VA awards $13.9M contract for ER Physicians to Oklahoma State University, facing limited competition

Contract Overview

Contract Amount: $13,899,836 ($13.9M)

Contractor: Oklahoma State University

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-06-01

End Date: 2026-05-31

Contract Duration: 1,825 days

Daily Burn Rate: $7.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ER PHYSICIANS

Place of Performance

Location: MUSKOGEE, MUSKOGEE County, OKLAHOMA, 74401

State: Oklahoma Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $13.9 million to OKLAHOMA STATE UNIVERSITY for work described as: ER PHYSICIANS Key points: 1. Significant contract value for specialized medical services. 2. Limited competition raises questions about price discovery. 3. Potential risk in reliance on a single academic institution. 4. Healthcare sector spending on physician services is substantial.

Value Assessment

Rating: fair

The contract's value of $13.9M over five years for ER physicians appears reasonable given the specialized nature of the services. However, without a competitive bidding process, it's difficult to definitively assess if this represents the best possible price.

Cost Per Unit: $2,779,967.24 per year (estimated)

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited competition approach. This likely means the VA has a specific reason for selecting Oklahoma State University, but it limits the opportunity for price discovery and potentially higher value.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive bidding, though the specific need for this provider could justify the cost.

Public Impact

Ensures critical emergency room physician staffing for veterans in Oklahoma. Supports a key academic institution's medical training and service provision. Potential for long-term relationship with a known provider. Highlights VA's reliance on academic medical centers for specialized care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for higher costs
Sole reliance on one provider

Positive Signals

Ensures critical medical services
Supports academic institution

Sector Analysis

The healthcare sector, particularly for physician services, represents a significant portion of federal spending. Contracts for specialized medical personnel like ER physicians are crucial for maintaining operational capacity within VA facilities.

Small Business Impact

This contract does not appear to involve small businesses, as it is awarded directly to a large academic institution. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The lack of competition warrants close monitoring to ensure the services provided are effective and the pricing remains fair throughout the contract period.

Related Government Programs

Colleges, Universities, and Professional Schools
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition may lead to inflated costs.
Lack of alternative providers could create service disruption risks.
Dependence on a single entity for critical services.
Potential for scope creep without competitive guardrails.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13.9 million to OKLAHOMA STATE UNIVERSITY. ER PHYSICIANS

Who is the contractor on this award?

The obligated recipient is OKLAHOMA STATE UNIVERSITY.

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 $13.9 million.

What is the period of performance?

Start: 2021-06-01. End: 2026-05-31.

What specific factors led to the limited competition for these ER physician services?

The limited competition likely stems from the VA's specific requirements, such as the need for physicians affiliated with an accredited medical school for training purposes or a unique geographic need that Oklahoma State University uniquely fulfills. Without further details, it's difficult to ascertain the precise justification for bypassing a full and open competition.

What is the benchmarked cost for similar ER physician contracts within the VA or other federal agencies?

Benchmarking ER physician costs is complex due to variations in location, required specialties, and contract structures. However, the provided benchmark of $7,616 (likely per diem or similar short-term rate) suggests the annual cost of $2.78M per year might be on the higher end if this is a standard physician staffing contract, especially without competitive pressure.

How will the VA ensure the quality and effectiveness of ER physician services under this non-competed contract?

The VA will likely rely on established performance metrics, regular physician credentialing, patient satisfaction surveys, and direct oversight by medical leadership at the facility. Robust contract management and quality assurance processes are essential to mitigate risks associated with non-competed awards and ensure veterans receive high-quality emergency care.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C25920R0063

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 401 WHITEHURST HALL, STILLWATER, OK, 74078

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Public), Veterinary College

Financial Breakdown

Contract Ceiling: $13,899,836

Exercised Options: $13,899,836

Current Obligation: $13,899,836

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline