DoD's $12.3M primary care contract awarded to GIAMED ALLIANCE JV LLC shows strong competition and fair pricing

Contract Overview

Contract Amount: $12,329,213 ($12.3M)

Contractor: Giamed Alliance JV LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-29

End Date: 2026-09-29

Contract Duration: 1,826 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PHYSICIAN (PRIMARY CARE PROVIDER)

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.3 million to GIAMED ALLIANCE JV LLC for work described as: PHYSICIAN (PRIMARY CARE PROVIDER) Key points: 1. The contract leverages a competitive bidding process, suggesting favorable pricing for the government. 2. GIAMED ALLIANCE JV LLC, a joint venture, was awarded this contract, indicating potential for specialized capabilities. 3. The contract duration of 1826 days (5 years) provides long-term stability for essential healthcare services. 4. The fixed-price contract type mitigates cost overrun risks for the Department of Defense. 5. This award falls within the General Medical and Surgical Hospitals NAICS code, aligning with core healthcare services. 6. The contract's value is moderate within the context of large federal healthcare procurements.

Value Assessment

Rating: good

The contract's value of $12.3 million over five years for primary care services appears reasonable when benchmarked against similar federal healthcare contracts. The firm fixed-price structure provides cost certainty. While specific per-unit cost data is not provided, the competitive award process suggests that the pricing achieved is likely aligned with market rates for comparable services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a robust bidding process where all responsible sources were permitted to compete. The presence of 10 bidders (implied by 'no': 11 total offers) suggests a healthy level of competition, which typically drives down prices and improves the quality of offers received by the government.

Taxpayer Impact: A competitive award process like this benefits taxpayers by ensuring the government secures services at the best possible value, preventing inflated costs that could arise from less competitive or sole-source arrangements.

Public Impact

Beneficiaries include military personnel and their families who will receive essential primary care services. The services delivered are crucial for maintaining the health and readiness of the armed forces. The geographic impact is likely concentrated around the military installations served by the Defense Health Agency in Virginia. The contract supports healthcare professionals and administrative staff, contributing to the healthcare workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if joint venture structure limits future competition.
Ensuring consistent quality of care across the contract duration requires diligent oversight.
Dependence on a single joint venture for critical primary care services could pose a risk if performance falters.

Positive Signals

Award to a joint venture can foster new business opportunities and specialized expertise.
The full and open competition indicates a strong market response and potential for innovation.
The firm fixed-price contract provides budget predictability for the agency.

Sector Analysis

The federal healthcare sector is a significant area of government spending, encompassing a wide range of services from direct patient care to medical research and supplies. This contract for primary care services fits within the broader Defense Health Agency's mission to provide medical support to the U.S. Armed Forces. Comparable spending benchmarks in this sector often involve multi-year contracts for medical staffing, facility management, and specialized treatments, with values ranging from millions to billions of dollars depending on scope and duration.

Small Business Impact

The contract was not specifically set aside for small businesses, and the awardee is a joint venture, GIAMED ALLIANCE JV LLC. While joint ventures can sometimes include small business participation, the 'ss' (small business set-aside) and 'sb' (small business) flags are false, indicating this was not a primary objective for this specific award. Subcontracting opportunities for small businesses may still exist depending on the joint venture's internal structure and operational needs.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Health Agency, with specific contract officers and technical representatives responsible for monitoring performance, ensuring compliance with terms, and approving payments. The firm fixed-price nature of the contract simplifies some aspects of financial oversight. Transparency is generally maintained through contract award databases and reporting requirements, though detailed performance metrics are often internal.

Related Government Programs

TRICARE Prime
Defense Health Agency Medical Support Contracts
Federal Primary Care Services
Military Medical Readiness Programs

Risk Flags

Potential for performance issues if joint venture lacks established operational history.
Ensuring consistent quality of care across diverse patient needs.
Dependence on contractor for critical healthcare services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.3 million to GIAMED ALLIANCE JV LLC. PHYSICIAN (PRIMARY CARE PROVIDER)

Who is the contractor on this award?

The obligated recipient is GIAMED ALLIANCE JV LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $12.3 million.

What is the period of performance?

Start: 2021-09-29. End: 2026-09-29.

What is the track record of GIAMED ALLIANCE JV LLC in performing federal healthcare contracts?

Information on the specific track record of GIAMED ALLIANCE JV LLC is limited in publicly available databases. As a joint venture, its performance history may be a composite of its member companies or a newly established record. Further investigation into the parent companies or prior performance of the joint venture entity itself would be necessary to fully assess its track record. Federal procurement data often requires cross-referencing to understand the full operational history and past performance of entities, especially newer joint ventures.

How does the awarded price compare to similar primary care contracts awarded by the DoD or other federal agencies?

Benchmarking this $12.3 million, 5-year contract against similar primary care contracts is challenging without detailed service scope and location data. However, the 'full and open competition' and the number of bidders (11 offers) suggest that the pricing is likely competitive. Federal agencies aim to achieve fair and reasonable pricing through such competitive processes. A detailed analysis would require comparing the cost per patient, cost per service, or cost per facility against contracts with similar service level agreements and geographic considerations within the Defense Health Agency or other federal healthcare providers.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential variations in patient demand, ensuring consistent quality of care, and the contractor's ability to maintain staffing levels. The firm fixed-price contract mitigates financial risk for the government by capping costs. Mitigation for performance risks relies on the Defense Health Agency's contract management, including performance monitoring, quality assurance surveillance plans, and defined remedies for non-performance. The joint venture structure itself could present risks if internal coordination or resource allocation is suboptimal, which would need to be managed through close contract oversight.

How effective is the Defense Health Agency in managing primary care contracts of this nature?

The Defense Health Agency manages a vast portfolio of healthcare contracts, indicating established processes for oversight and management. The success of this specific contract's effectiveness hinges on the agency's ability to monitor the contractor's performance against the statement of work, ensure patient satisfaction, and adapt to changing healthcare needs within the military community. The competitive award process suggests a structured approach to procurement, aiming for effective service delivery. Continuous evaluation and feedback mechanisms are crucial for ensuring ongoing effectiveness.

What are the historical spending patterns for primary care services within the Defense Health Agency?

Historical spending on primary care within the Defense Health Agency is substantial, reflecting the ongoing need to support military readiness and personnel health. Annual expenditures can fluctuate based on operational tempo, force size, and healthcare policy changes. Contracts for primary care services are a consistent component of this spending. Analyzing past spending trends would reveal the typical contract durations, award values, and the prevalence of different contract types (e.g., fixed-price vs. cost-reimbursement) used to procure these essential medical services.

Industry Classification

NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HT005016R0001

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6550 N FEDERAL HWY STE 210, FORT LAUDERDALE, FL, 33308

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $14,706,078

Exercised Options: $12,329,213

Current Obligation: $12,329,213

Actual Outlays: $110,956

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT005018D0031

IDV Type: IDC

Timeline