DoD's $6.3M contract for medical clerks awarded to Destiny Management Services, LLC, with 17 orders

Contract Overview

Contract Amount: $6,287,261 ($6.3M)

Contractor: Destiny Management Services, LLC

Awarding Agency: Department of Defense

Start Date: 2023-11-01

End Date: 2026-09-30

Contract Duration: 1,064 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL APPOINTMENT CLERKS

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $6.3 million to DESTINY MANAGEMENT SERVICES, LLC for work described as: MEDICAL APPOINTMENT CLERKS Key points: 1. Value for money appears fair given the scope of services and contract duration. 2. Competition dynamics indicate a robust bidding process, potentially driving competitive pricing. 3. Risk indicators are moderate, with performance dependent on contractor's ability to staff and manage clerks. 4. Performance context suggests a need for reliable administrative support within military healthcare. 5. Sector positioning places this contract within the broader healthcare services supporting defense operations.

Value Assessment

Rating: fair

The total contract value of approximately $6.3 million over nearly three years suggests a reasonable rate for medical appointment clerk services. Benchmarking against similar contracts for administrative support in federal healthcare settings indicates that this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, though it places the risk of cost overruns on the contractor.

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 that multiple vendors were likely solicited and evaluated. The presence of 17 delivery orders suggests a history of utilizing this contract vehicle, potentially with multiple awardees or task orders under a larger IDIQ. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

Beneficiaries include military personnel and their families who rely on timely medical appointments. Services delivered involve administrative support for scheduling and managing medical appointments. Geographic impact is likely concentrated around military treatment facilities where the clerks are deployed. Workforce implications include the creation of jobs for medical appointment clerks, potentially sourced locally or nationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inconsistent service quality if contractor's staffing and training are inadequate.
Dependence on a single contractor for critical administrative functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive marketplace.
Firm-fixed-price contract provides cost predictability for the government.
Long-term contract (over 3 years) allows for stable service provision.

Sector Analysis

This contract falls within the healthcare support services sector, a critical component of the defense budget. The market for administrative and clerical support within federal agencies, particularly healthcare, is substantial. Comparable spending benchmarks for similar services often range from hundreds of thousands to millions of dollars annually, depending on the scope and duration. This contract's value aligns with the typical scale of such support services for a military health system.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (sb: false). While the prime contractor, Destiny Management Services, LLC, may be a small business, the award itself was not a small business set-aside. There is no explicit information on subcontracting plans, but larger contracts often include provisions for small business participation to foster a broader ecosystem.

Oversight & Accountability

Oversight is typically managed by the contracting officer's representative (COR) at the Defense Health Agency, who monitors performance against contract requirements. Accountability measures are built into the firm-fixed-price contract, with payment contingent on satisfactory service delivery. Transparency is facilitated through contract databases like FPDS, which record award details, though specific performance metrics are often internal.

Related Government Programs

Defense Health Agency Contracts
Medical Administrative Support Services
Federal Healthcare Staffing
Military Treatment Facility Operations

Risk Flags

Performance Risk: Contractor's ability to consistently provide qualified and sufficient staffing.
Cost Control Risk: Potential for unforeseen cost increases impacting the firm-fixed-price structure.
Service Disruption Risk: Impact of staffing shortages or turnover on appointment scheduling efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.3 million to DESTINY MANAGEMENT SERVICES, LLC. MEDICAL APPOINTMENT CLERKS

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: 2023-11-01. End: 2026-09-30.

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

A review of federal procurement data would be necessary to fully assess Destiny Management Services, LLC's track record. Key indicators would include the number and value of previous contracts, performance ratings (if available), and any history of contract modifications, disputes, or terminations. Understanding their experience with the Defense Health Agency or similar healthcare providers would be particularly relevant. Without specific past performance data, it's difficult to definitively gauge their reliability for this specific medical appointment clerk function.

How does the per-unit cost of these medical appointment clerks compare to market rates?

Determining the precise per-unit cost requires breaking down the total contract value by the number of clerks and the duration of their service. For example, if 10 clerks were employed for the full duration, the annual cost per clerk would be approximately $209,575 ($6.3M / 10 clerks / ~2.9 years). This figure needs to be compared against market rates for similar administrative support roles in the geographic locations where these clerks are deployed. Factors like required clearances, specific healthcare administrative experience, and benefits packages will influence market rates, making direct comparison complex but essential for value assessment.

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

The primary risks include potential contractor underperformance in staffing, training, or service delivery, leading to disruptions in medical appointment scheduling. There's also a risk of cost growth if the firm-fixed-price contract doesn't adequately account for unforeseen operational challenges. Mitigation strategies likely involve robust performance monitoring by the COR, clear service level agreements (SLAs) within the contract, and the ability to exercise contract options or seek alternative solutions if performance is consistently unsatisfactory. The competitive nature of the award also serves as a baseline mitigation by selecting a vendor presumed capable.

How effective has this contract been in ensuring timely and efficient medical appointment scheduling for service members?

Assessing the effectiveness requires access to performance metrics and feedback from the end-users (military personnel and healthcare providers). Key performance indicators (KPIs) would likely include appointment wait times, no-show rates, patient satisfaction scores related to scheduling, and the accuracy of appointment data. Without this specific performance data, effectiveness can only be inferred from the contract's continuation and the absence of major reported issues. The Defense Health Agency would be the primary source for such effectiveness evaluations.

What is the historical spending trend for medical appointment clerk services within the Department of Defense?

Analyzing historical spending requires querying federal procurement databases for similar contracts over several fiscal years. This would involve looking at contracts awarded by the Defense Health Agency and other DoD components for 'medical clerks,' 'appointment scheduling,' or related administrative support services. Trends might reveal increasing or decreasing reliance on contracted services, shifts in average contract values, and changes in the competitive landscape. Understanding this history provides context for the current $6.3 million award and helps identify potential budget fluctuations or strategic shifts in healthcare administration.

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 › CLERICAL 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: 17

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: $10,252,099

Exercised Options: $6,291,181

Current Obligation: $6,287,261

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT001418D0012

IDV Type: IDC

Timeline