VA awards $2.1M contract for deceased donor organ services, highlighting critical healthcare support

Contract Overview

Contract Amount: $2,127,000 ($2.1M)

Contractor: Center for Organ Recovery & Education

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-30

End Date: 2025-09-28

Contract Duration: 363 days

Daily Burn Rate: $5.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: DECEASED DONOR ORGAN SERVICES

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15240

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.1 million to CENTER FOR ORGAN RECOVERY & EDUCATION for work described as: DECEASED DONOR ORGAN SERVICES Key points: 1. Contract supports vital organ recovery and allocation services, ensuring timely access to life-saving transplants. 2. The award to a single entity suggests a specialized need or limited market for these specific services. 3. Performance is tied to a fixed price with economic adjustments, requiring careful monitoring of cost fluctuations. 4. The contract duration of nearly one year indicates ongoing operational requirements for organ recovery. 5. Geographic focus on Pennsylvania is noted, potentially impacting service reach within the VA system.

Value Assessment

Rating: good

The contract value of $2.1 million for deceased donor organ services appears reasonable given the critical and specialized nature of the work. Benchmarking against similar contracts is challenging due to the niche market of organ recovery organizations. However, the fixed-price with economic adjustment structure allows for some flexibility while aiming to control costs. The VA's reliance on this service underscores its importance in providing comprehensive care to veterans.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that the Center for Organ Recovery & Education (CORE) was the only entity deemed capable of fulfilling the requirement. Sole-source awards can sometimes lead to higher prices due to a lack of competitive pressure. However, in highly specialized fields like organ procurement, a single, qualified provider might be necessary to ensure operational continuity and expertise.

Taxpayer Impact: For taxpayers, a sole-source award means less opportunity for price discovery through competition. While the specialized nature of the service may justify this approach, it necessitates robust oversight to ensure fair pricing and efficient use of funds.

Public Impact

Veterans requiring organ transplants will benefit from the continuity of deceased donor organ services. The contract ensures the availability of critical services for organ procurement, preservation, and allocation. Services are geographically focused within Pennsylvania, impacting veterans in that region. The contract supports specialized healthcare professionals involved in organ recovery and transplant coordination.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs due to economic price adjustments without clear market benchmarks.
Limited competition may reduce incentives for the contractor to optimize operational efficiency.
Sole-source nature requires diligent oversight to ensure fair pricing and prevent cost overruns.

Positive Signals

Ensures critical, life-saving organ transplant services are available to veterans.
Contract awarded to an established organization (CORE) likely possessing specialized expertise.
Fixed-price element provides a baseline cost control mechanism.

Sector Analysis

The healthcare sector, particularly organ transplantation, is highly specialized and regulated. This contract falls under the 'Blood and Organ Banks' industry code (NAICS 621991). The market for organ procurement services is typically dominated by a limited number of regional organizations due to the complex logistical and regulatory requirements. The VA's spending in this area is a small but crucial component of its overall healthcare procurement, ensuring access to life-saving treatments.

Small Business Impact

This contract does not appear to involve small business set-asides. The specialized nature of deceased donor organ services typically requires large, established organizations with specific certifications and infrastructure. There is no indication of subcontracting opportunities for small businesses within this particular award.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting and program officials. Accountability measures will be tied to the delivery order requirements and performance standards outlined in the contract. Transparency is generally maintained through federal contract databases, though specific operational details of organ procurement may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Transplant Services
Organ Procurement Organizations
National Organ Transplant Act (NOTA)
Healthcare Services Contracts

Risk Flags

Sole-source award may limit price competition.
Economic price adjustments require careful monitoring.
Geographic limitation may impact service reach for some veterans.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.1 million to CENTER FOR ORGAN RECOVERY & EDUCATION. DECEASED DONOR ORGAN SERVICES

Who is the contractor on this award?

The obligated recipient is CENTER FOR ORGAN RECOVERY & EDUCATION.

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 $2.1 million.

What is the period of performance?

Start: 2024-09-30. End: 2025-09-28.

What is the track record of the Center for Organ Recovery & Education (CORE) in providing deceased donor organ services?

The Center for Organ Recovery & Education (CORE) is a well-established organ procurement organization (OPO) serving western Pennsylvania and West Virginia. As a federally designated OPO, CORE has a long history of facilitating organ and tissue donation. Their track record includes managing the complex logistics of identifying potential donors, coordinating with donor families, recovering organs, and allocating them to recipients based on established medical criteria. They work closely with hospitals and transplant centers to maximize donation opportunities and ensure efficient, ethical processes. Their experience is critical for ensuring the successful execution of this VA contract, which relies on their specialized expertise and established network.

How does the pricing structure (Fixed Price with Economic Price Adjustment) compare to typical contracts for similar services?

Contracts for specialized healthcare services like organ procurement often utilize fixed-price structures with economic price adjustments (EPAs) to account for fluctuations in labor, supplies, and operational costs. This is particularly relevant in the healthcare sector where unforeseen circumstances or changes in market conditions can impact expenses. While a pure fixed-price contract offers more cost certainty, an EPA provides flexibility to the contractor, potentially encouraging participation from specialized providers who might otherwise be deterred by cost volatility. Benchmarking is difficult due to the limited number of OPOs and the unique nature of each contract, but the VA would aim to ensure the EPA clauses are reasonable and tied to verifiable economic indicators to protect taxpayer interests.

What are the primary risks associated with a sole-source award for deceased donor organ services?

The primary risks associated with a sole-source award for deceased donor organ services include a lack of competitive pressure, which could potentially lead to higher costs than if multiple bidders were involved. There's also a risk that the sole provider might experience operational issues or a decline in performance without the immediate threat of losing business to a competitor. Furthermore, the VA is reliant on the continued capability and integrity of this single contractor. To mitigate these risks, the VA must implement rigorous contract management, performance monitoring, and regular reviews to ensure the contractor is meeting all requirements and providing value for money. Maintaining open communication and understanding the contractor's operational challenges is also crucial.

How effective is the VA in ensuring the quality and timeliness of organ recovery and allocation under this contract?

The effectiveness of the VA in ensuring the quality and timeliness of organ recovery and allocation under this contract is primarily dependent on the performance of the awarded contractor, the Center for Organ Recovery & Education (CORE), and the VA's contract oversight mechanisms. CORE, as a designated OPO, operates under strict federal regulations and performance standards set by the Health Resources and Services Administration (HRSA). The VA contract will likely incorporate specific performance metrics related to organ yield, turnaround times for recovery, and successful allocation. The VA's contracting officers and program managers are responsible for monitoring CORE's adherence to these metrics, conducting regular performance reviews, and addressing any deficiencies promptly. The success hinges on robust communication and collaboration between the VA and CORE.

What are the historical spending patterns for deceased donor organ services by the Department of Veterans Affairs?

Historical spending data for deceased donor organ services by the Department of Veterans Affairs (VA) can provide context for the current $2.1 million award. While specific year-over-year figures for this exact service category might require deep dives into detailed VA procurement databases, it's understood that the VA consistently procures organ procurement and transplant-related services to support its veteran population. Spending in this area is influenced by factors such as the number of veterans requiring transplants, the availability of donor organs, and the operational costs of OPOs. Past awards would likely show a pattern of contracting with designated OPOs, potentially on a sole-source or limited-competition basis due to the specialized nature of the services. Fluctuations in spending could reflect changes in veteran health needs or shifts in healthcare policy and funding.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Blood and Organ Banks

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 204 SIGMA DR, PITTSBURGH, PA, 15238

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: $2,127,000

Exercised Options: $2,127,000

Current Obligation: $2,127,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24420D0114

IDV Type: IDC

Timeline