VA awards $3.06M for Vascular Surgical Services to Rutgers University, facing limited competition
Contract Overview
Contract Amount: $3,063,728 ($3.1M)
Contractor: Rutgers, the State University
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-08-01
End Date: 2026-07-31
Contract Duration: 729 days
Daily Burn Rate: $4.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Healthcare
Official Description: VASCULAR SURGICAL SERVICES
Place of Performance
Location: EAST ORANGE, ESSEX County, NEW JERSEY, 07018
Plain-Language Summary
Department of Veterans Affairs obligated $3.1 million to RUTGERS, THE STATE UNIVERSITY for work described as: VASCULAR SURGICAL SERVICES Key points: 1. Spending on vascular surgical services is essential for veteran healthcare. 2. The award to a single university suggests specialized needs or limited market. 3. Potential risks include lack of competitive pricing and vendor lock-in. 4. The healthcare sector is a significant area of federal spending.
Value Assessment
Rating: fair
The contract value of $3.06M over two years for specialized surgical services appears reasonable given the nature of the services. However, without a competitive benchmark, it's difficult to definitively assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection. This approach may lead to higher prices than if multiple vendors were considered, as price discovery is constrained.
Taxpayer Impact: Taxpayer funds are used for this contract. The lack of competition raises concerns about whether the best possible price was secured for the services rendered.
Public Impact
Ensures access to specialized vascular surgical care for veterans. Supports educational and research missions of a public university. Potential for increased costs due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for price escalation (economic price adjustment)
Positive Signals
- Supports a known institution (Rutgers)
- Addresses a critical healthcare need
Sector Analysis
This contract falls within the healthcare sector, specifically specialized medical services. Federal spending in healthcare is substantial, with significant portions dedicated to direct patient care and research.
Small Business Impact
The contract does not indicate any specific provisions or set-asides for small businesses. The award to a large university suggests that small businesses were likely not considered or capable of fulfilling this specialized requirement.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms should be in place to ensure service delivery and financial accountability, especially given the fixed-price with economic price adjustment structure.
Related Government Programs
- Colleges, Universities, and Professional Schools
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Lack of competitive bidding may result in inflated costs.
- Economic price adjustment introduces cost uncertainty.
- Potential for vendor lock-in due to specialized services.
- Limited transparency on specific service requirements and performance metrics.
Tags
colleges-universities-and-professional-s, department-of-veterans-affairs, nj, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $3.1 million to RUTGERS, THE STATE UNIVERSITY. VASCULAR SURGICAL SERVICES
Who is the contractor on this award?
The obligated recipient is RUTGERS, THE STATE UNIVERSITY.
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 $3.1 million.
What is the period of performance?
Start: 2024-08-01. End: 2026-07-31.
What specific factors led to the limited competition for these vascular surgical services?
The limited competition likely stems from the highly specialized nature of vascular surgical services, requiring specific expertise, facilities, and potentially existing relationships or accreditations. Rutgers, as a major academic medical center, may be uniquely positioned to meet these stringent requirements, thus limiting the pool of eligible and competitive providers.
How will the economic price adjustment clause impact the final cost to taxpayers?
The economic price adjustment (EPA) clause allows for changes in contract price based on fluctuations in specific economic factors, such as labor costs or material prices. This can protect the contractor from unforeseen cost increases but also exposes taxpayers to potential price escalations beyond initial projections, making the final cost uncertain.
What is the VA's strategy for ensuring the quality and effectiveness of these services given the sole-source nature of the award?
The VA likely relies on rigorous performance standards, quality metrics, and regular monitoring of the contractor's performance. Given the limited competition, the VA's internal quality assurance processes and potentially credentialing of the provider's medical staff become even more critical to ensure veterans receive effective and high-quality vascular surgical care.
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: 36C24223R0079
Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 185 S ORANGE AVE, NEWARK, NJ, 07103
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: $44,545,323
Exercised Options: $7,306,671
Current Obligation: $3,063,728
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-08-01
Current End Date: 2026-07-31
Potential End Date: 2034-06-30 00:00:00
Last Modified: 2026-03-24
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