VA awards $2.1M contract for El Centro CBOC outpatient care to Sterling Medical Associates

Contract Overview

Contract Amount: $2,097,231 ($2.1M)

Contractor: Sterling Medical Associates, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-16

End Date: 2026-09-15

Contract Duration: 364 days

Daily Burn Rate: $5.8K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EL CENTRO COMMUNITY BASED OUTPATIENT CLINIC (CBOC)

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92161

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.1 million to STERLING MEDICAL ASSOCIATES, INC for work described as: EL CENTRO COMMUNITY BASED OUTPATIENT CLINIC (CBOC) Key points: 1. Contract awarded for essential outpatient services at a community-based clinic. 2. Sterling Medical Associates, Inc. is the selected contractor. 3. The contract duration is one year, ending September 2026. 4. This award falls under simplified acquisition procedures, suggesting a focus on efficiency for smaller procurements. 5. The clinic is located in El Centro, California, serving the local veteran population. 6. The primary service category is Outpatient Care Centers. 7. The contract type is Firm Fixed Price, providing cost certainty.

Value Assessment

Rating: good

The contract value of approximately $2.1 million for a one-year period for outpatient care services appears reasonable given the scope. Benchmarking against similar community-based outpatient clinics (CBOCs) managed by the VA would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract helps manage cost risks for the government. The award under simplified acquisition procedures suggests a competitive process suitable for this contract size.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broad range of potential bidders, including small businesses. While the specific number of bids received is not detailed, SAP aims to promote competition for procurements below certain thresholds. This method generally leads to fair market pricing and ensures that the government receives competitive offers.

Taxpayer Impact: Competition under SAP for this contract likely resulted in a fair price for taxpayers, avoiding the potential for inflated costs associated with sole-source awards.

Public Impact

Veterans in the El Centro, California area will benefit from continued access to outpatient medical services. The contract ensures the provision of 'All Other Outpatient Care' services. The geographic impact is focused on Imperial County, California. The contract supports healthcare jobs within the El Centro community. This award contributes to the VA's mission of providing comprehensive healthcare to its beneficiaries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor performance issues arise, though mitigated by fixed-price terms.
Reliance on a single contractor for a year could pose risks if unforeseen operational challenges occur.

Positive Signals

Award under competitive procedures suggests a capable contractor was selected.
Firm Fixed Price contract provides cost predictability for the VA.
One-year duration allows for periodic reassessment of performance and market conditions.

Sector Analysis

The healthcare sector, specifically outpatient care centers, is a critical component of the VA's healthcare delivery system. Community-Based Outpatient Clinics (CBOCs) are essential for providing accessible care to veterans in areas not served by larger medical centers. Spending in this sub-sector is driven by the need to offer a range of services, from primary care to specialized outpatient treatments, ensuring veterans receive timely and convenient medical attention. The market for these services involves numerous healthcare providers capable of meeting VA standards.

Small Business Impact

The data indicates this contract was competed under Simplified Acquisition Procedures (SAP), which often includes opportunities for small businesses. However, it is not explicitly stated as a small business set-aside. Further analysis would be needed to determine if small businesses participated in the bidding process or if subcontracting opportunities exist for them under Sterling Medical Associates, Inc.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. As a delivery order under a larger contract vehicle, it is subject to standard VA procurement regulations and oversight. Performance monitoring, quality assurance reviews, and financial audits are typical mechanisms to ensure accountability and transparency. The fixed-price nature of the contract also provides a degree of financial oversight.

Related Government Programs

VA Community Care Network (CCN)
VA Primary Care Services
Outpatient Medical Services Contracts

Risk Flags

Contract awarded under Simplified Acquisition Procedures (SAP) may limit the pool of potential bidders compared to full and open competition.
Performance history of Sterling Medical Associates, Inc. requires further investigation to fully assess risk.
Geographic location in El Centro may present logistical or staffing challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.1 million to STERLING MEDICAL ASSOCIATES, INC. EL CENTRO COMMUNITY BASED OUTPATIENT CLINIC (CBOC)

Who is the contractor on this award?

The obligated recipient is STERLING MEDICAL ASSOCIATES, INC.

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: 2025-09-16. End: 2026-09-15.

What is the historical spending pattern for the El Centro CBOC or similar facilities?

Historical spending data for the El Centro CBOC specifically is not provided in the given data. However, the current award of approximately $2.1 million for a one-year period offers a benchmark for recent spending. To understand historical patterns, one would need to examine prior contract awards for this specific clinic or comparable CBOCs within the VA system. This would involve looking at contract values, durations, and awarded contractors over several fiscal years. Analyzing trends in spending, such as increases or decreases in contract values, and the consistency of awarded contractors can reveal insights into the stability and growth of services at these facilities. For instance, consistent awards to the same contractor might indicate satisfaction with performance, while frequent re-competition could suggest efforts to ensure competitive pricing or address performance concerns.

How does the awarded price compare to market rates for similar outpatient care services?

A direct comparison of the awarded price of approximately $2.1 million for one year against precise market rates for similar outpatient care services requires access to detailed market analysis data and fee schedules for the Imperial County region. However, the fact that the contract was competed under Simplified Acquisition Procedures (SAP) suggests that the Department of Veterans Affairs sought competitive bids, which generally leads to pricing aligned with market expectations for procurements of this size. To conduct a thorough benchmark, one would typically compare the per-patient costs, service line pricing, and overhead rates against commercial healthcare providers offering comparable services in the same geographic area. The VA often uses established pricing benchmarks and conducts market research to ensure fair and reasonable pricing before awarding contracts.

What are the key performance indicators (KPIs) for this contract, and how is performance monitored?

The specific Key Performance Indicators (KPIs) for the EL CENTRO COMMUNITY BASED OUTPATIENT CLINIC (CBOC) contract are not detailed in the provided data. However, for VA outpatient care contracts, typical KPIs often include patient wait times for appointments, patient satisfaction scores, adherence to clinical quality standards, availability of services, and operational efficiency. Performance monitoring is generally conducted by the Contracting Officer's Representative (COR) assigned by the VA. The COR is responsible for overseeing the contractor's performance, ensuring compliance with the contract terms and conditions, and verifying that services meet the required quality standards. Regular performance reviews, site visits, and analysis of patient feedback are common methods used to monitor contractor performance.

What is Sterling Medical Associates, Inc.'s track record with the VA or other government agencies?

Sterling Medical Associates, Inc. has a history of contracting with the Department of Veterans Affairs and other government entities for healthcare services. While specific details of their past performance are not included in the provided data, a review of federal procurement databases (like SAM.gov or FPDS) would reveal their contract history, including the types of services provided, contract values, and performance ratings, if available. Companies like Sterling Medical Associates often specialize in providing medical staffing and operational support for government facilities, including clinics and hospitals. Their ability to secure this new contract suggests a satisfactory performance record with the VA, though a deeper dive into past performance evaluations would be necessary for a comprehensive assessment.

Are there any specific risks associated with providing outpatient care in this region or for this demographic?

Providing outpatient care in the El Centro region, which is part of Imperial County, California, may present certain risks. These can include challenges related to geographic isolation, potentially higher rates of chronic diseases among the veteran population, and workforce recruitment and retention difficulties in a more rural or underserved area. For the veteran demographic, specific health needs related to combat exposure, aging, or specific service-related conditions must be addressed. The VA's CBOC model is designed to mitigate some of these risks by bringing care closer to veterans. However, ensuring adequate staffing, maintaining equipment, and managing patient flow effectively remain ongoing considerations for the contractor.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › All Other Outpatient Care Centers

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 411 OAK ST, CINCINNATI, OH, 45219

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,097,231

Exercised Options: $2,097,231

Current Obligation: $2,097,231

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26223D0038

IDV Type: IDC

Timeline