VA awards $196K for skilled nursing care, but competition details are unclear

Contract Overview

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

Contractor: Ridgecrest Community Healthcare, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-09

End Date: 2026-01-15

Contract Duration: 6 days

Daily Burn Rate: $32.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: EXPRESS REPORT: FY26 JAN 9-15 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 9-15 STATION 644 Key points: 1. The contract value of $196,058.18 for a short duration suggests a focused service delivery. 2. The fixed-price contract with economic price adjustment introduces potential for cost fluctuations. 3. The lack of competition raises questions about achieving the best possible value for taxpayer funds. 4. The contract is a delivery order, indicating it's part of a larger existing agreement. 5. The service falls under Nursing Care Facilities, a critical component of healthcare delivery. 6. The short performance period (6 days) implies a specific, time-bound need.

Value Assessment

Rating: fair

The contract value of approximately $196,000 for a 6-day service period appears high on a daily basis, but without knowing the specific services rendered and the patient load, a direct comparison is difficult. The fixed-price with economic price adjustment (FPEPA) contract type can sometimes lead to higher initial prices to account for potential cost increases. Benchmarking this against similar short-term skilled nursing care contracts would be necessary to determine true value for money.

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. This approach is typically used when only one source is capable of fulfilling the requirement, or in cases of urgent need. The lack of competition means that the Department of Veterans Affairs did not have the opportunity to solicit bids from multiple vendors, which could potentially lead to higher prices than if the contract had been competed.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to drive down costs, potentially resulting in less favorable pricing for taxpayers.

Public Impact

Veterans in Arizona requiring skilled nursing care will benefit from the services provided. The contract ensures the availability of nursing care facilities for a specific period. The geographic impact is limited to Arizona, where the services will be delivered. The contract supports the healthcare workforce by engaging a provider for essential services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Economic price adjustment clause introduces cost uncertainty.
Short duration may indicate a reactive rather than proactive procurement strategy.

Positive Signals

Addresses a specific healthcare need for veterans.
Contract is with a known entity (LLC).
Clear service category (Nursing Care Facilities).

Sector Analysis

The healthcare sector, particularly skilled nursing facilities, is a significant area of federal spending, especially for agencies like the Department of Veterans Affairs. This contract falls within the broader category of healthcare services, which includes a wide range of medical and support services. Comparable spending benchmarks would involve looking at per diem rates for skilled nursing care provided to government beneficiaries across different regions and contract types.

Small Business Impact

The data indicates that this contract was not competed and there is no indication of small business set-aside or subcontracting requirements. Therefore, the direct impact on the small business ecosystem is likely minimal for this specific award. However, the overall contracting strategy of the agency and the nature of the prime contractor would determine broader implications.

Oversight & Accountability

As a delivery order, this contract is likely governed by the terms of a larger, pre-existing contract which would have its own oversight mechanisms. The Department of Veterans Affairs has internal oversight processes for contract management and performance. Transparency regarding the justification for the sole-source award and the specific services rendered would be key to assessing accountability.

Related Government Programs

Department of Veterans Affairs Healthcare Services
Skilled Nursing Facility Contracts
Federal Healthcare Procurement

Risk Flags

Lack of Competition
Potential for Cost Overruns (FPEPA)
Limited Transparency on Sole-Source Justification

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 9-15 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: 2026-01-09. End: 2026-01-15.

What specific services are included under this contract for skilled nursing care?

The provided data identifies the contract as being for 'Nursing Care Facilities (Skilled Nursing Facilities)' under NAICS code 623110. However, the specific services rendered are not detailed in the express report. Typically, skilled nursing facilities provide 24-hour medical care, rehabilitation services (physical, occupational, speech therapy), assistance with daily living activities, and medication management. The exact scope would be defined in the contract's statement of work, which is not available in this summary. Understanding the precise services is crucial for evaluating the contract's value and necessity.

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

The data explicitly states the contract was 'NOT COMPETED' and lists the contract type as 'sole-source'. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without further documentation, such as a Justification and Approval (J&A) document, the specific rationale for this sole-source award remains unknown. This lack of competition limits the government's ability to ensure it is receiving the best value through a competitive bidding process.

How does the fixed-price with economic price adjustment (FPEPA) clause impact the total cost?

A Fixed-Price with Economic Price Adjustment (FPEPA) contract allows for adjustments to the contract price based on fluctuations in specified economic factors, such as labor or material costs. While it aims to protect both the contractor from unforeseen cost increases and the government from excessively high initial bids, it introduces uncertainty regarding the final cost. The 'br' value of 32676 might represent an initial base price or a component subject to adjustment. The actual total expenditure could exceed the initial $196,058.18 if economic conditions trigger upward adjustments, making it essential to monitor the price changes throughout the contract period.

What is the typical cost for similar skilled nursing care services provided to veterans?

Determining a precise 'typical cost' for similar skilled nursing care services is complex due to variations in service scope, geographic location, and contract specifics. However, daily rates for skilled nursing care can range significantly, often from several hundred dollars per day. For instance, Medicare reimbursement rates for skilled nursing facilities can serve as a benchmark, though they differ from VA contract pricing. The VA may negotiate rates based on specific needs and available providers. Without a detailed statement of work and comparison to other VA contracts or Medicare rates for the Arizona region, it's difficult to definitively benchmark the $196,058.18 for a 6-day period.

What is the track record of RIDGECREST COMMUNITY HEALTHCARE, LLC with the Department of Veterans Affairs?

The provided data identifies RIDGECREST COMMUNITY HEALTHCARE, LLC as the contractor. To assess their track record, one would need to examine their past performance on VA contracts, including contract history, performance evaluations, and any instances of disputes or contract modifications. This summary does not contain that information. A deeper dive into federal procurement databases and VA performance records would be necessary to understand their reliability, quality of service, and history of compliance with VA requirements.

What is the significance of this contract being a 'Delivery Order'?

The 'AW' field indicating 'DELIVERY ORDER' means this contract is a task order issued under a previously awarded indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar type of contract vehicle. This implies that the overarching contract was already competed and awarded, and this specific delivery order represents a call for a defined quantity of goods or services within the scope of that larger contract. The 'NOT COMPETED' status likely refers to this specific delivery order being issued non-competitively under the existing contract, which may have provisions for such awards.

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