DoD's $13.5M contract for radiation therapists awarded to Decypher Technologies Ltd. shows potential value concerns

Contract Overview

Contract Amount: $13,472,042 ($13.5M)

Contractor: Decypher Technologies Ltd

Awarding Agency: Department of Defense

Start Date: 2022-05-04

End Date: 2026-10-31

Contract Duration: 1,641 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: RADIATION THERAPISTS (7 EACH)

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20889

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $13.5 million to DECYPHER TECHNOLOGIES LTD for work described as: RADIATION THERAPISTS (7 EACH) Key points: 1. The contract's value appears high relative to the number of personnel and duration, warranting a closer look at unit costs. 2. Competition was full and open, suggesting a competitive pricing environment, but the final price needs benchmarking. 3. The fixed-price contract type mitigates cost overrun risk for the government. 4. Performance is for a significant duration, requiring sustained quality and availability of services. 5. This contract falls within the healthcare services sector, specifically supporting military medical facilities. 6. The award to Decypher Technologies Ltd. requires assessment of their past performance and capacity for this specialized role.

Value Assessment

Rating: fair

The contract value of $13.5 million for 7 radiation therapists over approximately 4 years (1641 days) suggests a significant per-therapist cost. Benchmarking against similar contracts for specialized medical personnel is crucial. Without specific details on duties, location, or required experience, it's difficult to definitively assess value, but the total amount warrants scrutiny to ensure it aligns with market rates for such critical roles.

Cost Per Unit: Approximately $54,000 per therapist per month, which needs to be benchmarked against market rates for specialized medical professionals in similar roles and locations.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple bidders were likely considered. This approach generally promotes competitive pricing and allows the government to select the best value. The presence of 13 bidders (no=13) suggests a healthy level of interest and competition for this requirement.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service offerings.

Public Impact

Military personnel and their families receiving advanced radiation therapy services at Department of Defense facilities. Ensuring continuity and quality of critical cancer treatment services within the military healthcare system. Potential impact on the availability of specialized medical professionals within the broader healthcare market. Support for the Defense Health Agency's mission to provide healthcare services to the uniformed services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for high per-person cost if not adequately benchmarked against civilian market rates.
Ensuring consistent quality of care over the multi-year contract duration.
Dependence on a single contractor for a critical medical specialty.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm Fixed Price contract type reduces financial risk for the government.
Long contract duration allows for stable service provision and potential for economies of scale.

Sector Analysis

This contract falls within the Healthcare sector, specifically the provision of specialized medical services. The market for highly skilled medical professionals like radiation therapists is often competitive, with demand driven by healthcare needs across both civilian and government sectors. The Defense Health Agency procures such services to ensure medical readiness and care for military beneficiaries. Comparable spending benchmarks would involve analyzing other government contracts for similar medical personnel and civilian hospital contracts for outsourced specialized services.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. The award was made to Decypher Technologies Ltd. Further investigation would be needed to determine if subcontracting opportunities exist for small businesses within this contract's scope.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Defense Health Agency is responsible for contract administration and performance monitoring. The firm fixed-price nature of the contract provides a degree of financial oversight. Inspector General reviews may occur if performance issues or allegations of impropriety arise.

Related Government Programs

TRICARE
Military Medical Treatment Facilities
Defense Health Agency Contracts
Medical Personnel Services Contracts

Risk Flags

Potential for high unit cost
Contractor's capacity to meet demand for specialized personnel
Ensuring consistent quality of care over contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.5 million to DECYPHER TECHNOLOGIES LTD. RADIATION THERAPISTS (7 EACH)

Who is the contractor on this award?

The obligated recipient is DECYPHER TECHNOLOGIES LTD.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.5 million.

What is the period of performance?

Start: 2022-05-04. End: 2026-10-31.

What is the specific experience and track record of Decypher Technologies Ltd. in providing radiation therapy services, particularly to government entities?

Information regarding Decypher Technologies Ltd.'s specific experience in providing radiation therapy services is not detailed in the provided data. A thorough review of the contractor's past performance, including any previous government contracts, client references, and demonstrated capabilities in managing specialized medical personnel, would be necessary. Assessing their history with similar roles, contract sizes, and performance metrics is crucial for understanding their suitability and reliability for this significant contract. This would typically involve reviewing performance evaluations from prior contracts and potentially conducting interviews with previous clients.

How does the per-therapist cost compare to similar contracts awarded by the Defense Health Agency or other federal agencies for specialized medical personnel?

The approximate monthly cost per therapist is around $54,000. To benchmark this effectively, a comparison with recent awards for radiation therapists or similarly specialized medical professionals (e.g., oncologists, radiologists) by the DHA or other federal agencies like the VA is essential. Factors such as geographic location (which can significantly impact salary expectations), required qualifications, specific duties, and contract duration must be considered. If this rate is substantially higher than comparable contracts, it could indicate potential overpricing or unique service requirements justifying the difference.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential shortages of qualified radiation therapists, leading to service disruptions or increased costs if the contractor struggles to recruit and retain staff. There's also a risk of substandard service quality impacting patient care. The firm fixed-price structure mitigates financial overrun risk for the government. Mitigation strategies likely involve robust performance monitoring by the DHA, clear service level agreements, and potentially penalties for non-performance. The contractor's ability to maintain a qualified workforce is a critical success factor.

What is the expected impact of this contract on the availability and cost of radiation therapy services within the broader civilian healthcare market?

This contract, by potentially drawing qualified therapists into federal service, could marginally impact the availability of these specialists in the civilian market, particularly in specific geographic areas. However, given the relatively small number of therapists (7), the broader market impact is likely to be minimal. The cost implications are also likely contained, as the contract is specific to DoD needs. If the contractor faces significant recruitment challenges due to civilian market demand, it could indirectly influence their bidding strategy on future contracts.

How has spending on radiation therapist services by the Defense Health Agency evolved over the past five years?

Historical spending data for radiation therapist services by the Defense Health Agency is not provided. To assess spending trends, one would need to analyze DHA's contracting history for similar services over the past five years. This would involve identifying all relevant contracts, their values, durations, and the nature of services provided. Analyzing this trend could reveal patterns of increasing or decreasing reliance on contracted services, changes in pricing, or shifts in the number of personnel procured, providing context for the current award's value and scope.

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: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 CONCORD PLAZA DR STE 780, SAN ANTONIO, TX, 78216

Business Categories: Category Business, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Other Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $15,890,574

Exercised Options: $15,864,074

Current Obligation: $13,472,042

Actual Outlays: $386,618

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT005018D0018

IDV Type: IDC

Timeline