VA awards $2.3M interventional radiology services contract to University of Wisconsin Medical Foundation

Contract Overview

Contract Amount: $2,269,233 ($2.3M)

Contractor: University of Wisconsin Medical Foundation, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-10-01

End Date: 2026-09-30

Contract Duration: 2,190 days

Daily Burn Rate: $1.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: INTERVENTIONAL RADIOLOGY SERVICES FOR MADISON VAH

Place of Performance

Location: MADISON, DANE County, WISCONSIN, 53705

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.3 million to UNIVERSITY OF WISCONSIN MEDICAL FOUNDATION, INC for work described as: INTERVENTIONAL RADIOLOGY SERVICES FOR MADISON VAH Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration of approximately 6 years suggests a long-term need for these specialized services. 3. Awarded to a single entity, raising questions about the extent of competition and potential cost efficiencies. 4. The North American Industry Classification System (NAICS) code 611310 points to educational services, which may not fully capture the specialized medical nature of the contract. 5. The contract is not set aside for small businesses, suggesting larger entities were considered or participated. 6. The absence of a specific Product Service Code (PSC) might indicate a unique or broadly categorized service offering.

Value Assessment

Rating: fair

The contract value of $2.3 million over approximately six years for interventional radiology services appears reasonable for a single academic medical institution. However, without comparable contract data for similar services at other VA facilities or within the broader healthcare market, a definitive value-for-money assessment is challenging. The firm-fixed-price structure helps control costs, but the lack of competition could mean the government is not benefiting from the most competitive pricing available.

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. This approach is typically used when only one responsible source is available or when a compelling justification exists for not seeking competition. The limited competition raises concerns about whether the government secured the best possible price and service 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 lowest prices.

Public Impact

Veterans at the Madison VA hospital will receive specialized interventional radiology services. This contract ensures continuity of care for patients requiring procedures like angioplasty, stenting, and biopsies. The services are geographically focused on supporting the Madison, Wisconsin area. The contract supports the operational capacity of the University of Wisconsin Medical Foundation, potentially impacting its medical staff and resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source award requires strong justification to ensure taxpayer value.
Potential for vendor lock-in due to long-term, specialized nature of services.

Positive Signals

Award to an established academic medical institution suggests a high level of expertise.
Firm-fixed-price contract provides cost certainty.
Long contract duration indicates a stable and ongoing need for these critical services.

Sector Analysis

The healthcare sector, particularly within government and academic medical centers, relies heavily on specialized services like interventional radiology. This contract falls within the broader category of medical services and equipment provision. Benchmarking this contract's value is difficult without specific data on per-procedure costs or comparable service agreements. However, the University of Wisconsin Medical Foundation is a significant healthcare provider, suggesting the contract aligns with the capabilities of large, specialized institutions.

Small Business Impact

This contract was not awarded as a small business set-aside. The sole-source nature of the award further indicates that small businesses were not specifically targeted or considered through a competitive process for this particular requirement. There is no information provided regarding subcontracting plans with small businesses.

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. The firm-fixed-price nature of the contract simplifies some aspects of financial oversight. However, the specific mechanisms for monitoring the quality and appropriateness of the interventional radiology services provided would be detailed within the contract's statement of work and managed by VA contracting officers and program managers.

Related Government Programs

VA Medical Services Contracts
Interventional Radiology Services
Academic Medical Center Partnerships
Healthcare Services for Veterans

Risk Flags

Sole-source award lacks competitive pricing pressure.
NAICS code may not fully represent the specialized medical service.
Limited transparency on specific performance metrics and value benchmarks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.3 million to UNIVERSITY OF WISCONSIN MEDICAL FOUNDATION, INC. INTERVENTIONAL RADIOLOGY SERVICES FOR MADISON VAH

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF WISCONSIN MEDICAL FOUNDATION, 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 $2.3 million.

What is the period of performance?

Start: 2020-10-01. End: 2026-09-30.

What is the track record of the University of Wisconsin Medical Foundation, Inc. in performing similar government contracts?

The University of Wisconsin Medical Foundation, Inc. has a history of engaging in contracts with government entities, including the Department of Veterans Affairs. While specific details on past performance for interventional radiology services are not provided in this data, their status as a large academic medical foundation suggests a capacity for complex medical service delivery. Further investigation into their contract history, including any past performance reviews or awards from the VA or other federal agencies, would be necessary to fully assess their track record for this specific type of service. This would include examining any previous sole-source awards or competitive bids they may have won for similar medical procedures or healthcare support.

How does the pricing of this contract compare to similar interventional radiology services procured by the VA or other federal agencies?

Direct comparison of the pricing for this $2.3 million, approximately six-year contract is challenging without access to detailed cost breakdowns or data on comparable interventional radiology services procured by the VA or other federal agencies. The contract is firm-fixed-price, which offers cost certainty but does not inherently guarantee the lowest possible price, especially given its sole-source nature. To benchmark effectively, one would need to analyze the cost per procedure, the scope of services included, and the specific patient population served against similar contracts. The absence of a specific Product Service Code (PSC) also complicates direct comparisons, as it may fall under a broader service category.

What are the primary risks associated with this sole-source contract for interventional radiology services?

The primary risk associated with this sole-source contract is the potential for suboptimal pricing due to the lack of competition. When a contract is awarded to a single vendor without a competitive bidding process, there is less pressure on the contractor to offer the most cost-effective solution. This could lead to the government paying more than necessary for the services. Another risk is vendor dependency; the VA becomes reliant on the University of Wisconsin Medical Foundation for these specialized services, and any disruption in their ability to provide them could impact veteran care. Ensuring robust oversight and performance monitoring becomes crucial to mitigate these risks.

How effective is the Department of Veterans Affairs in managing sole-source contracts for specialized medical services?

The effectiveness of the VA in managing sole-source contracts for specialized medical services can vary. The VA has established procedures for justifying and awarding sole-source contracts, typically requiring a strong rationale, such as the unavailability of alternative sources or unique capabilities. When managed properly, these contracts can ensure access to critical, specialized care that might not otherwise be available. However, the inherent risk of higher costs and reduced price discovery necessitates rigorous oversight, including detailed performance metrics, regular reviews, and strong contract administration to ensure the government receives fair value and that services meet quality standards. Transparency in the justification process is also key to public trust.

What are the historical spending patterns for interventional radiology services within the Department of Veterans Affairs?

Historical spending patterns for interventional radiology services within the VA are not detailed in the provided data. This specific contract represents a $2.3 million award over approximately six years. To understand broader spending trends, one would need to analyze aggregate VA expenditures on interventional radiology across multiple facilities and contract types over several fiscal years. This analysis would reveal whether spending has been increasing or decreasing, the prevalence of sole-source versus competitive awards, and the average contract values. Such data would provide context for the current award and help identify potential areas for cost savings or improved procurement strategies.

What is the significance of the NAICS code 611310 (Colleges, Universities, and Professional Schools) for this contract?

The assignment of NAICS code 611310, 'Colleges, Universities, and Professional Schools,' to this contract is noteworthy. While the University of Wisconsin Medical Foundation is indeed an academic institution, this code primarily categorizes educational services. Interventional radiology is a highly specialized clinical medical service. Using this NAICS code might suggest the contract is structured around the educational and training aspects provided by the university's medical faculty, or it could be a broad categorization where the primary contractor is an educational entity. It raises a question about whether a more specific healthcare-related NAICS code might have been more appropriate for accurately reflecting the core services being procured, potentially impacting how this spending is tracked and benchmarked within the healthcare sector.

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: 36C25220R0024

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7974 UW HEALTH CT, MIDDLETON, WI, 53562

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

Financial Breakdown

Contract Ceiling: $2,269,233

Exercised Options: $2,269,233

Current Obligation: $2,269,233

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline