DoD medical review services contract awarded to CG Services LLC for $43.9M by GSA

Contract Overview

Contract Amount: $43,933,410 ($43.9M)

Contractor: CG Services LLC

Awarding Agency: General Services Administration

Start Date: 2022-05-17

End Date: 2026-09-30

Contract Duration: 1,597 days

Daily Burn Rate: $27.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DEPARTMENT OF DEFENSE MEDICAL EXAMINATION REVIEW BOARD MEDICAL SERVICES

Place of Performance

Location: USAF ACADEMY, EL PASO County, COLORADO, 80840

State: Colorado Government Spending

Plain-Language Summary

General Services Administration obligated $43.9 million to CG SERVICES LLC for work described as: DEPARTMENT OF DEFENSE MEDICAL EXAMINATION REVIEW BOARD MEDICAL SERVICES Key points: 1. Contract value appears reasonable given the scope of medical review services. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of nearly four years indicates a significant, ongoing need. 4. Fixed-price contract type shifts risk to the contractor. 5. Services fall under a broad 'Other Ambulatory Health Care Services' category. 6. Contract awarded by GSA, a common practice for agency support services.

Value Assessment

Rating: good

The contract value of $43.9 million over approximately four years for medical examination review services appears to be within a reasonable range for this type of specialized support. Benchmarking against similar contracts for medical review and examination services would provide a more precise assessment of value for money. The firm fixed-price structure suggests that the government has negotiated a set price, which can be advantageous if the contractor's costs are well-managed. However, without detailed cost breakdowns or comparisons to market rates for similar services, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The data shows two bids were received. A competitive process, even with a limited number of bidders, generally promotes price discovery and encourages contractors to offer competitive pricing to secure the award. The fact that it was competed broadly is a positive sign for achieving a fair market price.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the best possible price. Full and open competition reduces the likelihood of inflated costs that might occur with sole-source or limited-source awards.

Public Impact

Provides essential medical review and examination services for Department of Defense personnel. Supports the operational readiness and healthcare management of the U.S. military. Services are likely delivered to support the DoD Medical Examination Review Board. Potential impact on military personnel requiring medical evaluations and reviews. Geographic impact is likely nationwide, supporting DoD operations across various locations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'medical examination review' is not tightly defined.
Reliance on a single contractor for critical medical review services could pose a risk if performance issues arise.
Ensuring consistent quality and adherence to DoD medical standards across all reviews.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm fixed-price contract type provides cost certainty for the government.
Contract duration of nearly four years indicates a stable, long-term requirement being met.
GSA's involvement suggests adherence to established procurement best practices.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on specialized medical services. The market for medical examination and review services is significant, driven by healthcare providers, insurance companies, and government agencies like the DoD. This contract represents a portion of the broader federal spending on healthcare support services, which includes a wide array of clinical, administrative, and analytical functions. Comparable spending benchmarks would typically be found within federal healthcare procurement data and industry reports on medical outsourcing.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the primary competition was not geared towards small businesses. However, the prime contractor, CG Services LLC, may engage small businesses as subcontractors to fulfill portions of the contract, depending on their own business strategy and subcontracting plans. The impact on the small business ecosystem would depend on whether subcontracting opportunities are actively pursued and awarded.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Defense Medical Examination Review Board, as they are the end-user of the services, and the General Services Administration (GSA) as the contracting agency. GSA typically has established oversight mechanisms for contracts awarded through its Federal Acquisition Service. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Department of Defense Healthcare Services
Medical Examination and Treatment Services
Federal Health IT Services
Ambulatory Health Care Services
GSA Schedule Contracts

Risk Flags

Contract awarded by GSA for a DoD requirement.
Limited number of bidders (2) despite full and open competition.
Broad NAICS code may obscure specific service details.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $43.9 million to CG SERVICES LLC. DEPARTMENT OF DEFENSE MEDICAL EXAMINATION REVIEW BOARD MEDICAL SERVICES

Who is the contractor on this award?

The obligated recipient is CG SERVICES LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $43.9 million.

What is the period of performance?

Start: 2022-05-17. End: 2026-09-30.

What is the specific nature of the medical examinations and reviews performed under this contract?

The contract is categorized under NAICS code 621999, 'All Other Miscellaneous Ambulatory Health Care Services.' This broad classification suggests the services could encompass a range of medical evaluations, reviews of medical records, fitness-for-duty examinations, disability assessments, or other specialized medical reviews required by the Department of Defense Medical Examination Review Board. The exact scope would be detailed in the contract's statement of work, which is not publicly available in this data snippet. These services are critical for ensuring the health and readiness of military personnel and veterans.

How does the awarded price of $43.9 million compare to similar contracts for medical review services?

Direct comparison of the $43.9 million total contract value is difficult without access to detailed contract databases and specific service descriptions. However, given the contract duration of approximately four years (1597 days), the annual value is roughly $11 million. This figure needs to be benchmarked against other federal or large-scale private sector contracts for similar medical review and examination services. Factors such as the complexity of reviews, geographic reach, and specific medical specialties involved would influence pricing. The firm fixed-price nature suggests a negotiated price based on anticipated costs and profit margins.

What are the key performance indicators (KPIs) used to evaluate CG Services LLC's performance?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, typical KPIs for medical review services would likely include timeliness of report generation, accuracy of medical assessments, adherence to DoD medical standards and protocols, client satisfaction (from the DoD perspective), and potentially cost-efficiency metrics. Performance would be monitored by the Contracting Officer's Representative (COR) within the DoD agency utilizing the services. Failure to meet KPIs could result in contract remedies, including termination.

What is the track record of CG Services LLC in performing similar government contracts?

Information on CG Services LLC's specific track record with government contracts is not provided in this data snippet. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other federal contract awards, and their history of delivering similar medical review or healthcare support services. Their ability to secure a contract of this value through full and open competition suggests they met the basic qualifications and demonstrated capability, but a deeper dive into past performance is necessary for a complete picture.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks include the contractor's ability to consistently deliver high-quality medical reviews, potential cost overruns if the fixed-price contract doesn't adequately account for unforeseen complexities, and the risk of service disruption if the contractor faces financial or operational difficulties. Mitigation strategies typically involve robust contract oversight by the COR, clear performance standards in the Statement of Work, regular performance reviews, and contingency planning by the government. The firm fixed-price structure itself mitigates the risk of cost increases for the government, shifting that risk to the contractor.

How does this contract fit into the broader landscape of federal spending on healthcare support services?

This contract represents a specific allocation of federal funds towards specialized medical review services supporting the Department of Defense. Federal spending on healthcare support services is vast, encompassing everything from direct patient care and pharmaceuticals to administrative functions, IT systems, and research. Contracts like this one highlight the government's reliance on external expertise for critical functions that may not be core competencies or may require specialized, scalable resources. It fits within the segment of federal procurement focused on maintaining the health and readiness of military personnel.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › All Other Miscellaneous Ambulatory Health Care Services

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 47QFWA22R0008

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 701 MARKET ST STE 3500, PHILADELPHIA, PA, 19106

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

Financial Breakdown

Contract Ceiling: $47,293,456

Exercised Options: $47,173,456

Current Obligation: $43,933,410

Actual Outlays: $30,986,559

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline