VA awards $13.4M contract to American College of Surgeons for accreditation services

Contract Overview

Contract Amount: $13,459 ($13.5K)

Contractor: American College of Surgeons

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $37/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: COC ACCREDITATION FY26

Place of Performance

Location: LOMA LINDA, SAN BERNARDINO County, CALIFORNIA, 92357

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $13,459 to AMERICAN COLLEGE OF SURGEONS for work described as: COC ACCREDITATION FY26 Key points: 1. The VA is spending $13.4 million on accreditation services. 2. The American College of Surgeons is the sole provider for this service. 3. Lack of competition raises concerns about potential overpricing and value. 4. The healthcare sector relies on such accreditations for quality assurance.

Value Assessment

Rating: questionable

Without competitive bidding, it's difficult to assess if the $13.4 million price represents fair market value. Benchmarking against similar accreditation contracts across federal agencies or private sector equivalents is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer competitive pricing.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these accreditation services.

Public Impact

Veterans benefit from accredited healthcare facilities, ensuring quality of care. The VA's reliance on a single accreditation body impacts the standardization of care. This spending supports the operational framework of healthcare quality within the VA system.

Waste & Efficiency Indicators

Waste Risk Score: 37 / 10

Warning Flags

Sole-source award
Lack of price competition
Potential for inflated costs

Positive Signals

Essential service for healthcare quality
Established provider

Sector Analysis

The Department of Veterans Affairs operates within the healthcare sector, a critical area for federal spending. Accreditation services are vital for maintaining standards and ensuring patient safety, with benchmarks often tied to the complexity and scope of the services provided.

Small Business Impact

This contract does not appear to involve small businesses, as it is awarded to a large professional organization. Opportunities for small business participation in related support services should be explored.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and performance. The VA should conduct regular reviews to validate the necessity and cost-effectiveness of this accreditation.

Related Government Programs

Professional Organizations
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award limits competition.
Potential for above-market pricing.
Lack of transparency in cost breakdown.
Dependence on a single provider.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13,459 to AMERICAN COLLEGE OF SURGEONS. COC ACCREDITATION FY26

Who is the contractor on this award?

The obligated recipient is AMERICAN COLLEGE OF SURGEONS.

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 $13,459.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the justification for awarding this contract sole-source, and what steps are taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or circumstances. To ensure fair pricing, the VA should conduct a thorough price analysis, potentially using historical data, independent cost estimates, or benchmarking against similar services, even if not directly competitive.

How does the American College of Surgeons' accreditation process compare to other potential providers in terms of cost and effectiveness?

Without a competitive process, a direct comparison is challenging. Effectiveness can be inferred from the organization's reputation and the impact on VA healthcare quality. A cost comparison would require analyzing the components of their pricing structure against industry standards or alternative accreditation models.

What is the long-term strategy for ensuring competitive pricing for essential accreditation services within the VA?

The VA could explore strategies such as breaking down the accreditation scope into smaller, more competitive service packages, encouraging new entrants into the accreditation market, or establishing clear performance metrics and cost targets for future sole-source renewals to drive efficiency.

Industry Classification

NAICS: Other Services (except Public Administration) › Business, Professional, Labor, Political, and Similar Organizations › Professional Organizations

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 633 N SAINT CLAIR ST, CHICAGO, IL, 60611

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,459

Exercised Options: $13,459

Current Obligation: $13,459

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline