DoD awards $10.8M for medical services, with 74% of contract value potentially going to small businesses

Contract Overview

Contract Amount: $10,824,439 ($10.8M)

Contractor: Giamed Alliance JV LLC

Awarding Agency: Department of Defense

Start Date: 2022-10-01

End Date: 2026-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SURGICAL TECHNICIAN, PHYSICIAN ASSISTANTS, RESPIRATORY THERAPISTS AND REGISTERED NURSE SERVICES.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20889

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $10.8 million to GIAMED ALLIANCE JV LLC for work described as: SURGICAL TECHNICIAN, PHYSICIAN ASSISTANTS, RESPIRATORY THERAPISTS AND REGISTERED NURSE SERVICES. Key points: 1. Contract aims to secure essential medical personnel, including technicians, physician assistants, and nurses. 2. The award is structured as a delivery order under a larger contract vehicle. 3. Competition was full and open after exclusion of sources, indicating a broad but specific search for qualified vendors. 4. The contract duration spans four years, suggesting a need for sustained medical support. 5. The pricing structure is firm-fixed-price, which transfers some risk to the contractor. 6. A significant portion of the contract value is earmarked for small business participation. 7. The services are critical for maintaining military readiness and supporting healthcare operations.

Value Assessment

Rating: good

The total award of $10.8 million over four years for specialized medical personnel appears reasonable when benchmarked against similar contracts for healthcare staffing. While specific per-unit costs for each role are not detailed, the firm-fixed-price structure suggests that the Defense Health Agency has negotiated a set rate. The contract's value is consistent with the demand for skilled medical professionals in support of military health systems, especially given the specialized nature of the roles required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition after the exclusion of sources, indicating that while the initial pool of potential bidders might have been narrowed based on specific qualifications or existing contracts, the final selection was made from all eligible offerors. The data indicates 15 bids were received, suggesting a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and encouraged multiple qualified vendors to submit proposals, leading to a more cost-effective award.

Public Impact

Military personnel and their families stationed at the facility will benefit from consistent access to qualified medical professionals. The contract ensures the delivery of essential medical services, including general and surgical hospital care. Services are geographically focused on Maryland, supporting the healthcare needs of the military community in that region. The contract has implications for the healthcare workforce, potentially creating or sustaining jobs for technicians, physician assistants, and nurses.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues impacting critical medical services.
Ensuring consistent quality of care across all contracted personnel.
Managing the transition of services if contractor performance is unsatisfactory.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a competitive market for these services.
Significant small business participation could foster growth in that sector.

Sector Analysis

The healthcare services sector is a significant area of federal spending, particularly within the Department of Defense to support military readiness and personnel well-being. This contract falls under the General Medical and Surgical Hospitals subsector (NAICS 622110). Federal spending in this area often involves complex requirements for specialized medical personnel and facilities. Benchmarks for similar contracts indicate a competitive market, with pricing influenced by the demand for skilled healthcare professionals and the specific geographic locations of service.

Small Business Impact

While the contract data indicates the prime contractor is GIAMED ALLIANCE JV LLC, it also notes that 74% of the contract value is potentially subcontracted to small businesses. This suggests a strong emphasis on small business participation, which could provide significant opportunities for smaller firms in the healthcare services market. The success of this subcontracting plan will be crucial for fostering the small business ecosystem within this sector and ensuring compliance with set-aside goals.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Health Agency, which is responsible for ensuring the quality and timeliness of contracted medical services. Accountability measures are inherent in the firm-fixed-price structure, which incentivizes the contractor to meet performance standards within the agreed budget. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Military Medical Personnel Contracts
Healthcare Staffing Services
Defense Health Agency Contracts
General Medical and Surgical Hospitals Services

Risk Flags

Potential for performance degradation if subcontractors are not adequately managed.
Risk of inconsistent quality of care due to multiple service providers.
Dependency on the prime contractor's ability to fulfill subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.8 million to GIAMED ALLIANCE JV LLC. SURGICAL TECHNICIAN, PHYSICIAN ASSISTANTS, RESPIRATORY THERAPISTS AND REGISTERED NURSE SERVICES.

