VA awards $162K for skilled nursing care in Louisiana, highlighting regional healthcare needs

Contract Overview

Contract Amount: $162,367 ($162.4K)

Contractor: Bayou Chateau Nursing Center, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-01

End Date: 2026-02-28

Contract Duration: 150 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: EXPRESS REPORT: 10-01-2025 TO 02-28-2026

Place of Performance

Location: SIMMESPORT, AVOYELLES County, LOUISIANA, 71369

State: Louisiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $162,366.92 to BAYOU CHATEAU NURSING CENTER, INC. for work described as: EXPRESS REPORT: 10-01-2025 TO 02-28-2026 Key points: 1. Contract value represents a focused investment in a specific healthcare service. 2. Competition dynamics suggest a potentially competitive bidding environment for this service. 3. Performance period is relatively short, indicating a need for ongoing contract management. 4. Geographic focus on Louisiana points to specific regional healthcare demands. 5. Contract type suggests potential for price fluctuations based on economic factors.

Value Assessment

Rating: fair

The contract value of approximately $162,000 for a 5-month period appears reasonable for specialized nursing care services. Benchmarking against similar contracts for skilled nursing facilities in the region would provide a clearer picture of value for money. The fixed-price with economic adjustment structure aims to mitigate contractor risk from inflation, which is a common practice in longer-term healthcare contracts, but requires careful monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The specific number of bidders is not provided, but this method generally promotes competitive pricing and allows the government to select the best value offer. The open competition suggests that the market for these services is sufficiently robust to support multiple providers.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages lower prices and better service quality through market forces.

Public Impact

Veterans in Louisiana requiring skilled nursing care will benefit from these services. The contract ensures the provision of essential nursing care facilities. The geographic impact is concentrated within Louisiana, addressing local veteran healthcare needs. The contract supports the healthcare workforce employed by the selected nursing facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to economic price adjustment clause.
Short contract duration may lead to frequent re-competition and potential service disruptions if not managed well.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contract addresses a critical healthcare need for veterans.
Clear performance period and delivery location.

Sector Analysis

The healthcare sector, particularly skilled nursing facilities, is a significant area of federal spending, especially for agencies like the Department of Veterans Affairs. This contract falls within the broader category of healthcare services, specifically long-term care. Spending in this sector is influenced by demographic trends, veteran population needs, and healthcare policy. Comparable spending benchmarks would typically involve analyzing per diem rates for similar facilities across different regions.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this specific award. As it was awarded under full and open competition, it is possible that small businesses participated in the bidding process. However, without specific data, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures would be tied to the terms and conditions of the fixed-price delivery order, including service quality and adherence to the economic price adjustment formula. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly disclosed.

Related Government Programs

VA Medical Care
Long-Term Care Services
Skilled Nursing Facility Services

Risk Flags

Economic Price Adjustment Clause
Short Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $162,366.92 to BAYOU CHATEAU NURSING CENTER, INC.. EXPRESS REPORT: 10-01-2025 TO 02-28-2026

Who is the contractor on this award?

The obligated recipient is BAYOU CHATEAU NURSING CENTER, INC..

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 $162,366.92.

What is the period of performance?

Start: 2025-10-01. End: 2026-02-28.

What is the historical spending pattern for skilled nursing care services by the VA in Louisiana?

Analyzing historical spending for skilled nursing care by the VA in Louisiana requires access to detailed contract databases over multiple fiscal years. Without specific historical data for this contract or similar awards in the region, it's difficult to establish a precise pattern. However, general trends in VA healthcare spending indicate a consistent need for long-term care services, with fluctuations often driven by changes in veteran population demographics, healthcare policy initiatives, and the availability of community-based care options. The current award of $162,366.92 for a 150-day period suggests a localized and specific need rather than a large-scale, ongoing program, but it contributes to the overall VA expenditure in this category within the state.

How does the pricing structure (Fixed Price with Economic Price Adjustment) compare to other VA nursing care contracts?

The Fixed Price with Economic Price Adjustment (FPEPA) contract type is common for services where input costs, such as labor and supplies, are subject to market fluctuations over the contract period. For the VA, this structure is often employed in healthcare contracts, including nursing care, to balance the need for cost certainty with the reality of potential inflation. Compared to purely Fixed Price (FP) contracts, FPEPA offers more flexibility to the contractor to adjust prices based on pre-defined economic indicators, potentially leading to slightly higher initial bids but reducing the risk of contract modifications or disputes due to unforeseen cost increases. Conversely, it is less predictable for the government than FP. When compared to Cost Plus (CP) contracts, FPEPA provides more cost control for the government as the base price is fixed, and adjustments are tied to specific economic factors rather than actual incurred costs.

What are the key performance indicators (KPIs) typically monitored for skilled nursing facility contracts?

Key performance indicators (KPIs) for skilled nursing facility contracts typically focus on the quality of care, patient outcomes, and operational efficiency. Common KPIs include patient satisfaction scores, adherence to care plans, medication error rates, infection control rates (e.g., hospital-acquired infections), staff-to-patient ratios, response times to patient needs, and compliance with regulatory standards (e.g., CMS, state health departments). For VA contracts, specific metrics related to veteran well-being, rehabilitation progress, and successful transitions to lower levels of care or home environments are also critical. Performance is often assessed through regular site visits, data reporting by the contractor, and feedback from veteran patients and their families.

What is the typical duration and value range for VA delivery orders for nursing care facilities?

The duration and value range for VA delivery orders for nursing care facilities can vary significantly based on the specific needs, geographic location, and scope of services required. Delivery orders are typically issued under a larger indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar framework agreement. The current award of $162,366.92 for a 150-day period (approximately 5 months) represents a moderate-sized, short-term engagement. Longer-term contracts or larger IDIQ vehicles could encompass millions of dollars and span several years, supporting a greater number of veterans or more comprehensive care packages. Factors influencing these ranges include the number of beds allocated, the level of medical support required (e.g., physical therapy, specialized care), and regional cost-of-living adjustments.

What are the implications of the 'Nursing Care Facilities (Skilled Nursing Facilities)' NAICS code (623110) for federal spending analysis?

The North American Industry Classification System (NAICS) code 623110, 'Nursing Care Facilities (Skilled Nursing Facilities),' specifically categorizes establishments primarily engaged in providing inpatient nursing and rehabilitative services. For federal spending analysis, this code is crucial for identifying and aggregating contracts related to long-term residential care for individuals requiring medical attention and monitoring beyond that provided by hospitals or assisted living facilities. It allows analysts to track spending trends within this specific sub-sector of healthcare, compare contract values and competition levels against industry benchmarks, and understand the VA's or other agencies' investment in this type of care. Understanding this NAICS code helps in assessing the market size, identifying key players, and evaluating the effectiveness and efficiency of federal programs supporting skilled nursing care.

Industry Classification

NAICS: Health Care and Social Assistance › Nursing Care Facilities (Skilled Nursing Facilities) › Nursing Care Facilities (Skilled Nursing Facilities)

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 16232 HIGHWAY 1, SIMMESPORT, LA, 71369

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

Financial Breakdown

Contract Ceiling: $162,367

Exercised Options: $162,367

Current Obligation: $162,367

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25625D0095

IDV Type: IDC

Timeline