DoD's $24M contract for clinical psychologists awarded to Medpro Technologies, LLC, raises questions about competition and value

Contract Overview

Contract Amount: $24,081,202 ($24.1M)

Contractor: Medpro Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2011-03-10

End Date: 2016-09-09

Contract Duration: 2,010 days

Daily Burn Rate: $12.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CLINICAL PSYCHOLOGISTS

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78226

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $24.1 million to MEDPRO TECHNOLOGIES, LLC for work described as: CLINICAL PSYCHOLOGISTS Key points: 1. The contract's value of $24 million over its period of performance suggests a significant investment in mental health services. 2. The sole-source award to Medpro Technologies, LLC, limits opportunities for competitive bidding and potentially higher prices. 3. The lack of competition is a key risk indicator, potentially impacting cost-effectiveness and service innovation. 4. The contract's duration and firm-fixed-price nature provide some cost certainty but may reduce flexibility. 5. The award falls within the healthcare sector, specifically mental health practitioner services, a critical area for military readiness. 6. The absence of small business set-aside or subcontracting requirements warrants further investigation into broader economic impacts.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of publicly available comparable contract data for similar sole-source awards for clinical psychologists. The firm-fixed-price structure provides some predictability, but without competitive bids, it's difficult to ascertain if the $24 million represents optimal value for money. The per-unit cost for psychologist services would need to be analyzed against market rates for similar government contracts to determine true cost-effectiveness. The absence of competition inherently raises concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach bypasses the standard procurement process where multiple vendors submit bids, which is typically intended to foster price discovery and ensure the government receives the best value. The lack of competition means that Medpro Technologies, LLC was the only provider considered, potentially leading to higher costs than if a competitive process had been employed.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure. The government missed an opportunity to leverage market forces to secure potentially lower prices or more innovative solutions.

Public Impact

Military personnel and their families benefit from access to clinical psychology services, crucial for mental well-being and readiness. The contract delivers essential mental health support, addressing psychological needs within the Department of Defense. Services are likely delivered across various military installations, with a concentration in Texas (ST: TX). The contract supports a workforce of clinical psychologists, contributing to the healthcare sector's employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition, potentially increasing costs and reducing innovation.
Lack of transparency in the justification for sole-source award.
Difficulty in benchmarking value without comparable contract data.
Potential for higher per-unit costs due to lack of competitive bidding.

Positive Signals

Provides essential clinical psychology services to military personnel.
Firm-fixed-price contract offers cost certainty for the government.
Long-term contract (2010-2016) indicates a sustained need for these services.

Sector Analysis

The healthcare services sector, particularly mental health, is a significant area of government spending. Contracts for clinical psychologists are essential for supporting the well-being of military personnel and their families. The market for these services involves numerous private practices and larger healthcare providers. Benchmarking this contract's value is difficult without specific data on per-hour or per-session rates for psychologists in similar government contracts, especially those awarded non-competitively.

Small Business Impact

This contract does not appear to have included small business set-aside provisions, nor is there information indicating significant subcontracting to small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate. This suggests that the primary focus was on securing services from the awarded contractor, potentially overlooking opportunities to engage and support the small business ecosystem within the healthcare services sector.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and financial management offices. Accountability measures would be tied to the performance work statement and delivery of services. Transparency is limited due to the sole-source nature and the lack of readily available detailed performance data in the public domain. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

TRICARE
Military Health System
Behavioral Health Services Contracts
DoD Mental Health Initiatives

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.1 million to MEDPRO TECHNOLOGIES, LLC. CLINICAL PSYCHOLOGISTS

Who is the contractor on this award?

The obligated recipient is MEDPRO TECHNOLOGIES, 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 $24.1 million.

What is the period of performance?

Start: 2011-03-10. End: 2016-09-09.

What was the specific justification for awarding this contract on a sole-source basis to Medpro Technologies, LLC?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified under circumstances such as only one responsible source being available, or an urgent need that cannot be met through competitive procedures. Without this documentation, it is impossible to fully assess the necessity of bypassing the competitive bidding process. This lack of transparency is a common concern with sole-source awards, as it can obscure potential reasons for avoiding competition, such as contractor influence or a lack of market research.

How does the total contract value of $24 million compare to other government contracts for clinical psychologists?

Direct comparison of the $24 million total contract value is difficult without knowing the exact scope of services, duration, and geographic coverage of other contracts. However, for a period spanning approximately five years (March 2011 to September 2016), $24 million represents a substantial investment. If this value is spread across multiple psychologists or locations, the per-unit cost might be reasonable. Conversely, if it represents a small number of providers, it could indicate a higher-than-average cost. The firm-fixed-price nature suggests a defined scope, but the lack of competitive benchmarking makes a definitive value assessment challenging.

What are the potential risks associated with awarding a large contract like this on a sole-source basis?

The primary risks associated with sole-source awards include a lack of price competition, which can lead to inflated costs for the government and taxpayers. It also reduces the incentive for the contractor to innovate or improve service delivery, as there is no competitive pressure. Furthermore, it limits the government's ability to explore alternative solutions or providers that might offer better value or specialized expertise. Transparency is often reduced, making oversight more challenging and potentially masking inefficiencies or poor performance.

What was the performance history of Medpro Technologies, LLC prior to or during this contract?

The provided data does not contain information on Medpro Technologies, LLC's performance history. Assessing a contractor's track record is crucial for understanding the reliability and quality of services delivered. Without performance reviews, past performance questionnaires, or documented successes and failures, it is difficult to gauge how effectively Medpro Technologies fulfilled its obligations under this $24 million contract. This information is typically available through government contract databases and performance management systems.

How does the National Industry Classification System (NAICS) code 621330 for Offices of Mental Health Practitioners (except Physicians) typically fare in terms of competition for government contracts?

NAICS code 621330, 'Offices of Mental Health Practitioners (except Physicians),' covers a range of mental health services. Competition within this sector for government contracts can vary significantly. While there are many private practices and smaller firms that could potentially bid, larger healthcare service providers also operate in this space. Contracts for specialized services or those requiring specific clearances or geographic presence might see less competition. However, a sole-source award for a substantial amount like $24 million, without clear justification, suggests that either market research was insufficient, or specific circumstances limited the pool of eligible bidders significantly.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Other Health Practitioners › Offices of Mental Health Practitioners (except Physicians)

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA701411R5005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12500 SAN PEDRO DRIVE STE 450, SAN ANTONIO, TX, 78216

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,644,748

Exercised Options: $24,644,748

Current Obligation: $24,081,202

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline