DoD awards $1.45B to Johns Hopkins for HMO Medical Centers, raising competition concerns
Contract Overview
Contract Amount: $1,446,217,596 ($1.4B)
Contractor: THE Johns Hopkins Medical Services Corporation
Awarding Agency: Department of Defense
Start Date: 2008-10-01
End Date: 2013-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $792.4K/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: BALTIMORE, BALTIMORE (CITY) County, MARYLAND, 21211
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $1.45 billion to THE JOHNS HOPKINS MEDICAL SERVICES CORPORATION for work described as: AWARD OF CONTRACT Key points: 1. Significant contract value of $1.45 billion awarded. 2. Lack of competition noted, raising potential value concerns. 3. No small business participation reported. 4. Contract spans 5 years, indicating long-term service provision.
Value Assessment
Rating: questionable
The contract value is substantial at $1.45 billion. Without available benchmark data or competitive pricing, it is difficult to assess if this represents fair value. The firm fixed-price structure provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The sole-source nature of this large contract may result in taxpayers paying more than they would in a competitive environment.
Public Impact
Military personnel and their families may rely on these medical services. The significant investment could impact the allocation of resources for other defense health initiatives. Long-term contract duration suggests a critical and ongoing need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- No small business participation
- Limited transparency on pricing justification
Positive Signals
- Firm fixed-price contract type
- Long contract duration indicating essential service
Sector Analysis
This contract falls within the Healthcare sector, specifically providing HMO medical center services. Healthcare contracts can be complex due to specialized needs and regulatory requirements. Benchmarking is difficult without specific service details.
Small Business Impact
The contract explicitly states no small business participation. This represents a missed opportunity to support small businesses within the defense healthcare supply chain.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the Defense Health Agency is receiving fair value and that the services provided meet all requirements.
Related Government Programs
- HMO Medical Centers
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Sole-source award limits competition.
- No small business participation.
- High contract value requires scrutiny.
- Lack of public benchmark data.
- Potential for cost overruns due to lack of competition.
Tags
hmo-medical-centers, department-of-defense, md, dca, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.45 billion to THE JOHNS HOPKINS MEDICAL SERVICES CORPORATION. AWARD OF CONTRACT
Who is the contractor on this award?
The obligated recipient is THE JOHNS HOPKINS MEDICAL SERVICES CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $1.45 billion.
What is the period of performance?
Start: 2008-10-01. End: 2013-09-30.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of adequate competition. Without further details on the specific circumstances surrounding this contract, it's impossible to determine the precise rationale. However, sole-source awards inherently reduce competitive pressure, potentially impacting cost-effectiveness.
How does the $1.45 billion cost compare to similar HMO services provided elsewhere?
Direct comparison of the $1.45 billion cost to similar HMO services is challenging without detailed service scope, patient volume, and geographic location data. Benchmarking sole-source contracts is inherently difficult. However, the absence of competition suggests a potential for inflated costs compared to what might be achieved through a competitive bidding process.
What measures are in place to ensure the effectiveness and quality of medical services provided under this contract?
While the contract type is firm fixed-price, ensuring effectiveness and quality relies on robust performance metrics, service level agreements, and ongoing monitoring by the Defense Health Agency. Regular performance reviews and patient satisfaction surveys would be crucial. The agency must actively manage the contract to ensure the services meet the healthcare needs of beneficiaries.
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
Parent Company: THE Johns Hopkins Health System Corporation (UEI: 155348113)
Address: 3100 WYMAN PARK DR, BALTIMORE, MD, 90
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: $1,446,717,596
Exercised Options: $1,446,467,596
Current Obligation: $1,446,217,596
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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