VA Awards $231K for Skilled Nursing Care in California, Sole-Source Contract

Contract Overview

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

Contractor: Riverside Sanitarium LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-01

End Date: 2026-01-31

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 JAN

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 JAN Key points: 1. Contract awarded to RIVERSIDE SANITARIUM LLC for nursing care. 2. Sole-source award indicates limited competition, potentially impacting price. 3. High risk of price escalation due to economic price adjustment clause. 4. Sector is Healthcare, specifically skilled nursing facilities.

Value Assessment

Rating: questionable

The contract is a sole-source award with an economic price adjustment clause, which makes direct pricing comparisons difficult. The fixed-price nature with adjustment suggests potential for cost overruns if economic factors change significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under simplified acquisition procedures, indicating a sole-source award. This lack of competition limits price discovery and may lead to a higher price than if multiple vendors were considered.

Taxpayer Impact: The sole-source nature and economic price adjustment clause pose a risk to taxpayers, potentially leading to higher costs than a competitive procurement.

Public Impact

Veterans in California will receive skilled nursing care. Potential for increased costs due to economic price adjustments. Limited transparency on pricing due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Economic price adjustment
Short contract duration (30 days)

Positive Signals

Ensures continued care for veterans

Sector Analysis

This contract falls within the Healthcare sector, specifically skilled nursing facilities. Spending in this area is critical for veteran care, but competitive bidding is essential to ensure cost-effectiveness.

Small Business Impact

No indication of small business participation in this sole-source award.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and appropriate service delivery, especially given the economic price adjustment clause.

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 price escalation
Limited transparency
Short contract duration may indicate urgency or a stop-gap measure

Frequently Asked Questions

What is this federal contract paying for?

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

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: 2026-01-01. End: 2026-01-31.

What is the justification for the sole-source award, and were alternative competitive options explored?

The justification for a sole-source award is typically based on specific circumstances, such as the unavailability of other qualified sources or urgent needs. Without further details, it's difficult to assess if alternative competitive options were thoroughly explored. A sole-source award bypasses the standard competitive process, potentially leading to higher costs and reduced transparency for taxpayers.

How will the economic price adjustment clause be monitored to mitigate potential cost increases?

Monitoring the economic price adjustment clause requires clear benchmarks and regular reviews of economic indicators. The agency should establish a process for verifying the validity of any price adjustments requested by the contractor, ensuring they align with predefined economic factors and do not unduly inflate costs beyond what is reasonable for the services provided.

What is the expected quality of care and how is it being measured for this contract?

The quality of care is expected to meet the standards for skilled nursing facilities as defined by federal regulations and VA requirements. Performance metrics and quality assurance processes should be in place to monitor patient outcomes, staff qualifications, and adherence to care protocols. Regular inspections and patient feedback mechanisms are crucial for ensuring high-quality service delivery.

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