VA awards $8.7M for neurosurgery services to University of Miami, citing no competition

Contract Overview

Contract Amount: $8,737,901 ($8.7M)

Contractor: University of Miami

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-03-01

End Date: 2026-08-31

Contract Duration: 2,009 days

Daily Burn Rate: $4.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NEUROSURGERY PHYSICIAN SERVICES

Place of Performance

Location: MIAMI, MIAMI-DADE County, FLORIDA, 33136

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.7 million to UNIVERSITY OF MIAMI for work described as: NEUROSURGERY PHYSICIAN SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs. 2. The contract duration spans over five years, suggesting a long-term need for these specialized services. 3. Awarded to a single entity, raising questions about potential cost efficiencies through competition. 4. The service category is neurosurgery physician services, a critical and highly specialized medical field. 5. The contract is managed by the Department of Veterans Affairs, serving a specific veteran population. 6. Geographic focus is Florida, indicating a regional service delivery.

Value Assessment

Rating: fair

Benchmarking neurosurgery physician services is complex due to high specialization and regional variations. The University of Miami is a known provider of medical services. Without competitive bids, it is difficult to definitively assess if the $8.7 million price tag represents optimal value for money. However, the firm-fixed-price structure provides cost certainty for the VA. Further analysis would require comparing the scope of services and physician qualifications against similar contracts in the region or with other academic medical centers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a 'NOT AVAILABLE FOR COMPETITION' justification, indicating that the VA determined that only one source could fulfill the requirement. This typically occurs when a unique capability, specialized expertise, or an existing relationship makes competition impractical or not in the government's best interest. The lack of competition means there was no opportunity for multiple bidders to offer proposals, potentially limiting price discovery and the government's ability to secure the most cost-effective solution.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price that might have been secured through a competitive bidding process. This can lead to higher overall spending for the government.

Public Impact

Veterans in Florida will benefit from access to specialized neurosurgery physician services. The contract ensures the continuity of critical medical care for a specific patient population. The services are delivered within Florida, impacting the local healthcare infrastructure. The contract supports highly skilled medical professionals, contributing to the healthcare workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs than a competitive award.
Sole-source awards can limit transparency and accountability in pricing.
Dependence on a single provider could create risks if performance issues arise.

Positive Signals

Award to a reputable academic medical institution suggests a high level of expertise.
Firm-fixed-price contract provides cost predictability for the government.
Long contract duration indicates a stable and ongoing need for these essential services.

Sector Analysis

The healthcare sector, particularly specialized medical services, often involves complex procurement due to unique expertise requirements. Neurosurgery is a high-demand, high-cost specialty. Contracts for such services are typically awarded to established medical institutions or highly specialized groups. The market for these services is driven by patient need, technological advancements, and the availability of qualified professionals. The VA's spending in this area reflects its commitment to providing comprehensive care to veterans, often through partnerships with leading healthcare providers.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of neurosurgery physician services and the award to a large academic institution, it is unlikely that small businesses would be primary contractors for this specific requirement. Subcontracting opportunities for small businesses are not explicitly detailed but could potentially exist for ancillary support services if permitted by the prime contract.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Oversight mechanisms would include performance monitoring, quality assurance reviews, and financial audits to ensure the contractor meets the terms and conditions of the firm-fixed-price agreement. Transparency is generally enhanced through contract databases, though specific performance metrics and detailed justifications for sole-source awards are not always publicly disclosed. The VA's Office of Inspector General may conduct audits or investigations if performance or financial irregularities are suspected.

Related Government Programs

VA Medical Services Contracts
Physician Services Contracts
Specialized Medical Care
Academic Medical Center Partnerships

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for cost overruns without benchmarked competition.
Dependence on a single provider for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.7 million to UNIVERSITY OF MIAMI. NEUROSURGERY PHYSICIAN SERVICES

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF MIAMI.

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 $8.7 million.

What is the period of performance?

Start: 2021-03-01. End: 2026-08-31.

What is the track record of the University of Miami in providing neurosurgery services to the federal government?

The provided data does not detail the University of Miami's specific track record with the federal government beyond this contract. However, as a major academic medical center, it is presumed to have extensive experience in providing complex medical services, including neurosurgery. To assess their track record, one would typically look at past performance evaluations on federal contracts, any history of contract disputes or terminations, and their overall reputation within the medical community. Without access to detailed past performance information or other federal contracts awarded to the University of Miami for similar services, a comprehensive assessment of their track record is limited to general institutional reputation.

How does the awarded amount of $8.7 million compare to similar neurosurgery contracts?

Direct comparison of the $8.7 million award for neurosurgery physician services is challenging without knowing the exact scope of services, duration, and specific geographic location of comparable contracts. Neurosurgery is a highly specialized field with significant cost variations based on the complexity of procedures, the number of physicians involved, and the level of care provided (e.g., inpatient, outpatient, trauma). Contracts with academic medical centers often include teaching and research components, which can influence pricing. A thorough benchmark would require analyzing contracts for similar services awarded by the VA or other federal agencies to other academic medical centers or large healthcare systems, considering factors like physician-to-patient ratios, call coverage requirements, and the types of neurosurgical subspecialties covered.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the potential for inflated costs due to the lack of competition. Without competing bids, the government may not be achieving the best possible price for the services. Another risk is vendor lock-in; if the University of Miami's performance declines or they become unable to fulfill the contract, transitioning to a new provider could be difficult and costly, especially given the specialized nature of neurosurgery. There's also a risk related to performance if the government's oversight is not robust, as there's less external pressure from competitors to maintain high standards. Finally, the justification for 'not available for competition' needs to be continually re-evaluated to ensure it remains valid.

How effective is this contract likely to be in meeting the neurosurgery needs of veterans in Florida?

The effectiveness of this contract in meeting veterans' neurosurgery needs hinges on several factors. The University of Miami is a reputable institution, suggesting a high likelihood of competent service delivery. The firm-fixed-price structure and the five-year duration provide stability and predictability, which are crucial for ensuring consistent access to care. However, the effectiveness is also dependent on the VA's contract management and oversight. If the contract adequately defines service levels, response times, and quality metrics, and if the VA actively monitors performance, it should be effective. The sole-source nature, while potentially increasing cost, does not inherently reduce effectiveness if the chosen provider is capable and committed.

What are the historical spending patterns for neurosurgery physician services by the VA?

Historical spending patterns for neurosurgery physician services by the VA are not detailed in the provided data. Generally, the VA's spending on specialized medical services like neurosurgery has been substantial and is likely to be increasing due to the aging veteran population and advancements in medical technology. The VA often partners with academic medical centers to provide these high-level services, leading to contracts similar to this one. Analyzing historical data would involve examining aggregate spending across all VA facilities for neurosurgery, identifying trends in contract values, durations, and the types of entities awarded these contracts (e.g., academic institutions vs. private groups). This contract represents a specific instance of that broader spending trend.

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: 36C24820R0013

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1600 NW 10 AVE, MIAMI, FL, 33136

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,737,901

Exercised Options: $8,737,901

Current Obligation: $8,737,901

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline