VA awards $220M contract for Nursing Care Facilities to Riverside Sanitarium LLC, with no competition

Contract Overview

Contract Amount: $220,402 ($220.4K)

Contractor: Riverside Sanitarium LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-02-01

End Date: 2026-02-28

Contract Duration: 27 days

Daily Burn Rate: $8.2K/day

Competition Type: NOT COMPETED UNDER SAP

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: EXPRESS REPORT FEB

Place of Performance

Location: RIVERSIDE, RIVERSIDE County, CALIFORNIA, 92501

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $220,401.99 to RIVERSIDE SANITARIUM LLC for work described as: EXPRESS REPORT FEB Key points: 1. Significant contract value of $220.4 million. 2. Lack of competition raises concerns about price discovery. 3. Contract awarded to a single entity, Riverside Sanitarium LLC. 4. Sector is Healthcare, specifically Nursing Care Facilities.

Value Assessment

Rating: questionable

The contract value is substantial at $220.4 million. Without competitive bidding, it's difficult to assess if this price represents fair market value for nursing care facilities. Benchmarking against similar contracts would be necessary for a thorough evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed under Simplified Acquisition Procedures (SAP) and was awarded as a delivery order. The sole-source nature means there was no opportunity for multiple vendors to bid, potentially leading to a higher price than if competition were present.

Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for these nursing care services.

Public Impact

Veterans in California will receive nursing care services. The Department of Veterans Affairs is the awarding agency. The contract duration is short, covering only one month. Potential for higher costs due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Ensures service delivery for veterans

Sector Analysis

The healthcare sector, particularly skilled nursing facilities, is critical for elder care and veteran services. Spending in this area is substantial, and competitive bidding is typically employed to ensure cost-effectiveness and quality.

Small Business Impact

There is no indication of small business participation in this sole-source award. Further analysis would be needed to determine if small businesses were considered or excluded.

Oversight & Accountability

The awarding agency is the Department of Veterans Affairs. Oversight should focus on the justification for the sole-source award and the pricing mechanisms within the fixed-price contract with economic price adjustment.

Related Government Programs

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

Risk Flags

Sole-source award lacks competition.
Potential for inflated pricing.
Economic price adjustment introduces cost uncertainty.
No clear small business involvement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $220,401.99 to RIVERSIDE SANITARIUM LLC. EXPRESS REPORT FEB

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 $220,401.99.

What is the period of performance?

Start: 2026-02-01. End: 2026-02-28.

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

The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. A thorough review would require access to the contract file and associated documentation detailing the rationale.

How does the economic price adjustment clause impact the final cost?

The economic price adjustment (EPA) clause allows for adjustments to the contract price based on fluctuations in specified economic factors, such as labor or material costs. This can protect the contractor from unforeseen cost increases but also introduces uncertainty for the government regarding the final expenditure.

What is the expected quality of care provided under this contract?

The data provided does not contain information about the expected quality of care. Quality assessment would typically involve reviewing performance metrics, patient satisfaction surveys, and compliance records associated with Riverside Sanitarium LLC's previous contracts or facility accreditations.

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: $220,402

Exercised Options: $220,402

Current Obligation: $220,402

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26226D0033

IDV Type: IDC

Timeline