DoD's $16.7M occupational health contract with Acuity-CHS, LLC awarded under full and open competition

Contract Overview

Contract Amount: $16,739,706 ($16.7M)

Contractor: Acuity-Chs, LLC

Awarding Agency: Department of Defense

Start Date: 2021-03-10

End Date: 2026-03-09

Contract Duration: 1,825 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OCC HEALTH & INDEPENDENT MEDICAL EXAMS

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.7 million to ACUITY-CHS, LLC for work described as: OCC HEALTH & INDEPENDENT MEDICAL EXAMS Key points: 1. Contract value appears reasonable given the duration and scope of occupational health services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. The contract duration of five years (1825 days) provides long-term stability for service delivery. 5. Services are categorized under 'Offices of Physicians,' aligning with the contract's purpose. 6. The contract is managed by Washington Headquarters Services, indicating a centralized administrative approach.

Value Assessment

Rating: good

The contract's total value of $16.7 million over five years averages approximately $3.34 million annually. Benchmarking this against similar large-scale occupational health contracts for federal agencies is challenging without more specific service details. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost increases, which is generally favorable for the government. The absence of reported overruns or significant modifications further supports a 'good' value assessment, assuming the services delivered meet quality standards.

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 a bid. While the number of bidders is not specified, this method generally fosters a competitive environment, which can lead to more favorable pricing and better service offerings for the government. The use of full and open competition is the government's preferred method for procurement, aiming to maximize value and innovation.

Taxpayer Impact: A competitive bidding process like full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service delivery through market forces.

Public Impact

Federal employees, particularly those within the Department of Defense, benefit from essential occupational health and independent medical examinations. The services provided ensure the health and safety of the workforce, supporting operational readiness. The contract's geographic impact is likely concentrated around Department of Defense facilities managed by Washington Headquarters Services, primarily in the Virginia area. Workforce implications include the employment of medical professionals and administrative staff by Acuity-CHS, LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service quality variations if performance metrics are not rigorously monitored.
Dependence on a single contractor for critical occupational health services could pose a risk if performance degrades significantly.

Positive Signals

Firm-fixed-price contract type limits the government's exposure to cost increases.
Awarded under full and open competition, suggesting a competitive process that likely secured favorable terms.
Contract duration of five years provides service continuity and allows for relationship building.

Sector Analysis

The healthcare services sector, specifically within the federal government's procurement landscape, encompasses a wide range of medical and health-related services. Occupational health and independent medical exams are crucial components supporting the well-being and readiness of the federal workforce. Spending in this sub-sector is driven by the need to comply with health regulations, manage employee health risks, and ensure fitness for duty. Comparable spending benchmarks would typically be found within the broader 'Offices of Physicians' NAICS code (621111), with federal contracts often ranging from hundreds of thousands to tens of millions of dollars annually, depending on the scope and scale of services required.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors on this award. However, Acuity-CHS, LLC may engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing to the broader small business ecosystem. The absence of a small business set-aside suggests the scope or nature of the services was deemed more suitable for larger, potentially specialized, prime contractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Washington Headquarters Services (WHS) contracting office and the Department of Defense. Performance monitoring, quality assurance, and adherence to contract terms are expected to be managed through established government oversight mechanisms. Transparency is facilitated by contract award data publicly available through federal procurement databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Healthcare Services
Federal Occupational Health Programs
Independent Medical Examination Services
Washington Headquarters Services Contracts

Risk Flags

Potential for performance degradation over the contract's five-year term.
Dependence on a single contractor for critical health services.
Lack of specific performance metrics in the provided summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to ACUITY-CHS, LLC. OCC HEALTH & INDEPENDENT MEDICAL EXAMS

Who is the contractor on this award?

The obligated recipient is ACUITY-CHS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.7 million.

What is the period of performance?

Start: 2021-03-10. End: 2026-03-09.

What is the historical spending pattern for occupational health services by the Department of Defense under similar contracts?

