Transportation awards $3.8M bridge contract for USMMA health services to North Shore University Hospital

Contract Overview

Contract Amount: $3,845,529 ($3.8M)

Contractor: North Shore University Hospital

Awarding Agency: Department of Transportation

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $10.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROCUREMENT ACTION - BRIDGE CONTRACT FOR HEALTH SERVICES FOR THE REGIMENT OF MIDSHIPMEN AT THE U.S. MERCHANT MARINE ACADEMY.

Place of Performance

Location: GREAT NECK, NASSAU County, NEW YORK, 11024

State: New York Government Spending

Plain-Language Summary

Department of Transportation obligated $3.8 million to NORTH SHORE UNIVERSITY HOSPITAL for work described as: PROCUREMENT ACTION - BRIDGE CONTRACT FOR HEALTH SERVICES FOR THE REGIMENT OF MIDSHIPMEN AT THE U.S. MERCHANT MARINE ACADEMY. Key points: 1. Contract provides essential health services for midshipmen, ensuring operational readiness. 2. Sole-source award raises questions about price discovery and potential for cost savings. 3. Bridge contract indicates a gap in planned procurement or unexpected service continuation. 4. Limited competition may lead to higher costs compared to a more open bidding process. 5. Geographic concentration of services in New York may limit local provider engagement. 6. Fixed-price contract shifts some performance risk to the contractor.

Value Assessment

Rating: questionable

The $3.8 million contract value for one year of health services for the Regiment of Midshipmen at the U.S. Merchant Marine Academy appears high given the limited scope and duration. Without comparable sole-source contracts for similar academic institutions or military academies, it is difficult to benchmark the value effectively. The lack of competition suggests that taxpayers may not be receiving the most cost-effective solution, as competitive pressures that typically drive down prices are absent.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, North Shore University Hospital, was solicited. This approach is typically used when only one responsible source is available or in cases of urgent and compelling need. The absence of a competitive bidding process means that the government did not explore offers from multiple potential providers, which could have led to better pricing or innovative solutions.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to secure the best possible prices for taxpayers. This can result in higher overall spending compared to what might be achieved through a competitive procurement.

Public Impact

Midshipmen at the U.S. Merchant Marine Academy benefit from continuous access to necessary health services. The contract ensures the health and well-being of future merchant mariners, supporting national maritime interests. Services are delivered in New York, impacting the local healthcare provider ecosystem. The contract supports healthcare professionals employed by North Shore University Hospital.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Bridge contract suggests potential planning or execution issues.
Lack of transparency in vendor selection process.

Positive Signals

Ensures continuity of essential health services for midshipmen.
Fixed-price contract provides cost certainty for the government.
Contractor is an established healthcare provider.

Sector Analysis

The healthcare services sector is vast, with significant government spending across various agencies. This contract falls within the niche of specialized health services for a specific federal institution. Comparable spending benchmarks are difficult to establish without more granular data on health services for similar academies or specialized training facilities. The Maritime Administration's spending in this area is likely a small fraction of the overall federal healthcare procurement budget.

Small Business Impact

This contract does not appear to include any small business set-aside provisions, nor is there information suggesting subcontracting opportunities for small businesses. The award to a large hospital system indicates a focus on established, large-scale healthcare providers rather than the small business ecosystem. Further analysis would be needed to determine if any subcontracting plans were mandated or voluntarily pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Merchant Marine Academy and the Maritime Administration within the Department of Transportation. The Inspector General of the Department of Transportation would have jurisdiction for audits and investigations. Transparency is limited due to the sole-source nature of the award, but contract performance and payment details should be publicly accessible through federal procurement databases.

Related Government Programs

Federal student health services
Military academy healthcare contracts
Maritime training and education funding
Department of Transportation healthcare procurements

Risk Flags

Sole-source award
Bridge contract
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.8 million to NORTH SHORE UNIVERSITY HOSPITAL. PROCUREMENT ACTION - BRIDGE CONTRACT FOR HEALTH SERVICES FOR THE REGIMENT OF MIDSHIPMEN AT THE U.S. MERCHANT MARINE ACADEMY.

Who is the contractor on this award?

The obligated recipient is NORTH SHORE UNIVERSITY HOSPITAL.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $3.8 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What is the track record of North Shore University Hospital in providing health services to government entities, particularly academic or military institutions?

North Shore University Hospital (NSUH) is a large, well-established healthcare provider in New York. While NSUH has extensive experience in providing a wide range of medical services to the general public and through various insurance networks, its specific track record with direct government contracts, especially for academic or military institutions, is not immediately detailed in public procurement databases. Typically, large hospitals engage in government contracting through Medicare/Medicaid reimbursements or by providing services to specific populations covered by federal programs. For direct service contracts like this one, a review of past performance on similar federal contracts would be crucial to assess their suitability and reliability. Without specific examples of prior government contracts for similar populations or settings, it's difficult to definitively assess their track record in this niche, though their general reputation as a major healthcare provider suggests a capacity to deliver services.

How does the cost of this contract compare to similar health services provided to other federal academies or institutions?

Benchmarking the cost of this $3.8 million contract for one year of health services at the U.S. Merchant Marine Academy against similar federal institutions is challenging due to the unique nature of the client population (midshipmen) and the sole-source award. Typically, competitive procurements for health services at institutions like West Point, Annapolis, or the Air Force Academy would provide a basis for comparison. However, these institutions may have different service models, in-house capabilities, and contract structures. The absence of competition for this specific contract means there's no direct market comparison to ascertain if the price is optimal. A detailed cost-reimbursement analysis or a comparison with commercial healthcare plans for a similar demographic in the New York region might offer some insights, but a direct federal-to-federal comparison is hindered by the lack of competitive data for this specific award.

What are the primary risks associated with a sole-source bridge contract for essential health services?

The primary risks associated with a sole-source bridge contract for essential health services are multifaceted. Firstly, the lack of competition inherently increases the risk of paying a premium price, as there is no market pressure to drive costs down. This can lead to suboptimal value for taxpayer money. Secondly, bridge contracts are often awarded under urgent or time-sensitive conditions, which can sometimes lead to less rigorous vetting of the contractor's capabilities or a rushed negotiation process, potentially increasing performance risks. Thirdly, relying on a sole-source provider can create vendor lock-in, making it difficult to transition to a more competitive or cost-effective solution in the future. Finally, for essential services like healthcare, any disruption or failure in service delivery by the sole-source provider could have significant negative impacts on the health and readiness of the midshipmen.

What is the expected effectiveness of North Shore University Hospital in meeting the health needs of the midshipmen population?

North Shore University Hospital (NSUH) is a large academic medical center with a comprehensive range of services, suggesting a strong capacity to meet diverse health needs. Its affiliation with NYU Long Island School of Medicine and its extensive network of specialists indicate that it can likely address a broad spectrum of medical issues, from primary care to specialized treatments. The effectiveness in meeting the specific needs of midshipmen will depend on how well NSUH integrates its services with the academy's requirements, including potential occupational health needs, physical fitness demands, and the unique lifestyle of cadets. The fixed-price nature of the contract implies that NSUH has assessed these needs and priced accordingly, shifting the risk of cost overruns to them. However, the true measure of effectiveness will be in the quality of care, accessibility, and responsiveness provided to the midshipmen throughout the contract period.

How has the Maritime Administration's spending on health services for the U.S. Merchant Marine Academy evolved over the past five years?

Analyzing the historical spending patterns of the Maritime Administration (MARAD) specifically on health services for the U.S. Merchant Marine Academy (USMMA) over the past five years requires access to detailed federal procurement data. Without direct access to this granular information, it's difficult to provide a precise evolution. However, bridge contracts, like the one awarded here, often signal a disruption in planned procurement cycles or an unexpected need for continued services. This could indicate either an increase in demand, a delay in a larger, planned contract, or a change in service provision strategy. Typically, health service needs for an institution like USMMA would be relatively stable, suggesting that spending might have been consistent, barring any major unforeseen events or shifts in policy. A deeper dive into MARAD's contract awards database for USMMA over the specified period would be necessary to confirm trends, identify previous contractors, and understand the duration and value of prior health service agreements.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Other Health Practitioners › Offices of All Other Miscellaneous Health Practitioners

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE 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

Parent Company: Northwell Health, Inc.

Address: 300 COMMUNITY DR, MANHASSET, NY, 11030

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: $3,845,529

Exercised Options: $3,845,529

Current Obligation: $3,845,529

Actual Outlays: $2,803,272

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline