VA awards $12.87M for Organ Transplant Services to MedStar Georgetown Medical Center

Contract Overview

Contract Amount: $12,868,051 ($12.9M)

Contractor: Medstar-Georgetown Medical Center, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-01

End Date: 2026-12-01

Contract Duration: 365 days

Daily Burn Rate: $35.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: ORGAN TRANSPLANT - WASHINGTON DC VAMC AND MEDSTAR GEORGETOWN MEDICAL CENTER (MGMC)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20422

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12.9 million to MEDSTAR-GEORGETOWN MEDICAL CENTER, INC for work described as: ORGAN TRANSPLANT - WASHINGTON DC VAMC AND MEDSTAR GEORGETOWN MEDICAL CENTER (MGMC) Key points: 1. The contract is a delivery order valued at $12.87 million. 2. Competition was not available for this contract. 3. The contract carries a risk of limited price discovery due to the lack of competition. 4. The sector is healthcare services, specifically organ transplantation.

Value Assessment

Rating: fair

The contract's pricing is set at a fixed price with economic price adjustment. Without competitive bids, it's difficult to assess if this price is optimal compared to similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not available for competition, likely due to specific capabilities or existing relationships. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in the VA paying more than necessary for organ transplant services, impacting taxpayer funds.

Public Impact

Veterans will receive critical organ transplant services. The award ensures continuity of care for patients requiring transplants. The sole provider arrangement raises questions about long-term cost-effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Limited transparency in pricing

Positive Signals

Ensures access to critical medical services
Continuity of care for veterans

Sector Analysis

This contract falls within the healthcare sector, specifically specialized medical services. Benchmarks for organ transplant services can vary widely based on procedure complexity and location.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award.

Oversight & Accountability

Oversight will be crucial to ensure the quality of services provided and to monitor costs, especially given the limited competition.

Related Government Programs

Colleges, Universities, and Professional Schools
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Potential for inflated costs
Lack of market price validation
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.9 million to MEDSTAR-GEORGETOWN MEDICAL CENTER, INC. ORGAN TRANSPLANT - WASHINGTON DC VAMC AND MEDSTAR GEORGETOWN MEDICAL CENTER (MGMC)

Who is the contractor on this award?

The obligated recipient is MEDSTAR-GEORGETOWN MEDICAL CENTER, 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 $12.9 million.

What is the period of performance?

Start: 2025-12-01. End: 2026-12-01.

What specific factors prevented competition for this vital organ transplant service contract?

The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION'. This could be due to highly specialized requirements, unique capabilities of MedStar Georgetown Medical Center, or a pre-existing partnership that made a competitive solicitation impractical or detrimental to patient care continuity.

How will the VA ensure fair pricing with an economic price adjustment clause and no competition?

The VA should closely monitor the economic price adjustment triggers and ensure they align with objective market indicators. Regular reviews of the contract's performance and cost efficiency, potentially through independent analysis or benchmarking against national averages for similar procedures, will be essential to mitigate pricing risks.

What is the potential long-term impact on veteran access to organ transplants if costs escalate due to limited competition?

If costs escalate significantly without competitive pressure, it could strain the VA's budget for organ transplant services, potentially leading to reduced capacity, longer wait times, or limitations on the types of transplants offered. This could negatively impact veteran access to life-saving procedures.

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

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

Evaluated Preference: NONE

Contractor Details

Address: 3800 RESERVOIR RD NW, WASHINGTON, DC, 20007

Business Categories: Category Business, Corporate Entity Tax Exempt, Hospital, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,912,233

Exercised Options: $12,912,233

Current Obligation: $12,868,051

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24523D0011

IDV Type: IDC

Timeline