VA awards $5.3M contract for anesthesiologist services to JR Enterprise, L.L.C. with 364-day duration

Contract Overview

Contract Amount: $5,343,304 ($5.3M)

Contractor: JR Enterprise, L.L.C

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-31

End Date: 2026-03-30

Contract Duration: 364 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ANESTHESIOLOGIST PHYSICIAN SERVICES

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55417

State: Minnesota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.3 million to JR ENTERPRISE, L.L.C for work described as: ANESTHESIOLOGIST PHYSICIAN SERVICES Key points: 1. Contract value of $5.3M for a single year of anesthesiologist services suggests a significant need within the VA. 2. The firm fixed-price contract type indicates a clear understanding of service scope and cost expectations. 3. A single award for this duration may warrant further investigation into the competitive landscape and potential for broader engagement. 4. The NAICS code 621111 points to a specialized medical service, highlighting the demand for physician expertise. 5. The contract's end date in March 2026 suggests a need for ongoing service provision beyond the current fiscal year.

Value Assessment

Rating: good

The contract value of $5.3 million for a 364-day period for anesthesiologist services appears reasonable given the specialized nature of the work. Benchmarking against similar contracts for physician services within the VA or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs for the government, assuming the scope of work is well-defined and achievable within the stated price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited and considered. The fact that it was competed suggests a healthy market for these services. The specific number of bidders is not provided, but the 'full and open' designation generally implies a robust competitive process, which is favorable for price discovery.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

Veterans will benefit from access to essential anesthesiology services, crucial for surgical procedures and pain management. The contract ensures the availability of specialized medical professionals within VA facilities. Geographic impact is likely concentrated around the VA facility where these services will be rendered, potentially in Minnesota (ST: MN). The contract supports the employment of anesthesiologist physicians, contributing to the healthcare workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if competition was limited to a few bidders.
Ensuring consistent quality of care across the contract duration.
Managing potential cost overruns if the scope of work expands beyond initial estimates.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
Firm fixed-price contract provides cost certainty for the government.
Contract duration of one year allows for performance evaluation before potential renewal.

Sector Analysis

The healthcare sector, specifically physician services, is a critical component of federal spending, particularly within agencies like the Department of Veterans Affairs. Anesthesiologist services are a specialized and high-demand area within this sector. The market for such services is competitive, with numerous private practice groups and larger healthcare organizations capable of providing these essential medical functions. The VA's spending in this area reflects its commitment to providing comprehensive medical care to veterans.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem. Without specific set-aside provisions, larger firms are typically more likely to compete for and win contracts of this magnitude.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver services at the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office within the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Physician Services Contracts
Medical and Surgical Supplies
Veterans Health Administration
Anesthesiology Services
Healthcare Professional Staffing

Risk Flags

Potential for service disruption if contractor faces operational issues.
Need for ongoing monitoring of service quality and performance.
Reliance on a single vendor for critical healthcare services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.3 million to JR ENTERPRISE, L.L.C. ANESTHESIOLOGIST PHYSICIAN SERVICES

Who is the contractor on this award?

The obligated recipient is JR ENTERPRISE, L.L.C.

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 $5.3 million.

What is the period of performance?

Start: 2025-03-31. End: 2026-03-30.

What is the historical spending pattern for anesthesiologist services by the Department of Veterans Affairs?

Analyzing historical spending for anesthesiologist services by the VA is crucial for understanding trends, identifying potential increases or decreases in demand, and assessing the long-term budgetary implications. A review of past contract awards for similar services would reveal the average contract values, durations, and the number of competitors over time. For instance, if spending has steadily increased, it might indicate growing demand or rising service costs. Conversely, a decrease could suggest improved efficiency, shifts in healthcare delivery models, or changes in veteran population needs. Understanding these patterns helps in forecasting future requirements and ensuring adequate funding is allocated. Without specific historical data for this contract, it's difficult to provide precise figures, but a general trend of consistent or increasing demand for specialized medical services within the VA is often observed due to the ongoing commitment to veteran healthcare.

How does the awarded price compare to market rates for anesthesiologist services?

To assess if the awarded price of $5.3 million for 364 days of anesthesiologist services is competitive, it needs to be benchmarked against prevailing market rates. This involves researching the average salaries and overhead costs for anesthesiologists in similar geographic locations (e.g., Minnesota, given the 'ST: MN' designation) and for comparable healthcare settings, such as hospitals or large clinics. Factors influencing market rates include the level of experience required, the complexity of procedures, and the specific services provided (e.g., surgical anesthesia, pain management). If the contract value translates to a significantly lower or higher per-hour or per-case rate than the market average, it could indicate either exceptional value for the government or potential underpricing/overpricing by the contractor. The firm fixed-price nature of the contract suggests the government has negotiated a set rate, but its competitiveness hinges on thorough market analysis.

What is JR Enterprise, L.L.C.'s track record with federal contracts, particularly within the VA?

Evaluating JR Enterprise, L.L.C.'s past performance is essential for assessing the risk associated with this new contract. A review of federal procurement databases (like SAM.gov or FPDS) would reveal the company's history of contract awards, including the agencies served, contract types, values, and performance ratings. Specifically, looking at their experience with the Department of Veterans Affairs is important, as it indicates familiarity with VA regulations, procedures, and healthcare needs. A history of successful, on-time, and within-budget contract completions suggests reliability. Conversely, any past performance issues, such as contract terminations, disputes, or negative past performance reviews, would raise red flags and warrant closer scrutiny of their ability to meet the requirements of this anesthesiologist services contract. Without this specific data, the assessment remains incomplete.

What are the potential risks associated with a single award contract for critical medical services?

Awarding a contract for critical medical services like anesthesiology to a single entity, even if competed, carries inherent risks. One primary concern is the potential for vendor dependency; if JR Enterprise, L.L.C. faces unforeseen operational challenges (e.g., staffing shortages, financial difficulties, or loss of key personnel), it could disrupt the continuity of care for veterans. This dependency also reduces the government's leverage in future negotiations, as switching providers for such specialized services can be complex and time-consuming. Furthermore, a single award might limit the government's ability to benefit from diverse approaches or innovations that multiple competing vendors could offer. While full and open competition aims to mitigate price risks, the long-term operational risks associated with relying on one provider for essential services warrant careful monitoring and contingency planning.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause impact the procurement process and outcome?

The clause 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (FOCI) indicates a specific type of competitive procurement. It means that the agency initially considered excluding certain sources (perhaps due to specific requirements or prior relationships) but ultimately decided to open the competition broadly to all responsible sources. This suggests that while there might have been initial considerations for a more restricted approach, the agency opted for a wider solicitation to ensure maximum competition. This process typically involves publishing a solicitation, allowing any interested and capable vendor to submit a proposal, and then evaluating those proposals based on predefined criteria. The outcome is generally a more robust price discovery and a higher likelihood of selecting the best value offer, as a larger pool of potential bidders increases the chances of receiving competitive pricing and innovative solutions.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C26324R0100

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8652 WATERSIDE CT, LAUREL, MD, 20723

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $14,651,278

Exercised Options: $5,343,304

Current Obligation: $5,343,304

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline