DoD Awards $527.8M for HMO Medical Centers to SVCMC, Inc. with No Competition
Contract Overview
Contract Amount: $527,791,694 ($527.8M)
Contractor: Svcmc, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-10-01
End Date: 2013-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $289.2K/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: NEW YORK, NEW YORK County, NEW YORK, 10001
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $527.8 million to SVCMC, INC. for work described as: AWARD OF CONTRACT Key points: 1. Significant contract value of $527.8 million over 5 years. 2. SVCMC, Inc. is the sole awardee, raising questions about competition. 3. The contract is for HMO Medical Centers, a critical healthcare service. 4. Lack of competition may impact price discovery and value for taxpayers.
Value Assessment
Rating: questionable
The contract value is substantial at $527.8 million. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar HMO medical center contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition for a contract of this magnitude raises concerns about whether taxpayer funds are being used most efficiently.
Public Impact
Military personnel and their families rely on these HMO medical centers for essential healthcare services. The large contract value indicates a significant portion of the Defense Health Agency's budget is allocated here. Potential for improved or degraded healthcare quality depending on vendor performance and oversight.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Essential healthcare service provision
Sector Analysis
This contract falls within the healthcare sector, specifically providing HMO medical center services. Healthcare contracts can vary widely in cost depending on the scope of services, location, and competitive landscape.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had opportunities to participate in subcontracting.
Oversight & Accountability
Given the sole-source nature of this award, robust oversight by the Defense Health Agency is crucial to ensure service quality and prevent potential cost overruns. Transparency in performance metrics is key.
Related Government Programs
- HMO Medical Centers
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Sole-source award raises competition concerns.
- Potential for overpayment due to lack of competitive pricing.
- Limited transparency on vendor performance metrics.
- No indication of small business participation.
Tags
hmo-medical-centers, department-of-defense, ny, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $527.8 million to SVCMC, INC.. AWARD OF CONTRACT
Who is the contractor on this award?
The obligated recipient is SVCMC, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $527.8 million.
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 specific circumstances where only one vendor can meet the government's needs, such as unique capabilities, urgent requirements, or lack of adequate competition. Without further documentation, the specific rationale remains unclear, but it's a critical factor in assessing the contract's legitimacy and value.
What are the risks associated with a sole-source healthcare contract of this size?
The primary risks include inflated pricing due to lack of competition, potential for complacency in service quality, and limited flexibility to adapt to changing healthcare needs or technologies. The government may also miss out on innovative solutions or cost savings offered by other potential providers.
How will the effectiveness of SVCMC, Inc.'s services be measured and ensured?
Effectiveness is typically measured through performance metrics outlined in the contract, such as patient satisfaction, access to care, quality of medical outcomes, and adherence to clinical standards. The Defense Health Agency should have a robust performance management plan in place, including regular reviews and feedback mechanisms, to ensure SVCMC, Inc. meets its obligations.
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: 153 W 11 ST, NEW YORK, NY, 90
Business Categories: Category Business, Corporate Entity Tax Exempt, Hospital, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $528,041,694
Exercised Options: $527,791,694
Current Obligation: $527,791,694
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: 2014-02-12
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