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 $10.8 million.

What is the period of performance?

Start: 2022-10-01. End: 2026-09-30.

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

Information regarding the specific track record of GIAMED ALLIANCE JV LLC in performing federal healthcare contracts of this magnitude and scope is not directly available in the provided data. As a joint venture, its performance history may be a composite of its member companies or a newly established record. Further investigation into federal contract databases (like SAM.gov or FPDS) would be necessary to assess past performance, including contract awards, performance evaluations (e.g., CPARS), and any history of disputes or terminations. Understanding the experience of the joint venture partners would also be critical to evaluating their capability to fulfill this $10.8 million contract effectively.

How does the $10.8 million contract value compare to similar medical staffing contracts awarded by the DoD?

The $10.8 million contract value for surgical technicians, physician assistants, respiratory therapists, and registered nurses over four years is within a typical range for specialized medical staffing requirements within the Department of Defense. Similar contracts for comprehensive medical support services at military treatment facilities can range from several million to tens of millions of dollars annually, depending on the scope, location, and duration. The firm-fixed-price nature of this award, coupled with the full and open competition that yielded 15 bids, suggests that the negotiated price is likely competitive. Benchmarking against contracts with similar service requirements and geographic focus would provide a more precise comparison, but the overall value appears aligned with market rates for such essential healthcare personnel.

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

The primary risks associated with this contract include potential contractor performance issues leading to gaps in critical medical services, difficulties in ensuring consistent quality of care from contracted personnel, and challenges in managing service transitions if performance is unsatisfactory. Mitigation strategies are embedded within the contract structure. The firm-fixed-price nature incentivizes the contractor to perform efficiently and effectively to maintain profitability. The Defense Health Agency's oversight mechanisms, including performance monitoring and potential remedies for non-performance, serve as further mitigation. Additionally, the requirement for small business subcontracting may introduce risks related to managing multiple downstream entities, but also offers flexibility.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for taxpayers?

The 'full and open competition after exclusion of sources' method aims to balance broad market access with specific qualification requirements. By excluding sources, the agency ensures that only vendors meeting certain criteria (e.g., specific certifications, past performance, or existing contract vehicles) are considered. However, the subsequent 'full and open' aspect means all qualified vendors can bid. This approach can be effective for taxpayers if the exclusion criteria are well-defined and necessary, preventing unqualified bids while still fostering robust competition among capable providers. Receiving 15 bids suggests this method successfully attracted a competitive field, likely leading to better price discovery and value compared to a sole-source or more restricted competition.

What is the historical spending pattern for similar medical services by the Defense Health Agency?

Historical spending patterns for the Defense Health Agency (DHA) on medical services, particularly for staffing and specialized personnel, have been substantial and consistently high due to the mission requirements of supporting military health. The DHA manages a vast network of healthcare facilities and requires a continuous influx of medical professionals. Annual spending often runs into billions of dollars across various contract types, including staffing, medical equipment, and facility support. Contracts for registered nurses, physician assistants, and technicians are recurring needs. While specific historical data for this exact service category isn't provided, the overall trend indicates significant and ongoing investment in outsourced medical services to supplement military medical corps and ensure operational readiness.

What are the implications of the 74% small business subcontracting goal for the overall contract performance?

The high percentage (74%) of small business subcontracting has several implications. Positively, it significantly boosts opportunities for small businesses, fostering economic growth and potentially bringing specialized expertise or innovative approaches. It also helps the prime contractor meet socio-economic goals. However, it introduces complexity in contract management, requiring the prime contractor to effectively oversee and integrate multiple small business subcontractors. Risks include potential coordination challenges, ensuring consistent quality across different subcontractors, and managing payment flows. The success of this subcontracting plan hinges on the prime contractor's robust management capabilities and the availability of qualified small businesses capable of performing the required tasks.

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: 15

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: $18,131,354

Exercised Options: $11,555,828

Current Obligation: $10,824,439

Actual Outlays: $1,356,693

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT005018D0031

IDV Type: IDC

Timeline