VA awards $638K for specialized wheelchair transport, raising questions about value and competition

Contract Overview

Contract Amount: $638,299 ($638.3K)

Contractor: Alert Ambulance Service, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-30

End Date: 2021-09-30

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SPECIAL MODE (WHEELCHAIR) TRANSPORTATION SERVICES PROVIDENCE VAMC

Place of Performance

Location: PROVIDENCE, PROVIDENCE County, RHODE ISLAND, 02908

State: Rhode Island Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $638,299.44 to ALERT AMBULANCE SERVICE, INC. for work described as: SPECIAL MODE (WHEELCHAIR) TRANSPORTATION SERVICES PROVIDENCE VAMC Key points: 1. Contract value appears moderate for specialized medical transportation. 2. Competition was limited, raising concerns about price discovery. 3. Performance period is short, suggesting a need for ongoing evaluation. 4. The contract is for a specific, high-need service. 5. Geographic focus is limited to Rhode Island. 6. No small business set-aside was utilized.

Value Assessment

Rating: fair

The contract value of approximately $638,000 for specialized wheelchair transportation services is within a typical range for such niche medical logistics. However, without specific benchmarks for 'special mode' transportation (which implies enhanced care or equipment), a precise value-for-money assessment is challenging. Comparing it to similar contracts for non-emergency medical transportation (NEMT) suggests it might be on the higher end if the 'special mode' aspect does not significantly increase operational costs or required expertise. Further analysis of the specific services rendered and the equipment utilized would be necessary to definitively benchmark its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which indicates that while the initial intent was open competition, certain sources were excluded, leading to a limited pool of bidders. The specific reasons for excluding sources are not detailed, but this approach typically results in fewer than the maximum potential bidders. The limited competition may have impacted the government's ability to secure the most competitive pricing, as the vendor pool was restricted.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the lowest possible prices that a fully open and unrestricted bidding process could have yielded. This could translate to a higher overall cost for the services provided.

Public Impact

Veterans in Rhode Island requiring specialized wheelchair transportation will benefit from this service. The service ensures safe and appropriate transport for individuals with specific mobility needs. This contract supports the Department of Veterans Affairs' commitment to providing comprehensive healthcare access. The service directly impacts the daily lives of veterans needing assistance with medical appointments and related travel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have led to suboptimal pricing.
Lack of detail on 'special mode' requirements makes value assessment difficult.
Short contract duration raises questions about long-term service stability and potential re-competition costs.

Positive Signals

Addresses a critical need for specialized transportation for veterans.
Awarded to a single vendor, potentially ensuring service continuity for the period.
Service is geographically focused, potentially allowing for efficient resource allocation within Rhode Island.

Sector Analysis

The healthcare transportation sector is a critical component of the broader healthcare delivery system, ensuring patient access to medical services. This contract falls within the non-emergency medical transportation (NEMT) sub-sector, specifically catering to a niche requiring specialized equipment and potentially higher levels of care. The market for NEMT is competitive, with numerous providers ranging from small local operators to large national companies. Government contracts, particularly with agencies like the VA, represent a significant portion of this market, often requiring adherence to strict performance and safety standards.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The primary contractor, ALERT AMBULANCE SERVICE, INC., is likely a larger entity. The absence of small business considerations in this specific award means that opportunities for smaller, specialized transportation providers within the local ecosystem may have been missed, potentially limiting their ability to participate in VA contracts.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Standard contract administration processes, including performance monitoring and payment verification, would be in place. The Inspector General's office within the VA would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract. Transparency is generally maintained through contract databases like FPDS, although detailed performance reports are often internal.

Related Government Programs

Non-Emergency Medical Transportation (NEMT)
Veteran Transportation Services
Specialized Medical Equipment Transport
Ambulance Services Contracts

Risk Flags

Limited competition raises concerns about price fairness.
Lack of detailed justification for source exclusion.
Potential for higher costs due to restricted bidder pool.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $638,299.44 to ALERT AMBULANCE SERVICE, INC.. SPECIAL MODE (WHEELCHAIR) TRANSPORTATION SERVICES PROVIDENCE VAMC

Who is the contractor on this award?

The obligated recipient is ALERT AMBULANCE SERVICE, 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 $638,299.44.

What is the period of performance?

Start: 2021-09-30. End: 2021-09-30.

What specific criteria define 'SPECIAL MODE (WHEELCHAIR) TRANSPORTATION SERVICES' and how do they justify potential cost differences compared to standard NEMT?

The term 'SPECIAL MODE (WHEELCHAIR) TRANSPORTATION SERVICES' suggests a level of service beyond basic wheelchair transport. This could encompass requirements for specialized equipment (e.g., advanced securing systems, hydraulic lifts beyond standard ramps), enhanced patient handling protocols, or the need for personnel with specific medical training (e.g., EMT certification) to accompany the patient. These additional requirements increase operational complexity and cost, potentially involving higher vehicle maintenance, specialized training for drivers, and compliance with stricter safety regulations. Without explicit details from the contract's Statement of Work (SOW), it's difficult to quantify these differences, but they are intended to ensure the safety and well-being of veterans with particularly challenging mobility or medical needs during transit.

How does the pricing of this contract compare to other VA contracts for similar specialized transportation services in the region?

Benchmarking this contract's pricing against similar VA contracts for specialized transportation in Rhode Island or the surrounding region is challenging without access to detailed pricing data for comparable awards. The total award amount of $638,299.44 is for a specific period (ending Sept 30, 2021). To perform a true comparison, one would need to analyze the per-mile rate, per-hour rate, or per-trip rate, factoring in the specific service level ('special mode'), vehicle type, and geographic coverage. Anecdotally, specialized medical transport can be 1.5 to 3 times more expensive than standard NEMT due to the increased requirements. A detailed analysis would involve querying FPDS or other contract databases for contracts with similar PSC codes (e.g., V301 - Medical Appliances and Other Equipment Rental/Lease) or service descriptions within the same fiscal year and geographic area.

What were the specific reasons for excluding other potential sources in this 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that the agency initially intended to solicit broadly but then limited the pool of eligible bidders based on specific criteria. Common reasons for excluding sources include: 1) Prior performance issues with certain contractors, leading to their disqualification; 2) Specific technical requirements that only a limited number of vendors could meet, effectively narrowing the field; 3) A previous unsuccessful attempt at full and open competition where insufficient bids were received, prompting a revised solicitation strategy; or 4) Unique capabilities or certifications required that only a few companies possess. Without further documentation from the VA regarding this specific procurement, the exact rationale for excluding sources remains unspecified, making it difficult to assess if the exclusion was justified or potentially anticompetitive.

What is the track record of ALERT AMBULANCE SERVICE, INC. with VA contracts, particularly for specialized transportation?

ALERT AMBULANCE SERVICE, INC. has a history of receiving contracts from the Department of Veterans Affairs, including awards related to medical transportation. Data from contract databases indicates they have secured multiple delivery orders and contracts over the years. Their performance history with the VA would be documented through contract performance evaluations (e.g., CPARS reports), which assess factors like timeliness, quality of service, and adherence to contract terms. While this specific contract was for 'SPECIAL MODE' transportation, their broader experience in ambulance and NEMT services suggests a foundational capability. A thorough review of their past performance ratings and any documented issues or commendations would provide a clearer picture of their reliability and suitability for specialized VA contracts.

How has VA spending on specialized medical transportation services trended over the past five years, and does this contract align with that trend?

Analyzing VA spending trends for specialized medical transportation requires examining contract data over several fiscal years. Generally, demand for healthcare services, including transportation, tends to increase with the veteran population and evolving healthcare needs. Spending on NEMT and specialized transport is likely influenced by factors such as veteran enrollment, geographic distribution of facilities, and policy changes regarding healthcare access. This $638K contract for specialized wheelchair transport appears to be a discrete award for a specific need within a single fiscal year. To assess alignment with broader trends, one would need to aggregate spending data across multiple contracts and years for similar services, looking for patterns of increase, decrease, or stability in overall VA expenditure in this category.

Industry Classification

NAICS: Transportation and Warehousing › Other Transit and Ground Passenger Transportation › Special Needs Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1290 WILSON RD, FALL RIVER, MA, 02720

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $695,930

Exercised Options: $695,930

Current Obligation: $638,299

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA24116D0064

IDV Type: IDC

Timeline