VA awards $3.28M contract for neurosurgery services at Huntington VAMC, citing no competition

Contract Overview

Contract Amount: $3,277,250 ($3.3M)

Contractor: University Physicians & Surgeons, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-02-01

End Date: 2027-01-31

Contract Duration: 1,460 days

Daily Burn Rate: $2.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NEUROSURGERY PHYSICIAN SERVICES AT HERSHEL "WOODY" WILLIAMS VA MEDICAL CENTER (VAMC), HUNTINGTON, WV.

Place of Performance

Location: HUNTINGTON, WAYNE County, WEST VIRGINIA, 25704

State: West Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.3 million to UNIVERSITY PHYSICIANS & SURGEONS, INC. for work described as: NEUROSURGERY PHYSICIAN SERVICES AT HERSHEL "WOODY" WILLIAMS VA MEDICAL CENTER (VAMC), HUNTINGTON, WV. Key points: 1. Contract awarded for essential neurosurgery services, indicating a critical need for specialized medical care. 2. The fixed-price contract structure aims to control costs for the duration of the agreement. 3. Sole-source award raises questions about market research and potential missed opportunities for competition. 4. The contract duration of nearly four years suggests a long-term requirement for these specialized services. 5. Services are geographically focused on West Virginia, serving veterans in the Huntington area. 6. The award to a single provider may limit price discovery and potentially lead to higher costs.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable sole-source neurosurgery contracts. The fixed-price nature provides some cost certainty, but the lack of competition prevents a direct comparison of pricing against market rates or other potential providers. The total award amount of $3.28 million over approximately four years suggests a significant investment in specialized medical expertise for veterans.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of Veterans Affairs did not conduct a competitive bidding process. This typically occurs when only one responsible source is available or when the agency determines it is not in the public interest to compete. The lack of competition means that multiple potential providers were not considered, and the agency did not benefit from the price reductions that can arise from a competitive environment.

Taxpayer Impact: Taxpayers may not be receiving the best possible value due to the absence of competitive pressure, which could have driven down the price for these essential neurosurgery services.

Public Impact

Veterans in the Huntington, West Virginia area will receive specialized neurosurgery care. The contract ensures continuity of care for patients requiring complex neurological procedures. The services provided are critical for improving health outcomes and quality of life for veterans. The contract supports specialized medical professionals and potentially ancillary staff at the VAMC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Sole-source awards require robust justification to ensure taxpayer value.
Limited transparency into the selection process due to non-competitive nature.

Positive Signals

Ensures critical neurosurgery services are available to veterans.
Fixed-price contract provides cost predictability.
Long-term award indicates a stable need for these services.

Sector Analysis

The healthcare sector, particularly within the federal government, relies heavily on specialized physician services to meet the needs of its beneficiaries. Contracts for neurosurgery are critical for addressing complex medical conditions. While the overall market for physician services is vast, specific sub-specialties like neurosurgery often see concentrated provider networks, especially in specific geographic regions. The VA's spending in this area reflects its commitment to providing comprehensive care to veterans, often through direct provision or contracted services.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of neurosurgery services, it is unlikely that small businesses would be primary providers. There is no information available regarding subcontracting opportunities for small businesses within this specific award.

Oversight & Accountability

Oversight for this contract would fall under the Department of Veterans Affairs, likely through its contracting officers and program managers responsible for medical services at the Huntington VAMC. The VA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency is limited due to the sole-source nature, but contract performance metrics and quality of care would be subject to internal VA oversight.

Related Government Programs

VA Medical Services Contracts
Physician and Surgeon Services
Specialized Medical Care Contracts
Veterans Health Administration

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.3 million to UNIVERSITY PHYSICIANS & SURGEONS, INC.. NEUROSURGERY PHYSICIAN SERVICES AT HERSHEL "WOODY" WILLIAMS VA MEDICAL CENTER (VAMC), HUNTINGTON, WV.

Who is the contractor on this award?

The obligated recipient is UNIVERSITY PHYSICIANS & SURGEONS, 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 $3.3 million.

What is the period of performance?

Start: 2023-02-01. End: 2027-01-31.

What is the track record of UNIVERSITY PHYSICIANS & SURGEONS, INC. with the Department of Veterans Affairs?

Information regarding the specific track record of UNIVERSITY PHYSICIANS & SURGEONS, INC. with the Department of Veterans Affairs is not detailed in the provided data. However, the award of a sole-source contract suggests that the VA has identified this entity as capable of providing the required neurosurgery services. Further investigation into past performance, other VA contracts held by this entity, and any reported issues would be necessary for a comprehensive assessment of their track record. Without this additional context, it is difficult to definitively assess their reliability and past success in fulfilling similar federal contracts.

How does the awarded price compare to similar neurosurgery contracts within the VA or other federal agencies?

Direct comparison of the awarded price ($3.28 million over approximately four years) to similar neurosurgery contracts is difficult without access to a broader dataset of federal procurements for specialized medical services. The sole-source nature of this award prevents a direct benchmark against competitive bids. To assess value for money, one would need to analyze contracts for neurosurgery services at other VA medical centers or comparable federal healthcare facilities, considering factors like geographic location, complexity of services, and contract duration. The absence of competitive bidding limits the ability to determine if this price represents fair market value.

What are the primary risks associated with a sole-source award for critical medical services like neurosurgery?

The primary risks associated with a sole-source award for critical medical services like neurosurgery include potential overpayment due to lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the procurement process. Taxpayers may not be receiving the best value for their money. Additionally, reliance on a single provider can create vulnerabilities if that provider experiences staffing issues, financial difficulties, or quality control problems, potentially disrupting essential patient care. Robust oversight and performance monitoring become even more critical in sole-source situations.

What is the expected impact of this contract on the availability and quality of neurosurgery services for veterans at the Huntington VAMC?

This contract is expected to ensure the continued availability of specialized neurosurgery services for veterans receiving care at the Hershel "Woody" Williams VAMC in Huntington, WV. By securing a dedicated provider, the VA aims to maintain a consistent level of care for patients requiring neurological interventions, potentially improving health outcomes and reducing the need for veterans to seek care from external, non-VA facilities. The quality of care will depend on the contractor's expertise and adherence to VA standards, which should be monitored through performance metrics and patient feedback mechanisms.

What has been the historical spending pattern for neurosurgery services at the Huntington VAMC or similar VA facilities?

The provided data does not include historical spending patterns for neurosurgery services at the Huntington VAMC or similar VA facilities. To understand historical trends, one would need to access historical contract databases and analyze previous awards for these services at this specific VAMC or comparable facilities. This analysis would reveal whether this $3.28 million contract represents an increase, decrease, or stable level of investment in neurosurgery care over time and whether previous awards were also sole-source or competitively procured.

Are there any specific performance metrics or quality standards outlined in the contract to ensure service effectiveness?

The provided data does not specify the performance metrics or quality standards included in the contract. However, federal contracts for medical services typically include clauses related to performance expectations, quality of care, and reporting requirements. The Department of Veterans Affairs would be responsible for monitoring the contractor's adherence to these standards. These might include patient outcomes, wait times for appointments, adherence to clinical protocols, and patient satisfaction surveys. The effectiveness of the contract hinges on robust oversight and enforcement of these, often unstated in summary data, performance requirements.

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: 36C24522R0036

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1600 MEDICAL CENTER DR, HUNTINGTON, WV, 25701

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: $7,926,738

Exercised Options: $3,277,250

Current Obligation: $3,277,250

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline