VA Puget Sound Healthcare System awards $367K contract for neurology physician services to University of Washington

Contract Overview

Contract Amount: $367,260 ($367.3K)

Contractor: University of Washington

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-07-01

End Date: 2026-06-30

Contract Duration: 364 days

Daily Burn Rate: $1.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: AFFILIATE UW - NEUROLOGY PHYSICIAN SERVICES FOR VA PUGET SOUND HEALTHCARE SYSTEM - 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98108

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $367,260.32 to UNIVERSITY OF WASHINGTON for work described as: AFFILIATE UW - NEUROLOGY PHYSICIAN SERVICES FOR VA PUGET SOUND HEALTHCARE SYSTEM - 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT Key points: 1. Contract awarded to a single, established academic institution, suggesting a focus on specialized expertise. 2. Pricing appears reasonable given the specialized nature of academic medical services. 3. Limited competition indicates potential for higher costs compared to a fully competed contract. 4. Contract duration of one year with an option to extend suggests ongoing need for these services. 5. The award is a delivery order against an existing contract, implying prior vetting of the contractor. 6. Services are critical for patient care within the VA system.

Value Assessment

Rating: good

The contract value of $367,260.32 for one year of neurology physician services appears to be within a reasonable range for specialized academic medical services. Benchmarking against similar contracts for physician services at academic medical centers within the VA or other federal agencies would provide a more precise value-for-money assessment. However, given the sole-source nature, direct price comparisons are limited. The fixed-price with economic price adjustment structure allows for some flexibility while managing cost fluctuations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to the University of Washington. This indicates that the agency identified the University of Washington as the only responsible source capable of providing the required neurology physician services. The lack of competition means that the VA did not explore other potential providers, which could limit price discovery and potentially lead to less favorable pricing than if multiple bids were solicited.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive bidding. The VA relied on its determination that only the University of Washington could meet the specific needs.

Public Impact

Veterans in the Puget Sound region will benefit from continued access to specialized neurology care. The contract ensures the provision of essential physician services for diagnosis and treatment of neurological conditions. Services are delivered at the VA Puget Sound Healthcare System facilities in Washington state. The contract supports the employment of highly skilled medical professionals within the VA healthcare system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of transparency in the justification for sole-source award could mask other available options.
Economic price adjustment clause introduces potential for cost increases over the contract term.

Positive Signals

Award to a reputable academic institution suggests high-quality medical expertise.
Continuity of care for veterans is maintained by extending services from an established provider.
Delivery order against an existing contract implies prior successful performance and vetting.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on specialized physician services. The market for academic medical services is often characterized by long-term relationships and unique capabilities. The University of Washington, as a major academic medical center, is a key player in this space. Comparable spending benchmarks would involve analyzing other contracts for physician services at large academic medical centers, both within the VA and other federal healthcare providers.

Small Business Impact

This contract does not appear to involve a small business set-aside. Given the specialized nature of academic neurology physician services, it is unlikely that small businesses would be primary providers. There is no explicit mention of subcontracting requirements for small businesses, suggesting limited direct impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the fixed-price structure and the delivery order process, which typically requires demonstrated need and performance. Transparency is somewhat limited due to the sole-source nature, but contract award details are publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Physician Services Contracts
Academic Medical Center Partnerships
Neurology Healthcare Services
Federal Healthcare Delivery

Risk Flags

Sole-source award
Potential for price inflation
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $367,260.32 to UNIVERSITY OF WASHINGTON. AFFILIATE UW - NEUROLOGY PHYSICIAN SERVICES FOR VA PUGET SOUND HEALTHCARE SYSTEM - 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT

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 $367,260.32.

What is the period of performance?

Start: 2025-07-01. End: 2026-06-30.

What is the track record of the University of Washington in providing similar neurology physician services to the VA or other federal agencies?

The University of Washington has a history of providing medical services to the VA, often through academic affiliations and research partnerships. Specific to neurology physician services, they are a major academic medical center with a robust neurology department. While this specific delivery order is for a one-year period, the underlying contract likely has a longer history. A review of past VA contracts awarded to the University of Washington for physician services, particularly in neurology, would reveal their performance history, any past issues, and the value they have provided. This information is crucial for assessing the reliability and quality of the services expected under this current award.

How does the pricing of this contract compare to market rates for similar neurology physician services at academic medical centers?

Directly comparing the pricing of this $367,260.32 contract to external market rates is challenging without specific details on the number of physicians, hours, and specific services rendered. However, academic medical centers typically command higher rates due to their specialized expertise, research, and teaching missions. The "fixed price with economic price adjustment" structure suggests an attempt to control costs while accounting for inflation. To benchmark effectively, one would need to compare the "per physician hour" or "per patient encounter" cost against similar contracts awarded by other federal agencies or large healthcare systems to comparable academic institutions. The sole-source nature limits the ability to definitively state if this represents the best value.

What are the specific risks associated with a sole-source award for essential physician services?

The primary risk of a sole-source award for essential physician services is the lack of competitive pressure, which can lead to inflated prices and potentially less innovation. It also limits the VA's ability to explore alternative providers who might offer comparable or superior services at a lower cost. Furthermore, over-reliance on a single provider can create vulnerabilities if that provider experiences staffing shortages, financial difficulties, or changes in strategic focus. For essential services like neurology, ensuring a robust and competitive procurement process is vital to guarantee both quality of care and fiscal responsibility for taxpayer funds.

What is the expected effectiveness of these neurology physician services in improving veteran health outcomes?

The effectiveness of these neurology physician services is expected to be high, given the award to a leading academic institution like the University of Washington. These services are critical for diagnosing and treating a wide range of complex neurological conditions, from stroke and epilepsy to neurodegenerative diseases. By providing specialized expertise, these physicians contribute directly to accurate diagnoses, appropriate treatment plans, and improved patient management, ultimately leading to better health outcomes for veterans. The continuity of care provided by an established provider also enhances effectiveness by ensuring seamless patient transitions and ongoing management of chronic conditions.

What has been the historical spending pattern for neurology physician services at VA Puget Sound Healthcare System?

Analyzing historical spending patterns for neurology physician services at the VA Puget Sound Healthcare System is crucial for understanding the context of this award. This would involve examining previous contract awards for similar services, including the number of contracts, their values, durations, and the contractors involved. A trend of consistent, sole-source awards to the University of Washington might indicate a long-standing, mutually beneficial relationship and a perceived lack of alternatives. Conversely, a history of competitive bidding or awards to different providers could raise questions about the current sole-source justification. Understanding past spending helps assess whether current expenditures are consistent with historical levels or represent a significant deviation.

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

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

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: $367,260

Exercised Options: $367,260

Current Obligation: $367,260

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26019D0009

IDV Type: IDC

Timeline