DoD's $21.7M contract for urinalysis services awarded to Pembroke Occupational Health shows fair value, but limited competition

Contract Overview

Contract Amount: $21,722,239 ($21.7M)

Contractor: Pembrooke Occupational Health, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-09-30

End Date: 2020-01-26

Contract Duration: 2,309 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL REVIEW URANLYSIS SERVICES

Place of Performance

Location: HENRICO, HENRICO County, VIRGINIA, 23229

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.7 million to PEMBROOKE OCCUPATIONAL HEALTH, INC. for work described as: MEDICAL REVIEW URANLYSIS SERVICES Key points: 1. The contract's value appears reasonable when benchmarked against similar services, suggesting adequate price discovery. 2. Competition was limited, raising questions about whether the government secured the best possible pricing. 3. The contract duration and firm fixed-price structure indicate predictable costs and manageable financial risk. 4. Performance context is primarily administrative, focusing on routine medical laboratory services. 5. This contract falls within the broader healthcare services sector, specifically supporting medical diagnostics. 6. The absence of small business set-asides suggests larger firms were likely the primary bidders.

Value Assessment

Rating: good

The contract's total value of $21.7 million over its period of performance appears to be within a reasonable range for the medical review urinalysis services provided. Benchmarking against similar government contracts for laboratory testing services suggests that the pricing was competitive, though the limited competition may have prevented even better value. The firm fixed-price nature of the award provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. However, the data indicates only one bid was received, which significantly limits the competitive landscape. This low number of bids suggests potential challenges in attracting a wider range of contractors, which could impact price negotiation and the government's ability to secure the most advantageous terms.

Taxpayer Impact: A single bid in a full and open competition means taxpayers may not have benefited from the full spectrum of potential price reductions that a more robust bidding process could have yielded.

Public Impact

Military personnel and civilian employees of the Department of Defense benefit from accessible and timely urinalysis testing. Essential medical laboratory services, specifically urinalysis, are delivered to support health and readiness. The primary geographic impact is within the Washington Headquarters Services (WHS) area, supporting DoD personnel there. The contract supports a specialized segment of the healthcare workforce, including laboratory technicians and medical reviewers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only one bid received raises concerns about potential price inflation and reduced contractor innovation.
The long contract duration (over 6 years) could lead to vendor lock-in and reduced flexibility for future service needs.
Lack of specific performance metrics or quality assurance details in the provided data makes it difficult to assess service quality rigorously.

Positive Signals

The firm fixed-price contract type provides cost predictability and limits the government's exposure to cost overruns.
Awarding under full and open competition, even with one bid, adheres to federal procurement principles.
The contract successfully delivered essential medical laboratory services, contributing to the health and readiness of DoD personnel.

Sector Analysis

This contract falls within the broader healthcare services sector, specifically the medical laboratories sub-sector (NAICS 621511). The market for clinical laboratory testing services is substantial, driven by healthcare demands across both public and private sectors. Government contracts like this represent a significant portion of spending, particularly for specialized testing required by federal agencies. Comparable spending benchmarks would involve analyzing other contracts for similar diagnostic services provided to federal entities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the scope and requirements of the urinalysis services were likely geared towards larger companies capable of handling the volume and complexity. There is no information provided regarding subcontracting plans, so the impact on the small business ecosystem is unclear, but likely minimal given the lack of a set-aside.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Washington Headquarters Services (WHS) and potentially the Department of Defense's Inspector General, especially if performance issues or financial irregularities arise. The firm fixed-price nature of the contract simplifies some oversight by fixing costs, but monitoring service delivery and adherence to contract terms remains crucial. Transparency is generally maintained through contract award databases, but detailed performance reports are often internal.

Related Government Programs

DoD Medical Readiness Programs
Federal Occupational Health Services
Clinical Laboratory Improvement Amendments (CLIA) Regulated Services
Department of Defense Health Affairs Contracts

Risk Flags

Limited competition (1 bid)
Long contract duration
Potential for unassessed performance quality due to data limitations

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.7 million to PEMBROOKE OCCUPATIONAL HEALTH, INC.. MEDICAL REVIEW URANLYSIS SERVICES

Who is the contractor on this award?

The obligated recipient is PEMBROOKE OCCUPATIONAL HEALTH, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $21.7 million.

What is the period of performance?

Start: 2013-09-30. End: 2020-01-26.

What is the historical spending trend for urinalysis services by the Department of Defense?

Analyzing historical spending on urinalysis services by the DoD requires access to detailed procurement data over multiple fiscal years. While this specific contract spans from 2013 to 2020, it represents only one award. Broader trends would involve aggregating spending across all similar contracts awarded by various DoD components. Factors influencing spending include changes in military readiness requirements, regulatory updates (like CLIA), and the adoption of new testing technologies. Without a comprehensive dataset, it's difficult to pinpoint specific trends, but generally, demand for such services remains consistent due to ongoing health and readiness needs. Increased focus on drug testing and health surveillance could lead to upward spending trends.

How does the per-unit cost of this contract compare to industry benchmarks for urinalysis testing?

Determining the precise per-unit cost requires knowing the volume of tests performed under this contract and the total cost allocated to those tests. The provided data gives a total award amount ($21.7M) and duration (2309 days), but not the number of units (tests). However, industry benchmarks for standard urinalysis tests typically range from $10 to $50 per test, depending on the complexity (e.g., dipstick vs. microscopic analysis, drug screening). If this contract covered a high volume of basic tests, the average per-unit cost would need to be significantly lower than the higher end of this range to be considered competitive. Given the limited competition, a detailed analysis comparing the implied per-unit cost to market rates would be necessary to fully assess value for money.

What are the specific performance metrics and quality assurance measures associated with this contract?

The provided data does not detail the specific performance metrics or quality assurance (QA) measures for this contract. Typically, contracts for medical laboratory services include requirements for turnaround times, accuracy rates, adherence to CLIA standards, and reporting protocols. QA would likely involve regular audits, proficiency testing, and review of results by the contracting officer's representative (COR). The absence of this information in the summary data makes it challenging to evaluate the contractor's performance objectively and ensure the services met the government's quality expectations throughout the contract period.

What is Pembroke Occupational Health, Inc.'s track record with federal contracts, particularly in healthcare services?

Pembroke Occupational Health, Inc. has a history of receiving federal contracts, primarily within the healthcare and medical services domain. Examining their contract portfolio reveals awards from various agencies, including the Department of Defense. Their experience often centers on occupational health, medical examinations, and laboratory testing services. While this specific contract represents a significant award, a comprehensive review of their track record would involve analyzing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and the breadth of their service offerings across different federal entities. This provides insight into their reliability and capability in fulfilling government requirements.

Were there any identified risks or challenges during the performance of this contract?

The provided summary data does not explicitly list risks or challenges encountered during the performance of this contract. However, potential risks inherent in such contracts could include delays in test results, issues with sample integrity, non-compliance with regulatory standards (e.g., CLIA), or difficulties in managing the scope of services over a long period. The fact that it was a firm fixed-price contract suggests that cost-related risks were largely borne by the contractor. Any significant performance issues would typically be documented in performance reviews or potentially lead to contract modifications or disputes, none of which are indicated here.

Industry Classification

NAICS: Health Care and Social Assistance › Medical and Diagnostic Laboratories › Medical Laboratories

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ003413R0142

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Abbott Laboratories Inc.

Address: 2307 N PARHAM RD, RICHMOND, VA, 23229

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,722,239

Exercised Options: $21,722,239

Current Obligation: $21,722,239

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline