VA awards $5M contract for physician services, with 9 bidders indicating competitive pricing

Contract Overview

Contract Amount: $5,032,811 ($5.0M)

Contractor: Spectrum Healthcare Resources, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-17

End Date: 2025-10-17

Contract Duration: 914 days

Daily Burn Rate: $5.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PHY -NOCTURNIST/ER/NP/PR

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63141

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.0 million to SPECTRUM HEALTHCARE RESOURCES, INC for work described as: PHY -NOCTURNIST/ER/NP/PR Key points: 1. Contract awarded at a competitive price point, with 9 bidders vying for the opportunity. 2. The contract utilizes a Firm Fixed Price structure, providing cost certainty for the government. 3. Services are concentrated in Missouri, potentially impacting local healthcare workforce dynamics. 4. The contract duration of 914 days suggests a need for sustained physician support. 5. Spectrum Healthcare Resources, Inc. secured the award, indicating a track record with the VA. 6. The North American Industry Classification System (NAICS) code 621111 points to general physician services.

Value Assessment

Rating: good

The contract value of approximately $5 million over roughly three years appears reasonable given the scope of physician services. Benchmarking against similar contracts for nocturnist/ER/NP/PR services within the VA or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs, but the ultimate value depends on the quality and efficiency of the services delivered by Spectrum Healthcare Resources, Inc.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a full and open competition for contracts valued below certain thresholds. The presence of 9 bidders suggests a healthy level of interest and competition for these physician services. This level of competition is generally favorable for price discovery and ensures the government receives competitive offers.

Taxpayer Impact: A competitive bidding process with multiple offers helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service delivery.

Public Impact

Veterans in Missouri will benefit from the provision of essential physician services, including nocturnist, emergency room, nurse practitioner, and physician roles. The contract ensures the availability of medical professionals to support patient care within VA facilities. Geographic impact is primarily focused on the state of Missouri, addressing specific healthcare needs in that region. The contract may have implications for the local healthcare workforce, potentially creating opportunities for physicians and advanced practice providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for critical physician services.
Ensuring consistent quality of care across all provided physician roles.
Monitoring contractor performance to ensure adherence to service level agreements.

Positive Signals

Competitive award process with multiple bidders suggests fair pricing.
Firm Fixed Price contract provides cost predictability.
Contract duration indicates a stable need for services.

Sector Analysis

This contract falls within the Healthcare sector, specifically for physician services (NAICS 621111). The market for healthcare staffing and physician services is substantial, with federal agencies like the VA being significant purchasers. This contract represents a portion of the VA's broader strategy to ensure adequate staffing levels and provide comprehensive care to veterans. Comparable spending benchmarks would involve analyzing other VA contracts for similar physician roles and durations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary focus is on large business participation. There is no explicit information on subcontracting plans for small businesses within this data. The impact on the small business ecosystem is likely minimal unless Spectrum Healthcare Resources, Inc. voluntarily engages small businesses for support services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officer and program managers. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Physician Staffing Contracts
Federal Healthcare Services
Emergency Room Physician Services
Nocturnist Services Contracts
Nurse Practitioner Services
Physician Services Contracts

Risk Flags

Potential for service quality issues if contractor prioritizes profit over patient care under FFP.
Risk of insufficient competition if SAP process limits outreach.
Dependence on contractor for critical physician roles.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.0 million to SPECTRUM HEALTHCARE RESOURCES, INC. PHY -NOCTURNIST/ER/NP/PR

Who is the contractor on this award?

The obligated recipient is SPECTRUM HEALTHCARE RESOURCES, 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 $5.0 million.

What is the period of performance?

Start: 2023-04-17. End: 2025-10-17.

What is the historical spending pattern of the Department of Veterans Affairs on physician services similar to those covered by this contract?

The Department of Veterans Affairs (VA) consistently allocates significant funding towards physician services to meet the healthcare needs of veterans. Historical data reveals a substantial and often increasing trend in spending on physician staffing across various specialties, including emergency medicine, hospitalist services, and specialized care. For instance, in recent fiscal years, the VA has awarded numerous contracts for physician staffing, with total obligations often reaching hundreds of millions to billions of dollars annually. This specific contract for nocturnist/ER/NP/PR services in Missouri, valued at approximately $5 million, represents a localized investment within this broader federal healthcare expenditure. Analyzing past VA budget allocations and contract awards for similar services would reveal patterns of demand, pricing trends, and the VA's strategic approach to ensuring adequate physician coverage across its network of facilities.

How does the awarded price per unit (if calculable) compare to market rates for similar physician services in Missouri?

Calculating a precise per-unit cost is challenging without detailed service delivery metrics (e.g., hours worked per physician, patient encounters). However, the total contract value of $5,032,811.10 over 914 days (approximately 2.5 years) suggests an average annual value of around $2 million. If we assume a standard 40-hour work week for a physician, this could translate to an hourly rate or a daily rate that can be benchmarked. Market rates for physicians, especially in specialized roles like nocturnists or ER physicians, can vary significantly by location and experience. In Missouri, average physician salaries and hourly rates, as reported by industry surveys and compensation data, would serve as a benchmark. If the implied hourly or daily rate derived from this contract falls within or below the typical range for comparable physicians in the Missouri market, it would indicate good value. Conversely, if it significantly exceeds market averages, it might warrant further investigation into the specific service requirements or contractor overhead.

What is Spectrum Healthcare Resources, Inc.'s track record with the Department of Veterans Affairs and other federal agencies?

Spectrum Healthcare Resources, Inc. has a notable track record of securing contracts with the Department of Veterans Affairs (VA) and other federal agencies. A review of federal procurement data typically shows them as a frequent awardee for healthcare staffing and support services. Their past performance with the VA likely includes providing various medical professionals to different facilities, demonstrating their capability to meet the agency's requirements. Examining past contract awards, performance evaluations (if publicly available), and any past performance issues or commendations would provide a comprehensive understanding of their reliability and effectiveness. A history of successful contract completions and positive performance reviews generally indicates a lower risk for the government. Conversely, any documented performance deficiencies or disputes could signal potential risks for this current contract.

What are the potential risks associated with the 'COMPETED UNDER SAP' contract type and the 'FIRM FIXED PRICE' pricing structure?

The 'COMPETED UNDER SAP' (Simplified Acquisition Procedures) designation implies the contract was awarded through a streamlined process, typically for acquisitions below a certain dollar threshold. While this can lead to faster award times, it might involve less extensive documentation and fewer bidders compared to full and open competition, potentially impacting price discovery. The 'FIRM FIXED PRICE' (FFP) pricing structure places the primary risk of cost overruns on the contractor, Spectrum Healthcare Resources, Inc. This is generally favorable for the government as it provides cost certainty. However, if the contract scope is not precisely defined or if unforeseen circumstances arise, the contractor might be incentivized to cut corners on quality or service delivery to maintain profitability. This necessitates robust performance monitoring by the VA to ensure the contractor meets all contractual obligations and quality standards.

How does the geographic concentration in Missouri impact the overall effectiveness and accessibility of these physician services for veterans?

The geographic concentration of these physician services in Missouri means that veterans residing in or near VA facilities within that state are the primary beneficiaries. This focused approach can enhance the effectiveness and accessibility of care for that specific veteran population by ensuring dedicated physician support is available where it is most needed. It allows for a more tailored deployment of medical expertise to address the unique healthcare demands within Missouri's VA system. However, it also implies that veterans in other states may not directly benefit from this particular contract, necessitating separate procurement efforts to serve those populations. The effectiveness hinges on the contractor's ability to recruit and retain qualified physicians within the Missouri region and the VA's capacity to integrate these services seamlessly into existing healthcare delivery models.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12647 OLIVE BLVD STE 600, SAINT LOUIS, MO, 63141

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

Financial Breakdown

Contract Ceiling: $5,032,811

Exercised Options: $5,032,811

Current Obligation: $5,032,811

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline