VA awards $4.06M for Philadelphia ambulance services to Lifeline Medical Services, Inc

Contract Overview

Contract Amount: $4,056,070 ($4.1M)

Contractor: Lifeline Medical Services, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-12-22

End Date: 2025-12-21

Contract Duration: 364 days

Daily Burn Rate: $11.1K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: AMBULANCE SERVICES FOR THE CMCVAMC IN PHILADELPHIA, PA

Place of Performance

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

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.1 million to LIFELINE MEDICAL SERVICES, INC. for work described as: AMBULANCE SERVICES FOR THE CMCVAMC IN PHILADELPHIA, PA Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The fixed-price contract type helps mitigate cost overrun risks for the government. 3. Service delivery is concentrated in Philadelphia, PA, indicating a localized operational focus. 4. The contract duration of one year aligns with typical service needs for ongoing operations. 5. The North American Industry Classification System (NAICS) code 621910 points to specialized medical transport services.

Value Assessment

Rating: good

The contract value of $4.06 million for one year of ambulance services appears reasonable given the specialized nature of the requirement. Benchmarking against similar contracts for ambulance services in major metropolitan areas would provide further context, but the firm-fixed-price structure suggests a defined cost expectation. The absence of extensive performance history for this specific contract makes a definitive value assessment challenging without more data on service levels and utilization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), indicating it was likely advertised broadly to encourage a wide range of potential bidders. While the exact number of bidders is not specified, the 'full-and-open' competition designation suggests that multiple offers were likely received. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by driving down prices through market forces, leading to better value for the services procured.

Public Impact

Beneficiaries include veterans receiving care at the Corporal Michael J. Crescenz VA Medical Center (CMCVAMC) in Philadelphia, PA. Services delivered include essential ambulance transportation for medical appointments and emergencies. Geographic impact is focused on the Philadelphia metropolitan area, ensuring timely access to care for local veterans. The contract supports the operational capacity of the VA healthcare system in Philadelphia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if the contractor faces operational challenges.
Reliance on a single contractor for a critical service could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type provides cost certainty.
Contract duration is clearly defined, allowing for predictable service planning.

Sector Analysis

The healthcare sector, specifically medical transportation services, is a critical component of the broader healthcare delivery system. Ambulance services are essential for patient transport, particularly in emergency situations and for individuals with mobility challenges. The market for these services is often localized, with providers needing to meet specific regulatory and operational standards. Spending in this area is driven by healthcare demand, population density, and the presence of healthcare facilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses were likely not the primary focus of this procurement. There is no explicit information regarding subcontracting plans for small businesses. The impact on the small business ecosystem is therefore neutral to potentially negative if larger companies dominate this service area.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver services as specified. Transparency is facilitated by the contract award notice, which is publicly available. The VA Office of Inspector General may conduct audits or investigations if performance issues or irregularities arise.

Related Government Programs

VA Medical Services
Emergency Medical Services
Non-Emergency Medical Transportation
Healthcare Support Services

Risk Flags

Potential for service gaps if contractor fails to meet demand.
Reliance on a single vendor for critical medical transport.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.1 million to LIFELINE MEDICAL SERVICES, INC.. AMBULANCE SERVICES FOR THE CMCVAMC IN PHILADELPHIA, PA

Who is the contractor on this award?

The obligated recipient is LIFELINE MEDICAL SERVICES, 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 $4.1 million.

What is the period of performance?

Start: 2024-12-22. End: 2025-12-21.

What is the track record of Lifeline Medical Services, Inc. with the Department of Veterans Affairs or other federal agencies?

Information regarding Lifeline Medical Services, Inc.'s specific track record with the Department of Veterans Affairs or other federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or commendations from previous government engagements. Without this historical data, it is difficult to gauge their reliability and past performance in delivering similar services to federal entities. Further research into federal procurement databases and contractor performance systems would be necessary to establish a detailed track record.

How does the awarded price of $4.06 million compare to market rates for similar ambulance services in Philadelphia?

The awarded price of $4.06 million for one year of ambulance services needs to be benchmarked against prevailing market rates in the Philadelphia area to assess its value. Factors such as the number of vehicles, response times, types of services (e.g., basic life support vs. advanced life support), and geographic coverage significantly influence pricing. Without specific details on the service volume and scope outlined in the contract, a direct comparison is challenging. However, the 'full-and-open' competition suggests that the price was vetted against market competition, which generally leads to more competitive rates. A detailed analysis would involve comparing the contract's unit costs or overall value against publicly available data for similar services from private providers in the region.

What are the primary risks associated with this contract and how are they being mitigated?

The primary risks associated with this contract include potential service disruptions, contractor performance issues, and ensuring timely and adequate medical transport for veterans. The firm-fixed-price contract structure mitigates financial risk for the government by establishing a set cost. The 'full-and-open' competition aims to select a reliable provider with a proven ability to meet service requirements. Mitigation strategies likely include performance standards within the contract, regular monitoring by the VA, and contingency planning for service continuity. The one-year duration also limits long-term exposure to contractor performance risks.

How effective is the current contract in meeting the ambulance service needs of the CMCVAMC?

The effectiveness of the current contract in meeting the ambulance service needs of the CMCVAMC cannot be fully assessed with the provided data alone. Effectiveness is typically measured by metrics such as response times, patient outcomes, availability of services, and veteran satisfaction. While the contract is awarded and has a defined scope, its actual performance in delivering these outcomes requires ongoing monitoring and evaluation by the VA. The fact that it was competed suggests a recognized need for these services. Future assessments would rely on performance reports and feedback from the medical center and its patients.

What has been the historical spending pattern for ambulance services at the CMCVAMC or within the VA Philadelphia network?

Historical spending patterns for ambulance services at the CMCVAMC or within the VA Philadelphia network are not provided in the current data. To understand this, one would need to examine past contract awards for similar services, including their values, durations, and awarded contractors. Analyzing trends in spending over several fiscal years would reveal whether this $4.06 million award represents an increase, decrease, or stable level of investment in these services. Such analysis is crucial for budget planning and identifying potential cost efficiencies or escalating needs within the VA's healthcare network.

What are the implications of the 'COMPETED UNDER SAP' designation for the procurement process and potential cost savings?

The 'COMPETED UNDER SAP' (Simplified Acquisition Procedures) designation indicates that this procurement likely fell within the threshold for simplified acquisition, typically for purchases under $250,000, though this threshold can be higher for certain categories or agencies. However, the contract value of $4.06 million suggests this might be a delivery order against a larger contract vehicle or that the SAP threshold has been significantly updated or is being applied in a specific context. Generally, SAP aims to streamline the acquisition process, making it faster and less burdensome than full-scale competitive bidding. When used with competition, it can still yield good prices, but the level of documentation and market research might be less extensive than for larger procurements, potentially impacting the depth of price discovery.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Ambulance Services

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 290 SANFORD ST, EAST ORANGE, NJ, 07018

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,056,070

Exercised Options: $4,056,070

Current Obligation: $4,056,070

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24422D0007

IDV Type: IDC

Timeline