VA awards $2.5M purchase order for ambulance services to Journey Via Gurney, LLC

Contract Overview

Contract Amount: $2,526,601 ($2.5M)

Contractor: Journey VIA Gurney, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-08-01

End Date: 2026-07-31

Contract Duration: 364 days

Daily Burn Rate: $6.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GROUND AMBULANCE SERVICES -BLS, ALS AND CCT SERVICE

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90073

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to JOURNEY VIA GURNEY, LLC for work described as: GROUND AMBULANCE SERVICES -BLS, ALS AND CCT SERVICE Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm-fixed-price contract type suggests predictable costs for the VA. 3. The contract duration is one year, indicating a short-term need. 4. Service area is California, suggesting a localized operational focus. 5. The contract is not set aside for small businesses. 6. The North American Industry Classification System (NAICS) code is 621910 for Ambulance Services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service specifications and comparison data for similar ambulance services in California. The firm-fixed-price structure provides cost certainty for the VA. However, the lack of competition raises questions about whether the VA secured the most cost-effective pricing available in the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, or in specific emergency situations. The lack of competition means the VA did not benefit from a bidding process that could drive down prices through market forces.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price.

Public Impact

Veterans in California will benefit from access to essential ground ambulance services. Services include Basic Life Support (BLS), Advanced Life Support (ALS), and Critical Care Transport (CCT). The geographic impact is focused within California, serving the VA's facilities and beneficiaries in the state. The contract supports the healthcare delivery infrastructure for the Department of Veterans Affairs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs.
Lack of small business set-aside may reduce opportunities for smaller providers.
Contract duration is short, requiring potential re-competition or extension soon.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Contract covers essential emergency medical services for veterans.
Specific service types (BLS, ALS, CCT) indicate comprehensive coverage.

Sector Analysis

The healthcare services sector, specifically emergency medical transportation, is critical for public health infrastructure. Ambulance services are provided by a mix of private companies, non-profits, and public entities. The market can be influenced by local regulations, service area demand, and the complexity of medical transport required (e.g., BLS vs. CCT). This contract fits within the VA's broader healthcare services procurement strategy to ensure medical support for veterans.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no indication of subcontracting opportunities for small businesses. The sole-source nature of the award further limits the potential for small business participation, as the primary contractor was selected without a competitive process that might have included small business considerations.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. As a purchase order, it is subject to standard procurement regulations and oversight. The specific details of performance monitoring and accountability measures would be outlined in the contract terms and conditions. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Medical Services Contracts
Emergency Medical Services Procurement
Healthcare Transportation Services
Veteran Health Administration Services

Risk Flags

Sole-source award may indicate limited competition.
Short contract duration requires timely re-procurement planning.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to JOURNEY VIA GURNEY, LLC. GROUND AMBULANCE SERVICES -BLS, ALS AND CCT SERVICE

Who is the contractor on this award?

The obligated recipient is JOURNEY VIA GURNEY, 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 $2.5 million.

What is the period of performance?

Start: 2025-08-01. End: 2026-07-31.

What is the historical spending by the VA on ambulance services, and how does this award compare?

Analyzing historical spending requires access to comprehensive VA procurement data across all its facilities and contract types. Without a broader dataset, it's difficult to definitively compare this $2.5 million award to the VA's total expenditure on ambulance services. However, the fact that this is a one-year, sole-source purchase order suggests it might be addressing a specific, localized need or a gap in existing service contracts. Further analysis would involve examining prior contracts for similar services in California or for the specific VA facility this order supports to understand if pricing is consistent or if this represents a new or increased investment in such services.

What specific factors led to this contract being sole-sourced rather than competed?

Sole-source justifications are typically based on specific criteria outlined in federal acquisition regulations. For ambulance services, this could be due to the unique capabilities of Journey Via Gurney, LLC, such as specialized equipment or personnel required for Critical Care Transport (CCT) that few other providers in the immediate service area possess. Alternatively, it might be related to the urgency of the need, geographic exclusivity, or a lack of sufficient qualified bidders responding to previous solicitations. The Department of Veterans Affairs would have had to document the rationale for this sole-source determination, often involving market research to confirm the lack of adequate competition.

How does the firm-fixed-price (FFP) contract type impact the risk and cost for the VA?

A firm-fixed-price contract is generally advantageous for the buyer (the VA) as it shifts most of the cost risk to the contractor, Journey Via Gurney, LLC. The price is set and generally not subject to adjustment based on the contractor's cost experience. This provides the VA with budget certainty and predictability. For the contractor, the risk lies in managing their costs effectively to ensure profitability. If their costs exceed the fixed price, their profit margin shrinks or they may incur a loss. This contract type is suitable when the scope of work is well-defined and the VA wants to avoid cost overruns.

What are the implications of the contract's short duration (364 days) for service continuity?

The 364-day duration of this contract suggests a short-term requirement or an interim solution. This means the VA will need to consider its long-term strategy for ambulance services well before the contract expires. It necessitates either initiating a new competitive procurement process to secure a longer-term contract, potentially with a different vendor, or exercising options if available (though not indicated here) or extending the current contract if permissible. The short duration could also mean less incentive for the contractor to invest in long-term service improvements, focusing instead on fulfilling the immediate requirements.

What is the typical market rate or benchmark for BLS/ALS/CCT ambulance services in California?

Determining a precise market rate benchmark for BLS, ALS, and CCT ambulance services in California is complex due to significant variations in pricing based on geographic location (urban vs. rural), provider type (private, non-profit, hospital-based), service level, and contract specifics (e.g., subscription vs. on-demand, response time guarantees). Generally, CCT services command the highest prices due to the specialized equipment and highly trained personnel required. ALS is more expensive than BLS. Without specific details on the volume of services, response time requirements, and the exact service area within California, it is difficult to benchmark the $2.5 million award against average market rates. However, sole-source awards often lack the competitive pressure that drives prices down to the lowest feasible market level.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Ambulance Services

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1330 W ROBINHOOD DR STE B, STOCKTON, CA, 95207

Business Categories: Category Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,526,601

Exercised Options: $2,526,601

Current Obligation: $2,526,601

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline