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 contract duration of 364 days suggests a need for ongoing, specialized medical services. 3. Fixed-price contract type aims to control costs, but may not account for unforeseen medical complexities. 4. The award to a university medical center indicates a focus on specialized, potentially research-adjacent, patient care. 5. Geographic focus on Illinois suggests services are for veterans in that region. 6. Lack of competition raises questions about whether the government secured the best possible value.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging due to the specialized nature of long-term living donor kidney services and the sole-source award. Without competitive bids, it's difficult to definitively assess if the $2.3 million price represents optimal value for money. However, the fixed-price structure provides some cost certainty. Comparisons to similar sole-source contracts for highly specialized medical services would be necessary for a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of Veterans Affairs did not solicit bids from multiple potential providers. This approach is typically used when only one source is capable of meeting the requirement, or in specific circumstances where competition is not feasible or advantageous. The absence of competition means there was no direct price negotiation or comparison against other market offerings.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to ensure it is receiving the most cost-effective solution available in the market.

Public Impact

Veterans receiving care at the Hines VA Hospital in Illinois will benefit from specialized long-term living donor kidney transplant services. The services provided are critical for patients with end-stage renal disease, offering a life-extending treatment option. The contract supports the delivery of advanced medical care within the VA healthcare system. This award may indirectly support the medical workforce at Loyola University of Chicago, including physicians, surgeons, nurses, and support staff involved in transplant care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential savings.
Lack of transparency in the justification for sole-source procurement.
Fixed-price contract may not fully accommodate unpredictable medical costs.
Limited data available to benchmark the value for money achieved.

Positive Signals

Award to a reputable university medical center suggests access to specialized expertise.
Fixed-price contract provides cost certainty for the defined period.
Ensures continuity of critical medical services for veterans.

Sector Analysis

The healthcare sector, particularly specialized medical services like organ transplantation, often involves complex procedures and high costs. Contracts in this area can be awarded to academic medical centers, large hospital systems, or specialized clinics. Benchmarking is difficult due to the unique nature of each case and the high degree of specialization required. The VA's spending in this category reflects its commitment to providing advanced medical care to veterans, often through partnerships with established healthcare providers.

Small Business Impact

This contract does not appear to involve a small business set-aside. Given the specialized nature of long-term living donor kidney 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

The Department of Veterans Affairs is responsible for overseeing this contract. Oversight mechanisms would typically include regular performance reviews, monitoring of service delivery against contract requirements, and financial audits. Transparency is facilitated through contract databases, but the justification for sole-source awards can sometimes be less detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Organ Transplant Services
Medical Services Contracts
Veterans Health Administration
Kidney Disease Treatment

Risk Flags

Sole-source award
Lack of competitive bidding
Specialized medical service

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 the specific justification provided by the VA for awarding this contract on a sole-source basis to Loyola University of Chicago?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under circumstances such as only one responsible source being available or when a public exigency would not permit a competitive solicitation. For specialized medical services like long-term living donor kidney services, the justification might relate to unique capabilities, existing patient relationships, or specific research affiliations that only Loyola University of Chicago possesses or can provide to the Hines VAH. A full justification would typically be documented within the contract file and may be publicly accessible through contract databases, often citing specific Federal Acquisition Regulation (FAR) clauses that permit sole-source awards.

How does the $2.3 million contract value compare to historical VA spending on similar kidney transplant services at Hines VAH or other facilities?

Direct comparison of the $2.3 million contract value to historical VA spending on similar kidney transplant services is challenging without more specific data. The provided information indicates a 364-day contract for 'LONG TERM LIVING DONOR (KIDNEY) SERVICES'. This suggests a focus on a specific aspect of kidney care, potentially including pre-transplant evaluation, post-transplant management, and coordination with living donors. Historical spending would need to be analyzed for contracts with similar scopes of work, patient populations, and service durations. Furthermore, the sole-source nature of this award means it wasn't subject to competitive pricing, which could influence its value relative to competitively procured services. A comprehensive analysis would require examining VA's contract databases for comparable services over multiple fiscal years.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure quality of care and patient outcomes?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for medical services, particularly complex ones like kidney transplant services, such agreements are crucial. They typically include metrics related to patient wait times, transplant success rates, patient survival rates post-transplant, complication rates, readmission rates, and patient satisfaction. For living donor services, KPIs might also address donor screening efficiency and donor recovery outcomes. The Department of Veterans Affairs would likely have established performance standards that Loyola University of Chicago must meet to ensure the quality and effectiveness of the care provided, with potential financial implications tied to performance.

What is the track record of Loyola University of Chicago in providing kidney transplant services, particularly to federal agencies or the VA?

Loyola University of Chicago, through its medical center, has a known track record in providing comprehensive medical services, including organ transplantation. While specific details of their past performance with the VA or other federal agencies for kidney transplant services are not provided in the data, academic medical centers like Loyola are generally recognized for their expertise in complex procedures and patient care. Their involvement in research and training often complements clinical services. A thorough assessment of their track record would involve reviewing past performance evaluations, any prior contracts with the VA, and their overall reputation within the medical community for transplant outcomes and patient management.

What are the potential 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 reduced value for money. Without competition, the government may pay a higher price than if multiple bids were solicited. There's also a risk of complacency from the sole provider, potentially impacting service quality or innovation over time, although this is often mitigated by performance monitoring. Furthermore, reliance on a single provider can create vulnerability if that provider experiences operational issues, staffing shortages, or changes in their ability to deliver services. Ensuring robust oversight and clear performance standards becomes even more critical in sole-source situations to mitigate 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: $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