VA awards $196K for 7-day nursing care at Station 644 to Ridgecrest Healthcare

Contract Overview

Contract Amount: $196,058 ($196.1K)

Contractor: Ridgecrest Community Healthcare, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-01

End Date: 2026-01-08

Contract Duration: 7 days

Daily Burn Rate: $28.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: EXPRESS REPORT: FY26 JAN 1-8 STATION 644

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85012

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $196,058.18 to RIDGECREST COMMUNITY HEALTHCARE, LLC for work described as: EXPRESS REPORT: FY26 JAN 1-8 STATION 644 Key points: 1. Spending is concentrated on a short-term, high-need service. 2. The awardee, Ridgecrest Community Healthcare, is a single entity. 3. Potential for price escalation exists due to economic price adjustment. 4. The sector is healthcare, specifically skilled nursing facilities.

Value Assessment

Rating: fair

The contract's price of $196,058.18 for 7 days of service appears high. Benchmarking against similar skilled nursing facility contracts would be necessary to determine true value, but the short duration and specialized nature may justify a premium.

Cost Per Unit: $28,001 per day

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. Without competition, the VA may not have achieved the best possible price or terms.

Taxpayer Impact: Taxpayer funds are used for this contract. The lack of competition raises concerns about whether the price reflects fair market value.

Public Impact

Ensures continuity of care for veterans requiring skilled nursing. Supports a specific healthcare facility's operational needs. Potential for increased costs if economic adjustments are significant.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for price escalation
Short contract duration may indicate urgent need or limited availability

Positive Signals

Addresses a specific healthcare need
Awarded to a known entity (implied)

Sector Analysis

This award falls within the healthcare sector, specifically skilled nursing facilities. Spending in this area is critical for veteran care, but often involves high per-diem costs. Benchmarking against other VA facilities or private sector rates is essential.

Small Business Impact

The awardee is identified as Ridgecrest Community Healthcare, LLC. There is no indication that small businesses were involved in this specific contract award.

Oversight & Accountability

The Department of Veterans Affairs is the contracting agency. Oversight would involve monitoring service delivery and adherence to contract terms, especially given the sole-source nature.

Related Government Programs

Nursing Care Facilities (Skilled Nursing Facilities)
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
High per-unit cost
Economic price adjustment clause
Short contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $196,058.18 to RIDGECREST COMMUNITY HEALTHCARE, LLC. EXPRESS REPORT: FY26 JAN 1-8 STATION 644

Who is the contractor on this award?

The obligated recipient is RIDGECREST COMMUNITY HEALTHCARE, 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 $196,058.18.

What is the period of performance?

Start: 2026-01-01. End: 2026-01-08.

What is the justification for awarding this contract sole-source?

The justification for a sole-source award is not provided in the data. Typically, this would require a documented justification, such as only one source being capable of meeting the requirement, or in cases of urgent and compelling need where competition is not feasible. Further investigation into VA procurement records would be needed.

How does the per-unit cost compare to similar VA nursing contracts?

The per-unit cost of approximately $28,001 per day is significantly higher than typical per-diem rates for skilled nursing facilities. While specialized care or emergency situations can increase costs, this benchmark warrants further scrutiny to ensure the VA is not overpaying, especially considering the short duration.

What is the long-term impact of relying on sole-source contracts for essential services?

Long-term reliance on sole-source contracts can lead to reduced competition, potentially higher prices, and less innovation. It also limits the agency's ability to leverage market forces for better value. For essential services like nursing care, a strategy that encourages competition or establishes clear, competitive pricing benchmarks is preferable.

Industry Classification

NAICS: Health Care and Social Assistance › Nursing Care Facilities (Skilled Nursing Facilities) › Nursing Care Facilities (Skilled Nursing Facilities)

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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

Evaluated Preference: NONE

Contractor Details

Address: 16640 N 38TH ST, PHOENIX, AZ, 85032

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

Financial Breakdown

Contract Ceiling: $196,058

Exercised Options: $196,058

Current Obligation: $196,058

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26226D0040

IDV Type: IDC

Timeline