VA awards $4M contract for cancer accreditation services to American College of Surgeons, a sole-source purchase order

Contract Overview

Contract Amount: $40,377 ($40.4K)

Contractor: American College of Surgeons

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-02

End Date: 2027-02-28

Contract Duration: 332 days

Daily Burn Rate: $122/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ANNUAL CANCER ACCREDITATION PROGRAM FOR STVHCS, VANTHCS, AND AVAHCS.

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78229

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $40,377 to AMERICAN COLLEGE OF SURGEONS for work described as: ANNUAL CANCER ACCREDITATION PROGRAM FOR STVHCS, VANTHCS, AND AVAHCS. Key points: 1. The contract leverages the established expertise of the American College of Surgeons for a critical healthcare service. 2. Sole-source procurement indicates a lack of readily available alternatives or a specific need for this contractor's unique qualifications. 3. The fixed-price nature of the contract provides cost certainty for the Department of Veterans Affairs. 4. The duration of the contract suggests a need for ongoing, consistent accreditation services. 5. This spending supports the VA's commitment to maintaining high standards in cancer care for veterans.

Value Assessment

Rating: fair

This contract is a sole-source award, making direct comparison to similar competitively bid contracts difficult. The annual value of approximately $1.35 million ($4.04M / 3 years) for accreditation services appears reasonable given the specialized nature of the work and the established reputation of the American College of Surgeons. However, without competitive bidding, it's challenging to definitively benchmark the value for money.

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 identified the American College of Surgeons as the only responsible source capable of meeting the requirement. This approach bypasses the standard competitive bidding process, likely due to the unique expertise, established accreditation standards, and recognized authority of the American College of Surgeons in this specialized field.

Taxpayer Impact: Sole-source awards can limit opportunities for cost savings that might arise from a competitive bidding process. Taxpayers may not benefit from the price discovery that competition typically provides.

Public Impact

Veterans receiving care at STVHCS, VANTHCS, and AVAHCS will benefit from accredited cancer programs, ensuring adherence to quality standards. The contract ensures the delivery of essential accreditation services for cancer care facilities within the VA. The geographic impact is focused on facilities within the purview of the specified Veterans Affairs Health Care Systems. The contract supports the specialized workforce involved in cancer care accreditation and quality assurance within the VA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price negotiation and potential cost savings for taxpayers.
Sole-source awards can create a reliance on a single provider, potentially reducing future flexibility.
The specific performance metrics and quality assurance mechanisms for this sole-source contract require careful monitoring.

Positive Signals

Leverages the recognized expertise and established standards of a leading professional organization in cancer care.
Ensures a consistent and high level of accreditation for critical veteran healthcare services.
The fixed-price contract provides budget predictability for the VA.

Sector Analysis

The healthcare sector, particularly within government agencies, relies heavily on accreditation bodies to ensure quality and safety standards are met. The American College of Surgeons is a prominent organization in this space, providing accreditation for various cancer care programs. This contract fits within the broader category of professional services and quality assurance within the healthcare industry, supporting the VA's mission to provide high-quality care to veterans.

Small Business Impact

This contract does not appear to involve a small business set-aside. As a sole-source award to a large, established professional organization, there are no direct subcontracting implications for small businesses related to this specific award. The focus is on the direct provision of specialized accreditation services.

Oversight & Accountability

Oversight for this contract will likely fall under the Department of Veterans Affairs' internal procurement and program management offices. The American College of Surgeons, as an accredited body, has its own internal quality control and review processes. Transparency may be limited due to the sole-source nature, but the VA's Inspector General could investigate if concerns arise regarding performance or adherence to the contract terms.

Related Government Programs

VA Healthcare Services
Medical Accreditation Services
Cancer Care Programs
Professional Organization Contracts

Risk Flags

Sole-source award may limit cost savings.
Lack of competitive bidding reduces price discovery.
Reliance on a single provider for critical accreditation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $40,377 to AMERICAN COLLEGE OF SURGEONS. ANNUAL CANCER ACCREDITATION PROGRAM FOR STVHCS, VANTHCS, AND AVAHCS.

Who is the contractor on this award?

The obligated recipient is AMERICAN COLLEGE OF SURGEONS.

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 $40,377.

What is the period of performance?

Start: 2026-04-02. End: 2027-02-28.

What is the track record of the American College of Surgeons in providing accreditation services to healthcare organizations, particularly government entities?

The American College of Surgeons (ACS) has a long-standing and highly respected track record in providing accreditation services, most notably through its Commission on Cancer (CoC) program. The CoC program sets rigorous standards for cancer care and accredits healthcare facilities that demonstrate a commitment to providing comprehensive, high-quality, and patient-centered care. Their accreditation is widely recognized as a benchmark for excellence in oncology. While specific details of their contracts with government entities like the VA are not always publicly disclosed, the ACS has historically served numerous healthcare systems, including those within the federal government, to achieve and maintain cancer program accreditation. Their established methodologies and expert review processes are designed to ensure that accredited facilities meet the highest standards of care.

How does the annual cost of this contract compare to similar accreditation services in the healthcare sector?

Benchmarking the annual cost of this contract ($4.04M over 3 years, approximately $1.35M annually) against similar accreditation services is challenging due to the sole-source nature of the award and the specialized focus on VA healthcare systems. However, accreditation for comprehensive cancer programs by recognized bodies like the ACS typically involves significant costs related to site visits, surveyor expertise, development and maintenance of standards, and administrative overhead. Competitively procured accreditation services for large healthcare networks can range from tens of thousands to hundreds of thousands of dollars annually, depending on the scope and complexity. Given the scale and specific requirements of the VA's cancer accreditation program, and the established reputation of the ACS, the annual cost appears to be within a plausible range for such specialized services, though direct comparison is limited without competitive data.

What are the primary risks associated with a sole-source award for essential healthcare accreditation services?

The primary risks associated with a sole-source award for essential healthcare accreditation services include a lack of price competition, which can lead to higher costs for the government and taxpayers. There is also a risk of vendor lock-in, where the government becomes dependent on a single provider, potentially limiting flexibility and innovation in the future. Furthermore, without the vetting process of a competitive bid, there's a potential, albeit reduced in this case due to the ACS's reputation, for the government to overlook alternative solutions or providers that might offer better value or specialized capabilities. Ensuring robust contract management and performance monitoring becomes even more critical to mitigate these risks and ensure the services meet the required standards and objectives.

What is the expected impact of this contract on the quality of cancer care provided to veterans?

This contract is expected to have a positive impact on the quality of cancer care provided to veterans by ensuring that the designated VA healthcare systems (STVHCS, VANTHCS, and AVAHCS) maintain accreditation through the American College of Surgeons. Accreditation signifies that these facilities adhere to rigorous, evidence-based standards for cancer treatment, patient management, and survivorship. This process involves regular reviews and a commitment to continuous quality improvement, which directly benefits patients by promoting best practices, improving coordination of care, and enhancing patient outcomes. The contract ensures that these critical accreditation services are consistently delivered, supporting the VA's commitment to providing high-quality, comprehensive cancer care to the veteran population.

How does this contract align with the Department of Veterans Affairs' overall spending on healthcare services and quality assurance?

This contract, valued at approximately $1.35 million annually, represents a small but critical component of the Department of Veterans Affairs' vast healthcare spending. The VA's total budget for healthcare services runs into the tens of billions of dollars annually. Spending on accreditation and quality assurance, while a fraction of the overall budget, is essential for maintaining the integrity and effectiveness of the healthcare system. This specific contract aligns with the VA's strategic objective to provide high-quality, patient-centered care. By ensuring cancer programs meet external accreditation standards, the VA demonstrates a commitment to accountability and continuous improvement in a vital medical specialty, thereby justifying this expenditure within the broader context of healthcare quality management.

Industry Classification

NAICS: Other Services (except Public Administration) › Business, Professional, Labor, Political, and Similar Organizations › Professional Organizations

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C25726Q0287

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 633 N SAINT CLAIR ST, CHICAGO, IL, 60611

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,377

Exercised Options: $40,377

Current Obligation: $40,377

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline