VA awards $2.4M task order for anesthesiology services to ASPIRE-LUKE JV LLC

Contract Overview

Contract Amount: $2,419,615 ($2.4M)

Contractor: Aspire-Luke JV LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-15

End Date: 2026-12-14

Contract Duration: 364 days

Daily Burn Rate: $6.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TASK ORDER FOR ANESTHESIOLOGY SERVICES FOR THE COLUMBIA VAMC

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78216

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.4 million to ASPIRE-LUKE JV LLC for work described as: TASK ORDER FOR ANESTHESIOLOGY SERVICES FOR THE COLUMBIA VAMC Key points: 1. The contract is a firm-fixed-price delivery order, indicating a clear scope and predictable cost. 2. Competition was conducted under 'Full and Open Competition After Exclusion of Sources', suggesting a potentially limited but still competitive process. 3. The contract duration is one year, aligning with typical needs for temporary staffing services. 4. The awardee, ASPIRE-LUKE JV LLC, is a joint venture, which may offer specialized capabilities. 5. The service is for anesthesiology support at the Columbia VAMC, addressing a critical healthcare need. 6. The contract value of $2.4M falls within a moderate range for specialized medical staffing services.

Value Assessment

Rating: good

The contract value of $2.4 million for a one-year period of anesthesiology services appears reasonable when benchmarked against similar temporary medical staffing contracts. The firm-fixed-price structure provides cost certainty for the Department of Veterans Affairs. Without specific details on the number of anesthesiologists or hours provided, a precise per-unit cost comparison is difficult, but the overall award seems aligned with market rates for specialized medical personnel.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under 'Full and Open Competition After Exclusion of Sources'. This procurement method indicates that while the competition was open to all eligible sources, certain sources were excluded based on specific criteria, potentially narrowing the bidder pool. The presence of 4 bids suggests a degree of competition, but the exclusion clause warrants further investigation into the rationale behind it to ensure maximum value.

Taxpayer Impact: The 'limited' competition, while potentially justified, could mean taxpayers did not benefit from the widest possible range of offers, potentially impacting price competitiveness.

Public Impact

Veterans receiving care at the Columbia VAMC will benefit from consistent anesthesiology services, ensuring timely and safe medical procedures. The contract supports the delivery of essential healthcare services within the Department of Veterans Affairs network. The geographic impact is localized to the Columbia VAMC facility in Texas. The contract may have implications for the local healthcare workforce, potentially creating opportunities for specialized medical professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause in the competition type requires scrutiny to ensure it did not unduly limit competition and potentially inflate costs.
The specific capabilities and cost structure of the joint venture awardee should be reviewed to confirm value for money.
The reliance on temporary staffing services may indicate ongoing challenges in recruiting and retaining permanent medical staff within the VA.

Positive Signals

The firm-fixed-price contract provides budget certainty for the VA.
The award to a joint venture suggests access to potentially specialized expertise in anesthesiology services.
The contract duration of one year allows for flexibility and reassessment of needs.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on medical staffing services. The market for temporary healthcare professionals, particularly specialized roles like anesthesiologists, is competitive but often faces challenges related to recruitment and retention. The Department of Veterans Affairs is a significant purchaser of healthcare services, and contracts like this are crucial for maintaining operational capacity and patient care standards across its facilities.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information on subcontracting plans. The awardee is a joint venture, which can sometimes be structured to include small business participation, but this is not explicitly stated. Further analysis would be needed to determine any potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers responsible for the Columbia VAMC. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver services within the agreed-upon cost. Transparency is generally maintained through contract databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

VA Medical Staffing Contracts
Anesthesiology Services Procurement
Temporary Healthcare Personnel Contracts
Federal Healthcare Services

Risk Flags

Limited competition due to source exclusion
Potential for contractor performance issues if JV partners are inexperienced
Reliance on temporary staffing may indicate underlying recruitment challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.4 million to ASPIRE-LUKE JV LLC. TASK ORDER FOR ANESTHESIOLOGY SERVICES FOR THE COLUMBIA VAMC

Who is the contractor on this award?

The obligated recipient is ASPIRE-LUKE JV LLC.

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 $2.4 million.

What is the period of performance?

Start: 2025-12-15. End: 2026-12-14.

What is the specific rationale behind the 'Exclusion of Sources' in the competition method for this contract?

The 'Full and Open Competition After Exclusion of Sources' method implies that while the competition was intended to be open, certain potential offerors were deliberately excluded based on predefined criteria. This could be due to reasons such as specific technical requirements, past performance issues with certain contractors, or a need for specialized capabilities that only a subset of the market possesses. Without the specific justification documented by the agency, it's difficult to ascertain the exact reasons. However, such exclusions can sometimes limit the breadth of competition, potentially impacting price discovery and the range of innovative solutions available to the government. It is crucial for agencies to clearly document and justify any exclusions to ensure fairness and maximize taxpayer value.

How does the awarded price compare to market rates for similar anesthesiology services in Texas?

Benchmarking the $2.4 million award for a one-year contract requires detailed information on the scope of services, such as the number of anesthesiologists provided, their qualifications, the expected hours of service, and the specific types of procedures supported. Anecdotally, the average annual cost for a full-time anesthesiologist can range significantly based on experience, location, and specialty, often falling between $300,000 to $500,000 or more. If this contract provides multiple anesthesiologists or extensive coverage, the $2.4 million figure could represent a competitive rate. However, a precise comparison necessitates access to the contract's detailed deliverables and a robust market analysis by the VA during procurement.

What is the track record of ASPIRE-LUKE JV LLC in performing similar federal contracts?

Information regarding the specific track record of ASPIRE-LUKE JV LLC in performing federal contracts, particularly those involving anesthesiology services, is not readily available in the provided data. As a joint venture, its performance history might be a composite of its individual member companies or a newly established record. A thorough assessment would involve reviewing the Federal Procurement Data System (FPDS) or other contract databases for past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. Understanding their past performance is crucial for evaluating the risk associated with this award and ensuring successful service delivery.

What are the potential risks associated with relying on a joint venture for critical healthcare services?

Relying on a joint venture (JV) for critical healthcare services like anesthesiology can present both opportunities and risks. Opportunities include access to specialized expertise and potentially more agile service delivery. However, risks can arise from the complexity of managing the JV structure itself, potential disagreements between partners, or uneven distribution of resources and responsibilities. If one partner lacks the necessary experience or financial stability, it could impact the JV's overall performance. Ensuring clear lines of communication, robust governance, and strong performance guarantees within the JV agreement is vital for mitigating these risks and ensuring consistent, high-quality service delivery to the VA.

How does this contract align with the VA's overall spending on medical staffing and anesthesiology services?

This $2.4 million task order represents a specific allocation for anesthesiology services at one VA facility. The VA's total spending on medical staffing and related services is substantial, often running into billions of dollars annually across its network of hospitals and clinics. Contracts for specialized medical personnel like anesthesiologists are a component of this larger healthcare expenditure. To understand its alignment, one would need to compare this award against historical VA spending trends for similar services, the number of similar contracts awarded annually, and the overall budget allocated for medical staffing solutions within the VA healthcare system.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12500 SAN PEDRO AVE STE 325, SAN ANTONIO, TX, 78216

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,491,615

Exercised Options: $2,491,615

Current Obligation: $2,419,615

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X24D0004

IDV Type: IDC

Timeline