VA awards $2.27M firm-fixed-price contract for pulmonary services to Medical University of South Carolina

Contract Overview

Contract Amount: $2,267,465 ($2.3M)

Contractor: Medical University of South Carolina

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-03-01

End Date: 2026-08-31

Contract Duration: 2,374 days

Daily Burn Rate: $955/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PULMONARY

Place of Performance

Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29401

State: South Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.3 million to MEDICAL UNIVERSITY OF SOUTH CAROLINA for work described as: PULMONARY Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies and market competition. 2. The contract duration of nearly 4 years suggests a need for sustained, specialized services. 3. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs for the VA. 4. The award to a university medical center indicates a focus on specialized, potentially research-adjacent healthcare. 5. Geographic concentration in South Carolina may limit broader access to these specific services. 6. Lack of competition suggests a potential lack of market research or unique contractor capabilities.

Value Assessment

Rating: fair

The contract value of $2.27 million over approximately 6.5 years (March 2020 - August 2026) averages to about $348,000 annually. Without comparable contract data for similar pulmonary services at other VA facilities or academic medical centers, it is difficult to definitively benchmark value. However, the sole-source nature of the award warrants scrutiny to ensure the pricing reflects fair market value and that the government is not overpaying due to a lack of competitive pressure. The firm-fixed-price structure provides cost certainty, but the absence of competition means the VA cannot leverage market dynamics to drive down costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. The data indicates no other bidders were considered. This approach is typically justified when only one source is capable of meeting the government's needs, often due to unique capabilities, specialized expertise, or urgent requirements. However, the lack of competition limits the government's ability to explore alternative solutions or negotiate the best possible price through a competitive bidding process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the absence of competition removes the incentive for vendors to offer their most competitive pricing. It also limits the opportunity for other qualified providers to compete for government business.

Public Impact

Veterans in South Carolina will benefit from specialized pulmonary medical services. The contract supports the delivery of essential healthcare services through a major academic medical institution. The services are geographically concentrated within South Carolina, impacting veterans in that region. The contract likely supports a workforce of specialized medical professionals, including physicians, nurses, and technicians, at the Medical University of South Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of competition may indicate a missed opportunity to foster broader market engagement for specialized healthcare services.
Geographic concentration of services could limit access for veterans outside of South Carolina.

Positive Signals

Firm-fixed-price contract provides cost certainty for the duration of the award.
Award to a university medical center suggests access to specialized expertise and potentially advanced medical treatments.
Long contract duration indicates a stable, ongoing need for these critical health services.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on specialized medical services. The market for healthcare services, particularly within the federal government, is substantial. Awards like this often go to established healthcare providers, including academic medical centers, which possess the necessary infrastructure, specialized personnel, and research capabilities. Benchmarking this contract's value is challenging without specific data on per-patient costs or service utilization, but its duration and sole-source nature suggest a unique or long-standing relationship.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award was made to a large academic medical institution. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data, but it is unlikely to be a primary focus given the nature of the award and the contractor's size and scope.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs (VA). The VA has established procurement regulations and contract management processes to ensure compliance and performance. Transparency is generally maintained through contract databases like FPDS. Accountability measures would involve performance reviews and adherence to the firm-fixed-price terms. The VA Office of Inspector General (OIG) could investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

VA Medical Care
Pulmonary Disease Services
Academic Medical Center Contracts
Sole-Source Healthcare Procurements

Risk Flags

Sole-source award
Potential for inflated pricing due to lack of competition
Limited transparency on specific service metrics and outcomes

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.3 million to MEDICAL UNIVERSITY OF SOUTH CAROLINA. PULMONARY

Who is the contractor on this award?

The obligated recipient is MEDICAL UNIVERSITY OF SOUTH CAROLINA.

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 $2.3 million.

What is the period of performance?

Start: 2020-03-01. End: 2026-08-31.

What is the track record of the Medical University of South Carolina in performing federal contracts, particularly with the VA?

The Medical University of South Carolina (MUSC) is a large academic medical center with a significant history of providing healthcare services. While specific details on their federal contract performance history are not provided in this data snippet, large institutions like MUSC typically have experience with government contracts, including those with the Department of Veterans Affairs (VA). Their track record would likely involve a range of healthcare services, potentially including specialized areas like pulmonary medicine. A deeper dive into contract databases and performance reviews would be necessary to assess their specific performance metrics, past issues, and overall reliability in fulfilling federal obligations. However, their status as a major medical university suggests a capacity to handle complex healthcare requirements.

How does the annual cost of this contract compare to similar pulmonary service contracts awarded by the VA or other federal agencies?

The annual value of this contract is approximately $348,000 ($2.27M / 6.5 years). Benchmarking this against similar pulmonary service contracts is challenging without access to a comprehensive database of comparable awards. Factors such as the specific services rendered (e.g., diagnostics, treatment, research support), patient volume, geographic location, and the complexity of cases significantly influence contract costs. Given that this is a sole-source award to an academic medical center, the costs might be higher than contracts awarded through full and open competition to community hospitals or clinics. A thorough comparison would require identifying contracts with similar scope, duration, and provider type, and then analyzing their pricing structures and performance outcomes.

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

The primary risks associated with a sole-source award for specialized medical services include potential overpayment due to lack of competitive pricing, limited innovation from a single provider, and a reduced incentive for the contractor to maintain optimal efficiency or explore cost-saving measures. There's also a risk that the government becomes overly reliant on a single source, making it difficult to transition or find alternatives if performance issues arise or needs change. Furthermore, the justification for a sole-source award needs to be robust to ensure it's truly the only viable option, otherwise, it can be perceived as a missed opportunity for fair market competition and potentially lead to taxpayer dissatisfaction.

How effective is the firm-fixed-price (FFP) contract type in managing costs for specialized healthcare services?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for specialized healthcare services by shifting the cost-control risk to the contractor. Under an FFP agreement, the contractor is obligated to perform the specified services for a predetermined price, regardless of their actual costs. This provides the government with cost certainty and predictability, making budgeting easier. However, for highly specialized or unpredictable healthcare services, an FFP contract might lead the contractor to build in significant contingencies, potentially increasing the overall price compared to other contract types like cost-plus. The effectiveness also depends on the clarity and completeness of the contract's scope of work to avoid disputes and change orders.

What is the historical spending pattern for pulmonary services by the Department of Veterans Affairs?

Historical spending patterns for pulmonary services by the Department of Veterans Affairs (VA) are likely substantial, given the prevalence of respiratory conditions among the veteran population, including those related to Agent Orange exposure and military service in dusty environments. The VA operates a vast network of healthcare facilities and often partners with external providers, including academic medical centers, to deliver specialized care. Annual spending on pulmonary services would fluctuate based on healthcare needs, budget allocations, and contracting strategies. Analyzing historical data would reveal trends in contract types (e.g., FFP, cost-reimbursement), competition levels, and average contract values for these services across different VA regions and facilities.

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: VA247-17-R-0629

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: South Carolina, State of

Address: 171 ASHLEY AVE FL 4, CHARLESTON, SC, 29425

Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $2,267,465

Exercised Options: $2,267,465

Current Obligation: $2,267,465

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline