DoD Awards $10.8M for Medical Services, Highlighting Potential for Firm Fixed Price Savings

Contract Overview

Contract Amount: $10,881,764 ($10.9M)

Contractor: Sterling Medical Associates, Inc

Awarding Agency: Department of Defense

Start Date: 2024-05-01

End Date: 2026-11-30

Contract Duration: 943 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ATTACHMENT 1 - EDIS PERFORMANCE WORK STATEMENT ATTACHMENT 2 - ASACS PERFORMANCE WORK STATEMENT

Plain-Language Summary

Department of Defense obligated $10.9 million to STERLING MEDICAL ASSOCIATES, INC for work described as: ATTACHMENT 1 - EDIS PERFORMANCE WORK STATEMENT ATTACHMENT 2 - ASACS PERFORMANCE WORK STATEMENT Key points: 1. Contract awarded to Sterling Medical Associates, Inc. for physician and mental health specialist services. 2. The $10.8M contract utilizes a Firm Fixed Price (FFP) structure, which can offer cost certainty. 3. Full and Open Competition was employed, suggesting a robust price discovery process. 4. The contract duration is 943 days, ending in November 2026. 5. No small business participation is indicated in the provided data.

Value Assessment

Rating: good

The contract is a Delivery Order under a larger agreement. The Firm Fixed Price (FFP) structure is generally favorable for cost control when requirements are well-defined. Benchmarking the per-unit cost against similar physician and mental health specialist contracts would be necessary for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and Open Competition was utilized, indicating that multiple vendors had the opportunity to bid. This method typically leads to competitive pricing as vendors vie for the contract. The FFP pricing structure further supports price discovery by setting a fixed ceiling.

Taxpayer Impact: The use of full and open competition and a firm fixed price contract are positive indicators for taxpayer value, aiming to secure services at a competitive and predictable cost.

Public Impact

Ensures continued access to essential physician and mental health specialist services for Air Force personnel. The contract supports the operational readiness of the Department of Defense by providing critical healthcare. Potential for cost savings due to competitive bidding and fixed pricing structure. Lack of small business set-aside may limit opportunities for smaller, specialized healthcare providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

No small business participation noted.
Potential for scope creep if requirements are not tightly managed under FFP.
Reliance on a single awardee for a significant duration.

Positive Signals

Firm Fixed Price contract structure.
Full and Open Competition.
Clear performance period.

Sector Analysis

This contract falls within the Healthcare sector, specifically for medical services provided to military personnel. Healthcare services are a significant area of government spending, with benchmarks often varying based on specialization and location. The $10.8M value over approximately 2.5 years is moderate for this type of service.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and no small business participation is explicitly mentioned. This suggests that the primary awardee is likely a larger entity, and opportunities for small businesses in this specific procurement were not prioritized or identified.

Oversight & Accountability

The contract is a Delivery Order, implying it falls under a broader indefinite-delivery/indefinite-quantity (IDIQ) or similar contract vehicle. Oversight would typically involve monitoring performance against the Statement of Work (SOW) and ensuring adherence to the Firm Fixed Price terms by the contracting officer's representative (COR).

Related Government Programs

Offices of Physicians, Mental Health Specialists
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

No small business participation.
Potential for contractor performance issues impacting service delivery.
Risk of undefined requirements leading to scope creep.
Dependency on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.9 million to STERLING MEDICAL ASSOCIATES, INC. ATTACHMENT 1 - EDIS PERFORMANCE WORK STATEMENT ATTACHMENT 2 - ASACS PERFORMANCE WORK STATEMENT

Who is the contractor on this award?

The obligated recipient is STERLING MEDICAL ASSOCIATES, INC.

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: 2024-05-01. End: 2026-11-30.

What is the specific breakdown of services and the per-unit cost for different medical specialties within this contract?

The provided data does not detail the specific breakdown of services or per-unit costs for individual medical specialties. A thorough analysis would require reviewing the Performance Work Statement (PWS) and associated CLINs (Contract Line Item Numbers) to understand the allocation of funds across different roles, such as physicians and mental health specialists, and to benchmark these against industry standards.

What are the key performance indicators (KPIs) and how will Sterling Medical Associates' performance be measured to ensure quality of care?

Key performance indicators (KPIs) and quality assurance measures are typically detailed within the Performance Work Statement (PWS) or Quality Assurance Surveillance Plan (QASP). These would likely include metrics related to patient wait times, patient satisfaction, adherence to medical protocols, and availability of specialists. The COR is responsible for monitoring these KPIs.

Are there any provisions for contract modifications or adjustments given the 943-day duration and potential changes in healthcare needs?

While the contract is Firm Fixed Price, provisions for modifications may exist for unforeseen circumstances, changes in scope directed by the government, or equitable adjustments. However, under FFP, the contractor bears the risk of cost increases. The contract's terms and conditions would outline the specific procedures and limitations for any modifications.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians, Mental Health Specialists

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 411 OAK ST, CINCINNATI, OH, 45219

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

Financial Breakdown

Contract Ceiling: $29,615,442

Exercised Options: $15,830,890

Current Obligation: $10,881,764

Actual Outlays: $730,353

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9114F23D0006

IDV Type: IDC

Timeline