VA awards $2.48M for Gynecology Physician Services to University of Maryland OB/GYN Associates

Contract Overview

Contract Amount: $2,480,861 ($2.5M)

Contractor: University of Maryland Obstetrical and Gynecological Associates, P.A

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-04-01

End Date: 2025-09-30

Contract Duration: 2,008 days

Daily Burn Rate: $1.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GYNECOLOGY PHYSICIAN SERVICES

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21201

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to UNIVERSITY OF MARYLAND OBSTETRICAL AND GYNECOLOGICAL ASSOCIATES, P.A for work described as: GYNECOLOGY PHYSICIAN SERVICES Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract duration of over 5 years suggests a long-term need for these specialized medical services. 3. Fixed-price contract type aims to control costs, but the absence of competition limits price benchmarking. 4. Services are essential for women's health within the VA system, impacting a specific patient demographic. 5. The contractor is an established academic medical center, implying a certain level of expertise. 6. Geographic focus on Maryland suggests services are tied to a specific VA facility or region.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and the specialized services provided. Without competitive bids, it's difficult to assess if the $2.48 million price tag represents optimal value for money. The fixed-price structure provides cost certainty for the government, but the lack of competition means the VA cannot leverage market forces to potentially drive down costs. Further analysis would require understanding the specific scope of services and comparing them to similar sole-source contracts for specialized medical professionals at other academic institutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances preclude full and open competition. The absence of competition means that the VA did not benefit from the price discovery that typically occurs when multiple firms bid on a contract. This can potentially lead to higher costs for the government compared to a competitively awarded contract.

Taxpayer Impact: Taxpayers may be paying a premium for these services due to the lack of competitive bidding. Without multiple offers, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

Female veterans in Maryland will benefit from access to specialized gynecological care. The contract ensures the provision of essential physician services for women's health within the VA. Services are likely concentrated around a specific VA medical center in Maryland. The contract supports highly skilled medical professionals, contributing to the healthcare workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits opportunities for other qualified providers and potentially higher costs.
Lack of competition makes it difficult to assess if the price reflects fair market value.
Long contract duration could lock in pricing without adjustments for market changes.

Positive Signals

Contract awarded to an established academic medical institution, suggesting expertise in the field.
Fixed-price contract type provides cost predictability for the government.
Ensures continuity of essential specialized medical services for veterans.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on specialized physician services. The market for such services is often characterized by a limited number of highly qualified providers, particularly in academic medical centers. While the overall federal spending on healthcare is substantial, contracts for niche medical specialties like gynecology at academic institutions represent a smaller, but critical, segment. Benchmarking would involve comparing pricing and service scope with similar contracts awarded to other university-affiliated medical groups for specialized care.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of the services and the contractor being an academic institution, it is unlikely that subcontracting opportunities for small businesses would be a significant component of this award. The focus is on securing specialized medical expertise rather than broad service delivery where small businesses often play a larger role.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for overseeing this contract. Standard VA procurement regulations and contract management processes would apply. Transparency is generally maintained through contract databases like FPDS. However, the sole-source nature of the award means that the competitive process, a key accountability mechanism, was bypassed. Oversight would focus on ensuring the contractor meets the defined service requirements and that payments are aligned with the fixed-price agreement.

Related Government Programs

VA Medical Services Contracts
Physician and Surgeon Services
Women's Health Services
Academic Medical Center Partnerships

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to UNIVERSITY OF MARYLAND OBSTETRICAL AND GYNECOLOGICAL ASSOCIATES, P.A. GYNECOLOGY PHYSICIAN SERVICES

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF MARYLAND OBSTETRICAL AND GYNECOLOGICAL ASSOCIATES, P.A.

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 $2.5 million.

What is the period of performance?

Start: 2020-04-01. End: 2025-09-30.

What is the specific scope of gynecological services to be provided under this contract?

The provided data does not detail the specific scope of gynecological services. However, based on the contractor being 'UNIVERSITY OF MARYLAND OBSTETRICAL AND GYNECOLOGICAL ASSOCIATES, P.A', it is reasonable to infer that the services encompass a broad range of women's health needs, including routine check-ups, diagnostic procedures, treatment of gynecological conditions, and potentially specialized care related to obstetrics. The contract likely outlines specific deliverables, performance standards, and reporting requirements that would further define the scope. Without access to the full contract document, a precise definition remains elusive.

How does the $2.48 million contract value compare to similar sole-source awards for gynecological services at academic institutions?

Direct comparison of this $2.48 million sole-source contract to similar awards is challenging without access to a comprehensive database of sole-source contracts for specialized medical services at academic institutions. Sole-source awards are, by definition, not benchmarked against competitive bids. Factors such as the specific services offered, the number of physicians involved, the geographic location, and the duration of the contract significantly influence pricing. To assess value, one would need to identify comparable contracts with similar scopes of work, contractor types (i.e., university-affiliated medical groups), and contract lengths, and then analyze their pricing structures. The absence of competition inherently limits the ability to perform a robust value-for-money assessment.

What are the primary risks associated with awarding this contract on a sole-source basis?

The primary risk associated with awarding this contract on a sole-source basis is the potential for inflated costs due to the lack of competitive pressure. Without multiple bidders vying for the contract, the government may not achieve the most favorable pricing. Another risk is the potential for reduced innovation or service improvement, as the contractor may have less incentive to go above and beyond standard requirements when competition is absent. Furthermore, a sole-source award can raise concerns about fairness and equal opportunity for other qualified providers who were not given a chance to bid. Finally, it can be more difficult to justify the price to taxpayers when a competitive process has not validated it.

What is the track record of University of Maryland Obstetrical and Gynecological Associates, P.A. in serving federal contracts?

The provided data indicates this is a contract with the Department of Veterans Affairs (VA) awarded to 'UNIVERSITY OF MARYLAND OBSTETRICAL AND GYNECOLOGICAL ASSOCIATES, P.A'. While this specific contract is for $2.48 million over approximately five years, further investigation into federal procurement databases would be necessary to ascertain the contractor's complete track record with federal agencies. This would include examining past performance on other VA contracts or contracts with different federal entities, their history of meeting performance requirements, any past disputes or contract terminations, and their overall reputation as a federal contractor. Without this broader context, assessing their track record is limited to this single award.

How does the contract duration of over 5 years (April 2020 - September 2025) impact the overall value and risk?

A contract duration of over five years, as seen in this $2.48 million award, provides significant stability and continuity for the VA in securing essential gynecological physician services. For the contractor, it offers a predictable revenue stream, potentially allowing for better resource planning and investment in staff and facilities. However, a long duration also carries risks. Market prices for medical services can fluctuate, and a fixed-price contract over an extended period might not fully account for future cost increases, potentially leading to the government paying more than necessary if market rates decrease. Conversely, if costs rise significantly, the contractor might face challenges meeting the fixed price. The extended term also means less frequent opportunities to re-evaluate the contract for potential cost savings or service enhancements through competition.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: VA245-17-R-0005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 250 W PRATT ST STE 880, BALTIMORE, MD, 21201

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $2,492,623

Exercised Options: $2,492,623

Current Obligation: $2,480,861

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline