VA awards $859K for short-term CBOC services in New Mexico, with no competition

Contract Overview

Contract Amount: $858,911 ($858.9K)

Contractor: Primary Care Solutions Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-08-30

Contract Duration: 151 days

Daily Burn Rate: $5.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SHORT-TERM CONTRACT FOR CBOC SERVICES IN ESPANOLA, NM

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87108

State: New Mexico Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $858,911.04 to PRIMARY CARE SOLUTIONS INC for work described as: SHORT-TERM CONTRACT FOR CBOC SERVICES IN ESPANOLA, NM Key points: 1. Contract awarded to Primary Care Solutions Inc. for outpatient care services. 2. Short duration of 151 days suggests a temporary need for services. 3. The contract is a delivery order under an unspecified basic agreement. 4. No small business set-aside was applied to this procurement. 5. The contract is firm-fixed-price, indicating a set price for services. 6. Services are for outpatient care centers, specifically NAICS 621498. 7. Geographic focus is Espanola, New Mexico.

Value Assessment

Rating: questionable

The contract value of $859,000 for a 151-day period appears high for short-term CBOC services. Without a clear comparison to similar short-term contracts or a breakdown of services, it's difficult to benchmark the value for money. The lack of competition raises concerns about whether this price reflects a competitive market rate. The VA's use of delivery orders suggests it may be leveraging existing agreements, but the specific terms and pricing of the underlying agreement are unknown.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source delivery order, meaning it was not competed. The data indicates the contract type is 'NOT COMPETED'. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means there was no opportunity to solicit bids from various providers, potentially limiting price discovery and the government's ability to secure the most cost-effective solution.

Taxpayer Impact: Taxpayers may not be receiving the best value due to the absence of competitive bidding. Without comparing offers, the government may be overpaying for these essential healthcare services.

Public Impact

Veterans in Espanola, New Mexico, will benefit from continued access to outpatient care services. The contract ensures the provision of 'All Other Outpatient Care Centers' services. Services are geographically focused within New Mexico. The contract supports the VA's mission to provide healthcare to veterans. The short-term nature suggests a potential gap-filling or transitional service requirement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about price reasonableness and potential overpayment.
Short contract duration may indicate a lack of long-term planning or a reactive procurement strategy.
The specific services provided under 'All Other Outpatient Care Centers' are not detailed, making it hard to assess performance metrics.
The underlying basic agreement under which this delivery order was issued is not specified, hindering a full understanding of the procurement context.

Positive Signals

Ensures continuity of care for veterans in the Espanola, NM area.
Firm-fixed-price contract provides cost certainty for the VA.
Awarded to a single contractor, potentially simplifying administration for this short-term need.

Sector Analysis

The healthcare services sector, particularly outpatient care, is a significant area of federal spending, especially for the Department of Veterans Affairs. NAICS code 621498 covers a broad range of non-physician-provided outpatient care centers. The VA's Community Based Outpatient Clinics (CBOCs) are crucial for extending healthcare access to veterans in rural or underserved areas. Benchmarking this contract's value is challenging without more specific service details and contract terms, but the overall market for such services is competitive, making the sole-source award notable.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any subcontracting requirements for small businesses. The award to Primary Care Solutions Inc. does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting. Further investigation would be needed to determine if Primary Care Solutions Inc. itself is a small business or if they utilize small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs. As a delivery order, it is likely managed by a contracting officer within the VA. Transparency is limited due to the sole-source nature and the lack of detailed public information regarding the specific services and performance metrics. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs Healthcare Services
Community Based Outpatient Clinics (CBOCs)
Outpatient Care Services Contracts
Federal Healthcare Procurement

Risk Flags

Lack of Competition
High Per-Day Cost (potential)
Short Contract Duration
Unspecified Underlying Agreement

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $858,911.04 to PRIMARY CARE SOLUTIONS INC. SHORT-TERM CONTRACT FOR CBOC SERVICES IN ESPANOLA, NM

Who is the contractor on this award?

The obligated recipient is PRIMARY CARE SOLUTIONS INC.

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 $858,911.04.

What is the period of performance?

Start: 2026-04-01. End: 2026-08-30.

What is the track record of Primary Care Solutions Inc. with the Department of Veterans Affairs?

A review of federal procurement data indicates that Primary Care Solutions Inc. has received multiple contracts from the Department of Veterans Affairs, primarily for healthcare services. These contracts often involve providing medical staffing, clinic operations, and specialized healthcare support. While the company has a history of receiving VA contracts, the specific performance history, including any past issues or commendations, would require a deeper dive into contract performance reports and any associated contract disputes or awards. The value and duration of past contracts can provide context for their experience in delivering similar services.

How does the per-diem cost of this contract compare to similar VA CBOC services?

Calculating a precise per-diem cost requires dividing the total contract value ($858,911.04) by the contract duration in days (151 days), resulting in approximately $5,688 per day. Benchmarking this against similar VA CBOC services is challenging without more specific data on the scope of services provided, the number of veterans served daily, and the geographic location's cost of living. However, this daily rate appears high for basic outpatient services, suggesting that either the services are highly specialized, the contract includes significant overhead, or the lack of competition has led to a less favorable price for the government. A comparative analysis with other sole-source or limited-competition contracts for similar durations and service scopes would be necessary for a robust assessment.

What are the primary risks associated with a sole-source award for essential healthcare services?

The primary risks associated with a sole-source award for essential healthcare services like those provided by CBOCs include inflated pricing due to the lack of competitive pressure, potential for reduced service quality if the contractor faces no threat of losing business, and limited innovation. Taxpayers may bear a higher cost than necessary. Furthermore, sole-source awards can create a perception of favoritism and may not align with federal procurement principles that emphasize fair and open competition. For essential services, a lack of competition can also pose a risk to continuity of care if the sole provider encounters operational difficulties.

What is the expected effectiveness of these services given the short contract duration?

The effectiveness of these services is contingent on the specific objectives of this short-term contract. If the contract is intended to bridge a gap in services, provide temporary support during a transition, or address a specific, time-limited need, then its effectiveness can be measured by whether those objectives are met. However, a 151-day duration is insufficient for establishing long-term patient relationships or implementing comprehensive health programs. The effectiveness will likely be measured by the contractor's ability to deliver the contracted services reliably and meet any specified performance standards within the limited timeframe, ensuring continuity of care for veterans during this period.

How does this contract fit into the VA's broader strategy for providing healthcare in New Mexico?

This contract appears to be a tactical, short-term solution to ensure the continuity of CBOC services in Espanola, New Mexico. It suggests that either the VA's existing long-term arrangements for these services were insufficient for the period, or there was an immediate, unaddressed need. The VA's broader strategy typically involves a mix of government-run facilities and contracted services to reach veterans across the state. This specific award, being a sole-source delivery order, might indicate a temporary measure while a more permanent or competitively sourced solution is being developed or implemented. It highlights the VA's reliance on flexible contracting mechanisms to meet immediate healthcare demands.

What are the implications of the 'NOT COMPETED' status for future procurements of similar services?

The 'NOT COMPETED' status for this contract implies that the Department of Veterans Affairs utilized a justification for other than full and open competition, possibly due to urgency, existing contract vehicles, or unique capabilities of the selected contractor. For future procurements of similar services, this status raises questions about whether the VA adequately explored competitive options. If this sole-source award was justified, it might set a precedent for similar future needs if circumstances remain unchanged. However, if the lack of competition was due to oversight or a missed opportunity, it could prompt the VA to ensure more robust market research and competitive solicitations in the future to achieve better value and foster a more dynamic market.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › All Other Outpatient Care Centers

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10300 N CENTRAL EXPY, DALLAS, TX, 75231

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $858,911

Exercised Options: $858,911

Current Obligation: $858,911

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26226D0007

IDV Type: IDC

Timeline