Analyzing historical spending for occupational health services by the DoD requires a deep dive into federal procurement databases, looking for contracts with similar scopes (e.g., independent medical exams, occupational health surveillance) and agencies within DoD. While this specific contract is for $16.7 million over five years, past spending could reveal trends in contract values, duration, and types of services procured. For instance, if the DoD has consistently awarded multi-million dollar contracts for these services over the past decade, it suggests a sustained need and budget allocation. Conversely, a significant increase or decrease in spending could indicate shifts in policy, workforce size, or health priorities. Without access to a comprehensive historical database query, it's difficult to provide precise figures, but the current award suggests a significant and ongoing requirement for these services within the DoD.

How does the per-unit cost of services under this contract compare to industry benchmarks for occupational health exams?

Determining the precise per-unit cost for services under this contract is challenging without a detailed breakdown of the services provided and their associated quantities (e.g., cost per physical exam, cost per specific medical test). The contract is a firm-fixed-price award totaling $16.7 million over five years. To benchmark, one would need to identify the specific services Acuity-CHS, LLC is contracted to deliver and compare their unit prices to prevailing market rates charged by other occupational health providers for similar services. Industry benchmarks can vary significantly based on geographic location, the complexity of the exam, and the provider's overhead. Generally, federal contracts aim for competitive pricing, but the 'value for money' is ultimately assessed by comparing the delivered quality and cost against alternatives and the overall benefit to the government.

What is Acuity-CHS, LLC's track record with federal contracts, particularly in healthcare services?

Acuity-CHS, LLC's track record with federal contracts, especially in healthcare services, is a critical factor in assessing performance risk. Information on past performance, including contract history, value, duration, and any reported issues (e.g., disputes, performance deficiencies, awards), would be available through federal procurement databases like SAM.gov or FPDS. A history of successful contract completion, positive performance reviews, and timely delivery of services would indicate reliability. Conversely, a record marred by contract terminations, significant delays, or quality issues would raise concerns. For this specific $16.7 million contract, understanding their experience with similar large-scale, long-term healthcare service agreements is essential for evaluating their capability to meet the DoD's requirements effectively.

What are the key performance indicators (KPIs) used to measure the success of this occupational health contract?

Key Performance Indicators (KPIs) for a contract like this, focused on occupational health and independent medical exams, are crucial for ensuring the government receives the expected value and quality. While specific KPIs are not detailed in the provided data, typical metrics would likely include: timeliness of appointments and report generation, accuracy and completeness of medical evaluations, adherence to relevant medical standards and regulations (e.g., OSHA, DoD directives), patient satisfaction scores (if applicable), and compliance with data security and privacy requirements (HIPAA). The contract's success would be measured by Acuity-CHS, LLC's consistent achievement of these KPIs, which are usually outlined in the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO). Regular performance reviews would assess the contractor's adherence to these metrics.

Are there any specific risks associated with relying on Acuity-CHS, LLC for these critical health services, given the contract's value and duration?

The primary risks associated with relying on Acuity-CHS, LLC for this $16.7 million, five-year contract revolve around performance and continuity. Performance risks include potential degradation in service quality over time, failure to meet appointment or reporting deadlines, or issues with the accuracy of medical assessments. Given the long duration, there's also a risk of key personnel turnover within the contractor's organization, potentially impacting service consistency. Continuity risk exists if the contractor faces financial instability or operational challenges that could disrupt service delivery. The firm-fixed-price nature mitigates financial risk for the government regarding cost overruns, but performance failures could still necessitate corrective actions or even contract termination, leading to potential disruptions in essential health services for DoD personnel.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ003420R0211

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8600 ASTRONAUT BLVD, CAPE CANAVERAL, FL, 32920

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

Financial Breakdown

Contract Ceiling: $27,702,519

Exercised Options: $27,549,045

Current Obligation: $16,739,706

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003421D0009

IDV Type: IDC

Timeline