VA awards $2.1M for sterile processing technicians, with 5 bidders competing

Contract Overview

Contract Amount: $2,135,531 ($2.1M)

Contractor: North American United Healthcare Services JV LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-15

End Date: 2027-03-14

Contract Duration: 729 days

Daily Burn Rate: $2.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: STERILE PROCESSING TECHS (ICSP)

Place of Performance

Location: AURORA, ADAMS County, COLORADO, 80045

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.1 million to NORTH AMERICAN UNITED HEALTHCARE SERVICES JV LLC for work described as: STERILE PROCESSING TECHS (ICSP) Key points: 1. Contract aims to ensure adequate staffing for critical healthcare support services. 2. Competition level suggests a potentially healthy market for these specialized services. 3. Fixed-price contract type provides cost certainty for the government. 4. Duration of two years allows for sustained support and performance evaluation. 5. Geographic focus on Colorado indicates a specific regional need. 6. The awardee is a joint venture, potentially indicating a strategy to leverage diverse capabilities.

Value Assessment

Rating: good

The contract value of $2.1 million over two years for sterile processing technicians appears reasonable given the specialized nature of the services. Benchmarking against similar contracts for temporary healthcare staffing, especially for critical support roles like sterile processing, would provide a clearer picture of value for money. The firm fixed-price structure helps control costs, but the absence of detailed performance metrics in the provided data makes a definitive value assessment challenging. However, the presence of multiple bidders suggests competitive pricing was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial solicitation may have had some restrictions, the final award was made after a broad competitive process. With five bidders, the competition level is moderate, suggesting that the agency was able to attract a reasonable number of qualified vendors. This level of competition generally supports price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: A moderate level of competition among five bidders helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging vendors to offer competitive terms.

Public Impact

Veterans in Colorado will benefit from improved sterile processing services, leading to safer medical procedures. The contract ensures the availability of essential sterile processing technicians, a critical role in healthcare facilities. The services are geographically focused on Colorado, directly impacting VA facilities within the state. This contract supports the healthcare workforce by providing opportunities for specialized technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if performance is consistently good and renewal is likely.
Reliance on a joint venture may introduce complexities in management and accountability.
Ensuring consistent quality of sterile processing across different technicians and shifts requires robust oversight.

Positive Signals

Full and open competition suggests a healthy market and potential for competitive pricing.
Firm fixed-price contract provides cost predictability.
The duration allows for building a reliable service stream.
Award to a joint venture could bring specialized expertise.

Sector Analysis

The healthcare support services sector, particularly temporary staffing for specialized roles, is a critical component of the broader healthcare industry. This contract falls under the 'Temporary Help Services' NAICS code (561320). The market for sterile processing technicians is driven by the constant need for infection control and instrument reprocessing in healthcare facilities. Spending in this area is influenced by hospital capacity, patient volume, and regulatory requirements for sterilization. Comparable spending benchmarks would typically look at per-diem or hourly rates for specialized medical support staff.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). The awardee is a joint venture, which may or may not include small business participation within its structure. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract and how the joint venture structure impacts the small business ecosystem.

Oversight & Accountability

Oversight will likely be managed by the Department of Veterans Affairs contracting officers and program managers responsible for healthcare services in Colorado. Accountability measures will be tied to the terms of the firm fixed-price contract, including service delivery standards and performance expectations. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Medical Services Contracts
Healthcare Staffing Services
Temporary Medical Personnel
Infection Control Services
Clinical Support Services

Risk Flags

Potential for performance issues if JV partners have conflicting priorities.
Risk of service disruption if quality control is not rigorously maintained.
Higher cost per unit compared to direct hiring if not benchmarked effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.1 million to NORTH AMERICAN UNITED HEALTHCARE SERVICES JV LLC. STERILE PROCESSING TECHS (ICSP)

Who is the contractor on this award?

The obligated recipient is NORTH AMERICAN UNITED HEALTHCARE SERVICES 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 $2.1 million.

What is the period of performance?

Start: 2025-03-15. End: 2027-03-14.

What is the typical hourly or daily rate for sterile processing technicians in the Colorado region, and how does this contract's implied rate compare?

Determining the precise per-unit cost from the provided data is challenging without knowing the number of hours or technicians anticipated. However, if we assume an average of 10 technicians working 8 hours a day for the 729-day duration, the implied daily rate per technician would be approximately $365 ($2,135,530.53 / (10 techs * 729 days)). Market research for sterile processing technicians in Colorado indicates that hourly rates can range from $20 to $35, translating to daily rates of $160 to $280 for an 8-hour shift. The implied rate in this contract appears to be on the higher end, potentially reflecting the specialized nature, on-call availability, or the inclusion of overhead and profit for the contracting entity, especially a joint venture. Further details on service hours and specific qualifications are needed for a precise comparison.

What specific qualifications and experience does NORTH AMERICAN UNITED HEALTHCARE SERVICES JV LLC possess for providing sterile processing technicians?

The provided data identifies NORTH AMERICAN UNITED HEALTHCARE SERVICES JV LLC as the awardee. As a joint venture, its capabilities are derived from its constituent members. While the specific track record of this particular joint venture is not detailed here, the award suggests it met the VA's requirements for experience in providing healthcare support services, specifically temporary staffing. A deeper dive into the joint venture's formation, the experience of its parent companies, and any past performance on similar government contracts would be necessary to fully assess their qualifications. The VA's selection process would have included a review of their technical approach, past performance, and overall capacity to meet the contract's demands for sterile processing technicians.

How does the $2.1 million contract value compare to historical VA spending on sterile processing technicians in Colorado?

Historical spending data for sterile processing technicians specifically within the VA in Colorado is not provided. However, the $2.1 million award over two years ($1.05 million annually) represents a significant investment in this specialized support service. To benchmark this against historical spending, one would need to analyze previous VA contracts for similar services in the same geographic region. Factors such as inflation, changes in staffing needs, and the number of VA facilities requiring these services would influence year-over-year comparisons. Without this historical context, it's difficult to definitively state whether this award represents an increase, decrease, or stable level of spending compared to past periods.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, contracts for sterile processing technicians would include metrics related to the timeliness of service, the accuracy and completeness of sterilization processes, compliance with infection control standards (e.g., CDC guidelines), and potentially technician availability and response times. The firm fixed-price nature suggests that the contractor is responsible for meeting defined performance standards, and failure to do so could result in penalties or contract termination. The VA's quality assurance personnel would be responsible for monitoring adherence to these unstated KPIs/SLAs.

What is the potential risk associated with relying on a joint venture for critical sterile processing services?

Relying on a joint venture (JV) for critical services like sterile processing introduces specific risks. One primary risk is the potential for internal disagreements or operational friction between the JV partners, which could disrupt service delivery. Accountability can also be diffused; it may be unclear which partner is ultimately responsible for specific failures. Furthermore, the financial stability and operational capacity of the JV itself, as distinct from its individual partners, needs to be robust. The VA would have assessed these risks during the procurement process, likely requiring clear governance structures, defined roles and responsibilities, and evidence of the JV's collective capability and financial viability to mitigate these potential issues.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › SPECIALIZED TECHNICAL/ MEDICAL SUPPORT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 501 HUNGERFORD DR, ROCKVILLE, MD, 20850

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $6,818,347

Exercised Options: $2,135,531

Current Obligation: $2,135,531

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X24D0006

IDV Type: IDC

Timeline