VA awards $2.77M contract for kidney services, highlighting a critical need for long-term care at Hines VAH

Contract Overview

Contract Amount: $2,773 ($2.8K)

Contractor: Loyola University of Chicago

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-08-29

End Date: 2026-08-28

Contract Duration: 364 days

Daily Burn Rate: $8/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LONG TERM LIVING 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 $2,773.26 to LOYOLA UNIVERSITY OF CHICAGO for work described as: LONG TERM LIVING DONOR (KIDNEY) SERVICES FOR HINES VAH Key points: 1. Contract addresses essential long-term patient care, indicating a sustained demand for specialized medical services. 2. Sole-source award suggests limited market availability or unique capabilities required for these services. 3. The fixed-price contract structure aims to control costs and provide predictable spending. 4. Performance period of one year allows for regular reassessment of needs and contractor performance. 5. Focus on kidney services points to a significant health challenge within the veteran population served by Hines VAH. 6. Geographic concentration in Illinois impacts local healthcare providers and patient access.

Value Assessment

Rating: fair

The contract value of $2.77 million for one year of kidney services appears to be within a reasonable range for specialized medical care. However, without specific benchmarks for long-term kidney donor services, a direct value-for-money assessment is challenging. The sole-source nature of the award means there was no direct price competition to establish a market-driven rate. Further analysis would require comparing this to similar contracts for comparable services at other VA facilities or civilian hospitals, considering the scope of services, patient volume, and required expertise.

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 typically occurs when a unique capability or specialized service is required, or when there is a lack of competition in the market. The absence of a competitive bidding process limits the government's ability to explore alternative pricing and potentially secure a lower cost. The justification for a sole-source award needs to be robust to ensure taxpayer funds are used efficiently.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as they bypass the price discovery benefits of a competitive market. This limits opportunities for other qualified providers to offer their services and potentially drive down prices.

Public Impact

Veterans requiring long-term kidney donor services at Hines VA Hospital will benefit from continuous and specialized medical care. The contract ensures the provision of critical healthcare services, directly impacting patient health outcomes and quality of life. Services are geographically focused on Illinois, supporting veterans in the region. The contract supports specialized healthcare professionals and potentially ancillary staff involved in kidney services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Lack of detailed performance metrics in the provided data makes it difficult to assess service quality.
The one-year duration may not fully address long-term strategic needs for kidney services.
Limited information on the specific scope of 'donor services' could lead to unforeseen costs or service gaps.

Positive Signals

Addresses a critical and specialized healthcare need for veterans.
Fixed-price contract provides cost certainty for the duration of the award.
Awarding to Loyola University of Chicago suggests leveraging established medical expertise.
Ensures continuity of care for patients requiring long-term kidney support.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on specialized medical services. The market for long-term kidney care and donor services is highly specialized, often involving academic medical centers or dedicated transplant facilities. Comparable spending benchmarks would typically be found within the broader healthcare services category, but the niche nature of donor services makes direct comparisons difficult. The VA's consistent need for such services underscores the significant healthcare demands within the veteran population.

Small Business Impact

The provided data indicates that small business participation is not a factor in this contract (ss: false, sb: false). As this is a sole-source award to a large university, there are no explicit small business set-aside provisions. Subcontracting opportunities for small businesses are not detailed in this award notice, and it is unlikely to be a significant component given the specialized nature of the services and the prime contractor's profile.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs (VA). Accountability measures are embedded within the contract's terms and conditions, including the fixed-price structure which limits cost overruns. Transparency is facilitated through contract award databases, though detailed operational performance data may be internal to the VA. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Medical Care Programs
Organ Transplantation Services
Chronic Kidney Disease Management
Veteran Health Services
Specialized Medical Services Contracts

Risk Flags

Sole-source award requires strong justification.
Limited competition may impact price.
Scope of 'donor services' needs clarification.
Performance metrics not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2,773.26 to LOYOLA UNIVERSITY OF CHICAGO. LONG TERM LIVING 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 $2,773.26.

What is the period of performance?

Start: 2025-08-29. End: 2026-08-28.

What is the specific scope of 'LONG TERM LIVING DONOR (KIDNEY) SERVICES' covered under this contract?

The provided data does not detail the specific scope of 'LONG TERM LIVING DONOR (KIDNEY) SERVICES.' Typically, such services could encompass a range of activities including patient evaluation, donor matching, pre-operative care for both donor and recipient, surgical procedures, and post-operative monitoring and long-term management of transplant recipients. Given the award to Loyola University of Chicago, a major academic medical institution, it is likely that these services are comprehensive and integrated, potentially including research and educational components alongside direct patient care. A more detailed statement of work (SOW) would be required to fully understand the breadth and depth of services.

How does the $2.77 million contract value compare to similar kidney service contracts within the VA or other federal agencies?

Direct comparison of the $2.77 million contract value for one year of kidney donor services is challenging without access to a comprehensive database of similar sole-source or competitively procured contracts for highly specialized medical services. Kidney transplantation and long-term donor management are complex and costly procedures. While $2.77 million for a year of such services might seem substantial, it could be cost-effective depending on the volume of patients served, the complexity of cases, and the specific services included (e.g., pre-transplant workups, surgical costs, post-transplant care, immunosuppression management). Benchmarking would ideally involve comparing per-patient costs or total contract values for similar service scopes at other VA facilities or large healthcare systems.

What is Loyola University of Chicago's track record in providing kidney donor services to the federal government?

Loyola University of Chicago, through its health system (Loyola Medicine), has a recognized track record in providing advanced medical services, including kidney transplantation and related care. While specific contract history with the federal government for 'kidney donor services' is not detailed in the provided award notice, academic medical centers like Loyola are often sought for their expertise in complex procedures. Their established transplant programs suggest a capability to manage such contracts. Further investigation into federal procurement databases (like SAM.gov or FPDS) would be necessary to identify past federal contracts awarded to Loyola University of Chicago or its affiliated entities for similar healthcare services.

What are the primary risks associated with a sole-source award for critical healthcare services like kidney donor services?

The primary risks associated with a sole-source award for critical healthcare services include potential lack of price competition, which could lead to higher costs for taxpayers. There's also a risk of vendor lock-in, where the government becomes dependent on a single provider, potentially reducing incentives for innovation or service improvement. Furthermore, without a competitive process, it can be harder to verify that the chosen vendor offers the absolute best value or possesses unique capabilities demonstrably superior to other potential providers. Ensuring robust oversight and performance management becomes even more critical in sole-source situations to mitigate these risks and guarantee quality and efficiency.

How does this contract align with the VA's overall spending on healthcare services for veterans, particularly those with chronic conditions?

This contract aligns with the VA's significant investment in healthcare services, particularly for veterans with chronic conditions like kidney disease. The VA consistently allocates substantial portions of its budget to medical care, including specialized services such as transplantation and long-term disease management. Kidney disease affects a considerable number of veterans due to service-related conditions (e.g., diabetes, hypertension) or other factors. Awards like this reflect the VA's commitment to providing comprehensive care, ensuring veterans have access to necessary treatments, including complex procedures like kidney transplants, to manage their health effectively.

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: $2,773

Exercised Options: $2,773

Current Obligation: $2,773

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25222D0061

IDV Type: IDC

Timeline