VA Awards $6M Neurosurgery Services Contract to Semmes-Murphey Clinic, Facing Limited Competition

Contract Overview

Contract Amount: $6,010,012 ($6.0M)

Contractor: Semmes-Murphey Clinic, P.C.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-04-01

End Date: 2025-09-30

Contract Duration: 547 days

Daily Burn Rate: $11.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NEUROSURGERY SERVICES

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38104

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.0 million to SEMMES-MURPHEY CLINIC, P.C. for work described as: NEUROSURGERY SERVICES Key points: 1. Contract value of $6.01M for neurosurgery services. 2. Limited competition raises questions about price discovery. 3. Potential risk associated with a single provider for specialized services. 4. Healthcare sector contract with a focus on professional schools.

Value Assessment

Rating: fair

The contract value of $6.01M for neurosurgery services is difficult to benchmark without specific service details. The lack of readily available pricing data for similar contracts makes a direct comparison challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection. This approach may impact the government's ability to secure the most competitive pricing.

Taxpayer Impact: Taxpayer funds are being utilized for specialized neurosurgery services. The limited competition may result in a higher cost than if full and open competition were pursued.

Public Impact

Veterans will receive specialized neurosurgery care. Potential for increased costs due to limited competition. Ensuring quality of care from a single provider is crucial.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of pricing benchmarks
Potential for sole-source reliance

Positive Signals

Ensures specialized care for veterans
Definitive contract provides clear terms

Sector Analysis

This contract falls within the healthcare sector, specifically professional medical services. Benchmarking costs for highly specialized medical services like neurosurgery can be complex due to variations in procedures and provider expertise.

Small Business Impact

The contract does not indicate any specific provisions or set-asides for small businesses. The nature of specialized neurosurgery services may limit the ability of small businesses to compete.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The limited competition aspect warrants close monitoring to ensure fair pricing and quality of service delivery.

Related Government Programs

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

Risk Flags

Limited competition may lead to higher costs.
Lack of detailed service scope hinders value assessment.
Potential for provider lock-in.
Reliance on a single provider for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.0 million to SEMMES-MURPHEY CLINIC, P.C.. NEUROSURGERY SERVICES

Who is the contractor on this award?

The obligated recipient is SEMMES-MURPHEY CLINIC, P.C..

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 $6.0 million.

What is the period of performance?

Start: 2024-04-01. End: 2025-09-30.

What specific neurosurgery services are included in this contract, and how do they align with the needs of the veteran population?

The contract specifies 'NEUROSURGERY SERVICES' but lacks granular detail on the specific procedures, treatments, and consultations covered. Understanding the scope is crucial to assess if it adequately addresses the unique neurological health requirements of the veteran community and justifies the allocated $6.01M.

What is the justification for limiting competition on this neurosurgery contract, and what steps were taken to ensure fair pricing?

The data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a limited or sole-source justification. Further investigation is needed to understand the rationale behind this decision and the methods employed by the VA to ensure the pricing remains fair and reasonable despite the lack of competitive bidding.

How will the VA measure the effectiveness and quality of neurosurgery services provided by Semmes-Murphey Clinic under this contract?

The effectiveness will likely be measured through patient outcomes, complication rates, patient satisfaction surveys, and adherence to clinical protocols. The VA should have performance metrics and quality assurance processes in place to monitor the provider's performance throughout the contract period.

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: 36C24923R0127

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6325 HUMPHREYS BLVD, MEMPHIS, TN, 38120

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,961,820

Exercised Options: $6,010,012

Current Obligation: $6,010,012

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline