VA awards $4.18M for kidney services, but competition details are unavailable

Contract Overview

Contract Amount: $4,182 ($4.2K)

Contractor: Loyola University of Chicago

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-06-30

End Date: 2026-06-29

Contract Duration: 364 days

Daily Burn Rate: $11/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LONG TERM LIVE DONOR (KIDNEY) SERVICES FOR HINES VAH

Place of Performance

Location: MAYWOOD, COOK County, ILLINOIS, 60153

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4,181.62 to LOYOLA UNIVERSITY OF CHICAGO for work described as: LONG TERM LIVE DONOR (KIDNEY) SERVICES FOR HINES VAH Key points: 1. Contract value appears reasonable given the specialized nature of long-term organ services. 2. Limited competition data makes it difficult to assess optimal price discovery. 3. Potential risks include reliance on a single provider for critical patient care. 4. Performance context is crucial for understanding the quality of services delivered. 5. This contract falls within the healthcare sector, specifically supporting veteran medical needs. 6. The duration of the contract suggests a stable, ongoing requirement for these services.

Value Assessment

Rating: fair

Benchmarking the value of specialized medical services like long-term donor support is complex. Without comparable contracts or detailed service breakdowns, it's challenging to definitively assess if the $4.18 million represents excellent value. However, the firm-fixed-price structure suggests cost certainty for the VA. The absence of competition data, though, raises questions about whether the price reflects the most competitive market rate achievable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source can provide the required services. The lack of competition means that the VA did not benefit from multiple bids, which could have driven down the price or offered alternative solutions.

Taxpayer Impact: For taxpayers, a sole-source award means there's a reduced likelihood of achieving the lowest possible price compared to a fully competed contract. It also limits transparency into the pricing justification.

Public Impact

Veterans requiring long-term kidney donor services at Hines VAH are the primary beneficiaries. The contract ensures the continuity of essential medical care for patients with end-stage renal disease. Services are geographically focused on supporting veterans within the service area of Hines VA Hospital in Illinois. This contract supports specialized healthcare professionals and administrative staff involved in donor management and patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may lead to higher costs than market rates.
Sole-source awards can limit innovation and alternative service delivery models.
Dependence on a single provider could create risks if performance issues arise.
Transparency regarding the justification for sole-source award is limited.

Positive Signals

Ensures continuity of critical healthcare services for vulnerable veterans.
Firm-fixed-price contract provides cost predictability for the agency.
Specialized nature of service may necessitate a single, qualified provider.

Sector Analysis

The healthcare sector, particularly within the federal government, involves significant spending on medical services and equipment. Contracts for specialized care, such as organ donor services, are often complex and may involve fewer providers due to unique requirements and certifications. The Department of Veterans Affairs is a major purchaser of healthcare services, aiming to provide comprehensive care to its beneficiaries.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of long-term donor services, it is unlikely that small businesses would be the primary providers. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the scope of this award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures would be defined in the contract's performance work statement. Transparency is somewhat limited due to the sole-source nature of the award, but contract details should be publicly available through federal procurement databases.

Related Government Programs

VA Medical Services Contracts
Organ Transplant Services
Federally Funded Healthcare
Long-Term Care Services

Risk Flags

Sole-source award limits price competition.
Lack of detailed performance metrics in provided data.
Potential for cost overruns if market rates fluctuate significantly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4,181.62 to LOYOLA UNIVERSITY OF CHICAGO. LONG TERM LIVE DONOR (KIDNEY) SERVICES FOR HINES VAH

Who is the contractor on this award?

The obligated recipient is LOYOLA UNIVERSITY OF CHICAGO.

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 $4,181.62.

What is the period of performance?

Start: 2025-06-30. End: 2026-06-29.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification would typically be documented by the agency in a Justification for Other Than Full and Open Competition (JOFOC) or similar document. Common reasons for sole-source awards in healthcare include the unique qualifications of a single provider, the urgency of the need where competition is impractical, or when only one source possesses the necessary specialized knowledge or equipment. For long-term donor services, it might relate to established patient relationships, specific accreditation, or unique logistical capabilities that only Loyola University of Chicago possesses for the Hines VAH patient population.

How does the $4.18 million contract value compare to similar long-term kidney donor service contracts?

Directly comparing this $4.18 million contract value to similar long-term kidney donor service contracts is challenging without access to a broader dataset of comparable federal awards. The cost of such services can vary significantly based on the scope of work (e.g., donor matching, pre-operative care, post-operative support, long-term patient monitoring), the number of patients served, the geographic location, and the specific services included. The firm-fixed-price nature of this contract suggests a defined scope and cost for the 364-day period. To benchmark effectively, one would need to identify contracts with similar patient populations, service inclusions, and contract durations awarded by the VA or other federal health agencies.

What are the key performance indicators (KPIs) that will be used to evaluate the contractor's performance?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for long-term donor services, typical KPIs would likely focus on patient outcomes, such as graft survival rates, patient survival rates, complication rates, and patient satisfaction. Other KPIs might include timeliness of donor matching, adherence to clinical protocols, and efficient management of patient care pathways. The contract's Performance Work Statement (PWS) would detail these specific metrics, along with acceptable performance levels and any associated remedies for non-performance. The VA's quality assurance personnel would monitor these KPIs throughout the contract period.

What is the historical spending trend for kidney donor services at Hines VAH or the VA overall?

Historical spending data for kidney donor services specifically at Hines VAH or for the VA overall is not provided in the current data extract. To analyze this, one would need to query federal procurement databases (like FPDS or USASpending.gov) for past contracts related to 'kidney donor services,' 'transplant services,' or similar terms awarded to Hines VAH or the Department of Veterans Affairs. Examining trends over several fiscal years would reveal if spending has increased, decreased, or remained stable, and whether this contract represents a continuation of previous service levels or a new initiative. It would also help identify if this sole-source award is a recurring pattern for these services.

Are there any identified risks associated with Loyola University of Chicago as the sole provider for these services?

The primary risk associated with a sole-source award to any single provider, including Loyola University of Chicago, is the potential for reduced price competition and a lack of alternative options if performance issues arise. While Loyola University is likely chosen for its established expertise and capabilities, reliance on one entity for critical, long-term patient care introduces dependency. Risks could include potential disruptions in service delivery due to unforeseen circumstances affecting the contractor, or the possibility that the fixed price may not remain competitive over the contract term if market conditions change significantly. The VA's oversight and contract management are crucial to mitigating these risks.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2160 S 1ST AVE, MAYWOOD, IL, 60153

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: $4,182

Exercised Options: $4,182

Current Obligation: $4,182

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25222D0061

IDV Type: IDC

Timeline