER REVIEW SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. The contract duration of 391 days suggests a need for ongoing, specialized services. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The service category aligns with essential healthcare support functions for veterans. 5. Geographic location in Washington D.C. may indicate a concentration of administrative functions. 6. The contract's value is moderate, suggesting it's not a major strategic investment but a necessary operational expense.

Value Assessment

Rating: fair

The contract value of $2.17 million for clinical peer review services appears to be within a reasonable range for specialized professional services. However, without direct comparable contracts or detailed service breakdowns, a precise value-for-money assessment is challenging. The fixed-price nature of the contract provides some cost certainty. Benchmarking against similar services procured by other federal agencies or even private healthcare organizations would be necessary for a more robust evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach bypasses the standard competitive bidding process, which typically allows multiple vendors to propose solutions and prices. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they generally lead to less price discovery and potentially higher costs for the government compared to fully competed contracts. The absence of competition means taxpayers do not benefit from the cost efficiencies that can arise from a competitive marketplace.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these essential clinical peer review services. Without a competitive process, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

Veterans will benefit from improved quality assurance and oversight of clinical care through peer review processes. Essential clinical peer review services will be delivered, contributing to the overall quality and safety of healthcare provided by the VA. The geographic impact is primarily within the District of Columbia, where the contractor is located, suggesting administrative or centralized review functions. The contract supports professional roles within the healthcare sector, potentially involving physicians, nurses, and administrative staff for review coordination.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Limited data available to benchmark performance or cost-effectiveness against industry standards.

Positive Signals

Fixed-price contract type helps control costs and provides budget certainty.
Contract addresses a critical need for clinical quality assurance within the VA.
Contract duration suggests a stable, ongoing requirement for these services.

Sector Analysis

Clinical peer review services fall within the broader professional services sector, specifically supporting healthcare administration and quality assurance. The market for such services includes specialized firms and professional organizations capable of conducting objective reviews of medical practices and outcomes. The VA's spending in this area is crucial for maintaining high standards of care for its beneficiaries. Comparable spending benchmarks would typically involve analyzing contracts for medical quality assurance, utilization review, and professional credentialing services across federal health agencies.

Small Business Impact

This contract was awarded as a sole-source, not competed, and there is no indication of small business set-asides or subcontracting requirements. Therefore, this specific award does not appear to directly benefit small businesses through set-aside provisions. The absence of subcontracting requirements means that opportunities for small businesses to participate in delivering these services are unlikely.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers responsible for clinical quality assurance. Accountability measures would be defined within the contract's statement of work and performance standards. Transparency is limited due to the sole-source nature of the award, with less public visibility into the justification and selection process compared to a competed contract. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Healthcare Quality Improvement Programs
Medical Professional Services Contracts
Clinical Auditing and Review Services
Healthcare Administration Support

Risk Flags

Sole-source award may limit cost-effectiveness.
Lack of competitive bidding reduces transparency.
Performance metrics and outcomes not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.2 million to PROVIDER RESOURCES, LLC. CLINICAL PEER REVIEW SERVICES

Who is the contractor on this award?

The obligated recipient is PROVIDER RESOURCES, LLC.

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 $2.2 million.

What is the period of performance?

Start: 2024-09-04. End: 2025-09-30.

What is the specific scope of 'clinical peer review services' being procured?

The provided data does not detail the specific scope of 'clinical peer review services.' Typically, these services involve the objective evaluation of clinical practice patterns, patient care outcomes, and adherence to established medical standards by healthcare professionals. This can include reviewing medical records, assessing treatment plans, identifying areas for improvement, and ensuring compliance with regulatory requirements. For this contract, the Department of Veterans Affairs likely requires these services to maintain and enhance the quality of care delivered to veterans, ensuring that medical professionals meet established benchmarks and best practices.

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

The justification for a sole-source award is not provided in the data. Generally, sole-source contracts are awarded when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or if the requirement is a follow-on to a previously competed contract where only one contractor possesses the necessary knowledge or specialized equipment. Without the official justification document, it is impossible to determine the specific rationale for this award to Provider Resources, LLC.

How does the contract value compare to similar peer review services procured by the VA or other federal agencies?

Direct comparison of the $2.17 million contract value is difficult without access to a database of similar, recently awarded contracts for clinical peer review services. However, the value suggests a significant, ongoing need for these specialized professional services. To benchmark effectively, one would need to identify contracts with similar scopes of work, durations, and service providers within the federal healthcare sector. Factors such as the number of reviews conducted, the complexity of cases, and the types of specialists involved would influence pricing. A thorough analysis would require querying federal procurement databases for comparable solicitations and awards.

What are the potential risks associated with a sole-source award for these services?

The primary risk associated with a sole-source award is the lack of competitive pressure, which can lead to higher prices than might be achieved through a competitive bidding process. Taxpayers may end up paying more for the services than necessary. Additionally, sole-source awards can reduce transparency and limit the government's ability to explore innovative solutions or alternative providers that might offer better value or performance. There's also a potential risk if the sole-source provider experiences performance issues, as switching contractors could be more complex and costly.

What is the track record of Provider Resources, LLC in providing clinical peer review services?

Information regarding the specific track record of Provider Resources, LLC in providing clinical peer review services is not included in the provided data. To assess their performance history, one would need to review past performance evaluations, contract awards, and any publicly available information about the company's experience and client satisfaction. This would involve searching federal contract databases for previous awards to this contractor, examining their performance ratings, and looking for any reported issues or successes in delivering similar services to government agencies or private sector clients.

What is the expected impact of these services on the quality of care for veterans?

The expected impact of these clinical peer review services on the quality of care for veterans is positive and significant. By systematically evaluating medical practices and patient outcomes, these services help identify areas where care can be improved, ensure adherence to best practices, and maintain high standards of medical professionalism. This process can lead to reduced medical errors, more effective treatment plans, and better overall health outcomes for veterans. It serves as a crucial quality assurance mechanism for the Department of Veterans Affairs.

Industry Classification

NAICS: Other Services (except Public Administration) › Business, Professional, Labor, Political, and Similar Organizations › Professional Organizations

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Provider Resources, Inc

Address: 153 E 13TH ST, ERIE, PA, 16503

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,172,103

Exercised Options: $2,172,103

Current Obligation: $2,172,103

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C10X24A0013

IDV Type: BPA

Timeline