DoD's $13.8M dental contract with Dentrust Dental Colorado PC shows fair value, but limited competition

Contract Overview

Contract Amount: $13,846,147 ($13.8M)

Contractor: Dentrust Dental Colorado PC

Awarding Agency: Department of Defense

Start Date: 2007-01-31

End Date: 2012-03-31

Contract Duration: 1,886 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DENTAL: ROUTINE AND SPECIALTY CARE - AIR FORCE/NAVY AND MARINE

Place of Performance

Location: AURORA, ARAPAHOE County, COLORADO, 80011

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to DENTRUST DENTAL COLORADO PC for work described as: DENTAL: ROUTINE AND SPECIALTY CARE - AIR FORCE/NAVY AND MARINE Key points: 1. Contract awarded to a single provider suggests potential for higher pricing than a competitive environment. 2. The firm fixed-price structure shifts risk to the contractor, potentially leading to cost efficiencies. 3. Long contract duration (5 years) may indicate a stable, ongoing need for these dental services. 4. The contract's value is modest within the broader context of federal healthcare spending. 5. Geographic concentration in Colorado limits broad access but ensures focused care for the specified population. 6. Exclusion of sources in competition raises questions about the extent of market engagement.

Value Assessment

Rating: fair

The contract's total value of approximately $13.8 million over five years averages to about $2.76 million annually. Benchmarking this against similar large-scale dental service contracts for military branches is challenging without more granular data on service scope and patient volume. However, the firm fixed-price nature suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if services are delivered effectively. The absence of a clear per-unit cost comparison makes a definitive value assessment difficult, but the overall spending appears reasonable for the duration and scope implied.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which is an unusual designation. This suggests that while the competition was intended to be open, certain sources were excluded, or the process was structured in a way that limited the pool of potential bidders. With only one awardee, it's difficult to ascertain the true level of competition. This limited competition could potentially lead to less aggressive pricing compared to a scenario with multiple bidders vying for the contract.

Taxpayer Impact: The limited competition may have resulted in taxpayers paying a premium, as fewer bidders typically leads to less downward pressure on prices. This structure warrants scrutiny to ensure the government received the best possible value.

Public Impact

Active duty military personnel and their dependents in Colorado are the primary beneficiaries of these routine and specialty dental care services. The contract ensures the provision of essential dental healthcare, contributing to the overall health and readiness of service members. Services are geographically concentrated within Colorado, serving the specific needs of the military community in that state. The contract supports a dental practice, likely employing dentists, hygienists, and administrative staff within the Colorado region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted price discovery and potentially increased costs for taxpayers.
The 'exclusion of sources' clause requires further investigation to understand its impact on market fairness.
Lack of detailed performance metrics makes it difficult to assess the quality and efficiency of services provided.

Positive Signals

Firm fixed-price contract shifts cost-overrun risk to the contractor.
Contract duration suggests a stable and predictable need for dental services.
Award to a specific dental provider ensures continuity of care for a defined population.

Sector Analysis

This contract falls within the Healthcare sector, specifically the provision of dental services. The federal government is a significant purchaser of healthcare services for military personnel and veterans. The NAICS code 621210 (Offices of Dentists) indicates a focus on direct patient care. While the dollar amount is substantial for a single contract, it represents a small fraction of overall federal healthcare expenditures. Comparable spending benchmarks would involve analyzing other contracts for similar dental services provided to military populations across different geographic regions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus appears to be on securing comprehensive dental services from a qualified provider, rather than utilizing the contract as a vehicle for small business development.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force, a component of the Department of Defense. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and payment schedules. Transparency is facilitated through contract databases like FPDS, which provide basic award information. Specific Inspector General (IG) jurisdiction would depend on the nature of any issues arising, but the DoD IG generally oversees defense spending.

Related Government Programs

TRICARE Dental Program
Military Health System
DoD Medical Services Contracts
Federal Healthcare Provider Contracts

Risk Flags

Limited competition raises concerns about price and market fairness.
Exclusion of sources requires further justification and transparency.
Lack of detailed performance metrics hinders effectiveness assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to DENTRUST DENTAL COLORADO PC. DENTAL: ROUTINE AND SPECIALTY CARE - AIR FORCE/NAVY AND MARINE

Who is the contractor on this award?

The obligated recipient is DENTRUST DENTAL COLORADO PC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $13.8 million.

What is the period of performance?

Start: 2007-01-31. End: 2012-03-31.

What is the track record of Dentrust Dental Colorado PC with federal contracts?

Information regarding Dentrust Dental Colorado PC's specific track record with federal contracts beyond this award is limited in the provided data. This contract appears to be a significant award, totaling approximately $13.8 million. Further investigation into federal procurement databases would be necessary to determine if the contractor has held other federal awards, their value, duration, and performance history. Assessing past performance, including any documented issues or commendations, is crucial for understanding the contractor's reliability and capability in fulfilling government obligations. Without additional data, it's difficult to provide a comprehensive assessment of their federal contracting history.

How does the per-unit cost of dental services under this contract compare to market rates?

The provided data does not include specific per-unit cost breakdowns for the dental services rendered under this contract. The contract is a firm fixed-price award valued at $13.8 million over five years, making it difficult to isolate the cost of individual procedures or visits. To compare per-unit costs to market rates, detailed service logs and pricing schedules would be required. Such a comparison would involve analyzing the average cost of routine check-ups, cleanings, fillings, and specialty procedures provided to the target population against prevailing rates charged by civilian dental practices in the Colorado region. Without this granular data, a precise benchmark is not feasible.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential issues stemming from limited competition, which could lead to suboptimal pricing and reduced market responsiveness. The 'after exclusion of sources' clause warrants scrutiny, as it may indicate a non-standard procurement process that could limit the pool of qualified providers and potentially impact service quality or cost-effectiveness. Furthermore, the long duration of the contract (5 years) increases the risk of service degradation or contractor performance issues going unaddressed if robust oversight mechanisms are not consistently applied. Ensuring the contractor maintains high standards of care and operational efficiency throughout the contract term is also a key consideration.

How effective is this contract in ensuring the dental readiness of Air Force and Navy personnel in Colorado?

The effectiveness of this contract in ensuring dental readiness hinges on the quality and accessibility of the services provided by Dentrust Dental Colorado PC. As a sole awardee for a significant duration, the contractor plays a critical role in maintaining the oral health of military personnel and their families in the region. Effectiveness can be measured by factors such as patient satisfaction, the rate at which dental issues are identified and treated, and the overall impact on deployability and readiness metrics. While the contract's existence suggests a recognized need, its true effectiveness would be assessed through performance reviews, patient feedback mechanisms, and potentially by tracking dental readiness rates within the affected military population.

What has been the historical spending trend for dental services by the Department of Defense in Colorado?

The provided data focuses on a single contract award from 2007 to 2012. To understand historical spending trends for dental services by the Department of Defense in Colorado, a broader analysis of contract awards over a longer period would be necessary. This would involve examining procurement data for similar dental service contracts awarded to various providers within the state, across different military branches (Air Force, Navy, Marines). Analyzing spending patterns, contract values, and competition levels over time would reveal whether this $13.8 million contract represents a typical investment, an increase, or a decrease in federal dental spending in the region.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is somewhat contradictory and requires clarification. Typically, 'full and open competition' implies that all responsible sources are permitted to submit offers. The 'after exclusion of sources' part suggests that certain potential offerors were deliberately excluded from the competition, perhaps due to specific requirements, past performance issues, or other pre-determined criteria. This could indicate a more restricted competition than 'full and open' usually implies, potentially limiting the number of bidders and impacting price discovery. It suggests a deliberate narrowing of the field before the main competitive process began.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Dentists › Offices of Dentists

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: FA254306R0006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 254 CAFFERTY RD, PIPERSVILLE, PA, 01

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,279,384

Exercised Options: $13,846,147

Current Obligation: $13,846,147

Contract Characteristics

Cost or Pricing Data: NO

Timeline