VA awards $120K grant to Schoolcraft Memorial Hospital for rural veteran research

Contract Overview

Contract Amount: $120,000 ($120.0K)

Contractor: Schoolcraft Memorial Hospital

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-04-28

End Date: 2027-04-27

Contract Duration: 729 days

Daily Burn Rate: $165/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: GRANT FUNDED RESEARCH FOR RURAL VETERANS, SCHOOLCRAFT MEMORIAL HOSPITAL.

Place of Performance

Location: MANISTIQUE, SCHOOLCRAFT County, MICHIGAN, 49854

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $120,000 to SCHOOLCRAFT MEMORIAL HOSPITAL for work described as: GRANT FUNDED RESEARCH FOR RURAL VETERANS, SCHOOLCRAFT MEMORIAL HOSPITAL. Key points: 1. Grant funding supports critical research for rural veterans. 2. Focus on physical, engineering, and life sciences research. 3. Contract awarded to a single hospital, raising questions about competition. 4. Firm Fixed Price contract type suggests defined scope and cost. 5. Long duration of 729 days indicates a substantial research project. 6. Potential for improved healthcare outcomes for a specific veteran demographic.

Value Assessment

Rating: fair

The $120,000 award to Schoolcraft Memorial Hospital for research appears to be a targeted grant. Without comparable grant data or specific performance metrics, a direct value-for-money assessment is challenging. The fixed-price nature of the contract provides some cost certainty, but the lack of competitive bidding limits the ability to benchmark pricing against market rates. The overall value hinges on the successful outcomes of the research itself.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating a sole-source award. This means that Schoolcraft Memorial Hospital was likely selected without a competitive process. While sole-source awards can be appropriate for specific research grants or when only one entity possesses the required expertise, it limits the potential for price discovery and may not yield the best value for taxpayer dollars.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from potentially lower prices that could have been achieved through a bidding process. This approach bypasses opportunities for broader market engagement and cost optimization.

Public Impact

Rural veterans in Michigan are the primary beneficiaries of this research. The research aims to advance understanding in physical, engineering, and life sciences related to veteran health. The geographic impact is focused on Michigan, where Schoolcraft Memorial Hospital is located. The project could lead to improved healthcare services and support for veterans in underserved rural areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding limits price benchmarking and potential cost savings.
Sole-source nature raises questions about whether alternative providers were considered.
Research outcomes are not guaranteed, introducing performance risk.
Limited public information on the specific research objectives and expected impact.

Positive Signals

Addresses a specific need for rural veteran healthcare research.
Firm Fixed Price contract provides cost certainty for the awarded amount.
Long contract duration allows for thorough research execution.
Award to a hospital suggests a focus on practical healthcare application.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for such research is diverse, involving academic institutions, private research firms, and healthcare organizations. The award to a hospital suggests a focus on applied research with direct healthcare implications. Benchmarking is difficult without knowing the specific research area, but federal R&D spending is substantial across various agencies.

Small Business Impact

This contract does not appear to involve small business set-asides or subcontracting opportunities, as it is a direct grant to a hospital. The focus is on the research itself rather than broader economic development through small business participation.

Oversight & Accountability

Oversight for this grant would typically fall under the Department of Veterans Affairs (VA). The specific oversight mechanisms would depend on the grant agreement, likely including periodic reporting requirements from Schoolcraft Memorial Hospital on research progress and financial expenditures. Transparency may be limited due to the sole-source nature and the specific focus on research outcomes.

Related Government Programs

VA Research and Development Programs
Grants for Rural Healthcare Initiatives
Veteran Health Services Research

Risk Flags

Sole-source award may limit cost efficiency.
Research outcomes are inherently uncertain.
Limited public information on specific research goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $120,000 to SCHOOLCRAFT MEMORIAL HOSPITAL. GRANT FUNDED RESEARCH FOR RURAL VETERANS, SCHOOLCRAFT MEMORIAL HOSPITAL.

Who is the contractor on this award?

The obligated recipient is SCHOOLCRAFT MEMORIAL HOSPITAL.

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 $120,000.

What is the period of performance?

Start: 2025-04-28. End: 2027-04-27.

What is the specific research objective of this grant and how does it align with VA priorities for rural veterans?

The provided data indicates the grant is for 'GRANT FUNDED RESEARCH FOR RURAL VETERANS' under the NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences). While the specific research question is not detailed, the objective is to advance scientific understanding in these fields as they pertain to the health and well-being of rural veterans. This aligns with the VA's broader mission to provide comprehensive healthcare and support to all veterans, with a particular focus on addressing the unique challenges faced by those in rural or underserved areas. Further details on the specific research protocols, methodologies, and expected deliverables would be found in the grant application and award documentation.

Why was this contract awarded on a sole-source basis instead of through a competitive process?

The data explicitly states the contract was 'NOT COMPETED UNDER SAP' and is categorized as 'sole-source'. This implies that the Department of Veterans Affairs determined that competitive bidding was not feasible or appropriate for this specific award. Common reasons for sole-source awards include situations where only one responsible source can provide the required research, unique expertise is necessary, or the award is a grant to a specific entity for a defined purpose. Without further documentation from the VA, the precise justification for bypassing competition remains unclear, but it suggests a belief that Schoolcraft Memorial Hospital was uniquely positioned to fulfill the grant's objectives.

What are the potential risks associated with a sole-source research grant of this nature?

A primary risk with sole-source research grants is the potential lack of optimal value for taxpayer money, as competition is often the best mechanism for ensuring competitive pricing and exploring innovative approaches. There's also a risk that the chosen contractor, while potentially qualified, may not be the most efficient or effective provider. Furthermore, without a competitive process, there's less external validation of the proposed research's merit or feasibility. Performance risk is also present; the success of the research is not guaranteed, and the fixed-price nature means the government bears the risk if costs exceed the award amount due to unforeseen research challenges.

How does the firm fixed-price contract type impact the financial risk for both the government and the contractor?

A Firm Fixed Price (FFP) contract establishes a set price for the work to be performed, regardless of the contractor's actual costs. For the government, this provides cost certainty; the total expenditure is capped at $120,000. This shifts the financial risk of cost overruns to the contractor, Schoolcraft Memorial Hospital. If the research costs more than anticipated, the hospital absorbs the additional expense. Conversely, if the hospital completes the research under budget, it retains the profit. This contract type is generally preferred by the government when the scope of work is well-defined and risks can be reasonably assessed beforehand.

What is the expected impact of this research on the healthcare and support services available to rural veterans?

The expected impact hinges on the specific outcomes of the research funded by this grant. As the grant focuses on 'Research and Development in the Physical, Engineering, and Life Sciences' for rural veterans, successful research could lead to the development of new diagnostic tools, treatment methodologies, or support programs tailored to the unique needs and challenges of this population. For instance, it might uncover more effective ways to deliver telehealth services, address specific health conditions prevalent in rural areas, or improve access to care. The ultimate goal is to translate research findings into tangible improvements in the health, well-being, and quality of life for rural veterans.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7870W US HIGHWAY 2, MANISTIQUE, MI, 49854

Business Categories: Category Business, Corporate Entity Tax Exempt, Hospital, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $300,000

Exercised Options: $120,000

Current Obligation: $120,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline