DOD Awards $670M for HMO Medical Centers to Brighton Marine, Inc. Over 5 Years
Contract Overview
Contract Amount: $670,328,123 ($670.3M)
Contractor: Brighton Marine, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-10-01
End Date: 2013-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $367.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: AWARD OF CONTRACT
Place of Performance
Location: BRIGHTON, SUFFOLK County, MASSACHUSETTS, 02135
Plain-Language Summary
Department of Defense obligated $670.3 million to BRIGHTON MARINE, INC. for work described as: AWARD OF CONTRACT Key points: 1. Significant contract value of $670.3M awarded. 2. Sole-source award raises questions about competition and price discovery. 3. Long-term contract duration (5 years) may limit flexibility. 4. Focus on healthcare services within the Defense Health Agency.
Value Assessment
Rating: questionable
The contract value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal. Benchmarking against similar sole-source healthcare contracts would be necessary for a thorough evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price for these essential healthcare services.
Public Impact
Ensures continued medical services for military personnel and their families. Potential for higher costs due to lack of competitive bidding. Impact on the healthcare services market within the Defense Health Agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Ensures continuity of care
- Established provider
Sector Analysis
This contract falls within the healthcare sector, specifically for HMO medical centers supporting the Defense Health Agency. Spending benchmarks for similar sole-source healthcare contracts are difficult to ascertain without more data.
Small Business Impact
The data indicates that small businesses were not involved in this specific award (sb: false). Further analysis would be needed to determine if subcontracting opportunities were explored or if small businesses were excluded from the process.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and effective service delivery. The Defense Health Agency should have robust internal controls to monitor performance and costs.
Related Government Programs
- HMO Medical Centers
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated costs due to lack of competition.
- Long contract duration may not reflect evolving healthcare needs or costs.
- No indication of small business participation.
Tags
hmo-medical-centers, department-of-defense, ma, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $670.3 million to BRIGHTON MARINE, INC.. AWARD OF CONTRACT
Who is the contractor on this award?
The obligated recipient is BRIGHTON MARINE, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $670.3 million.
What is the period of performance?
Start: 2008-10-01. End: 2013-09-30.
What was the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other responsible sources. Without specific details from the Department of Defense, it's impossible to confirm the exact reasoning. However, the absence of competition inherently limits the government's ability to ensure the most cost-effective solution is secured, potentially leading to suboptimal value for taxpayer funds.
How does the per-unit cost of services under this contract compare to industry benchmarks for similar HMO medical centers?
Benchmarking the per-unit cost is challenging without specific service breakdowns and pricing details. However, given the sole-source nature, there's a heightened risk that costs may exceed competitive market rates. A thorough review would require access to detailed cost data and comparison with publicly available data for similar services provided by other entities, both government and commercial.
What mechanisms are in place to ensure the effectiveness and quality of healthcare services provided by Brighton Marine, Inc. under this contract?
The effectiveness and quality of services are typically monitored through performance metrics, quality assurance reviews, and patient feedback mechanisms established by the Defense Health Agency. For sole-source contracts, rigorous oversight is even more critical to ensure the contractor meets all contractual obligations and delivers high-quality care, justifying the absence of competitive pressure.
Industry Classification
NAICS: Health Care and Social Assistance › Outpatient Care Centers › HMO Medical Centers
Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: H9400207R0006
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 77 WARREN ST 7TH FL, BRIGHTON, MA, 07
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $670,578,123
Exercised Options: $670,328,123
Current Obligation: $670,328,123
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-10-01
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2014-02-06
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