DoD's $37.3M Patient Appointing Services contract awarded to Katmai Federal Solutions JV, LLC shows potential value concerns

Contract Overview

Contract Amount: $37,323,061 ($37.3M)

Contractor: Katmai Federal Solutions JV, LLC

Awarding Agency: Department of Defense

Start Date: 2017-08-01

End Date: 2023-03-31

Contract Duration: 2,068 days

Daily Burn Rate: $18.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IGF::OT::IGF PATIENT APPOINTING SERVICES

Place of Performance

Location: USAF ACADEMY, EL PASO County, COLORADO, 80841

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $37.3 million to KATMAI FEDERAL SOLUTIONS JV, LLC for work described as: IGF::OT::IGF PATIENT APPOINTING SERVICES Key points: 1. The contract's duration of over 5 years and firm-fixed-price structure suggest a stable, predictable service delivery. 2. Awarded as 'Not Available for Competition,' this raises questions about the extent of market research and potential for broader competition. 3. The lack of specific performance metrics or detailed value-for-money analysis in the provided data makes a definitive assessment challenging. 4. Benchmarking against similar administrative services contracts is crucial to understand if the pricing reflects market rates. 5. The contract's significant duration may indicate a critical, long-term need for these patient appointing services within the Air Force. 6. The use of a Joint Venture (JV) entity could imply a strategy to leverage diverse capabilities or meet specific socio-economic goals.

Value Assessment

Rating: fair

The total award amount of $37.3 million over approximately 5.7 years averages to about $6.5 million annually. Without specific details on the volume of appointments managed or the complexity of the system, it's difficult to benchmark the value effectively. Comparing this to other administrative support contracts for healthcare appointment scheduling within the federal government or private sector would be necessary to determine if the pricing is competitive. The firm-fixed-price nature provides cost certainty but may not incentivize efficiency if not carefully managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded under the 'Not Available for Competition' category, indicating that a full and open competition was not conducted. This typically occurs when specific circumstances, such as national security, unique capabilities, or the existence of only one responsible source, are identified. The limited competition means that the government did not explore the full range of potential vendors, which could impact price discovery and potentially lead to higher costs than if multiple bids were received.

Taxpayer Impact: Taxpayers may not have received the benefit of the lowest possible price due to the lack of a competitive bidding process. This award mechanism warrants scrutiny to ensure that the government's interests were adequately protected and that the justification for limited competition was robust.

Public Impact

Beneficiaries include military personnel and their families who rely on efficient appointment scheduling for healthcare services. The services delivered are administrative, focusing on managing patient appointments to ensure timely access to medical care. The geographic impact is primarily within facilities managed by the Department of the Air Force, potentially across multiple bases. Workforce implications include the direct employment of individuals by Katmai Federal Solutions JV, LLC to perform these administrative tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpayment due to lack of robust competition.
Risk of service quality degradation if contractor faces no competitive pressure.
Limited transparency on performance metrics and value realization.
Contract duration may lock in potentially suboptimal pricing for an extended period.

Positive Signals

Firm-fixed-price contract provides budget certainty for the agency.
Award to a Joint Venture may indicate a strategic approach to capability integration.
Long-term contract suggests a sustained and critical need for the service.

Sector Analysis

The healthcare administrative support sector is a significant component of government contracting, particularly within the Department of Defense to manage its vast healthcare system. This contract falls under the broader category of professional and administrative services. Market size for such services is substantial, driven by the need for efficient patient management, appointment scheduling, and record-keeping. Benchmarking against similar contracts for administrative services in healthcare, especially within federal agencies, would reveal if the $37.3 million award over five years is within expected ranges for the scope of work.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award, there would be no subcontracting opportunities mandated for small businesses unless explicitly included in the contract terms by the agency. This means the primary contract value does not directly contribute to the small business contracting goals of the Air Force, and there is no indication of specific subcontracting plans to support the small business ecosystem through this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Given the firm-fixed-price nature, oversight would focus on ensuring service delivery meets contractual requirements and performance standards. Transparency is limited by the 'Not Available for Competition' status, which often involves less public detail. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

DoD Healthcare Management Support
Military Health System Administration
Federal Healthcare IT Services
Administrative Services Contracts
Patient Scheduling Systems

Risk Flags

Limited Competition Justification
Lack of Performance Metrics
Potential Value for Money Concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.3 million to KATMAI FEDERAL SOLUTIONS JV, LLC. IGF::OT::IGF PATIENT APPOINTING SERVICES

Who is the contractor on this award?

The obligated recipient is KATMAI FEDERAL SOLUTIONS JV, LLC.

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 $37.3 million.

What is the period of performance?

Start: 2017-08-01. End: 2023-03-31.

What specific patient appointing services are covered under this contract, and what is the expected volume of appointments managed annually?

The contract, identified as 'IGF::OT::IGF PATIENT APPOINTING SERVICES,' broadly covers administrative services related to patient appointment scheduling. However, the provided data lacks granular detail on the specific types of appointments (e.g., primary care, specialist, diagnostic), the number of facilities supported, or the expected annual volume of appointments. This information is critical for assessing the workload and justifying the contract's value. Without these specifics, it's challenging to determine if the $37.3 million award is commensurate with the scope and scale of services required by the Department of the Air Force.

How does the $37.3 million contract value compare to similar patient appointing or administrative support contracts within the Department of Defense or other federal agencies?

Benchmarking this $37.3 million contract against similar services is difficult without more detailed service descriptions and performance metrics. However, annualizing the cost ($37.3M / ~5.7 years ≈ $6.5M/year) provides a starting point. Contracts for large-scale administrative support, including call centers and scheduling operations for federal agencies, can range significantly. For instance, contracts managing appointment systems for large healthcare networks or federal agencies often involve substantial costs, but the specific pricing per appointment or per user can vary widely based on technology, scope, and geographic coverage. A direct comparison would require identifying contracts with comparable service levels, user bases, and operational complexities within the DoD or HHS.

What was the justification for awarding this contract as 'Not Available for Competition,' and what market research was conducted?

The 'Not Available for Competition' (NAC) designation implies that the Department of the Air Force determined that only one responsible source was capable of providing the required services. Common justifications for NAC awards include unique capabilities, proprietary technology, urgent and compelling needs where competition is impractical, or specific statutory authorities. The extent of market research conducted prior to this determination is not detailed in the provided data. Typically, agencies must demonstrate that they explored the market and found no other viable sources or that competition would not be in the government's best interest. Without the specific justification document, it's impossible to fully assess the rationale behind the NAC award.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how is performance being measured?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. For a patient appointing services contract, typical KPIs might include appointment scheduling efficiency (e.g., average time to schedule an appointment), patient no-show rates, system uptime, accuracy of scheduling information, and patient satisfaction scores. The firm-fixed-price contract structure suggests that performance is expected to meet defined requirements. However, the absence of explicit performance metrics in the summary data makes it difficult to assess the contractor's actual performance and the overall effectiveness of the service delivery.

What is the track record of Katmai Federal Solutions JV, LLC in performing similar administrative or healthcare support services for the government?

Katmai Federal Solutions JV, LLC is a joint venture, which often combines the strengths of its parent companies. To assess their track record, one would need to examine past performance information, including any previous government contracts awarded to this specific JV or its constituent members. Information regarding past performance, such as successful contract completion, quality of service, adherence to schedule and budget, and customer satisfaction, is crucial for evaluating the reliability and capability of the contractor. Without access to detailed past performance reports or contract histories, it's difficult to provide a definitive assessment of their track record for this specific service.

Are there any identified risks associated with this contract, such as cost overruns, performance deficiencies, or contractor viability?

Given the 'Not Available for Competition' status, a primary risk is the potential for the government not securing the best possible price due to limited market engagement. The firm-fixed-price structure mitigates cost overrun risk for the government, but only if the scope is well-defined and the initial price is fair. Performance risks are always present in service contracts; without defined KPIs, monitoring effectiveness is challenging. Contractor viability is generally assessed during the initial award process, but long-term risks could include financial stability or changes in operational capacity. The extended duration (over 5 years) also presents a risk of the service becoming outdated if technology or processes are not continuously improved.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA700017R0006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11001 O'MALLEY CENTRE DR STE 204, ANCHORAGE, AK, 99515

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,323,061

Exercised Options: $37,323,061

Current Obligation: $37,323,061

Actual Outlays: $7,127,143

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $29,766,644

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline