VA awards $2.3M six-month lung transplant contract to University of Washington for Puget Sound

Contract Overview

Contract Amount: $2,298,288 ($2.3M)

Contractor: University of Washington

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-01-15

End Date: 2026-01-14

Contract Duration: 364 days

Daily Burn Rate: $6.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: INTERIM CONTRACT AUTHORITY SIX-MONTH LUNG TRANSPLANT FOR VA PUGET SOUND HEALTH CARE SYSTEM

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98195

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.3 million to UNIVERSITY OF WASHINGTON for work described as: INTERIM CONTRACT AUTHORITY SIX-MONTH LUNG TRANSPLANT FOR VA PUGET SOUND HEALTH CARE SYSTEM Key points: 1. Contract aims to ensure continuity of critical lung transplant services for veterans. 2. Sole-source award raises questions about market research and potential for competition. 3. Short duration suggests a potential bridge to a more permanent solution or a limited need. 4. Performance will be critical given the life-saving nature of the service. 5. Focus on a specific health care system indicates targeted service delivery. 6. The award is for a definitive contract, implying a commitment beyond an initial order.

Value Assessment

Rating: fair

The contract value of $2.3 million for a six-month period for lung transplant services appears to be within a reasonable range for specialized medical procedures. However, without specific benchmarks for lung transplant costs per procedure or for similar contracts within the VA or other federal health systems, a precise value-for-money assessment is challenging. The interim nature of the contract also makes it difficult to compare to long-term, established service agreements. Further analysis would require data on the number of transplants anticipated and the associated costs per transplant.

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 University of Washington as the only responsible source capable of meeting the requirement. The justification for this approach is not detailed in the provided data. Typically, sole-source awards limit price discovery and may not result in the most competitive pricing for the government. The absence of a competitive bidding process means potential cost savings from market forces are foregone.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as competition is not leveraged to drive down prices. This limits the government's ability to secure the best possible value.

Public Impact

Veterans in the Puget Sound region requiring lung transplant services will have continued access to care. The University of Washington's medical faculty and facilities will be utilized for these critical procedures. The contract supports specialized healthcare delivery within the Washington state area. This ensures the continuity of a high-acuity medical service for a vulnerable patient population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Short contract duration may indicate uncertainty or a temporary solution, requiring future procurement efforts.
Lack of detailed performance metrics in the provided data makes ongoing assessment difficult.

Positive Signals

Ensures continuity of essential, life-saving medical services for veterans.
Leverages established expertise of a known provider (University of Washington).
Addresses a critical healthcare need within a specific geographic region.

Sector Analysis

The healthcare sector, particularly specialized medical services like organ transplantation, represents a significant area of federal spending, especially within agencies like the Department of Veterans Affairs. This contract fits within the broader category of medical services and equipment procurement. Benchmarking this specific contract is difficult without comparable data on lung transplant costs, but the overall healthcare market is characterized by high costs, specialized expertise, and often, limited competition for niche services.

Small Business Impact

This contract does not appear to involve small business set-asides, as the awardee is the University of Washington, a large institution. There is no information provided regarding subcontracting opportunities for small businesses. The focus on a specialized medical service likely means that larger, established healthcare providers are the primary entities capable of fulfilling such requirements.

Oversight & Accountability

Oversight for this contract would fall under the Department of Veterans Affairs' existing procurement and healthcare quality assurance mechanisms. Accountability would be managed through contract performance monitoring and adherence to medical standards. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed performance reports. The VA Office of Inspector General would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

VA Medical Services Contracts
Organ Transplant Programs
Federal Healthcare Procurement
University Healthcare Partnerships

Risk Flags

Sole-source award requires strong justification.
Interim nature of contract suggests potential future procurement needs.
High-cost, specialized medical service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.3 million to UNIVERSITY OF WASHINGTON. INTERIM CONTRACT AUTHORITY SIX-MONTH LUNG TRANSPLANT FOR VA PUGET SOUND HEALTH CARE SYSTEM

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF WASHINGTON.

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 $2.3 million.

What is the period of performance?

Start: 2025-01-15. End: 2026-01-14.

What is the historical spending by the VA on lung transplant services, and how does this contract compare?

Historical spending data for specific services like lung transplants by the VA is not readily available in public databases. Federal procurement data typically categorizes spending at a broader level, such as 'Medical Services' or 'Hospital Services.' To compare this $2.3 million, six-month contract, one would need to aggregate data for similar services over comparable periods. Given the specialized and high-cost nature of lung transplants, this contract's value is significant for its duration. However, without historical context for this specific service line, it's difficult to determine if it represents an increase, decrease, or stable level of spending. Further analysis would require detailed VA budget allocations for transplant services or specific contract awards for similar procedures across different VA facilities.

What is the University of Washington's track record in performing lung transplants, particularly for veteran populations?

The University of Washington Medical Center is a recognized center for solid organ transplantation, including lung transplants. While specific data on their performance solely for veteran populations is not detailed in this contract award notice, the institution generally has a strong reputation in the field. Their experience would likely include managing complex cases and adhering to established medical protocols. The VA's decision to award this contract on a sole-source basis suggests they have confidence in the University of Washington's capabilities and existing infrastructure to meet the needs of veterans in the Puget Sound region. A deeper dive would involve reviewing the hospital's public performance metrics for transplant outcomes and patient survival rates.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

The provided contract data does not specify the key performance indicators (KPIs) for this interim lung transplant authority. Typically, for such critical medical services, KPIs would focus on patient outcomes (e.g., survival rates post-transplant, complication rates), timeliness of care (e.g., time from referral to transplant, waitlist management), and adherence to clinical protocols. Measurement would likely involve regular reporting from the University of Washington to the VA, potentially including patient data, surgical outcomes, and quality metrics. The contracting officer's representative (COR) would be responsible for monitoring performance against these undefined KPIs.

Why was this contract awarded on a sole-source basis, and what was the market research conducted?

The contract was awarded on a sole-source basis under the justification that the University of Washington is the only responsible source capable of meeting the requirement. The specific details of the market research conducted to support this determination are not included in the award notice. Generally, sole-source justifications require demonstrating that no other source can fulfill the need due to factors like unique capabilities, specialized equipment, or urgent requirements where competition is not feasible. For specialized medical services like lung transplants, it's possible the VA determined that only a few institutions possess the necessary expertise, infrastructure, and accreditation, and among those, the University of Washington was uniquely positioned or available.

What is the anticipated number of lung transplants under this contract, and how does the $2.3 million value break down per procedure?

The provided contract details do not specify the anticipated number of lung transplants to be performed under this $2.3 million, six-month contract. Therefore, a precise cost per procedure cannot be calculated. The total contract value covers not only the surgical procedures themselves but likely also pre-operative evaluations, post-operative care, immunosuppressive medications, and associated hospital resources. To estimate a cost per transplant, one would need to know the projected volume of procedures and the specific cost allocation for each component of care. Given the complexity and resource intensity of lung transplants, individual procedure costs can range significantly, often in the hundreds of thousands of dollars.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: University of Washington Inc

Address: 4333 BROOKLYN AVE NE, SEATTLE, WA, 98195

Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. Local Government, U.S. National Government, Not Designated a Small Business, Higher Education (Public)

Financial Breakdown

Contract Ceiling: $2,298,288

Exercised Options: $2,298,288

Current Obligation: $2,298,288

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline