DoD awards $10.9M for Special Warfare Medical Support, with 11 bids received

Contract Overview

Contract Amount: $10,869,013 ($10.9M)

Contractor: Decypher Technologies Ltd

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2026-09-28

Contract Duration: 1,095 days

Daily Burn Rate: $9.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SPECIAL WARFARE MEDICAL SUPPORT SERVICES FOR 32 FTES ACROSS 4 LOCATIONS

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78227

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $10.9 million to DECYPHER TECHNOLOGIES LTD for work described as: SPECIAL WARFARE MEDICAL SUPPORT SERVICES FOR 32 FTES ACROSS 4 LOCATIONS Key points: 1. Contract value appears reasonable given the scope of supporting 32 Full-Time Equivalents (FTEs) across four locations. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy, potentially to ensure specific capabilities were met. 3. The fixed-price contract type shifts performance risk to the contractor, Decypher Technologies Ltd. 4. This contract supports critical medical services for special warfare personnel, indicating a high-priority requirement. 5. The duration of 1095 days (3 years) provides stability for service delivery and contractor planning. 6. The North American Industry Classification System (NAICS) code 622110 points to a hospital services sector, though the specific support may be more specialized.

Value Assessment

Rating: good

The contract value of approximately $10.9 million over three years for 32 FTEs translates to roughly $113,000 per FTE annually. This figure seems competitive for specialized medical support services, especially considering the demanding nature of supporting special warfare units. Benchmarking against similar contracts for medical support in high-risk environments would provide a more precise value assessment, but initial indications suggest fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was intended to be broad, certain sources were excluded for specific reasons, possibly related to unique qualifications or security requirements. With 11 bidders, the competition level was robust, which generally aids in price discovery and achieving competitive pricing for the government.

Taxpayer Impact: The significant number of bidders suggests that taxpayers likely benefited from competitive pricing, as multiple companies vied to provide these essential services.

Public Impact

Special warfare personnel receive critical medical support, ensuring readiness and operational effectiveness. Services are delivered across four distinct locations, providing geographically dispersed support. The contract supports approximately 32 full-time equivalent positions, indicating a substantial workforce requirement. This contract contributes to the readiness and well-being of elite military units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is highly concentrated with Decypher Technologies Ltd.
Ensuring consistent quality of care across all four locations requires diligent oversight.
The 'exclusion of sources' clause warrants scrutiny to confirm it did not unduly limit competition.

Positive Signals

Robust competition with 11 bidders suggests a healthy market response.
Firm fixed-price contract type provides cost certainty for the government.
Long-term contract duration (3 years) offers stability and predictability for service delivery.

Sector Analysis

This contract falls within the Healthcare sector, specifically related to medical services. The NAICS code 622110, General Medical and Surgical Hospitals, suggests a broad category, but the context of 'Special Warfare Medical Support' implies a highly specialized niche within healthcare services. Comparable spending benchmarks would likely be found in contracts providing medical support to military personnel or in specialized civilian healthcare settings requiring similar levels of expertise and operational tempo.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. Given the specialized nature of the services, it's possible that larger, specialized firms were prioritized. Further analysis would be needed to determine if small businesses had opportunities to participate either as prime contractors or subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's established procurement and contract management regulations. The Air Force, as the servicing agency, would likely assign contracting officers and technical representatives to monitor performance, ensure compliance with the contract terms, and manage payments. Transparency is generally maintained through contract databases, though specific performance metrics may not be publicly detailed.

Related Government Programs

Special Operations Forces Support Contracts
Military Medical Services
Healthcare Services for Government Agencies
Contingency Medical Support

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Need for robust oversight to ensure consistent service quality across multiple locations.
Contractor's ability to meet specialized medical needs of special warfare personnel.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.9 million to DECYPHER TECHNOLOGIES LTD. SPECIAL WARFARE MEDICAL SUPPORT SERVICES FOR 32 FTES ACROSS 4 LOCATIONS

Who is the contractor on this award?

The obligated recipient is DECYPHER TECHNOLOGIES LTD.

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 $10.9 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-09-28.

What is the track record of Decypher Technologies Ltd. in providing similar medical support services, particularly to military or special operations units?

A review of publicly available contract data indicates that Decypher Technologies Ltd. has experience in providing healthcare and medical support services. While specific details on their past performance with special warfare units require deeper investigation into past performance evaluations and award histories, their presence as a bidder and awardee in this competitive process suggests they possess relevant capabilities. Further due diligence would involve examining past performance questionnaires, any reported issues or successes on previous government contracts, and their overall financial stability and capacity to handle a contract of this magnitude and criticality.

How does the per-FTE cost of this contract compare to other government contracts for specialized medical support?

The annual cost per Full-Time Equivalent (FTE) for this contract is approximately $113,000 ($10.9M / 32 FTEs / 3 years). This figure needs to be benchmarked against similar contracts. Contracts for specialized medical support, especially those involving high-stress environments, remote locations, or specific military operational needs, can command higher per-FTE costs than standard civilian healthcare roles. For instance, contracts supporting deployed medical personnel or providing specialized trauma care in austere settings often exceed this rate. A comprehensive comparison would involve analyzing contracts with similar NAICS codes, service requirements, and geographic considerations, factoring in differences in required certifications, equipment, and operational tempo.

What are the specific risks associated with providing medical support to special warfare units, and how does this contract structure mitigate them?

Providing medical support to special warfare units carries inherent risks, including the need for rapid response in potentially dangerous environments, handling classified information, maintaining high levels of medical expertise for unique operational demands, and ensuring personnel security. The contract's firm fixed-price structure mitigates financial risk for the government by establishing a set cost, shifting the burden of cost overruns to the contractor. The 'Full and Open Competition After Exclusion of Sources' approach, if properly justified, aims to select a contractor with proven capabilities and security clearances, thereby reducing operational and personnel risks. However, ongoing oversight is crucial to manage performance risks and ensure the quality and reliability of the medical services provided.

What is the historical spending pattern for Special Warfare Medical Support services within the Department of Defense?

Historical spending on Special Warfare Medical Support services within the Department of Defense can vary significantly year-to-year, influenced by operational tempo, force structure changes, and evolving medical support requirements. While this specific contract is for $10.9 million over three years, broader DoD spending on medical support for special operations forces encompasses a range of services, including direct patient care, medical evacuation, training, and equipment. Analyzing historical data from sources like the Federal Procurement Data System (FPDS) or USAspending.gov for similar contract actions (e.g., by specific Special Operations Commands or relevant military branches) would reveal trends in contract values, durations, and types of services procured. This context helps in assessing whether the current award represents a typical or anomalous level of investment.

What are the implications of the 'exclusion of sources' clause on the overall value and effectiveness of the competition?

The 'Full and Open Competition After Exclusion of Sources' clause implies that while the competition was broadly advertised, specific potential bidders were intentionally excluded. The justification for such exclusions typically relates to unique capabilities, security requirements, proprietary technology, or past performance issues. If the exclusions were narrowly tailored and based on legitimate government needs, they could lead to a more focused competition among highly qualified vendors, potentially resulting in better technical solutions. However, if the exclusions were overly broad or not well-justified, they could limit competition, potentially leading to higher prices or reduced innovation. The effectiveness hinges on the transparency and validity of the reasons for exclusion.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 CONCORD PLAZA DR STE 780, SAN ANTONIO, TX, 78216

Business Categories: Category Business, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Other Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $10,869,013

Exercised Options: $10,869,013

Current Obligation: $10,869,013

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT005018D0018

IDV Type: IDC

Timeline