VA Awards $2.3M Nursing Care Contract to Riverside Sanitarium LLC for 30 Days

Contract Overview

Contract Amount: $231,661 ($231.7K)

Contractor: Riverside Sanitarium LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-01

End Date: 2025-12-31

Contract Duration: 30 days

Daily Burn Rate: $7.7K/day

Competition Type: NOT COMPETED UNDER SAP

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: EXPRESS REPORT DEC

Place of Performance

Location: RIVERSIDE, RIVERSIDE County, CALIFORNIA, 92501

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $231,660.57 to RIVERSIDE SANITARIUM LLC for work described as: EXPRESS REPORT DEC Key points: 1. Contract awarded to Riverside Sanitarium LLC for skilled nursing care. 2. The contract is a delivery order under a larger agreement. 3. No competition was utilized under the Simplified Acquisition Procedures (SAP). 4. The contract duration is 30 days, ending December 31, 2025. 5. The NAICS code indicates a focus on Nursing Care Facilities.

Value Assessment

Rating: questionable

The contract's fixed price with economic price adjustment suggests potential for cost increases. Without competitive bidding, it's difficult to assess if the price is optimal compared to market rates for similar nursing care services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under SAP, indicating a limited competition approach. This method may not yield the best price discovery, potentially leading to higher costs for the government.

Taxpayer Impact: The lack of competition raises concerns about the efficient use of taxpayer funds, as a potentially lower price may have been achievable through a more open bidding process.

Public Impact

Veterans in California will receive nursing care services under this contract. The short duration suggests a specific, immediate need for services. The Department of Veterans Affairs is the contracting agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for price escalation due to economic price adjustment
Short contract duration may indicate urgent or temporary need

Positive Signals

Ensures provision of essential nursing care services to veterans

Sector Analysis

The healthcare sector, specifically skilled nursing facilities, is critical for elder care and veteran support. Spending benchmarks for such services can vary significantly based on location, level of care, and contract duration.

Small Business Impact

Information on whether Riverside Sanitarium LLC is a small business is not provided in the data. Further analysis would be needed to determine the impact on small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure the quality of care and adherence to contract terms. The lack of competition warrants close monitoring of performance and costs.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for cost overruns due to EPA
Limited transparency on justification for non-competition
Short contract duration may indicate reactive rather than strategic procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $231,660.57 to RIVERSIDE SANITARIUM LLC. EXPRESS REPORT DEC

Who is the contractor on this award?

The obligated recipient is RIVERSIDE SANITARIUM 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 $231,660.57.

What is the period of performance?

Start: 2025-12-01. End: 2025-12-31.

What was the justification for not competing this contract under SAP, and what specific circumstances necessitated this approach?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP'. Without further details, the specific justification remains unclear. Typically, justifications for limited competition include urgent and compelling needs, sole-source availability of the service, or circumstances where only one responsible source can provide the required service. Understanding the rationale is crucial for assessing the value and necessity of this procurement method.

How does the economic price adjustment clause impact the final cost, and what are the projected ranges for this adjustment?

The economic price adjustment (EPA) clause allows for modifications to the contract price based on fluctuations in specified economic factors, such as labor or material costs. While the exact projected ranges are not detailed, the inclusion of an EPA introduces uncertainty regarding the final expenditure. This mechanism aims to protect both parties from unforeseen market shifts but can lead to higher costs for the government if inflation is significant.

What is the expected quality of care and patient outcomes for the 30-day duration of this contract?

The data does not provide specific metrics for expected quality of care or patient outcomes. However, as this is a contract for Nursing Care Facilities (Skilled Nursing Facilities), the expectation is that Riverside Sanitarium LLC will provide services meeting established healthcare standards and regulatory requirements. The VA's oversight mechanisms would be in place to monitor performance and ensure veterans receive appropriate care during this period.

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 UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

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

Evaluated Preference: NONE

Contractor Details

Address: 4580 PALM AVE, RIVERSIDE, CA, 92501

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $231,661

Exercised Options: $231,661

Current Obligation: $231,661

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26226D0033

IDV Type: IDC

Timeline