VA awards $3.18M for Tupelo CBOC services to Sterling Medical Associates, Inc

Contract Overview

Contract Amount: $3,179,159 ($3.2M)

Contractor: Sterling Medical Associates, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-01

End Date: 2026-03-28

Contract Duration: 178 days

Daily Burn Rate: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TUPELO CBOC SERVICES, TUPELO, MS

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38106

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.2 million to STERLING MEDICAL ASSOCIATES, INC for work described as: TUPELO CBOC SERVICES, TUPELO, MS Key points: 1. Contract awarded to Sterling Medical Associates, Inc. for outpatient care services. 2. The contract is valued at $3.18 million over 178 days. 3. Full and open competition was utilized for this award. 4. The North American Industry Classification System (NAICS) code is 621498.

Value Assessment

Rating: good

The contract value of $3.18 million for 178 days suggests a daily rate of approximately $17,860. This appears reasonable for specialized outpatient care services, though a direct comparison requires more detailed service scope data.

Cost Per Unit: $17,860 per day

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The use of full and open competition is expected to yield a fair market price, maximizing taxpayer value for the essential healthcare services provided.

Public Impact

Veterans in Tupelo, MS will continue to receive essential outpatient care services. The contract ensures continuity of care for beneficiaries of the Department of Veterans Affairs. The award supports healthcare infrastructure and service delivery within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration (178 days) may indicate a need for future re-competition or potential instability.
Lack of small business participation noted.

Positive Signals

Awarded under full and open competition.
Clear NAICS code and agency identified.
Favorable daily rate benchmark.

Sector Analysis

This contract falls within the healthcare services sector, specifically outpatient care centers. Spending in this area is driven by demand for accessible medical services, particularly for specific populations like veterans. Benchmarks vary widely based on service intensity and location.

Small Business Impact

The data indicates no specific set-aside for small businesses in this contract award. Further analysis would be needed to determine if small businesses were excluded or simply did not bid on this particular opportunity.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and contract management practices should ensure accountability and performance, though the short duration warrants close monitoring.

Related Government Programs

All Other Outpatient Care Centers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Short contract duration.
No small business participation noted.
Potential for service disruption if follow-on contract is delayed.
Limited data on specific services for precise benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.2 million to STERLING MEDICAL ASSOCIATES, INC. TUPELO CBOC SERVICES, TUPELO, MS

Who is the contractor on this award?

The obligated recipient is STERLING MEDICAL ASSOCIATES, 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 $3.2 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-03-28.

What specific services are included in 'All Other Outpatient Care Centers' to accurately benchmark the daily rate?

The specific services under NAICS 621498, 'All Other Outpatient Care Centers,' can encompass a broad range of medical treatments and diagnostic services outside of traditional hospital settings. This includes clinics for specialized care, mental health services, substance abuse treatment, and diagnostic imaging centers. Without a detailed service description, precise benchmarking against similar contracts is challenging, but the daily rate of $17,860 suggests a comprehensive service offering.

What is the risk associated with the short contract duration of 178 days?

A short contract duration like 178 days presents a risk of service disruption if a follow-on contract is not awarded in a timely manner. It can also lead to increased administrative burden and costs for both the government and the contractor due to frequent re-procurement processes. This may also deter potential bidders who prefer longer-term commitments, potentially limiting future competition.

How effectively does this contract ensure continuous and high-quality care for veterans in the Tupelo area?

The contract's primary goal is to ensure continuous care, and awarding it under full and open competition suggests an effort to secure a capable provider. However, the short duration raises questions about long-term stability and potential vendor turnover. The VA's oversight will be crucial in monitoring service quality and ensuring a seamless transition if a new contract is needed.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › All Other Outpatient Care Centers

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 411 OAK ST, CINCINNATI, OH, 45219

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

Financial Breakdown

Contract Ceiling: $3,179,159

Exercised Options: $3,179,159

Current Obligation: $3,179,159

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24921D0012

IDV Type: IDC

Timeline