VA awards $3.35M contract for Ophthalmology Physician Services to Rutgers University

Contract Overview

Contract Amount: $3,351,519 ($3.4M)

Contractor: Rutgers the State University of NEW Jersey

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-01

End Date: 2026-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $2.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OPHTHALMOLOGY PHYSICIAN SERVICES

Place of Performance

Location: EAST ORANGE, ESSEX County, NEW JERSEY, 07018

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.4 million to RUTGERS THE STATE UNIVERSITY OF NEW JERSEY for work described as: OPHTHALMOLOGY PHYSICIAN SERVICES Key points: 1. Contract awarded to a single university, raising questions about competition. 2. The $3.35M value over 4 years suggests a significant investment in specialized medical services. 3. Potential risk lies in the lack of competitive bidding, which could impact price efficiency. 4. The sector is healthcare services, specifically medical education and patient care within the VA system.

Value Assessment

Rating: fair

The contract value of $3.35M over 4 years averages to approximately $837,880 annually. Without comparable contracts or benchmarks for similar specialized ophthalmology physician services provided by universities to federal agencies, a precise pricing assessment is difficult. However, the lack of competition suggests potential for overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a limited competition approach. This likely means only Rutgers University was solicited or deemed capable of fulfilling the requirement. The absence of broader competition limits price discovery and potentially leads to a higher price than if multiple vendors were involved.

Taxpayer Impact: Taxpayer funds are used for this contract. The lack of competition may result in a less cost-effective outcome compared to a competitive procurement, meaning taxpayers might be paying more than necessary for these services.

Public Impact

Veterans will receive specialized ophthalmology care, potentially improving health outcomes. The contract supports medical education and training at Rutgers University, contributing to the healthcare workforce. The use of a single source for these services may limit access to potentially innovative approaches from other institutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of price benchmarks
Potential for cost inefficiencies

Positive Signals

Ensures specialized care for veterans
Supports academic medical institution

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on specialized medical professional services. Benchmarking spending in this area is challenging due to the highly specialized nature of ophthalmology and the academic affiliation of the provider. However, the VA's overall spending on medical services is substantial.

Small Business Impact

This contract does not appear to involve small businesses, as it is awarded directly to Rutgers University, a large academic institution. There is no indication of subcontracting opportunities for small businesses within this specific award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Given the limited competition, robust oversight will be crucial to ensure the quality of services and the reasonableness of costs throughout the contract period.

Related Government Programs

Colleges, Universities, and Professional Schools
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competitive bidding
Potential for price inflation
Limited market research evident
Dependency on a single provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.4 million to RUTGERS THE STATE UNIVERSITY OF NEW JERSEY. OPHTHALMOLOGY PHYSICIAN SERVICES

Who is the contractor on this award?

The obligated recipient is RUTGERS THE STATE UNIVERSITY OF NEW JERSEY.

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 $3.4 million.

What is the period of performance?

Start: 2022-10-01. End: 2026-09-30.

What is the justification for limiting competition for these essential ophthalmology services?

The justification for limiting competition is not explicitly provided in the data. Typically, 'not available for competition' implies a sole-source justification, such as unique capabilities, urgent need, or specific research requirements that only Rutgers University can meet. Further investigation into the contract's justification documentation would be needed to confirm the specific reasons.

How does the VA ensure cost-effectiveness when awarding contracts without full and open competition?

When competition is limited, the VA relies on mechanisms like price analysis, cost realism analysis, and negotiation to ensure cost-effectiveness. They may compare proposed costs to historical prices paid for similar services, use independent cost estimates, or negotiate rates based on established fee schedules or market research. However, the absence of multiple competing offers inherently reduces the pressure to achieve the lowest possible price.

What are the potential long-term implications of relying on a single academic institution for specialized medical services?

Relying on a single academic institution can ensure a consistent standard of care and foster a strong partnership, potentially leading to advancements through research and training. However, it also carries risks such as vendor lock-in, potential complacency in service delivery, and a lack of exposure to diverse approaches or innovations that might emerge from a more competitive market. This could limit the VA's ability to adapt to new technologies or treatment methodologies.

Industry Classification

NAICS: Educational Services › Colleges, Universities, and Professional Schools › Colleges, Universities, and Professional Schools

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C24221R0096

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 65 BERGEN ST, NEWARK, NJ, 07107

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Public), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,995,487

Exercised Options: $3,351,519

Current Obligation: $3,351,519

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline