VA awards $2.3M kidney transplant services contract to Loyola University of Chicago for Hines VAH

Contract Overview

Contract Amount: $2,300 ($2.3K)

Contractor: Loyola University of Chicago

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-06

End Date: 2027-04-05

Contract Duration: 364 days

Daily Burn Rate: $6/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 $2,300 to LOYOLA UNIVERSITY OF CHICAGO for work described as: LONG TERM LIVING DONOR (KIDNEY) SERVICES FOR HINES VAH Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. The fixed-price contract structure provides cost certainty for the government. 3. Performance period of one year with potential for extensions indicates ongoing need. 4. Services are critical for veteran healthcare, specifically for kidney transplant patients. 5. Geographic concentration in Illinois may limit access for veterans outside the immediate area.

Value Assessment

Rating: fair

The contract value of $2.3 million for one year of kidney transplant services appears to be within a reasonable range for specialized medical care. However, without direct comparable contract data for similar services at other VA facilities or with other academic medical centers, a precise value-for-money assessment is challenging. The firm-fixed-price structure helps control costs, but the lack of competition means there's no benchmark to ensure the most competitive pricing was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Loyola University of Chicago, was solicited. This approach is typically used when a unique capability or circumstance exists, such as a pre-existing relationship or specialized expertise. The absence of competition means that the government did not benefit from a bidding process that could have driven down prices or spurred innovation from multiple providers.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the lack of competitive bidding. The government's ability to negotiate favorable terms is reduced when only one source is considered.

Public Impact

Veterans requiring kidney transplant services at the Hines VA Hospital will receive critical medical care. The contract supports specialized medical professionals and facilities at Loyola University of Chicago. The primary geographic impact is for veterans residing in or near Illinois. This contract sustains employment for healthcare workers involved in transplant services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the justification for sole-source award.
Potential for vendor lock-in if similar services are not competitively bid in the future.

Positive Signals

Ensures continuity of care for veterans needing kidney transplants.
Leverages established expertise of a known academic medical institution.
Firm-fixed-price contract provides budget certainty.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on specialized medical services. The market for transplant services is highly specialized, often dominated by academic medical centers and large hospital systems with the necessary infrastructure, expertise, and regulatory approvals. Benchmarking this contract against broader healthcare spending is difficult due to its niche nature, but it represents a critical component of the VA's commitment to providing advanced medical care to veterans.

Small Business Impact

This contract does not appear to involve small business set-asides. Given the specialized nature of kidney transplant services, it is unlikely that small businesses would be primary providers. There is no information provided regarding subcontracting opportunities for small businesses, but it is probable that any subcontracting would be with other specialized medical providers or suppliers.

Oversight & Accountability

Oversight of this contract would primarily fall under the Department of Veterans Affairs (VA) contracting officers and program managers. The VA has internal oversight mechanisms to monitor contract performance and ensure compliance with terms and conditions. Transparency is facilitated through contract databases, but the specific details of performance monitoring and accountability measures are not publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Transplant Services
Organ Donation and Transplantation
Medical Services for Veterans
Academic Medical Center Partnerships

Risk Flags

Sole-source award
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2,300 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 $2,300.

What is the period of performance?

Start: 2026-04-06. End: 2027-04-05.

What is Loyola University of Chicago's track record with the VA for providing transplant services?

Information regarding Loyola University of Chicago's specific track record with the VA for providing kidney transplant services is not detailed in the provided data. However, the award of this contract suggests a pre-existing relationship or a demonstrated capability that the VA deemed sufficient for a sole-source award. To fully assess their track record, one would need to review past performance evaluations, previous contract history with the VA for similar services, and any reported issues or successes in delivering transplant care. Without this historical context, it's difficult to gauge their reliability and effectiveness beyond the current award.

How does the $2.3 million contract value compare to market rates for similar kidney transplant services?

A precise comparison of the $2.3 million contract value to market rates for similar kidney transplant services is challenging without access to detailed cost breakdowns and specific service inclusions. Transplant services are highly complex and vary significantly in cost based on the type of transplant, pre- and post-operative care, and associated medical resources. Generally, academic medical centers like Loyola University of Chicago are significant providers of such specialized care. While the firm-fixed-price nature offers predictability, the sole-source award prevents a direct market benchmark. To assess value, one would need to compare the scope of services and expected patient volume against publicly available data or reports from other large healthcare systems or the VA's own internal benchmarks for comparable procedures.

What are the primary risks associated with awarding this contract on a sole-source basis?

The primary risk associated with awarding this contract on a sole-source basis is the potential for inflated pricing due to the lack of competition. Without multiple bidders vying for the contract, Loyola University of Chicago may not have been incentivized to offer the most cost-effective solution. This can lead to taxpayers potentially overpaying for the services rendered. Another risk is the missed opportunity to foster competition within the market for transplant services, which could lead to greater innovation and efficiency in the long run. Furthermore, sole-source awards can sometimes raise concerns about transparency and fairness in the procurement process, although justifications are typically required.

How effective is the VA in ensuring quality of care for transplant services through sole-source contracts?

The VA's effectiveness in ensuring quality of care through sole-source contracts for transplant services relies heavily on its internal oversight, performance monitoring, and the established reputation and capabilities of the chosen provider. While competition can drive quality improvements, specialized services like organ transplants often require unique expertise and infrastructure that may only be available from a limited number of institutions. In such cases, the VA must implement robust performance metrics, regular reviews, and clear quality standards within the contract itself. The VA's ability to enforce these standards and intervene if quality declines is crucial. The long-term success of this contract will depend on diligent contract management and adherence to high medical standards by Loyola University of Chicago.

What are the historical spending patterns for kidney transplant services at Hines VAH or within the VA system?

Historical spending patterns for kidney transplant services at Hines VAH or within the broader VA system are not provided in the current data. To analyze this, one would need to examine past VA contracts for similar services, noting the award amounts, durations, and the contractors involved. Understanding historical spending can reveal trends in pricing, the prevalence of sole-source versus competitive awards, and the overall investment the VA makes in transplant care. This context is essential for evaluating the current $2.3 million award not just on its face value, but in relation to past expenditures and potential changes in service costs or demand over time.

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: $2,300

Exercised Options: $2,300

Current Obligation: $2,300

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25222D0061

IDV Type: IDC

Timeline