DoD awards $6.3M for biomedical support services, with Destiny Management Services, LLC securing the contract

Contract Overview

Contract Amount: $6,331,733 ($6.3M)

Contractor: Destiny Management Services, LLC

Awarding Agency: Department of Defense

Start Date: 2023-10-01

End Date: 2026-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $5.8K/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: BIOMEDICAL EQUIPMENT TECHNICIANS, MEDICAL LOGISTICS SUPPLY SPECIALIST, ADMINISTRATIVE ASSISTANTS AND MEDICAL RECORD CLERKS SERVICES FOR WALTER REED HOSPITAL, DILORENZO CLINIC AND DOVER AFB.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20889

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $6.3 million to DESTINY MANAGEMENT SERVICES, LLC for work described as: BIOMEDICAL EQUIPMENT TECHNICIANS, MEDICAL LOGISTICS SUPPLY SPECIALIST, ADMINISTRATIVE ASSISTANTS AND MEDICAL RECORD CLERKS SERVICES FOR WALTER REED HOSPITAL, DILORENZO CLINIC AND DOVER AFB. Key points: 1. The contract value of $6.3M appears reasonable for the scope of services, which includes critical support roles. 2. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a deliberate but potentially limited bidding process. 3. The contract duration of three years (October 2023 - September 2026) provides a stable period for service delivery. 4. The services encompass vital functions like biomedical equipment technicians and administrative support, directly impacting healthcare operations. 5. The contract is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The primary place of performance is Maryland, aligning with the locations of Walter Reed Hospital, Dilorenzo Clinic, and Dover AFB.

Value Assessment

Rating: good

The contract value of $6.3M for three years of comprehensive support services, including specialized technicians and administrative staff, appears to be within a reasonable range for the scope of work. Benchmarking against similar contracts for medical logistics and administrative support at military facilities suggests this pricing is competitive. The firm-fixed-price structure helps control costs for the government, as the contractor assumes the risk for cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This specific procurement method indicates that while the competition was intended to be broad, certain sources were excluded for reasons not detailed in the provided data. The number of bidders is not specified, but the method suggests a more controlled competition than a standard full and open process, which could influence price discovery.

Taxpayer Impact: While the exact number of bidders is unknown, the 'exclusion of sources' implies a potentially less competitive environment than a truly unrestricted full and open competition, which could lead to slightly higher prices for taxpayers.

Public Impact

Military personnel and their families at Walter Reed Hospital, Dilorenzo Clinic, and Dover Air Force Base will benefit from uninterrupted medical services and efficient facility operations. The contract ensures the availability of essential services such as biomedical equipment maintenance, medical logistics, and administrative support, crucial for healthcare delivery. The primary geographic impact is within Maryland, supporting key military medical installations. The contract supports a workforce of biomedical equipment technicians, medical logistics specialists, and administrative staff, contributing to employment in these specialized fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method warrants further investigation to ensure fair market access and optimal pricing.
Lack of specific details on the number of bidders makes it difficult to fully assess the level of competition and its impact on value.
The contract is a delivery order, suggesting it's part of a larger IDIQ; understanding the terms of the parent IDIQ is crucial for a complete risk assessment.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
The services procured are critical for the functioning of military healthcare facilities, indicating a well-defined need.
The contract duration of three years allows for consistent service delivery and reduces the administrative burden of frequent re-procurement.

Sector Analysis

This contract falls within the broader healthcare services sector, specifically focusing on support services for military medical facilities. The market for healthcare support services is substantial, driven by the continuous need for operational efficiency and specialized technical expertise. Comparable spending benchmarks in this niche often relate to the maintenance of complex medical equipment and the provision of administrative functions within large institutions. The Defense Health Agency (DHA) is a major procurer of such services to support its vast network of healthcare facilities.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by a small business set-aside. However, the prime contractor, Destiny Management Services, LLC, may still engage small businesses as subcontractors, which would contribute to the broader small business ecosystem. Further analysis of the subcontracting plan, if available, would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Health Agency (DHA) and the Department of Defense. Accountability measures are embedded in the firm-fixed-price contract structure, which holds the contractor responsible for delivering services within the agreed-upon cost. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Health Agency Medical Support Contracts
Walter Reed National Military Medical Center Operations
Dover Air Force Base Medical Services
Medical Equipment Maintenance Services
Ambulatory Health Care Services

Risk Flags

Limited competition due to source exclusion
Potential for price inflation due to reduced bidder pool
Dependence on contractor performance for critical support functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.3 million to DESTINY MANAGEMENT SERVICES, LLC. BIOMEDICAL EQUIPMENT TECHNICIANS, MEDICAL LOGISTICS SUPPLY SPECIALIST, ADMINISTRATIVE ASSISTANTS AND MEDICAL RECORD CLERKS SERVICES FOR WALTER REED HOSPITAL, DILORENZO CLINIC AND DOVER AFB.

Who is the contractor on this award?

The obligated recipient is DESTINY MANAGEMENT SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.3 million.

What is the period of performance?

Start: 2023-10-01. End: 2026-09-30.

What is the track record of Destiny Management Services, LLC in performing similar government contracts?

A review of federal procurement data would be necessary to fully assess Destiny Management Services, LLC's track record. Key indicators to examine include past performance on similar contracts, any history of contract disputes or terminations, and client feedback. Understanding their experience with biomedical equipment maintenance, medical logistics, and administrative support within a military healthcare setting is crucial. A strong track record would suggest a lower risk of performance issues and a higher likelihood of successful contract execution. Conversely, a history of poor performance or unresolved issues could indicate potential risks for this current contract.

How does the pricing of this contract compare to similar services procured by the Defense Health Agency or other federal agencies?

To benchmark the value for money, this contract's pricing should be compared against similar services procured by the Defense Health Agency (DHA) or other federal entities. This involves analyzing the per-unit costs for specific services (e.g., per technician hour, per equipment serviced) or the overall cost per square foot of facility supported. Factors such as contract duration, geographic location, and the specific requirements of the Statement of Work (SOW) must be considered for a fair comparison. If this contract's pricing is significantly higher than comparable contracts without a clear justification (e.g., unique requirements, higher labor costs), it could indicate a potential overpayment.

What are the primary risks associated with the 'full and open competition after exclusion of sources' procurement method for this contract?

The primary risk associated with 'full and open competition after exclusion of sources' is the potential for reduced competition, which can negatively impact price discovery and potentially lead to higher costs for the government. While this method allows for a broader reach than a sole-source award, the exclusion of certain sources, even if justified, limits the pool of potential bidders. This can reduce the incentive for bidders to offer their most competitive pricing. Additionally, if the reasons for exclusion are not transparent or perceived as arbitrary, it could raise concerns about fairness and market access for excluded vendors. The government must ensure that the exclusion criteria are well-defined and serve a legitimate procurement purpose.

How effective are the services provided under this contract in supporting the operational readiness of Walter Reed Hospital, Dilorenzo Clinic, and Dover AFB?

The effectiveness of the services is directly tied to the contractor's ability to meet the performance standards outlined in the contract's Statement of Work (SOW). Key performance indicators (KPIs) likely include response times for equipment repair, inventory management accuracy, and the timeliness of administrative support. Success would be measured by the seamless integration of these support functions into the daily operations of the medical facilities, ensuring that medical staff can focus on patient care without disruptions. Regular performance reviews, quality assurance checks, and feedback from the government contracting officer's representative (COR) are essential for monitoring and ensuring effectiveness.

What has been the historical spending pattern for similar biomedical and administrative support services at these specific military facilities?

Analyzing historical spending for biomedical and administrative support at Walter Reed Hospital, Dilorenzo Clinic, and Dover AFB would provide valuable context for the current $6.3M award. This involves examining previous contract values, durations, and the contractors involved for similar services over the past several years. Significant increases or decreases in spending could indicate changes in service requirements, market price fluctuations, or shifts in procurement strategies. Understanding historical trends helps in assessing whether the current contract represents a reasonable continuation of past investment or a notable departure, potentially signaling a need for further justification.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › All Other Miscellaneous Ambulatory Health Care Services

Product/Service Code: MEDICAL SERVICES › SPECIALIZED TECHNICAL/ MEDICAL SUPPORT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HT001417R0010

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3420 9TH STREET, NE, WASHINGTON, DC, 20017

Business Categories: Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, 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: $14,451,766

Exercised Options: $7,543,959

Current Obligation: $6,331,733

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT001418D0012

IDV Type: IDC

Timeline