VA Awards $5.45M for Home Sleep Services to PM Sleep Lab II LLC

Contract Overview

Contract Amount: $5,450,935 ($5.5M)

Contractor: PM Sleep LAB II LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-03-01

End Date: 2028-02-29

Contract Duration: 1,826 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CLINICAL SLEEP LAB RESPIRATORY SERVICES CPAP/BIPAP SET UP, EDUCATION, FOLLOW UP IN HOME SERVICES OR OVER PHONE

Place of Performance

Location: AURORA, ADAMS County, COLORADO, 80045

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.5 million to PM SLEEP LAB II LLC for work described as: CLINICAL SLEEP LAB RESPIRATORY SERVICES CPAP/BIPAP SET UP, EDUCATION, FOLLOW UP IN HOME SERVICES OR OVER PHONE Key points: 1. Contract awarded to PM Sleep Lab II LLC for respiratory services. 2. Services include CPAP/BIPAP setup, education, and follow-up. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. Contract type is Firm Fixed Price with an estimated value of $5.45M. 5. The contract duration is 5 years, ending February 2028.

Value Assessment

Rating: good

The contract value of $5.45M over 5 years appears reasonable for specialized home healthcare services. Benchmarking against similar VA or commercial contracts for respiratory therapy and durable medical equipment setup would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources', indicating some initial limitations or specific requirements that narrowed the field. This method might impact price discovery compared to a truly unrestricted full and open competition.

Taxpayer Impact: The $5.45M expenditure supports essential healthcare services for veterans, aiming to improve their quality of life and manage chronic conditions, representing a necessary investment in veteran well-being.

Public Impact

Veterans with sleep apnea will receive crucial in-home or remote support for CPAP/BIPAP devices. Improved adherence to sleep therapy can lead to better health outcomes and reduced long-term healthcare costs for veterans. The contract ensures continued access to specialized respiratory services for veterans in Colorado.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition impacting price.
Reliance on a single contractor for critical services.

Positive Signals

Addresses a critical healthcare need for veterans.
Long-term contract provides service stability.
Firm Fixed Price contract offers budget certainty.

Sector Analysis

This contract falls within the Home Health Care Services sector, specifically focusing on respiratory therapy and durable medical equipment. Spending in this sector is driven by an aging population and increasing prevalence of chronic conditions like sleep apnea.

Small Business Impact

The data does not indicate if small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure timely delivery of quality services and adherence to contract terms. Performance metrics and regular reviews are standard oversight mechanisms.

Related Government Programs

Home Health Care Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition may have inflated prices.
Potential for vendor lock-in.
Dependence on a single provider for essential services.
Lack of detailed cost breakdown for services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.5 million to PM SLEEP LAB II LLC. CLINICAL SLEEP LAB RESPIRATORY SERVICES CPAP/BIPAP SET UP, EDUCATION, FOLLOW UP IN HOME SERVICES OR OVER PHONE

Who is the contractor on this award?

The obligated recipient is PM SLEEP LAB II 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 $5.5 million.

What is the period of performance?

Start: 2023-03-01. End: 2028-02-29.

What specific criteria led to the exclusion of other sources in the 'Full and Open Competition After Exclusion of Sources' method?

The specific criteria for excluding other sources are not detailed in the provided data. Typically, this could involve prior performance, unique capabilities, or specific geographic requirements that only a limited number of contractors could meet. Understanding these criteria is crucial for assessing the fairness and competitiveness of the procurement process.

How does the per-unit cost of CPAP/BIPAP setup and follow-up compare to industry benchmarks?

Benchmarking the per-unit cost is not possible with the current data, as it lacks specific cost breakdowns for setup, education, and follow-up services. A detailed cost analysis comparing these individual service costs against national averages for similar VA or commercial contracts would be necessary to determine cost-effectiveness.

What is the projected impact of these services on veteran health outcomes and healthcare utilization?

The projected impact is positive, aiming to improve veteran adherence to sleep apnea treatment, leading to better health outcomes (e.g., reduced fatigue, fewer cardiovascular issues) and potentially lower overall healthcare utilization by mitigating complications associated with untreated sleep apnea. Quantifying this impact requires tracking veteran health metrics and healthcare usage post-contract initiation.

Industry Classification

NAICS: Health Care and Social Assistance › Home Health Care Services › Home Health Care 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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C25923Q0217

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2020 N WOODLAWN ST STE 450, WICHITA, KS, 67208

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

Financial Breakdown

Contract Ceiling: $11,364,655

Exercised Options: $5,450,935

Current Obligation: $5,450,935

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline