HHS awards $7.6M contract to Children's National Medical Center for pediatric intensive care physician staffing

Contract Overview

Contract Amount: $7,649,072 ($7.6M)

Contractor: Children's National Medical Center

Awarding Agency: Department of Health and Human Services

Start Date: 2022-06-28

End Date: 2027-06-30

Contract Duration: 1,828 days

Daily Burn Rate: $4.2K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PEDIATRIC INTENSIVE CARE PHYSICIAN STAFFING FOR CRITICAL CARE MEDICINE SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20010

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $7.6 million to CHILDREN'S NATIONAL MEDICAL CENTER for work described as: PEDIATRIC INTENSIVE CARE PHYSICIAN STAFFING FOR CRITICAL CARE MEDICINE SERVICES Key points: 1. The contract is for essential pediatric intensive care physician staffing, a critical service. 2. Competition was limited, raising questions about price discovery and potential value. 3. The risk of insufficient competition impacting cost-effectiveness is present. 4. Spending is within the healthcare sector, specifically hospital services.

Value Assessment

Rating: fair

The contract value of $7.6 million over five years for specialized physician staffing appears reasonable given the critical nature of the service. However, without competitive bidding, it's difficult to benchmark against similar contracts to ensure optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under Simplified Acquisition Procedures (SAP) and was awarded as a definitive contract. The lack of open competition limits the government's ability to explore various pricing structures and potentially secure a lower cost.

Taxpayer Impact: The absence of robust competition may lead to higher costs for taxpayers than could be achieved through a more open bidding process.

Public Impact

Ensures continued critical care for pediatric patients at a major medical center. Supports specialized medical expertise essential for complex childhood illnesses. Potential for increased healthcare costs due to limited competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for overpayment without benchmarking

Positive Signals

Ensures critical healthcare service delivery
Supports a specialized pediatric facility

Sector Analysis

This contract falls within the healthcare sector, specifically related to hospital staffing and critical care services. Benchmarks for physician staffing contracts can vary widely based on specialty, location, and contract duration.

Small Business Impact

The contract was awarded to Children's National Medical Center, a large healthcare provider. There is no indication that small businesses were involved in this specific award, nor is it typical for this type of specialized medical service contract.

Oversight & Accountability

The contract is managed by the Department of Health and Human Services (HHS), specifically the National Institutes of Health (NIH). Oversight would involve ensuring the quality of physician staffing and adherence to contract terms.

Related Government Programs

General Medical and Surgical Hospitals
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency on value for money
Dependence on a single provider for critical services

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $7.6 million to CHILDREN'S NATIONAL MEDICAL CENTER. PEDIATRIC INTENSIVE CARE PHYSICIAN STAFFING FOR CRITICAL CARE MEDICINE SERVICES

Who is the contractor on this award?

The obligated recipient is CHILDREN'S NATIONAL MEDICAL CENTER.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $7.6 million.

What is the period of performance?

Start: 2022-06-28. End: 2027-06-30.

What is the justification for not competing this contract more broadly?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP'. A full justification for this decision, such as a sole-source justification or specific circumstances limiting competition, would be necessary to fully assess the value and necessity of this procurement approach.

How does the staffing model compare to similar pediatric intensive care units?

Without access to detailed staffing ratios, physician hours, and compensation structures, it is difficult to compare this contract's effectiveness. A benchmark analysis against comparable pediatric intensive care units would be needed to determine if the staffing levels and associated costs are optimal.

What are the long-term cost implications of this non-competitive award?

The long-term cost implications are concerning due to the lack of competition. Without competitive pressure, there is a risk that costs could escalate over the contract's duration, leading to inefficient use of taxpayer funds compared to a competitively bid contract.

Industry Classification

NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 22-008232

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 111 MICHIGAN AVE NW, WASHINGTON, DC, 20010

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: $7,649,072

Exercised Options: $7,649,072

Current Obligation: $7,649,072

Actual Outlays: $5,084,434

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline