VA awards $2.06M contract for organ procurement services, raising questions about competition and value

Contract Overview

Contract Amount: $2,059,060 ($2.1M)

Contractor: Gift of Hope Organ & Tissue Donor Network

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-02-01

End Date: 2026-05-31

Contract Duration: 119 days

Daily Burn Rate: $17.3K/day

Competition Type: NOT COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ORGAN PROCUREMENT AND ACQUISITION SERVICES FOR HINES VAH

Place of Performance

Location: ITASCA, DUPAGE County, ILLINOIS, 60143

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.1 million to GIFT OF HOPE ORGAN & TISSUE DONOR NETWORK for work described as: ORGAN PROCUREMENT AND ACQUISITION SERVICES FOR HINES VAH Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Short performance period (119 days) may indicate urgent need or limited scope. 3. Lack of competition raises concerns about achieving best value for taxpayer dollars. 4. The specific services procured are critical for patient care at Hines VAH. 5. Performance is concentrated in Illinois, suggesting a regional focus for these services.

Value Assessment

Rating: questionable

The contract's value of $2.06 million for a 119-day period appears high without competitive benchmarking. Given the sole-source nature, it is difficult to assess if this represents a fair market price or if alternative, more cost-effective solutions were considered. The absence of competition prevents a direct comparison to similar contracts awarded through a competitive process, making a definitive value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis. This indicates that the Department of Veterans Affairs identified a specific vendor, GIFT OF HOPE ORGAN & TISSUE DONOR NETWORK, as the only capable provider for these critical organ procurement services for Hines VAH. The lack of competition means that other potential vendors were not given an opportunity to bid, which can limit the government's ability to secure the lowest possible price.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through a competitive bidding process. This could result in a higher overall expenditure for these essential services.

Public Impact

Patients at the Hines VA Hospital will benefit from the continuity of essential organ procurement services. The contract ensures the availability of critical medical services for organ transplantation and recovery. The geographic impact is primarily within Illinois, serving the needs of veterans in that region. This contract supports specialized healthcare professionals involved in organ procurement and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs.
Short contract duration may necessitate future procurements, increasing administrative burden.
Lack of transparency in vendor selection due to sole-source nature.

Positive Signals

Ensures critical organ procurement services are available for veterans.
Award to a known entity may provide service continuity.
Specific need identified for Hines VAH.

Sector Analysis

The healthcare sector, specifically blood and organ banks (NAICS 621991), is characterized by specialized services often requiring unique capabilities and established networks. Contracts in this area can range significantly in value depending on the scope and duration. Sole-source awards are sometimes justified in healthcare when a specific provider has unique qualifications or existing infrastructure critical for immediate patient needs. However, the absence of competition warrants scrutiny to ensure fair pricing and efficient use of funds.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of organ procurement, it is likely that the primary vendor is a large, established organization. There is no information provided regarding subcontracting opportunities for small businesses within this specific award.

Oversight & Accountability

Oversight for this contract would fall under the Department of Veterans Affairs' procurement and program management offices. Accountability measures would include performance monitoring against the contract's terms and conditions, and adherence to the firm fixed price. Transparency is limited due to the sole-source nature of the award, with details on the justification for not competing the contract being crucial for full assessment.

Related Government Programs

Veterans Health Administration Medical Services
Organ Transplantation Services
Medical Equipment and Supplies Procurement

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Short contract duration may indicate a need for future, potentially larger, procurements.
Lack of detailed performance metrics in summary data hinders outcome assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.1 million to GIFT OF HOPE ORGAN & TISSUE DONOR NETWORK. ORGAN PROCUREMENT AND ACQUISITION SERVICES FOR HINES VAH

Who is the contractor on this award?

The obligated recipient is GIFT OF HOPE ORGAN & TISSUE DONOR NETWORK.

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 $2.1 million.

What is the period of performance?

Start: 2026-02-01. End: 2026-05-31.

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

The provided data indicates the contract was awarded on a sole-source basis ('CT': 'NOT COMPETED UNDER SAP'). However, the specific justification for this determination is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source is available or capable of meeting the government's needs, or in cases of urgent and compelling need. For organ procurement services, this could be due to the unique capabilities, existing infrastructure, or established relationships of the selected vendor, GIFT OF HOPE ORGAN & TISSUE DONOR NETWORK, with the Hines VA Hospital. A full justification would normally be documented by the agency and may be available through agency records or Freedom of Information Act requests.

How does the $2.06 million cost compare to similar organ procurement contracts?

Without access to a broader database of comparable federal contracts for organ procurement services, a precise benchmark is difficult. However, the value of $2.06 million for a period of approximately four months (119 days) suggests a significant daily expenditure. The sole-source nature of this award prevents a direct comparison with competitively awarded contracts, which often yield lower prices. To properly assess value, one would need to analyze contracts with similar scope, duration, and geographic coverage, ideally those awarded through full and open competition, to establish a fair market price range.

What are the potential risks associated with a sole-source award for critical healthcare services?

Sole-source awards for critical healthcare services like organ procurement carry several risks. Primarily, the lack of competition can lead to inflated prices, meaning taxpayers may not receive the best possible value for their money. It also reduces transparency in the procurement process, making it harder to verify that the chosen vendor is indeed the most qualified or cost-effective option. Furthermore, it can stifle innovation and discourage other potential vendors from entering the market or developing competitive offerings. In emergency situations, a sole-source award might be necessary, but for ongoing services, it warrants careful justification and oversight to ensure continued fairness and efficiency.

What is the track record of GIFT OF HOPE ORGAN & TISSUE DONOR NETWORK with the Department of Veterans Affairs?

The provided data identifies GIFT OF HOPE ORGAN & TISSUE DONOR NETWORK as the contractor. However, it does not offer details on their past performance or track record specifically with the Department of Veterans Affairs (VA) or other federal agencies. To assess their track record, one would need to examine historical contract awards, performance evaluations (if publicly available), and any reported issues or successes in fulfilling previous government contracts. This information is crucial for understanding their reliability and capability in delivering the required organ procurement services.

What is the expected impact of this contract on veteran healthcare outcomes at Hines VAH?

This contract is directly aimed at ensuring the availability of critical organ procurement services for patients at the Hines VA Hospital. By securing these services, the contract is expected to facilitate timely organ transplantation procedures, which can be life-saving for veterans suffering from end-stage organ failure. The successful execution of this contract should lead to improved health outcomes, reduced waiting times for transplants, and overall enhanced quality of care for the veteran population served by Hines VAH. The continuity of these services is paramount for maintaining the hospital's capacity to perform complex medical interventions.

Are there any specific performance metrics or deliverables outlined in the contract?

The provided data snippet does not include specific performance metrics or deliverables for this contract. Typically, federal contracts, especially for critical services like organ procurement, will outline detailed requirements, service level agreements (SLAs), and key performance indicators (KPIs) that the contractor must meet. These might include response times for procurement requests, standards for organ viability, logistical coordination protocols, and reporting requirements. The absence of this information in the summary data means that a thorough assessment of performance expectations and accountability would require reviewing the full contract document.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Blood and Organ Banks

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 425 SPRING LAKE DR, ITASCA, IL, 60143

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

Financial Breakdown

Contract Ceiling: $2,059,060

Exercised Options: $2,059,060

Current Obligation: $2,059,060

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25221D0027

IDV Type: IDC

Timeline