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 veterans requiring long-term kidney support. 5. Geographic focus on Illinois suggests a localized service delivery model.

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 specific benchmarks for similar services at other VA facilities or academic medical centers, a precise value-for-money assessment is challenging. The sole-source nature of the award means direct price comparisons with competing bids are not possible, which could potentially lead to a higher price than if the contract were competed.

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 specific capabilities or circumstances justify not competing the award. The lack of competition means that the government did not benefit from a bidding process that could drive down prices or encourage innovative solutions from multiple providers.

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

Public Impact

Veterans at the Hines VA Hospital in Illinois requiring long-term kidney transplant services will receive critical medical care. The contract ensures continuity of care for patients with end-stage renal disease. The services directly support the health and well-being of a vulnerable veteran population. The contract supports specialized medical professionals and facilities at Loyola University of Chicago.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of detailed performance metrics in the provided data makes assessing effectiveness difficult.
Potential for price increases in future years if competition is not introduced.

Positive Signals

Contract ensures critical, specialized medical services for veterans.
Fixed-price contract provides budget predictability.
Established relationship with a known provider (Loyola University) may ensure smooth service delivery.

Sector Analysis

The healthcare sector, particularly within government medical services, often involves complex and specialized care. Contracts for transplant services are typically awarded to institutions with advanced medical facilities and expertise. Benchmarking this contract against other federal healthcare procurements for similar transplant services would require access to detailed service scopes and pricing from comparable awards, but the $2.3 million value for a year of specialized care is consistent with the high costs associated with such medical interventions.

Small Business Impact

This contract does not appear to involve a small business set-aside. 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 within this award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs (VA) administration, specifically the Hines VA Hospital. The VA has established procurement regulations and contract management processes. Inspector General oversight is also a standard mechanism within the VA to ensure accountability and prevent fraud, waste, and abuse in all its contracts, including medical services.

Related Government Programs

VA Medical Services Contracts
Organ Transplant Programs
Federally Funded Healthcare Providers
Academic Medical Center Partnerships

Risk Flags

Sole-source award may limit price competition.
Lack of detailed performance metrics in provided data.
Potential for cost increases in future contract periods if competition is not introduced.

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 in providing kidney transplant services, particularly to the VA?

Loyola University of Chicago, through its medical center, has a recognized history in providing advanced medical services, including organ transplantation. While specific details of their past performance with the VA for kidney transplant services are not provided in this data, academic medical centers like Loyola are often sought for their expertise and infrastructure. Their established presence and capabilities suggest a capacity to deliver these complex procedures. Further investigation would involve reviewing past performance evaluations, if available, and examining their history of successful transplant outcomes and patient care quality.

How does the $2.3 million contract value compare to similar kidney transplant service contracts awarded by the VA or other federal agencies?

A direct comparison of the $2.3 million contract value for one year of kidney transplant services is challenging without access to a comprehensive database of similar federal procurements. Transplant services are highly specialized and costs can vary significantly based on the scope of services (e.g., pre-transplant evaluation, surgical procedures, post-operative care, immunosuppression management), patient volume, and geographic location. However, given the complexity and resource-intensive nature of kidney transplants, $2.3 million for a year's worth of comprehensive services at a major academic medical center is likely within the expected range. The sole-source nature of this award, however, prevents a direct competitive benchmark.

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

The primary risk associated with a sole-source award for critical medical services like kidney transplants is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not achieve the most cost-effective outcome. Additionally, sole-source awards can limit opportunities for innovation that might arise from a competitive bidding process. There's also a risk of vendor lock-in, where the government becomes dependent on a single provider, potentially reducing leverage in future negotiations. Ensuring fair pricing and adequate service levels requires robust oversight and negotiation by the contracting agency.

How effective is the fixed-price contract type in managing costs and ensuring value for these specialized medical services?

The firm fixed-price (FFP) contract type is generally favored for its cost control benefits, as it shifts the risk of cost overruns to the contractor. For specialized medical services like kidney transplants, an FFP contract provides budget certainty for the Department of Veterans Affairs. However, the effectiveness in ensuring value depends on how well the price was negotiated initially and whether the scope of work is clearly defined. If the fixed price was set too high due to the sole-source nature, the value proposition might be diminished. Conversely, if the contractor underbids to secure the contract, they might face challenges in delivering the full scope of services without compromising quality, although the FFP structure aims to prevent this.

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 detailed in the provided data. To assess this, one would need to analyze past contract awards for similar services, noting the values, durations, and number of bidders over several fiscal years. Understanding these patterns is crucial for identifying trends, potential cost increases, and the typical procurement strategies employed by the VA for such specialized medical care. This analysis would help determine if the current $2.3 million award represents an increase or decrease compared to historical expenditures and whether the shift to a sole-source award deviates from previous competitive practices.

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